S.B. 95 Enrolled

             1     

REVISOR'S STATUTE

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ralph Okerlund

             5     
House Sponsor: Brad L. Dee

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies parts of the Utah Code to make technical corrections, including
             10      eliminating references to repealed provisions, making minor wording changes, updating
             11      cross-references, and correcting numbering.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies parts of the Utah Code to make technical corrections, including
             15      eliminating references to repealed provisions, making minor wording changes,
             16      updating cross-references, correcting numbering, and fixing errors that were created
             17      from the previous year's session.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides effective dates.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24           4-20-3 , as last amended by Laws of Utah 2012, Chapter 331
             25           4-32-11 , as last amended by Laws of Utah 2010, Chapter 242
             26           4-37-202 , as last amended by Laws of Utah 2010, Chapter 378
             27           4-37-302 , as last amended by Laws of Utah 2010, Chapter 378
             28           4-39-401 , as enacted by Laws of Utah 1997, Chapter 302
             29           7-1-103 , as last amended by Laws of Utah 2013, Chapter 73


             30           7-1-403 , as last amended by Laws of Utah 1986, Fourth Special Session, Chapter 1
             31           7-1-616 , as last amended by Laws of Utah 1996, Chapter 182
             32           7-1-703 , as last amended by Laws of Utah 1995, Chapter 49
             33           7-1-710 , as enacted by Laws of Utah 1983, Chapter 8
             34           7-1-802 , as last amended by Laws of Utah 2000, Chapter 260
             35           7-2-1 , as last amended by Laws of Utah 1994, Chapter 200
             36           7-2-2 , as last amended by Laws of Utah 1994, Chapter 200
             37           7-2-12 , as last amended by Laws of Utah 2010, Chapter 378
             38           7-3-1 , as enacted by Laws of Utah 1981, Chapter 16
             39           7-5-2 , as last amended by Laws of Utah 2010, Chapter 378
             40           7-5-6 , as last amended by Laws of Utah 1982, Chapter 6
             41           7-5-7 , as last amended by Laws of Utah 2010, Chapter 378
             42           7-5-8 , as last amended by Laws of Utah 2010, Chapter 378
             43           7-5-11 , as last amended by Laws of Utah 2010, Chapter 378
             44           7-5-15 , as last amended by Laws of Utah 1994, Chapter 200
             45           7-9-25 , as last amended by Laws of Utah 1983, Chapter 8
             46           7-9-39.5 , as last amended by Laws of Utah 2003, Chapter 327
             47           7-9-42 , as enacted by Laws of Utah 1981, Chapter 16
             48           7-9-45 , as last amended by Laws of Utah 1999, Chapter 329
             49           7-9-55 , as enacted by Laws of Utah 2003, Chapter 327
             50           7-9-58 , as last amended by Laws of Utah 2008, Chapter 126
             51           7-14-1 , as last amended by Laws of Utah 1995, Chapter 20
             52           7-19-1 , as last amended by Laws of Utah 1995, Chapter 49
             53           9-1-801 , as enacted by Laws of Utah 1994, Chapter 119
             54           9-6-205 , as last amended by Laws of Utah 2012, Chapter 212
             55           9-7-501 , as last amended by Laws of Utah 1993, Chapter 227
             56           9-8-301 , as last amended by Laws of Utah 2005, Chapter 145
             57           9-8-307 , as last amended by Laws of Utah 1995, Chapter 170


             58           9-8-405 , as last amended by Laws of Utah 2008, Chapter 382
             59           10-1-114 , as last amended by Laws of Utah 1999, Chapter 21
             60           10-1-119 , as last amended by Laws of Utah 2013, Chapter 325
             61           10-1-203 , as last amended by Laws of Utah 2012, Chapter 289
             62           10-2-125 , as last amended by Laws of Utah 2012, Chapter 359
             63           10-2-126 , as enacted by Laws of Utah 2012, Chapter 359
             64           10-8-62 , as last amended by Laws of Utah 2001, Chapter 9
             65           10-8-63 , as last amended by Laws of Utah 2001, Chapter 9
             66           10-18-104 , as enacted by Laws of Utah 2001, Chapter 83
             67           11-13-303 , as last amended by Laws of Utah 2008, Chapter 382
             68           11-13-315 , as enacted by Laws of Utah 2013, Chapter 230
             69           11-14-301 , as last amended by Laws of Utah 2012, Chapter 204
             70           11-17-14 , as enacted by Laws of Utah 1967, Chapter 29
             71           11-32-4 , as last amended by Laws of Utah 1995, Chapter 181
             72           11-42-604 , as last amended by Laws of Utah 2009, Chapter 388
             73           13-1a-5 , as last amended by Laws of Utah 2008, Chapter 382
             74           13-22-8 , as last amended by Laws of Utah 2009, Chapter 183
             75           13-23-5 , as last amended by Laws of Utah 2013, Chapter 124
             76           13-26-4 , as last amended by Laws of Utah 1996, Chapter 170
             77           13-32a-104 , as last amended by Laws of Utah 2012, Chapter 284
             78           13-32a-115 , as enacted by Laws of Utah 2012, Chapter 284
             79           13-32a-117 , as last amended by Laws of Utah 2013, Chapter 124
             80           13-47-102 (Contingently Repealed), as enacted by Laws of Utah 2010, Chapter 403
             81           13-47-201 (Contingently Repealed), as enacted by Laws of Utah 2010, Chapter 403
             82           15-8-4 , as last amended by Laws of Utah 2007, Chapter 272
             83           15-9-103 , as last amended by Laws of Utah 2010, Chapter 74
             84           15-10-201 , as last amended by Laws of Utah 2011, Chapter 262
             85           15A-1-204 , as enacted by Laws of Utah 2011, Chapter 14


             86           15A-2-102 , as enacted by Laws of Utah 2011, Chapter 14
             87           15A-2-104 , as last amended by Laws of Utah 2013, Chapter 297
             88           15A-3-201 , as enacted by Laws of Utah 2011, Chapter 14
             89           15A-3-306 , as last amended by Laws of Utah 2013, Chapter 297
             90           15A-4-201 , as enacted by Laws of Utah 2011, Chapter 14
             91           15A-5-103 , as last amended by Laws of Utah 2013, Chapter 199
             92           16-6a-1011 , as enacted by Laws of Utah 2000, Chapter 300
             93           16-6a-1202 , as enacted by Laws of Utah 2000, Chapter 300
             94           16-6a-1701 , as enacted by Laws of Utah 2000, Chapter 300
             95           16-6a-1702 , as last amended by Laws of Utah 2008, Chapter 250
             96           16-10a-402 , as enacted by Laws of Utah 1992, Chapter 277
             97           16-10a-901 , as enacted by Laws of Utah 1992, Chapter 277
             98           16-10a-1106 , as enacted by Laws of Utah 1992, Chapter 277
             99           16-10a-1301 , as enacted by Laws of Utah 1992, Chapter 277
             100           16-10a-1405 , as enacted by Laws of Utah 1992, Chapter 277
             101           16-16-113 , as last amended by Laws of Utah 2010, Chapter 378
             102           17-18a-405 , as enacted by Laws of Utah 2013, Chapter 237
             103           17-23-17.5 , as last amended by Laws of Utah 2001, Chapter 241
             104           17-23-19 , as last amended by Laws of Utah 1993, Chapter 227
             105           17-27a-205 , as last amended by Laws of Utah 2013, Chapter 324
             106           17-27a-301 , as last amended by Laws of Utah 2011, Chapters 107 and 305
             107           17-27a-512 , as last amended by Laws of Utah 2009, Chapters 170 and 233
             108           17-36-3 , as last amended by Laws of Utah 2012, Chapter 17
             109           17-36-39 , as last amended by Laws of Utah 2004, Chapter 206
             110           17-53-301 , as last amended by Laws of Utah 2001, Chapter 241
             111           17B-1-121 , as enacted by Laws of Utah 2011, Chapter 205
             112           17B-1-512 , as last amended by Laws of Utah 2011, Chapter 297
             113           17B-2a-902 , as last amended by Laws of Utah 2012, Chapter 97


             114           17B-2a-905 , as last amended by Laws of Utah 2013, Chapter 70
             115           17C-4-202 , as last amended by Laws of Utah 2010, Chapters 90 and 279
             116           17D-3-105 , as enacted by Laws of Utah 2012, Chapter 103
             117           20A-1-306 , as enacted by Laws of Utah 2011, Chapter 17
             118           26-28-112 , as enacted by Laws of Utah 2007, Chapter 60
             119           36-23-109 , as enacted by Laws of Utah 2013, Chapter 323
             120           38-8-3.5 , as enacted by Laws of Utah 2013, Chapter 163
             121           39-6-36 , as enacted by Laws of Utah 1988, Chapter 210
             122           48-1d-1305 , as enacted by Laws of Utah 2013, Chapter 412
             123           53-5-707 , as last amended by Laws of Utah 2013, Chapter 280
             124           53-13-110 , as renumbered and amended by Laws of Utah 1998, Chapter 282
             125           53A-1a-521 , as last amended by Laws of Utah 2013, Chapter 239
             126           53A-3-701 , as last amended by Laws of Utah 2003, Chapter 221
             127           53A-16-107 , as last amended by Laws of Utah 2011, Chapters 153, 369, and 371
             128           53A-16-114 , as last amended by Laws of Utah 2011, Chapter 342 and renumbered and
             129      amended by Laws of Utah 2011, Chapter 371
             130           53A-17a-133 , as last amended by Laws of Utah 2013, Chapters 178 and 313
             131           53A-25a-102 , as enacted by Laws of Utah 1994, Chapter 280
             132           54-3-31 , as enacted by Laws of Utah 2013, Chapter 242
             133          57-8-7.5 (Effective 07/01/14), as last amended by Laws of Utah 2013, Chapters 152,
             134      419 and last amended by Coordination Clause, Laws of Utah 2013, Chapter 152
             135          57-8-43, as last amended by Laws of Utah 2013, Chapter 152
             136          57-8a-211 (Superseded 07/01/14), as last amended by Laws of Utah 2013, Chapter 419
             137          58-40-302, as enacted by Laws of Utah 2012, Chapter 82
             138          58-60-506, as last amended by Laws of Utah 2013, Chapter 123
             139          58-77-601, as last amended by Laws of Utah 2008, Chapter 365
             140          59-14-302, as last amended by Laws of Utah 2013, Chapter 148
             141          63C-13-107, as enacted by Laws of Utah 2013, Chapter 228


             142          63G-12-306, as enacted by Laws of Utah 2011, Chapter 18
             143          63I-1-253, as last amended by Laws of Utah 2012, Chapter 369
             144          63I-1-263, as last amended by Laws of Utah 2013, Chapters 28, 62, 101, 167, 250, and
             145      413
             146          63I-2-217, as last amended by Laws of Utah 2012, Chapter 17
             147          63I-2-236, as last amended by Laws of Utah 2013, Chapter 283
             148          63I-2-253, as lst amended by Laws of Utah 2013, Chapters 173 and 434
             149          63I-2-277, as last amended by Laws of Utah 2012, Chapter 17
             150          63I-4a-202, as renumbered and amended by Laws of Utah 2013, Chapter 325
             151          63J-1-206, as last amended by Laws of Utah 2013, Chapter 310
             152          63J-1-505, as renumbered and amended by Laws of Utah 2009, Chapter 183
             153          63J-1-602.3, as last amended by Laws of Utah 2013, Chapters 117, 295 and last
             154      amended by Coordination Clause, Laws of Utah 2013, Chapter 117
             155          63J-1-602.4, as last amended by Laws of Utah 2013, Chapter 28
             156          63M-1-3203, as enacted by Laws of Utah 2013, Chapter 336
             157          70A-2a-533, as enacted by Laws of Utah 1990, Chapter 197
             158          76-1-501, as last amended by Laws of Utah 2013, Chapter 278
             159          76-5-102.4, as last amended by Laws of Utah 2013, Chapter 156
             160          78A-2-301, as last amended by Laws of Utah 2012, Chapter 247
             161          78A-7-301, as last amended by Laws of Utah 2011, Chapter 143
             162          78B-3-421, as renumbered and amended by Laws of Utah 2008, Chapter 3
             163      RENUMBERS AND AMENDS:
             164           4-18-108 , (Renumbered from 4-18-6.5, as last amended by Laws of Utah 2008, Chapter
             165      382)
             166      REPEALS:
             167           63G-13-203 , as enacted by Laws of Utah 2011, Chapter 19
             168     
             169      Be it enacted by the Legislature of the state of Utah:


             170          Section 1. Section 4-18-108 , which is renumbered from Section 4-18-6.5 is
             171      renumbered and amended to read:
             172           [4-18-6.5].     4-18-108. Grants to improve manure management or control runoff
             173      at animal feeding operations.
             174          (1) (a) The commission may make grants to owners or operators of animal feeding
             175      operations to pay for costs of plans or projects to improve manure management or control
             176      surface water runoff, including costs of preparing or implementing comprehensive nutrient
             177      management plans.
             178          (b) The commission shall make the grants described in Subsection (1)(a) from funds
             179      appropriated by the Legislature for that purpose.
             180          (2) (a) In awarding grants, the commission shall consider the following criteria:
             181          (i) the ability of the grantee to pay for costs of plans or projects to improve manure
             182      management or control surface water runoff;
             183          (ii) the availability of:
             184          (A) matching funds provided by the grantee or another source; or
             185          (B) material, labor, or other items of value provided in lieu of money by the grantee or
             186      another source; and
             187          (iii) the benefits that accrue to the general public by the awarding of a grant.
             188          (b) The commission may establish by rule additional criteria for the awarding of grants.
             189          (3) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
             190      Administrative Rulemaking Act, to implement this section.
             191          Section 2. Section 4-20-3 is amended to read:
             192           4-20-3. Rangeland Improvement Account distribution.
             193          (1) The department shall distribute restricted account money as provided in this
             194      section.
             195          (a) The department shall:
             196          (i) distribute pro rata to each school district the money received by the state under
             197      Subsection 4-20-2 (1)(b)(i) from the sale or lease of public lands based upon the amount of


             198      revenue generated from the sale or lease of public lands within the district; and
             199          (ii) ensure that all money generated from the sale or lease of public lands within a
             200      school district is credited and deposited to the general school fund of that school district.
             201          (b) (i) After the commissioner approves a request from a regional board, the
             202      department shall distribute pro rata to each regional board money received by the state under
             203      Subsection 4-20-2 (1)(b)(i) from fees based upon the amount of revenue generated from the
             204      imposition of fees within that grazing district.
             205          (ii) The regional board shall expend money received in accordance with Subsection (2).
             206          (c) (i) The department shall distribute or expend money received by the state under
             207      Subsections 4-20-2 (1)(b)(ii) [through (iv)] and (iii) for the purposes outlined in Subsection (2).
             208          (ii) The department may require entities seeking funding from sources outlined in
             209      Subsections 4-20-2 (1)(b)(ii) [through (iv)] and (iii) to provide matching funds.
             210          (2) The department shall ensure that restricted account distributions or expenditures
             211      under Subsections (1)(b) and (c) are used for:
             212          (a) range improvement and maintenance;
             213          (b) the control of predatory and depredating animals;
             214          (c) the control, management, or extermination of invading species, range damaging
             215      organisms, and poisonous or noxious weeds;
             216          (d) the purchase or lease of lands or a conservation easement for the benefit of a
             217      grazing district;
             218          (e) watershed protection, development, distribution, and improvement;
             219          (f) the general welfare of livestock grazing within a grazing district; and
             220          (g) subject to Subsection (3), costs to monitor rangeland improvement projects.
             221          (3) Annual account distributions or expenditures for the monitoring costs described in
             222      Subsection (2)(g) may not exceed 10% of the annual receipts of the fund.
             223          Section 3. Section 4-32-11 is amended to read:
             224           4-32-11. Preparation and slaughter of livestock, poultry, or livestock and poultry
             225      products -- Adulterated or misbranded products -- Violation of rule or order.


             226          (1) An animal or meat or poultry product that may be used for human consumption
             227      shall not be:
             228          (a) slaughtered or prepared unless it is done in compliance with this chapter's
             229      requirements;
             230          (b) sold, transported, offered for sale or transportation, or received for transportation, if
             231      it is adulterated or misbranded, unless it has been inspected and approved; or
             232          (c) subjected to any act while being transported or held for sale after transportation
             233      resulting in one of the products becoming adulterated or being misbranded.
             234          (2) A person may not violate any rule or order of the commissioner under Subsection
             235      4-32-7 (3) or (6), or Subsection 4-32-8 (3), (5), or (7)[, or (14)].
             236          Section 4. Section 4-37-202 is amended to read:
             237           4-37-202. Acquisition of aquatic animals for use in aquaculture facilities.
             238          (1) Live aquatic animals intended for use in aquaculture facilities may be purchased or
             239      acquired only from:
             240          (a) aquaculture facilities within the state that have a certificate of registration and
             241      health approval number;
             242          (b) public aquaculture facilities within the state that have a health approval number; or
             243          (c) sources outside the state that are health approved as provided in Part 5, Health
             244      Approval.
             245          (2) A person holding a certificate of registration for an aquaculture facility shall submit
             246      annually to the department a record of each purchase of live aquatic animals and transfer of live
             247      aquatic animals into the facility. This record shall include the following information:
             248          (a) name, address, and health approval number of the source;
             249          (b) date of transaction; and
             250          (c) number and weight by species.
             251          (3) The records required by Subsection (2) shall be submitted to the department before
             252      a certificate of registration is renewed or a subsequent certificate of registration is issued.
             253          Section 5. Section 4-37-302 is amended to read:


             254           4-37-302. Acquisition of aquatic animals for use in fee fishing facilities.
             255          (1) Live aquatic animals intended for use in fee fishing facilities may be purchased or
             256      acquired only from:
             257          (a) aquaculture facilities within the state that have a certificate of registration and
             258      health approval number;
             259          (b) public aquaculture facilities within the state that have a health approval number; or
             260          (c) sources outside the state that are health approved pursuant to Part 5, Health
             261      Approval.
             262          (2) (a) A person holding a certificate of registration for a fee fishing facility shall
             263      submit to the department an annual report of all live fish purchased or acquired.
             264          (b) The report shall contain the following information:
             265          (i) name, address, and certificate of registration number of the seller or supplier;
             266          (ii) number and weight by species;
             267          (iii) date of purchase or transfer; and
             268          (iv) name, address, and certificate of registration number of the receiver.
             269          (c) The report shall be submitted to the department before a certificate of registration is
             270      renewed or subsequent certificate of registration is issued.
             271          Section 6. Section 4-39-401 is amended to read:
             272           4-39-401. Escape of domesticated elk -- Liability.
             273          (1) It is the owner's responsibility to try to capture any domesticated elk that may have
             274      escaped.
             275          (2) The escape of a domesticated elk shall be reported immediately to the state
             276      veterinarian or a brand inspector of the Department of Agriculture who shall notify the
             277      Division of Wildlife Resources.
             278          (3) If the domesticated elk is not recovered within 72 hours of the escape, the
             279      Department of Agriculture, in conjunction with the Division of Wildlife Resources, shall take
             280      whatever action is necessary to resolve the problem.
             281          (4) The owner shall reimburse the state or a state agency for any reasonable recapture


             282      costs that may be incurred in the recapture or destruction of the animal.
             283          (5) Any escaped domesticated elk taken by a licensed hunter in a manner which
             284      complies with the provisions of Title 23, Wildlife Resources Code of Utah, and the rules of the
             285      Wildlife Board shall be considered to be a legal taking and neither the licensed hunter, the
             286      state, nor a state agency shall be liable to the owner for the killing.
             287          (6) The owner shall be responsible to contain the domesticated elk to ensure that there
             288      is no spread of disease from domesticated elk to wild elk and that the genetic purity of wild elk
             289      is protected.
             290          Section 7. Section 7-1-103 is amended to read:
             291           7-1-103. Definitions.
             292          As used in this title:
             293          (1) (a) "Bank" means a person authorized under the laws of this state, another state, or
             294      the United States to accept deposits from the public.
             295          (b) "Bank" does not include:
             296          (i) a federal savings and loan association or federal savings bank;
             297          (ii) an industrial bank subject to Chapter 8, Industrial Banks;
             298          (iii) a federally chartered credit union; or
             299          (iv) a credit union subject to Chapter 9, Utah Credit Union Act.
             300          (2) "Banking business" means the offering of deposit accounts to the public and the
             301      conduct of such other business activities as may be authorized by this title.
             302          (3) (a) "Branch" means a place of business of a financial institution, other than its main
             303      office, at which deposits are received and paid.
             304          (b) "Branch" does not include:
             305          (i) an automated teller machine, as defined in Section 7-16a-102 ;
             306          (ii) a point-of-sale terminal, as defined in Section 7-16a-102 ; or
             307          (iii) a loan production office under Section 7-1-715 .
             308          (4) "Commissioner" means the Commissioner of Financial Institutions.
             309          (5) "Control" means the power, directly or indirectly, to:


             310          (a) direct or exercise a controlling influence over:
             311          (i) the management or policies of a financial institution; or
             312          (ii) the election of a majority of the directors or trustees of an institution;
             313          (b) vote 20% or more of any class of voting securities of a financial institution by an
             314      individual; or
             315          (c) vote more than 10% of any class of voting securities of a financial institution by a
             316      person other than an individual.
             317          (6) "Credit union" means a cooperative, nonprofit association incorporated under:
             318          (a) Chapter 9, Utah Credit Union Act; or
             319          (b) 12 U.S.C. Sec. 1751 et seq., Federal Credit Union Act, as amended.
             320          (7) "Department" means the Department of Financial Institutions.
             321          (8) "Depository institution" means a bank, savings and loan association, savings bank,
             322      industrial bank, credit union, or other institution that:
             323          (a) holds or receives deposits, savings, or share accounts;
             324          (b) issues certificates of deposit; or
             325          (c) provides to its customers other depository accounts that are subject to withdrawal
             326      by checks, drafts, or other instruments or by electronic means to effect third party payments.
             327          (9) (a) "Depository institution holding company" means:
             328          (i) a person other than an individual that:
             329          (A) has control over any depository institution; or
             330          (B) becomes a holding company of a depository institution under Section 7-1-703 ; or
             331          (ii) a person other than an individual that the commissioner finds, after considering the
             332      specific circumstances, is exercising or is capable of exercising a controlling influence over a
             333      depository institution by means other than those specifically described in this section.
             334          (b) Except as provided in Section 7-1-703 , a person is not a depository institution
             335      holding company solely because it owns or controls shares acquired in securing or collecting a
             336      debt previously contracted in good faith.
             337          (10) "Financial institution" means any institution subject to the jurisdiction of the


             338      department because of this title.
             339          (11) (a) "Financial institution holding company" means a person, other than an
             340      individual that has control over any financial institution or any person that becomes a financial
             341      institution holding company under this chapter, including an out-of-state or foreign depository
             342      institution holding company.
             343          (b) Ownership of a service corporation or service organization by a depository
             344      institution does not make that institution a financial institution holding company.
             345          (c) A person holding 10% or less of the voting securities of a financial institution is
             346      rebuttably presumed not to have control of the institution.
             347          (d) A trust company is not a holding company solely because it owns or holds 20% or
             348      more of the voting securities of a financial institution in a fiduciary capacity, unless the trust
             349      company exercises a controlling influence over the management or policies of the financial
             350      institution.
             351          (12) "Foreign depository institution" means a depository institution chartered or
             352      authorized to transact business by a foreign government.
             353          (13) "Foreign depository institution holding company" means the holding company of a
             354      foreign depository institution.
             355          (14) "Home state" means:
             356          (a) for a state chartered depository institution, the state that charters the institution;
             357          (b) for a federally chartered depository institution, the state where the institution's main
             358      office is located; and
             359          (c) for a depository institution holding company, the state in which the total deposits of
             360      all depository institution subsidiaries are the largest.
             361          (15) "Host state" means:
             362          (a) for a depository institution, a state, other than the institution's home state, where the
             363      institution maintains or seeks to establish a branch; and
             364          (b) for a depository institution holding company, a state, other than the depository
             365      institution holding company's home state, where the depository institution holding company


             366      controls or seeks to control a depository institution subsidiary.
             367          (16) "Industrial bank" means a corporation or limited liability company conducting the
             368      business of an industrial bank under Chapter 8, Industrial Banks.
             369          (17) "Industrial loan company" is as defined in Section 7-8-21 .
             370          (18) "Insolvent" means the status of a financial institution that is unable to meet its
             371      obligations as they mature.
             372          (19) "Institution" means:
             373          (a) a corporation;
             374          (b) a limited liability company;
             375          (c) a partnership;
             376          (d) a trust;
             377          (e) an association;
             378          (f) a joint venture;
             379          (g) a pool;
             380          (h) a syndicate;
             381          (i) an unincorporated organization; or
             382          (j) any form of business entity.
             383          (20) "Institution subject to the jurisdiction of the department" means an institution or
             384      other person described in Section 7-1-501 .
             385          (21) "Liquidation" means the act or process of winding up the affairs of an institution
             386      subject to the jurisdiction of the department by realizing upon assets, paying liabilities, and
             387      appropriating profit or loss, as provided in [Chapters 2 and 19] Chapter 2, Possession of
             388      Depository Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository
             389      Institutions or Holding Companies.
             390          (22) "Liquidator" means a person, agency, or instrumentality of this state or the United
             391      States appointed to conduct a liquidation.
             392          (23) (a) "Money services business" includes:
             393          (i) a check casher;


             394          (ii) a deferred deposit lender;
             395          (iii) an issuer or seller of traveler's checks or money orders; and
             396          (iv) a money transmitter.
             397          (b) "Money services business" does not include:
             398          (i) a bank;
             399          (ii) a person registered with, and functionally regulated or examined by the Securities
             400      Exchange Commission or the Commodity Futures Trading Commission, or a foreign financial
             401      agency that engages in financial activities that, if conducted in the United States, would require
             402      the foreign financial agency to be registered with the Securities Exchange Commission or the
             403      Commodity Futures Trading Commission; or
             404          (iii) an individual who engages in an activity described in Subsection (23)(a) on an
             405      infrequent basis and not for gain or profit.
             406          (24) "Negotiable order of withdrawal" means a draft drawn on a NOW account.
             407          (25) (a) "NOW account" means a savings account from which the owner may make
             408      withdrawals by negotiable or transferable instruments for the purpose of making transfers to
             409      third parties.
             410          (b) A "NOW account" is not a demand deposit.
             411          (c) Neither the owner of a NOW account nor any third party holder of an instrument
             412      requesting withdrawal from the account has a legal right to make withdrawal on demand.
             413          (26) "Out-of-state" means, in reference to a depository institution or depository
             414      institution holding company, an institution or company whose home state is not Utah.
             415          (27) "Person" means:
             416          (a) an individual;
             417          (b) a corporation;
             418          (c) a limited liability company;
             419          (d) a partnership;
             420          (e) a trust;
             421          (f) an association;


             422          (g) a joint venture;
             423          (h) a pool;
             424          (i) a syndicate;
             425          (j) a sole proprietorship;
             426          (k) an unincorporated organization; or
             427          (l) any form of business entity.
             428          (28) "Receiver" means a person, agency, or instrumentality of this state or the United
             429      States appointed to administer and manage an institution subject to the jurisdiction of the
             430      department in receivership, as provided in [Chapters 2 and 19] Chapter 2, Possession of
             431      Depository Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository
             432      Institutions or Holding Companies.
             433          (29) "Receivership" means the administration and management of the affairs of an
             434      institution subject to the jurisdiction of the department to conserve, preserve, and properly
             435      dispose of the assets, liabilities, and revenues of an institution in possession, as provided in
             436      [Chapters 2 and 19] Chapter 2, Possession of Depository Institution by Commissioner, and
             437      Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies.
             438          (30) "Savings account" means any deposit or other account at a depository institution
             439      that is not a transaction account.
             440          (31) "Savings and loan association" means:
             441          (a) a federal savings and loan association; and
             442          (b) an out-of-state savings and loan association.
             443          (32) "Service corporation" or "service organization" means a corporation or other
             444      business entity owned or controlled by one or more financial institutions that is engaged or
             445      proposes to engage in business activities related to the business of financial institutions.
             446          (33) "State" means, unless the context demands otherwise:
             447          (a) a state;
             448          (b) the District of Columbia; or
             449          (c) the territories of the United States.


             450          (34) "Subsidiary" means a business entity under the control of an institution.
             451          (35) (a) "Transaction account" means a deposit, account, or other contractual
             452      arrangement in which a depositor, account holder, or other customer is permitted, directly or
             453      indirectly, to make withdrawals by:
             454          (i) check or other negotiable or transferable instrument;
             455          (ii) payment order of withdrawal;
             456          (iii) telephone transfer;
             457          (iv) other electronic means; or
             458          (v) any other means or device for the purpose of making payments or transfers to third
             459      persons.
             460          (b) "Transaction account" includes:
             461          (i) demand deposits;
             462          (ii) NOW accounts;
             463          (iii) savings deposits subject to automatic transfers; and
             464          (iv) share draft accounts.
             465          (36) "Trust company" means a person authorized to conduct a trust business, as
             466      provided in Chapter 5, Trust Business.
             467          (37) "Utah depository institution" means a depository institution whose home state is
             468      Utah.
             469          (38) "Utah depository institution holding company" means a depository institution
             470      holding company whose home state is Utah.
             471          Section 8. Section 7-1-403 is amended to read:
             472           7-1-403. Funds and balances paid to treasurer -- Separate account -- Use of
             473      funds.
             474          Unexpended balances and all funds accruing to the department shall be deposited by the
             475      commissioner with the state treasurer monthly and constitute a separate account within the
             476      General Fund. No part of the account may revert to the General Fund except an amount as
             477      required by law to be transferred for general government and administrative costs. With the


             478      approval of the director of the Division of Finance, the commissioner may withdraw sums from
             479      the account to pay costs and expenses of administration incurred in proceedings under Title 7,
             480      [Chapters 1, 2, and 19] Chapter 1, General Provisions, Chapter 2, Possession of Depository
             481      Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository Institutions or
             482      Holding Companies, or to use in connection with the rehabilitation, reorganization, or
             483      liquidation of an institution under the jurisdiction of the department.
             484          Section 9. Section 7-1-616 is amended to read:
             485           7-1-616. Authority to accept transaction accounts -- Payment of instruments.
             486          (1) A financial institution may accept or advertise that it accepts transaction accounts
             487      only if authorized to do so under federal or state law. An institution may submit a written
             488      request for this authority to the commissioner, except that an institution authorized to accept
             489      transaction accounts as of June 1, 1994, does not, in the first instance, need to request or be
             490      granted any additional authority. The commissioner shall grant the authority if the
             491      commissioner finds that:
             492          (a) the institution has adequate capital and reserves in relation to the character and
             493      condition of its assets and its deposit and other liabilities;
             494          (b) the deposits and other accounts held by the institution are insured or guaranteed by
             495      an agency of the federal government; and
             496          (c) the management of the institution is qualified to handle transaction accounts.
             497          (2) The commissioner may revoke, limit, or condition an institution's authority to
             498      accept and handle transaction accounts upon a finding that:
             499          (a) the institution no longer meets the criteria set forth in Subsection (1); or
             500          (b) it would be contrary to the public interest and the soundness of the financial system
             501      of this state to allow the institution to continue to accept or handle transaction accounts without
             502      limitation or condition.
             503          (3) One or more depository institutions may, by written agreement, vary the terms of
             504      Title 70A, [Chapters 3 and 4] Chapter 3, Uniform Commercial Code - Negotiable Instruments,
             505      and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections, for the purposes


             506      of facilitating the transfer, exchange, and prompt payment of instruments drawn on transaction
             507      accounts.    
             508          Section 10. Section 7-1-703 is amended to read:
             509           7-1-703. Restrictions on acquisition of institutions and holding companies --
             510      Enforcement.
             511          (1) Unless the commissioner gives prior written approval under Section 7-1-705 , no
             512      person may:
             513          (a) acquire, directly or indirectly, control of a depository institution or depository
             514      institution holding company subject to the jurisdiction of the department;
             515          (b) vote the stock of any depository institution or depository institution holding
             516      company subject to the jurisdiction of the department acquired in violation of Section 7-1-705 ;
             517          (c) acquire all or any portion of the assets of a depository institution or a depository
             518      institution holding company subject to the jurisdiction of the department;
             519          (d) assume all or any portion of the deposit liabilities of a depository institution subject
             520      to the jurisdiction of the department;
             521          (e) take any action that causes a depository institution to become a subsidiary of a
             522      depository institution holding company subject to the jurisdiction of the department;
             523          (f) take any action that causes a person other than an individual to become a depository
             524      institution holding company subject to the jurisdiction of the department;
             525          (g) acquire, directly or indirectly, the voting or nonvoting securities of a depository
             526      institution or a depository institution holding company subject to the jurisdiction of the
             527      department if the acquisition would result in the person obtaining more than 20% of the
             528      authorized voting securities of the institution if the nonvoting securities were converted into
             529      voting securities; or
             530          (h) merge or consolidate with a depository institution or depository institution holding
             531      company subject to the jurisdiction of the department.
             532          (2) Any person who willfully violates any provision of this section or any rule or order
             533      issued by the department under this section is subject to a civil penalty of not more than $1,000


             534      per day during which the violation continues. The commissioner may assess the civil penalty
             535      after giving notice and opportunity for hearing. The commissioner shall collect the civil
             536      penalty by bringing an action in the district court of the county in which the office of the
             537      commissioner is located. Any applicant for approval of an acquisition is considered to have
             538      consented to the jurisdiction and venue of the court by filing an application for approval.
             539          (3) The commissioner may secure injunctive relief to prevent any change in control or
             540      impending violation of this section.
             541          (4) The commissioner may lengthen or shorten any time period specified in Section
             542      7-1-705 if the commissioner finds it necessary to protect the public interest.
             543          (5) The commissioner may exempt any class of financial institutions from this section
             544      by rule if the commissioner finds the exception to be in the public interest.
             545          (6) The prior approval of the commissioner under Section 7-1-705 is not required for
             546      the acquisition by a person other than an individual of voting securities or assets of a depository
             547      institution or a depository institution holding company that are acquired by foreclosure or
             548      otherwise in the ordinary course of collecting a debt previously contracted in good faith if these
             549      voting securities or assets are divested within two years of acquisition. The commissioner may,
             550      upon application, extend the two-year period of divestiture for up to three additional one-year
             551      periods if, in the commissioner's judgment, the extension would not be detrimental to the
             552      public interest. The commissioner may adopt rules to implement the intent of this Subsection
             553      (6).
             554          (7) (a) An out-of-state depository institution without a branch in Utah, or an
             555      out-of-state depository institution holding company without a depository institution in Utah,
             556      may acquire:
             557          (i) a Utah depository institution only if it has been in existence for at least five years; or
             558          (ii) a Utah branch of a depository institution only if the branch has been in existence
             559      for at least five years.
             560          (b) For purposes of Subsection (7)(a), a depository institution chartered solely for the
             561      purpose of acquiring another depository institution is considered to have been in existence for


             562      the same period as the depository institution to be acquired, so long as it does not open for
             563      business at any time before the acquisition.
             564          (c) The commissioner may waive the restriction in Subsection (7)(a) in the case of a
             565      depository institution that is subject to, or is in danger of becoming subject to, supervisory
             566      action under Chapter 2, Possession of Depository Institution by Commissioner, or Chapter 19,
             567      Acquisitions of Failing Repository Institutions or Holding Companies, or, if applicable, the
             568      equivalent provisions of federal law or the law of the institution's home state.
             569          (d) The restriction in Subsection (7)(a) does not apply to an acquisition of, or merger
             570      transaction between, affiliate depository institutions.
             571          Section 11. Section 7-1-710 is amended to read:
             572           7-1-710. "Agency" defined -- Purposes and establishment of agency.
             573          (1) As used in this section, "agency" means a place, person, or facility, stationary or
             574      mobile, other than the home office or a branch office[,]:
             575          (a) where functions of the financial institution not involving the receiving or paying of
             576      deposits, making of loans or the handling of cash may be performed[,];
             577          (b) established for individual transactions and for special temporary purposes[,];
             578          (c) established for the purposes set forth in Sections 7-1-608 and 7-1-609 [,]; or
             579          (d) established to perform the functions of a financial institution service corporation.
             580          (2) A financial institution may establish one or more agencies without the prior written
             581      approval of the commissioner. Within 30 days of the establishment of an agency, the financial
             582      institution shall inform the commissioner in writing of the address of the agency and the
             583      specific functions for which it was established.
             584          (3) No agency may be converted to a branch without compliance with Section 7-1-708 .
             585          Section 12. Section 7-1-802 is amended to read:
             586           7-1-802. Confidentiality of information received by department -- Availability of
             587      information.
             588          (1) The commissioner shall receive and place on file in the department's office all
             589      reports required by law and shall certify all reports required to be published.


             590          (2) Except as provided in this section, the following are confidential, not public
             591      records, and not open to public inspection:
             592          (a) all reports received or prepared by the department;
             593          (b) all information obtained from an institution or person under the jurisdiction of the
             594      department; and
             595          (c) all orders and related records of the department.
             596          (3) The following records and information are public and are open to public inspection:
             597          (a) reports of condition required by Section 7-1-318 ;
             598          (b) information that is otherwise generally available to the public; and
             599          (c) information contained in, and final decisions on, an application filed under Sections
             600      7-1-702 , 7-1-703 , 7-1-704 , 7-1-705 , 7-1-706 , 7-1-708 , 7-1-709 , 7-1-712 , 7-1-713 , or Chapter
             601      19, Acquisitions of Failing Repository Institutions or Holding Companies, excluding:
             602          (i) proprietary information, business plans, and personal financial information; and
             603          (ii) information for which:
             604          (A) the applicant requests confidentiality; and
             605          (B) the commissioner grants the request for confidentiality.
             606          (4) The department may disclose records and information that are not public to the
             607      following:
             608          (a) to an agency or authority:
             609          (i) that regulates:
             610          (A) the subject of the record; or
             611          (B) an affiliate of the subject of the record, as defined by the commissioner by rule; and
             612          (ii) is of:
             613          (A) the federal government;
             614          (B) the state; or
             615          (C) another state;
             616          (b) to a federal deposit insurance agency;
             617          (c) to an official legally authorized to investigate criminal charges in connection with


             618      the affairs of the subject of the record, and to any tribunal conducting legal proceedings
             619      resulting from such an investigation;
             620          (d) to a person preparing a proposal for merging or acquiring an institution under
             621      [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or Chapter
             622      19, Acquisition of Failing Repository Institutions or Holding Companies, but only after the
             623      department provides notice of the disclosure to the institution;
             624          (e) to any other person, if the commissioner determines, after notice to the institution
             625      or person that is the subject of the record and opportunity for hearing, that the interests favoring
             626      disclosure of the information outweigh the interests favoring confidentiality of the information;
             627      and
             628          (f) to any court in a proceeding under:
             629          (i) Sections 7-1-304 , 7-1-320 , 7-1-322 ; or
             630          (ii) a supervisory action under [Chapter 2 or 19] Chapter 2, Possession of Depository
             631      Institution by Commissioner, or Chapter 19, Acquisition of Failing Repository Institutions or
             632      Holding Companies.
             633          (5) The commissioner may limit the use and further disclosure of any information
             634      disclosed under Subsection (4):
             635          (a) to protect the business confidentiality interest of the subject of the record; and
             636          (b) to protect the public interest, such as to avoid:
             637          (i) a liquidity crisis in a depository institution; or
             638          (ii) undue speculation in securities or currency markets.
             639          (6) The department shall disclose information in the manner and to the extent directed
             640      by a court order signed by a judge from a court of competent jurisdiction if:
             641          (a) the disclosure does not violate applicable federal or state law;
             642          (b) the information to be disclosed deals with a matter in controversy over which the
             643      court has jurisdiction;
             644          (c) the person requesting the order has provided reasonable prior written notice to the
             645      commissioner;


             646          (d) the court has considered the merits of the request for disclosure and has determined
             647      that the interests favoring disclosure of the information outweigh the interests favoring
             648      confidentiality of the information; and
             649          (e) the court has appropriately limited the use and further disclosure of the information:
             650          (i) to protect the business confidentiality interest of the subject of the record; and
             651          (ii) to protect the public interest, such as to avoid:
             652          (A) a liquidity crisis in a depository institution; or
             653          (B) undue speculation in securities or currency markets.
             654          Section 13. Section 7-2-1 is amended to read:
             655           7-2-1. Supervisory actions by commissioner -- Grounds -- Mergers or acquisitions
             656      authorized by commissioner -- Possession of business and property taken by
             657      commissioner.
             658          (1) An institution under the jurisdiction of the department is subject to supervisory
             659      actions by the commissioner under this chapter or Chapter 19, Acquisition of Failing
             660      Repository Institutions or Holding Companies, if the commissioner, with or without an
             661      administrative hearing, finds that:
             662          (a) the institution is not in a safe and sound condition to transact its business;
             663          (b) an officer of the institution or other person has refused to be examined or has made
             664      false statements under oath regarding its affairs;
             665          (c) the institution or other person has violated its articles of incorporation or any law,
             666      rule, or regulation governing the institution or other person;
             667          (d) the institution or other person is conducting its business in an unauthorized or
             668      unsafe manner, or is practicing deception upon its depositors, members, or the public, or is
             669      engaging in conduct injurious to its depositors, members, or the public;
             670          (e) the institution or other person has been notified by its primary account insurer of the
             671      insurer's intention to initiate proceedings to terminate insurance;
             672          (f) the institution or other person has failed to maintain a minimum amount of capital
             673      as required by the department, any state, or the relevant federal regulatory agency;


             674          (g) the institution or other person is a depository institution that has failed or refused to
             675      pay its depositors in accordance with the terms under which the deposits were received, or has
             676      or is about to become insolvent;
             677          (h) the institution or other person or its officers or directors have failed or refused to
             678      comply with the terms of a legally authorized order issued by the commissioner or by any
             679      federal authority or authority of another state having jurisdiction over the institution or other
             680      person;
             681          (i) the institution or other person or its officers or directors have failed or refused, upon
             682      proper demand, to submit its records, books, papers, and affairs for inspection to the
             683      commissioner or to a supervisor or an examiner of the department;
             684          (j) the institution or other person or its officers or directors, after 30 days written
             685      notice, have failed to comply with or have continued to violate this title or any rule or
             686      regulation of the department issued under it;
             687          (k) any person who controls the institution or other person subject to the jurisdiction of
             688      the department has used the control to cause the institution or other person to be or about to be
             689      in an unsafe or unsound condition, to conduct its business in an unauthorized or unsafe manner,
             690      or to violate this title or any rule or regulation of the department issued under it; or
             691          (l) the remedies provided in Section 7-1-307 , 7-1-308 , or 7-1-313 are ineffective or
             692      impracticable to protect the interest of depositors, creditors, or members of the institution or
             693      other person, or to protect the interests of the public.
             694          (2) The commissioner may take any action described in Subsection (3) if:
             695          (a) he finds that:
             696          (i) any of the conditions set forth in Subsection (1) exist with respect to an institution
             697      under the jurisdiction of the department; and
             698          (ii) an order issued pursuant to Section 7-1-307 , 7-1-308 , or 7-1-313 would not
             699      adequately protect the interests of the institution's depositors, creditors, members, or other
             700      interested persons from all dangers presented by the conditions found to exist; or
             701          (b) two-thirds of the voting shares of an institution under the jurisdiction of the


             702      department that are eligible to be voted at any regular or special meeting of the shareholders of
             703      the institution are voted at the meeting in favor of a resolution consenting to the commissioner
             704      taking or causing to be taken any of the actions described below.
             705          (3) After making the requisite findings or receiving the consenting vote of shareholders
             706      under Subsection (2), the commissioner may:
             707          (a) without taking possession of the institution, authorize, or by order require or give
             708      effect to the acquisition of control of, the merger with, the acquisition of all or a portion of the
             709      assets of, or the assumption of all or a portion of the liabilities of the institution or other person
             710      by any other institution or entity approved or designated by the commissioner in accordance
             711      with Chapter 19, Acquisition of Failing Repository Institutions or Holding Companies; or
             712          (b) take possession of the institution or other person subject to the jurisdiction of the
             713      department with or without a court order if an acquisition of control of, a merger with, an
             714      acquisition of all or a portion of the assets of, or an assumption of all or a portion of the
             715      liabilities of the institution or other person without taking possession does not appear to the
             716      commissioner to be practicable.
             717          (4) Upon taking possession of an institution or the person, the commissioner is vested
             718      by operation of law with the title to and the right to possession of all assets, the business, and
             719      property of the institution or other person subject to court order made under Section 7-2-3 .
             720      While in possession of an institution or other person, the commissioner or any receiver or
             721      liquidator appointed by him may exercise any or all of the rights, powers, and authorities
             722      granted to the commissioner under this chapter, or may give effect to the acquisition of control
             723      of, the merger with, the acquisition of all or a portion of the assets of, or the assumption of all
             724      or a portion of the liabilities of an institution or other person subject to the jurisdiction of the
             725      department, under the provisions of Chapter 19, Acquisition of Failing Repository Institutions
             726      or Holding Companies.
             727          (5) An action of the commissioner under this section may only be enjoined or set aside
             728      upon a finding, after notice and hearing, that the action is arbitrary, capricious, an abuse of
             729      discretion, or otherwise contrary to law.


             730          Section 14. Section 7-2-2 is amended to read:
             731           7-2-2. Jurisdiction of district court -- Supervision of actions of commissioner in
             732      possession -- Authority of commissioner and court.
             733          (1) The district court for the county in which the principal office of the institution or
             734      other person is situated has jurisdiction in the liquidation or reorganization of the institution or
             735      other person of which the commissioner has taken possession under this chapter or Chapter 19,
             736      Acquisition of Failing Repository Institutions or Holding Companies. As used in this chapter,
             737      "court" means the court given jurisdiction by this provision.
             738          (2) Before taking possession of an institution or other person under his jurisdiction, or
             739      within a reasonable time after taking possession of an institution or other person without court
             740      order, as provided in this chapter, the commissioner shall cause to be commenced in the
             741      appropriate district court, an action to provide the court supervisory jurisdiction to review the
             742      actions of the commissioner.
             743          (3) The actions of the commissioner are subject to review of the court. The court has
             744      jurisdiction to hear all objections to the actions of the commissioner and may rule upon all
             745      motions and actions coming before it. Standing to seek review of any action of the
             746      commissioner or any receiver or liquidator appointed by him is limited to persons whose rights,
             747      claims, or interests in the institution would be adversely affected by the action.
             748          (4) The authority of the commissioner under this chapter is of an administrative and
             749      not judicial receivership. The court may not overrule a determination or decision of the
             750      commissioner if it is not arbitrary, capricious, fraudulent, or contrary to law. If the court
             751      overrules an action of the commissioner, the matter shall be remanded to the commissioner for
             752      a new determination by him, and the new determination shall be subject to court review.
             753          Section 15. Section 7-2-12 is amended to read:
             754           7-2-12. Powers of commissioner in possession -- Sale of assets -- Postpossession
             755      financing -- New deposit instruments -- Executory contracts -- Transfer of property --
             756      Avoidance of transfers -- Avoidable preferences -- Setoff.
             757          (1) Upon taking possession of the institution, the commissioner may do all things


             758      necessary to preserve its assets and business, and shall rehabilitate, reorganize, or liquidate the
             759      affairs of the institution in a manner he determines to be in the best interests of the institution's
             760      depositors and creditors. Any such determination by the commissioner may not be overruled
             761      by a reviewing court unless it is found to be arbitrary, capricious, fraudulent, or contrary to law.
             762      In the event of a liquidation, he shall collect all debts due and claims belonging to it, and may
             763      compromise all bad or doubtful debts. He may sell, upon terms he may determine, any or all of
             764      the property of the institution for cash or other consideration. The commissioner shall give
             765      such notice as the court may direct to the institution of the time and place of hearing upon an
             766      application to the court for approval of the sale. The commissioner shall execute and deliver to
             767      the purchaser of any property of the institution sold by him those deeds or instruments
             768      necessary to evidence the passing of title.
             769          (2) With approval of the court and upon terms and with priority determined by the
             770      court, the commissioner may borrow money and issue evidence of indebtedness. To secure
             771      repayment of the indebtedness, he may mortgage, pledge, transfer in trust, or hypothecate any
             772      or all of the property of the institution superior to any charge on the property for expenses of
             773      the proceeding as provided in Section 7-2-14 . These loans may be obtained for the purpose of
             774      facilitating liquidation, protecting or preserving the assets in the charge of the commissioner,
             775      expediting the making of distributions to depositors and other claimants, aiding in the
             776      reopening or reorganization of the institution or its merger or consolidation with another
             777      institution, or the sale of all of its assets. Neither the commissioner nor any special deputy or
             778      other person lawfully in charge of the affairs of the institution is under any personal obligation
             779      to repay those loans. The commissioner may take any action necessary or proper to
             780      consummate the loan and to provide for its repayment and to give bond when required for the
             781      faithful performance of all undertakings in connection with it. The commissioner or special
             782      deputy shall make application to the court for approval of any loan proposed under this section.
             783      Notice of hearing upon the application shall be given as the court directs. At the hearing upon
             784      the application any stockholder or shareholder of the institution or any depositor or other
             785      creditor of the institution may appear and be heard on the application. Prior to the obtaining of


             786      a court order, the commissioner or special deputy in charge of the affairs of the institution may
             787      make application or negotiate for the loan or loans subject to the obtaining of the court order.
             788          (3) With the approval of the court pursuant to a plan of reorganization or liquidation
             789      under Section 7-2-18 , the commissioner may provide for depositors to receive new deposit
             790      instruments from a depository institution that purchases or receives some or all of the assets of
             791      the institution in the possession of the commissioner. All new deposit instruments issued by
             792      the acquiring depository institution may, in accordance with the terms of the plan of
             793      reorganization or liquidation, be subject to different amounts, terms, and interest rates than the
             794      original deposit instruments of the institution in the possession of the commissioner. All
             795      deposit instruments issued by the acquiring institution shall be considered new deposit
             796      obligations of the acquiring institution. The original deposit instruments issued by the
             797      institution in the possession of the commissioner are not liabilities of the acquiring institution,
             798      unless assumed by the acquiring institution. Unpaid claims of depositors against the institution
             799      in the possession of the commissioner continue, and may be provided for in the plan of
             800      reorganization or liquidation.
             801          (4) The commissioner, after taking possession of any institution or other person subject
             802      to the jurisdiction of the department, may terminate any executory contract, including standby
             803      letters of credit, unexpired leases and unexpired employment contracts, to which the institution
             804      or other person is a party. If the termination of an executory contract or unexpired lease
             805      constitutes a breach of the contract or lease, the date of the breach is the date on which the
             806      commissioner took possession of the institution. Claims for damages for breach of an
             807      executory contract shall be filed within 30 days of receipt of notice of the termination, and if
             808      allowed, shall be paid in the same manner as all other allowable claims of the same priority out
             809      of the assets of the institution available to pay claims.
             810          (5) With approval of the court and upon a showing by the commissioner that it is in the
             811      best interests of the depositors and creditors, the commissioner may transfer property on
             812      account of an indebtedness incurred by the institution prior to the date of the taking.
             813          (6) (a) The commissioner may avoid any transfer of any interest of the institution in


             814      property or any obligation incurred by the institution that is void or voidable by a creditor under
             815      Title 25, Chapter 6, Uniform Fraudulent Transfer Act.
             816          (b) The commissioner may avoid any transfer of any interest in real property of the
             817      institution that is void as against or voidable by a subsequent purchaser in good faith and for a
             818      valuable consideration of the same real property or any portion thereof who has duly recorded
             819      his conveyance at the time possession of the institution is taken, whether or not such a
             820      purchaser exists.
             821          (c) The commissioner may avoid any transfer of any interest in property of the
             822      institution or any obligation incurred by the institution that is invalid or void as against, or is
             823      voidable by a creditor that extends credit to the institution at the time possession of the
             824      institution is taken by the commissioner, and that obtains, at such time and with respect to such
             825      credit, a judgment lien or a lien by attachment, levy, execution, garnishment, or other judicial
             826      lien on the property involved, whether or not such a creditor exists.
             827          (d) The right of the commissioner under Subsections (6)(b) and (c) to avoid any
             828      transfer of any interest in property of the institution shall be unaffected by and without regard
             829      to any knowledge of the commissioner or of any creditor of the institution.
             830          (e) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary
             831      or involuntary, or disposing of or parting with property or with an interest in property,
             832      including retention of title as a security interest.
             833          (f) The commissioner may avoid and recover any payment or other transfer of any
             834      interest in property of the institution to or for the benefit of a creditor, for or on account of an
             835      antecedent debt owed by the institution before the transfer was made if the creditor at the time
             836      of such transfer had reasonable cause to believe that the institution was insolvent, and if the
             837      payment or other transfer will allow the creditor to obtain a greater percentage of his debt than
             838      he would be entitled to under the provisions of Section 7-2-15 . For the purposes of this
             839      subsection:
             840          (i) antecedent debt does not include earned wages and salaries and other operating
             841      expenses incurred and paid in the normal course of business;


             842          (ii) a transfer of any interest in real property is deemed to have been made or suffered
             843      when it became so far perfected that a subsequent good faith purchaser of the property from the
             844      institution for a valuable consideration could not acquire an interest superior to the transferee;
             845      and
             846          (iii) a transfer of property other than real property is deemed to have been made or
             847      suffered when it became so far perfected that a creditor on a simple contract could not acquire a
             848      lien by attachment, levy, execution, garnishment, or other judicial lien superior to the interest
             849      of the transferee.
             850          (g) For purposes of this section, "date of possession" means the earlier of the date the
             851      commissioner takes possession of a financial institution under Title 7, Chapter 2, Possession of
             852      Depository Institution by Commissioner, or the date when the commissioner enters an order
             853      suspending payments to depositors and other creditors under Section 7-2-19 .
             854          (7) (a) With or without the prior approval of the court, the commissioner or any federal
             855      deposit insurance agency appointed by him as receiver or liquidator of a depository institution
             856      closed by the commissioner under the provisions of this chapter may setoff against the deposits
             857      or other liabilities of the institution any debts or other obligations of the depositor or claimant
             858      due and owing to the institution. The amount of any setoff against the liabilities of the
             859      institution shall be no greater than the amount the depositor or claimant would receive pursuant
             860      to Section 7-2-15 after final liquidation of the institution. When the liquidation value of a
             861      depositor's or claimant's claim against the institution will or may be less than the full amount of
             862      the claim, setoff may be made prior to final liquidation if the commissioner or any receiver or
             863      liquidator appointed by him can reasonably estimate the liquidation value of the claim, and the
             864      court, after notice and opportunity for hearing, approves the estimate for purposes of making
             865      the setoff. If the right of setoff is exercised, the commissioner or any receiver or liquidator
             866      appointed by him shall give written notice to the depositor or claimant of the amount setoff.
             867          (b) The existence and amount of a debtor or creditor relationship or both, between the
             868      institution and its depositor or claimant and the right to the proceeds in a deposit account shall
             869      be determined solely by the books and records of the institution.


             870          (c) Any contract purporting to affect the right of setoff shall be in writing and signed by
             871      the depositor-debtor and an authorized officer of the institution and be maintained as a part of
             872      the records of the institution.
             873          (d) Any claim that a deposit account is a special account not subject to setoff because it
             874      was maintained for a specific purpose or to satisfy a particular obligation other than satisfaction
             875      of or as security for an indebtedness to the institution or that the right to the deposit actually
             876      belongs to a third party does not affect the right to setoff of the commissioner or any receiver or
             877      liquidator appointed by him unless the special nature of the account is clearly shown in the
             878      books and records of the institution.
             879          (e) In the absence of any other instrument in writing, the terms and provisions of the
             880      signature card applicable to a particular account in effect at the time the commissioner takes
             881      possession of the institution shall be determinative of the right of setoff by the commissioner or
             882      any receiver or liquidator appointed by him.
             883          (f) Knowledge of the institution or of any director, officer, or employee of the
             884      institution that the nature of the account is other than as shown in the books and records of the
             885      institution does not affect the right of setoff by the commissioner or any receiver or liquidator
             886      appointed by him.
             887          (g) The liability of the commissioner or any receiver or liquidator appointed by him for
             888      exercising a right of setoff other than as authorized by this section shall be only to a person
             889      who establishes by the procedure set forth in Section 7-2-6 that his interest in the account is
             890      superior to that of the person whose debt to the institution was setoff against the account. The
             891      amount of any such liability shall be no greater than the amount of the setoff and neither the
             892      commissioner or any receiver or liquidator appointed by him shall be liable for any action taken
             893      under this section unless the action taken is determined by the court to be arbitrary or
             894      capricious.
             895          Section 16. Section 7-3-1 is amended to read:
             896           7-3-1. Application of chapter.
             897          This chapter applies to all banks organized under the laws of this state, to all other


             898      banks doing business in this state as permitted by the laws and Constitution of the United
             899      States, and to all persons conducting banking business in this state except as provided in
             900      Chapter 1, General Provisions.
             901          Section 17. Section 7-5-2 is amended to read:
             902           7-5-2. Permit required to engage in trust business -- Exceptions.
             903          (1) No trust company shall accept any appointment to act in any agency or fiduciary
             904      capacity, including that of personal representative, executor, administrator, conservator,
             905      guardian, assignee, receiver, depositary, or trustee under order or judgment of any court or by
             906      authority of any law of this state or as trustee for any purpose permitted by law or otherwise
             907      engage in the trust business in this state, unless and until it has obtained from the commissioner
             908      a permit to act under this chapter. This provision does not apply to any bank or other
             909      corporation authorized to engage and lawfully engaged in the trust business in this state before
             910      July 1, 1981.
             911          (2) Nothing in this chapter prohibits:
             912          (a) any corporation organized under Title 16, Chapter 6a [or 10a], Utah Revised
             913      Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from
             914      acting as trustee of any employee benefit trust established for the employees of the corporation
             915      or the employees of one or more other corporations affiliated with the corporation;
             916          (b) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit
             917      Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or
             918      religious organization from acting as a trustee for that organization or members of that
             919      organization but not offering trust services to the general public;
             920          (c) any corporation organized under Title 16, Chapter 6a [or 10a], Utah Revised
             921      Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from
             922      holding in a fiduciary capacity the controlling shares of another corporation but not offering
             923      trust services to the general public; or
             924          (d) any depository institution from holding in an agency or fiduciary capacity
             925      individual retirement accounts or Keogh plan accounts established under Section 401(a) or


             926      408(a) of Title 26 of the United States Code.
             927          Section 18. Section 7-5-6 is amended to read:
             928           7-5-6. Confidentiality of communications and writings concerning trust -- Actions
             929      to protect property or authorized under probate laws not precluded.
             930          Any trust company exercising the powers and performing the duties described in this
             931      chapter shall keep inviolate all communications and writings made to or by that trust company
             932      relating to the existence, condition, management or administration of any agency or fiduciary
             933      account confided to it and no creditor or stockholder of any such trust company shall be
             934      entitled to disclosure or knowledge of any such communication or writing, except that the
             935      directors, president, vice president, manager, treasurer, and trust officers, and any employees
             936      assigned to work on the trust business, and the attorney or auditor employed by it shall be
             937      entitled to knowledge of any such communication or writing and except that in any suit or
             938      proceeding relating to the existence, condition, management or administration of the account,
             939      the court in which the suit is pending may require disclosure of any such communication or
             940      writing. A trust company is not, however, precluded from filing an action in court to protect
             941      trust account property or as authorized under Title 75, Utah Uniform Probate Code.
             942          Section 19. Section 7-5-7 is amended to read:
             943           7-5-7. Management and investment of trust funds.
             944          (1) Funds received or held by any trust company as agent or fiduciary, whether for
             945      investment or distribution, shall be invested or distributed as soon as practicable as authorized
             946      under the instrument creating the account and may not be held uninvested any longer than is
             947      reasonably necessary.
             948          (2) If the instrument creating an agency or fiduciary account contains provisions
             949      authorizing the trust company, its officers, or its directors to exercise their discretion in the
             950      matter of investments, funds held in the trust account under that instrument may be invested
             951      only in those classes of securities which are approved by the directors of the trust company or a
             952      committee of directors appointed for that purpose. If a trust company acts in any agency or
             953      fiduciary capacity under appointment by a court of competent jurisdiction, it shall make and


             954      account for all investments according to the provisions of Title 75, Utah Uniform Probate
             955      Code, unless the underlying instrument provides otherwise.
             956          (3) (a) Funds received or held as agent or fiduciary by any trust company which is also
             957      a depository institution, whether for investment or distribution, may be deposited in the
             958      commercial department or savings department of that trust company to the credit of its trust
             959      department. Whenever the funds so deposited in a fiduciary or managing agency account
             960      exceed the amount of federal deposit insurance applicable to that account, the trust company
             961      shall deliver to the trust department or put under its control collateral security as outlined in
             962      Regulation 9.10 of the Comptroller of the Currency or in Regulation 550.8 of the Office of
             963      Thrift Supervision, as amended. However, if the instrument creating such a fiduciary or
             964      managing agency account expressly provides that funds may be deposited to the commercial or
             965      savings department of the trust company, then the funds may be so deposited without setting
             966      aside collateral securities as required under this section and the deposits in the event of
             967      insolvency of any such trust company shall be treated as other general deposits are treated. A
             968      trust company which deposits trust funds in its commercial or savings department shall be
             969      liable for interest on the deposits only at the rates, if any, paid by the trust company on deposits
             970      of like kind not made to the credit of its trust department.
             971          (b) Funds received or held as agent or fiduciary by a trust company, whether for
             972      investment or distribution, may be deposited in an affiliated depository institution. Whenever
             973      the funds so deposited in a fiduciary or managing agency account exceed the amount of federal
             974      deposit insurance applicable to that account, the depository institution shall deliver to the trust
             975      company or put under its control collateral security as outlined in Regulation 9.10 of the
             976      Comptroller of the Currency or in Regulation 550.8 of the Office of Thrift Supervision as
             977      amended. However, if the instrument creating the fiduciary or managing agency account
             978      expressly permits funds to be deposited in the affiliated depository institution, the funds may be
             979      so deposited without setting aside collateral securities as required under this section and
             980      deposits in the event of insolvency of the depository institution shall be treated as other general
             981      deposits are treated. A trust company which deposits trust funds in an affiliated depository


             982      institution is liable for interest on the deposits only at the rates, if any, paid by the depository
             983      institution on deposits of like kind.
             984          (4) In carrying out all aspects of its trust business, a trust company shall have all the
             985      powers, privileges, and duties as set forth in Sections 75-7-813 and 75-7-814 with respect to
             986      trustees, whether or not the trust company is acting as a trustee as defined in Title 75, Utah
             987      Uniform Probate Code.
             988          (5) Nothing in this section may alter, amend, or limit the powers of a trust company
             989      acting in a fiduciary capacity as specified in the particular instrument or order creating the
             990      fiduciary relationship.
             991          Section 20. Section 7-5-8 is amended to read:
             992           7-5-8. Segregation of trust assets -- Books and records required -- Examination --
             993      Trust property not subject to claims or debts against trust company.
             994          A trust company exercising the powers to act as an agent or fiduciary under this chapter
             995      shall segregate all assets held in any agency or fiduciary capacity from the general assets of the
             996      company and shall keep a separate set of books and records showing in proper detail all
             997      transactions engaged in under authority of this chapter. These books and records shall be open
             998      to inspection by the commissioner and shall be examined by him or by examiners appointed by
             999      him as provided in Chapter 1, General Provisions, or examined by other appropriate regulating
             1000      agencies or both. Property held in an agency or fiduciary capacity by a trust company is not
             1001      subject to claims or debts against the trust company.
             1002          Section 21. Section 7-5-11 is amended to read:
             1003           7-5-11. Self-dealing with trust property -- Own stock as trust property -- Policies
             1004      for dealing with trust securities.
             1005          (1) Except as provided in Section 7-5-7 , in Title 75, Utah Uniform Probate Code, or as
             1006      authorized under the instrument creating the relationship, a trust company may not invest funds
             1007      held as an agent or fiduciary in stock or obligations of, or with such funds acquire property
             1008      from, the trust company or any of its directors, officers or employees, nor shall a trust company
             1009      sell property held as an agent or fiduciary to the company or to any of its directors, officers, or


             1010      employees.
             1011          (2) A trust company may retain and vote stock of the trust company or of any of its
             1012      affiliates received by it as assets of any trust account or in any other fiduciary relationship of
             1013      which it is appointed agent or fiduciary, unless the instrument creating the relationship
             1014      otherwise provides.
             1015          (3) Every trust company shall adopt written policies and procedures regarding
             1016      decisions or recommendations to purchase or sell any security to facilitate compliance with
             1017      federal and state securities laws. These policies and procedures, in particular, shall prohibit the
             1018      trust company from using material inside information in connection with any decision or
             1019      recommendation to purchase or sell any security.
             1020          Section 22. Section 7-5-15 is amended to read:
             1021           7-5-15. Assets of trust company in possession of the commissioner.
             1022          With respect to a trust company in the possession of the commissioner under Chapter 2,
             1023      Possession of Depository Institution by Commissioner, notwithstanding any law to the
             1024      contrary, the assets held by the trust company in a fiduciary capacity as a part of its trust
             1025      business, as defined in Section 7-5-1 , are not subject to the claims of any secured or unsecured
             1026      creditor of the trust company.
             1027          Section 23. Section 7-9-25 is amended to read:
             1028           7-9-25. Shares -- Number unlimited -- Subscription and payment -- Par value --
             1029      Ownership required for membership -- Dormant accounts.
             1030          (1) The capital of the credit union shall be unlimited in amount.
             1031          (2) Shares of the credit union may be subscribed and paid for in cash or its equivalent
             1032      in a manner prescribed in the bylaws.
             1033          (3) The par value of each share of a credit union shall be determined by the board of
             1034      directors in multiples of $5 as prescribed in the bylaws.
             1035          (4) Each member of the credit union shall subscribe to at least one share and pay the
             1036      initial installment thereon. The par value of the share shall be paid for within six months.
             1037          (5) The board of directors may close a member's account when the share par value is


             1038      not paid within the required period or the par value is not maintained. Notice in writing shall be
             1039      mailed to the member at the last known address and shall contain a statement that the member
             1040      may increase payment or voluntarily close the account within 60 days of receipt of the notice.
             1041          (6) When a member's account becomes dormant or is reasonably presumed to be
             1042      dormant and abandoned, as provided in Chapter 1, General Provisions, the credit union by
             1043      resolution of the board of directors may close the account and transfer the credits of the account
             1044      to an account for unclaimed shares. Thereafter the credit union may not pay dividends or
             1045      interest on the account, as provided in the bylaws, until the funds in the account escheat to the
             1046      state of Utah. Prior to transferring the member's dormant and abandoned account to the credit
             1047      union unclaimed shares account, the credit union shall mail a written notice to the member at
             1048      the member's last known address stating that this action will be taken within 30 days of the date
             1049      of the notice.
             1050          Section 24. Section 7-9-39.5 is amended to read:
             1051           7-9-39.5. Supervisory merger.
             1052          If a credit union is merged with another credit union as a result of a supervisory action
             1053      under [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or
             1054      Chapter 19, Acquisition of Failing Repository Institutions or Holding Companies, the
             1055      commissioner may permit the surviving credit union to have a field of membership that is
             1056      larger than a field of membership permitted under Section 7-9-51 .
             1057          Section 25. Section 7-9-42 is amended to read:
             1058           7-9-42. Record requirements.
             1059          (1) A credit union shall maintain all books, records, accounting systems, and procedures
             1060      in accordance with rules the commissioner may prescribe or in accordance with Chapter 1,
             1061      General Provisions.
             1062          (2) In prescribing these rules, the commissioner shall consider the size of a credit union
             1063      and its ability to comply.
             1064          (3) A credit union is not liable for destroying records after the expiration of the record
             1065      retention time prescribed by the rules.


             1066          (4) A photostatic or photographic reproduction of any credit union records shall be
             1067      admissible as evidence of transactions with the credit union.
             1068          Section 26. Section 7-9-45 is amended to read:
             1069           7-9-45. Insurance of shares and deposits -- Security on shares and deposits.
             1070          (1) Except as provided in Subsection (2), a credit union subject to the jurisdiction of the
             1071      department shall obtain and maintain insurance on shares and deposits from the National Credit
             1072      Union Administration or successor federal deposit insurance agency.
             1073          (2) Notwithstanding Subsection 7-1-704 (7)(a)(v) and Subsection (1), a credit union
             1074      may not be required to obtain federal insurance on shares and deposits if:
             1075          (a) the commissioner approves the credit union's election not to obtain federal
             1076      insurance on shares and deposits;
             1077          (b) as security for the shares and deposits, the credit union maintains securities:
             1078          (i) that are issued by or directly and unconditionally guaranteed by:
             1079          (A) the United States; or
             1080          (B) an agency of the United States;
             1081          (ii) that are held in an account with a primary reporting dealer that is:
             1082          (A) recognized by the Federal Reserve Bank of New York; and
             1083          (B) independent of the credit union;
             1084          (iii) that are held in accordance with Title 70A, Chapter 8, Uniform Commercial Code
             1085      - Investment Securities; and
             1086          (iv) in which the department has an express and exclusive security interest; and
             1087          (c) the aggregate value of the securities described in Subsection (2)(b) is at all times
             1088      equal to or greater than 1.15 times the aggregate amount of the shares and deposits of the credit
             1089      union.
             1090          (3) The commissioner may appoint the administrator of the National Credit Union
             1091      Administration as liquidating agent of an insured credit union.
             1092          (4) Failure to comply with this section constitutes grounds for supervisory action under
             1093      [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or Chapter


             1094      19, Acquisition of Failing Repository Institutions or Holding Companies.
             1095          Section 27. Section 7-9-55 is amended to read:
             1096           7-9-55. Nonexempt credit unions.
             1097          (1) (a) A credit union organized under this chapter is a nonexempt credit union under
             1098      this section on the day on which:
             1099          (i) on or after May 5, 2003 the credit union has a field of membership as evidenced by
             1100      the bylaws of the credit union that includes all residents of two or more counties; and
             1101          (ii) at least two of the counties described in Subsection (1)(a)(i) are counties of the first
             1102      or second class as classified by Section 17-50-501 .
             1103          (b) For purposes of Subsection (1)(a) only:
             1104          (i) residents of a county that are added to the field of membership of a credit union as a
             1105      result of a supervisory action under [Chapter 2 or 19] Chapter 2, Possession of Depository
             1106      Institution by Commissioner, or Chapter 19, Acquisition of Failing Repository Institutions or
             1107      Holding Companies, are not considered to be within the field of membership of that credit
             1108      union; and
             1109          (ii) residents of a city of the third, fourth, or fifth class or a town that are added to the
             1110      field of membership of a credit union in accordance with Section 7-9-52 are not considered to
             1111      be within the field of membership of that credit union unless all residents of the county in
             1112      which that city or town are located are included in the field of membership of the credit union.
             1113          (2) If a credit union becomes a nonexempt credit union under this section, the
             1114      nonexempt credit union is a nonexempt credit union:
             1115          (a) for as long as the nonexempt credit union is organized under this chapter; and
             1116          (b) notwithstanding whether after the day on which the nonexempt credit union
             1117      becomes a nonexempt credit union the nonexempt credit union meets the requirements of
             1118      Subsection (1)(a).
             1119          (3) Regardless of whether or not a credit union has located branches in two or more
             1120      counties in this state, a credit union organized under this chapter does not become a nonexempt
             1121      credit union if the field of membership of the credit union as evidenced by the bylaws of the


             1122      credit union does not meet the requirements of Subsection (1).
             1123          Section 28. Section 7-9-58 is amended to read:
             1124           7-9-58. Limitations on credit extended by nonexempt credit unions.
             1125          (1) (a) Notwithstanding the other provisions of this chapter, beginning on May 5, 2003,
             1126      a nonexempt credit union may not:
             1127          (i) (A) extend a member-business loan;
             1128          (B) renew a member-business loan that is extended before May 5, 2003; or
             1129          (C) extend the maturity date or increase the amount of a member-business loan that is
             1130      extended before May 5, 2003;
             1131          (ii) originate, participate in, or obtain any interest in a co-lending arrangement,
             1132      including a loan participation arrangement; or
             1133          (iii) subject to Subsection (2), extend credit that is not a member-business loan if as a
             1134      result of the extension of credit the total credit that is not a member-business loan that the
             1135      nonexempt credit union has issued to that member exceeds at any one time $250,000 adjusted
             1136      as provided in Subsection (1)(b).
             1137          (b) The adjustment described in Subsection (1)(a)(iii) shall be calculated by the
             1138      commissioner as follows:
             1139          (i) beginning July 1, 2008 and for a calendar year beginning on or after January 1,
             1140      2009, the commissioner shall increase or decrease the dollar amount in Subsection (1)(a)(iii) by
             1141      a percentage equal to the percentage difference between the consumer price index for the
             1142      preceding calendar year and the consumer price index for calendar year 2007;
             1143          (ii) after the commissioner increases the dollar amount listed in Subsection [(1)(c)]
             1144      (1)(a)(iii), the commissioner shall round the dollar amount to the nearest whole dollar;
             1145          (iii) if the percentage difference under Subsection (1)(b)(i) is zero or a negative
             1146      percentage, the consumer price index increase for the year is zero; and
             1147          (iv) for purposes of this Subsection (1)(b), the commissioner shall calculate the
             1148      consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             1149          (2) Notwithstanding Subsection (1)(a)(iii), a nonexempt credit union may extend credit


             1150      in an amount that exceeds the limits provided in Subsection (1)(a)(iii) to a member if:
             1151          (a) the excess portion of the credit described in Subsection (1)(a)(iii) is fully secured by
             1152      the member's share or deposit savings in the nonexempt credit union; or
             1153          (b) the credit is extended to a member of the nonexempt credit union:
             1154          (i) for the purpose of:
             1155          (A) paying amounts owed by the member to purchase a one- to four-family dwelling
             1156      that is the primary residence of that member; or
             1157          (B) refinancing the balance of amounts owed by the member for the purchase of a one-
             1158      to four-family dwelling that is the primary residence of that member; and
             1159          (ii) the credit extended under this Subsection (2)(b) is less than or equals $1,000,000.
             1160          (3) In accordance with Subsection 7-9-20 (7)(d), a credit union service organization
             1161      may not extend credit to a member of a nonexempt credit union holding an ownership interest
             1162      in the credit union service organization if it would be a violation of this section for the
             1163      nonexempt credit union to extend the credit to the member.
             1164          (4) This section may not prevent a nonexempt credit union from servicing a loan
             1165      extended before May 5, 2003.
             1166          Section 29. Section 7-14-1 is amended to read:
             1167           7-14-1. Definitions.
             1168          As used in this chapter:
             1169          [(2)] (1) "Credit reporting agency" includes any co-operative credit reporting agency
             1170      maintained by an association of financial institutions or one or more associations of merchants.
             1171          [(1)] (2) "Depository institution" means any institution authorized by state or federal
             1172      law to accept and hold demand deposits or other accounts which may be used to effect third
             1173      party payment transactions. The definition of "depository institution" in Chapter 1, General
             1174      Provisions, does not apply to Chapter 14, Credit Information Exchange.
             1175          Section 30. Section 7-19-1 is amended to read:
             1176           7-19-1. Definitions.
             1177          As used in this chapter:


             1178          (1) "Failing or failed depository institution" means a depository institution under the
             1179      jurisdiction of the department:
             1180          (a) regarding which the commissioner makes a finding that any of the conditions set
             1181      forth in Subsections 7-2-1 (1)(a) through (k) exist;
             1182          (b) that meets the requirements of Subsection 7-2-1 (1)(l);
             1183          (c) whose shareholders have consented to a supervisory action by the commissioner
             1184      pursuant to Subsection 7-2-1 (2); or
             1185          (d) which is in the possession of the commissioner, or any receiver or liquidator
             1186      appointed by the commissioner, pursuant to Chapter 2, Possession of Depository Institution by
             1187      Commissioner.
             1188          (2) "Failing or failed depository institution holding company" means a depository
             1189      institution holding company under the jurisdiction of the department:
             1190          (a) regarding which the commissioner makes a finding that any of the conditions set
             1191      forth in Subsections 7-2-1 (1)(a) through (k) exist;
             1192          (b) that meets the requirements of Subsection 7-2-1 (1)(l);
             1193          (c) whose shareholders have consented to a supervisory action by the commissioner
             1194      pursuant to Subsection 7-2-1 (2);
             1195          (d) which is in the possession of the commissioner, or any receiver or liquidator
             1196      appointed by the commissioner, pursuant to Chapter 2, Possession of Depository Institution by
             1197      Commissioner; or
             1198          (e) whose subsidiary depository institution is a failing or failed depository institution.
             1199          (3) "Supervisory acquisition" means the acquisition of control, the acquisition of all or
             1200      a portion of the assets, or the assumption of all or a portion of the liabilities, pursuant to
             1201      Section 7-2-1 , 7-2-12 , or 7-2-18 , of a failing or failed depository institution or a failing or
             1202      failed depository institution holding company, whether or not in the possession of the
             1203      commissioner, by:
             1204          (a) a Utah depository institution;
             1205          (b) an out-of-state depository institution;


             1206          (c) a Utah depository institution holding company; or
             1207          (d) an out-of-state depository institution holding company.
             1208          (4) "Supervisory merger" means the merger or consolidation, pursuant to Section
             1209      7-2-1 , 7-2-12 , or 7-2-18 of a failing or failed depository institution or a failing or failed
             1210      depository institution holding company, whether or not in the possession of the commissioner,
             1211      with:
             1212          (a) a Utah depository institution;
             1213          (b) an out-of-state depository institution;
             1214          (c) a Utah depository institution holding company; or
             1215          (d) an out-of-state depository institution holding company.
             1216          Section 31. Section 9-1-801 is amended to read:
             1217     
Part 8. Utah Commission on Service and Volunteerism Act

             1218           9-1-801. Title.
             1219          This part is known as the "[Commission on National and Community Service Act] Utah
             1220      Commission on Service and Volunteerism Act."
             1221          Section 32. Section 9-6-205 is amended to read:
             1222           9-6-205. Board powers and duties.
             1223          (1) The board may:
             1224          (a) make, amend, or repeal rules for the conduct of its business in governing the
             1225      council in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1226          (b) receive gifts, bequests, and property; and
             1227          (c) issue certificates and offer and confer prizes, certificates, and awards for works of
             1228      art and achievement in the arts.
             1229          (2) The board shall make policy for the council.
             1230          (3) (a) By September 30 of each year, the board shall prepare and submit a request to
             1231      the governor and the Legislature for prioritized capital facilities grants to be awarded to eligible
             1232      individuals and organizations under this part [and Parts 3 through 5], Part 3, Utah Arts Council,
             1233      Part 4, Utah Percentage-for-Art Act, and Part 5, State Arts Endowment.


             1234          (b) The board shall prepare a list of the requested capital facilities grants in a
             1235      prioritized order and include a written explanation of:
             1236          (i) the total grant amount requested in the list; and
             1237          (ii) the basis of its prioritization of requested grants on the list.
             1238          (c) The board shall accept applications for capital facilities grants through June 1 of
             1239      each year, prior to compiling and submitting its yearly request to the governor and the
             1240      Legislature under Subsection (3)(a).
             1241          Section 33. Section 9-7-501 is amended to read:
             1242           9-7-501. Tax for establishment and maintenance of public library -- Library
             1243      fund.
             1244          (1) A county legislative body may establish and maintain a public library.
             1245          (2) For this purpose, counties may levy annually a tax not to exceed .001 of taxable
             1246      value of taxable property in the county, outside of cities which maintain their own city libraries
             1247      as authorized by Part 4, City Libraries. The tax is in addition to all taxes levied by counties and
             1248      is not limited by the levy limitation imposed on counties by law. However, if bonds are issued
             1249      for purchasing a site, or constructing or furnishing a building, then taxes sufficient for the
             1250      payment of the bonds and any interest may be levied.
             1251          (3) The taxes shall be levied and collected in the same manner as other general taxes of
             1252      the county and shall constitute a fund to be known as the county library fund.
             1253          Section 34. Section 9-8-301 is amended to read:
             1254           9-8-301. Purpose.
             1255          (1) The Legislature declares that the general public and the beneficiaries of the school
             1256      and institutional land grants have an interest in the preservation and protection of the state's
             1257      archaeological and anthropological resources and a right to the knowledge derived and gained
             1258      from scientific study of those resources.
             1259          (2) (a) The Legislature finds that policies and procedures for the survey and excavation
             1260      of archaeological resources from school and institutional trust lands are consistent with the
             1261      school and institutional land grants, if these policies and procedures insure that primary


             1262      consideration is given, on a site or project specific basis, to the purpose of support for the
             1263      beneficiaries of the school and institutional land grants.
             1264          (b) The Legislature finds that the preservation, placement in a repository, curation, and
             1265      exhibition of specimens found on school or institutional trust lands for scientific and
             1266      educational purposes is consistent with the school and institutional land grants.
             1267          (c) The Legislature finds that the preservation and development of sites found on
             1268      school or institutional trust lands for scientific or educational purposes, or the disposition of
             1269      sites found on school or institutional trust lands, after consultation between the division and the
             1270      School and Institutional Trust Lands Administration to determine the appropriate level of data
             1271      recovery or implementation of other appropriate preservation measures, for preservation,
             1272      development, or economic purposes, is consistent with the school and institutional land grants.
             1273          (d) The Legislature declares that specimens found on lands owned or controlled by the
             1274      state or its subdivisions may not be sold.
             1275          (3) The Legislature declares that the historical preservation purposes of this chapter
             1276      must be kept in balance with the other uses of land and natural resources which benefit the
             1277      health and welfare of the state's citizens.
             1278          (4) It is the purpose of this part and Part 4, Historic Sites, to provide that the survey,
             1279      excavation, curation, study, and exhibition of the state's archaeological and anthropological
             1280      resources be undertaken in a coordinated, professional, and organized manner for the general
             1281      welfare of the public and beneficiaries alike.
             1282          Section 35. Section 9-8-307 is amended to read:
             1283           9-8-307. Report of discovery on state or private lands.
             1284          (1) Any person who discovers any archaeological resources on lands owned or
             1285      controlled by the state or its subdivisions shall promptly report the discovery to the division.
             1286          (2) Any person who discovers any archaeological resources on privately owned lands
             1287      shall promptly report the discovery to the division.
             1288          (3) Field investigations shall be discouraged except in accordance with this part and
             1289      Part 4, Historic Sites.


             1290          (4) Nothing in this section may be construed to authorize any person to survey or
             1291      excavate for archaeological resources.
             1292          Section 36. Section 9-8-405 is amended to read:
             1293           9-8-405. Federal funds -- Agreements on standards and procedures.
             1294          By following the procedures and requirements of Title 63J, Chapter 5, Federal Funds
             1295      Procedures Act, the division may accept and administer federal funds provided under the
             1296      provisions of the National Historic Preservation Act of 1966, the Land and Water Conservation
             1297      Act as amended, and subsequent legislation directed toward the encouragement of historic
             1298      preservation, and to enter into those agreements on professional standards and procedures
             1299      required by participation in the National Historic Preservation Act of 1966 and the National
             1300      Register Office.
             1301          Section 37. Section 10-1-114 is amended to read:
             1302           10-1-114. Repealer.
             1303          Title 10, [Chapters 1, 2, 3, 5, and 6] Chapter 1, General Provisions; Chapter 2,
             1304      Incorporation, Classification, Boundaries, Consolidation, and Dissolution of Municipalities;
             1305      Chapter 3, Municipal Government; Chapter 5, Uniform Fiscal Procedures Act for Utah Towns;
             1306      and Chapter 6, Uniform Fiscal Procedures Act for Utah Cities, are repealed, except as provided
             1307      in Section 10-1-115 .
             1308          Section 38. Section 10-1-119 is amended to read:
             1309           10-1-119. Inventory of competitive activities.
             1310          (1) As used in this section:
             1311          (a) "Applicable city" means:
             1312          (i) on and after July 1, 2009, a city of the first class; and
             1313          (ii) on and after July 1, 2010, a city of the first or second class.
             1314          (b) "Competitive activity" means an activity engaged in by a city or an entity created by
             1315      the city by which the city or an entity created by the city provides a good or service that is
             1316      substantially similar to a good or service that is provided by a person:
             1317          (i) who is not an entity of the federal government, state government, or a political


             1318      subdivision of the state; and
             1319          (ii) within the boundary of the county in which the city is located.
             1320          (c) (i) Subject to Subsection (1)(c)(ii), "entity created by the city" includes:
             1321          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
             1322      Cooperation Act, in which the city participates; and
             1323          (B) a special service district created under Title 17D, Chapter 1, Special Service
             1324      District Act.
             1325          (ii) "Entity created by the city" does not include a local district created by a city under
             1326      Title 17B, Limited Purpose Local Government Entities - Local Districts.
             1327          (2) (a) The governing body of an applicable city shall create an inventory of activities
             1328      of the city or an entity created by the city to:
             1329          (i) classify whether an activity is a competitive activity; and
             1330          (ii) identify efforts that have been made to privatize aspects of the activity.
             1331          (b) An applicable city shall comply with this section by no later than:
             1332          (i) June 30, 2010, if the applicable city is a city of the first class; and
             1333          (ii) June 30, 2011, if the applicable city is a city of the second class.
             1334          (3) The governing body of an applicable city shall update the inventory created under
             1335      this section at least every two years.
             1336          (4) An applicable city shall:
             1337          (a) provide a copy of the inventory and an update to the inventory to the Free Market
             1338      Protection and Privatization Board created in Title 63I, Chapter 4a[, Free Market Protection
             1339      and Privatization Board Act]; and
             1340          (b) make the inventory available to the public through electronic means.
             1341          Section 39. Section 10-1-203 is amended to read:
             1342           10-1-203. License fees and taxes -- Application information to be transmitted to
             1343      the county assessor.
             1344          (1) As used in this section:
             1345          (a) "Business" means any enterprise carried on for the purpose of gain or economic


             1346      profit, except that the acts of employees rendering services to employers are not included in
             1347      this definition.
             1348          (b) "Telecommunications provider" is as defined in Section 10-1-402 .
             1349          (c) "Telecommunications tax or fee" is as defined in Section 10-1-402 .
             1350          (2) Except as provided in Subsections (3) through (5), the legislative body of a
             1351      municipality may license for the purpose of regulation and revenue any business within the
             1352      limits of the municipality and may regulate that business by ordinance.
             1353          (3) (a) The legislative body of a municipality may raise revenue by levying and
             1354      collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
             1355      and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
             1356      energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
             1357      Energy Sales and Use Tax Act.
             1358          (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
             1359      in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
             1360          (ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January 1,
             1361      1997, or a future franchise shall remain in full force and effect.
             1362          (c) A municipality that collects a contractual franchise fee pursuant to a franchise
             1363      agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on July
             1364      1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
             1365          (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
             1366      defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain
             1367      a provision that:
             1368          (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
             1369      otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
             1370          (B) imposes the contractual franchise fee on or after the day on which Part 3,
             1371      Municipal Energy Sales and Use Tax Act is:
             1372          (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
             1373      is reduced; and


             1374          (II) is not superseded by a law imposing a substantially equivalent tax.
             1375          (ii) A municipality may not charge a contractual franchise fee under the provisions
             1376      permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
             1377      fee or a tax on all energy suppliers.
             1378          (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
             1379      municipality may raise revenue by levying and providing for the collection of a municipal
             1380      telecommunications license tax as provided in Part 4, Municipal Telecommunications License
             1381      Tax Act.
             1382          (b) A municipality may not levy or collect a telecommunications tax or fee on a
             1383      telecommunications provider except as provided in Part 4, Municipal Telecommunications
             1384      License Tax Act.
             1385          (5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
             1386      levying and collecting a license fee or tax on:
             1387          (A) a parking service business in an amount that is less than or equal to:
             1388          (I) $1 per vehicle that parks at the parking service business; or
             1389          (II) 2% of the gross receipts of the parking service business;
             1390          (B) a public assembly or other related facility in an amount that is less than or equal to
             1391      $5 per ticket purchased from the public assembly or other related facility; and
             1392          (C) subject to the limitations of Subsections (5)(c) and (d):
             1393          (I) a business that causes disproportionate costs of municipal services; or
             1394          (II) a purchaser from a business for which the municipality provides an enhanced level
             1395      of municipal services.
             1396          (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
             1397      levy or collect a license fee or tax on a public assembly or other related facility owned and
             1398      operated by another political subdivision other than a community development and renewal
             1399      agency without the written consent of the other political subdivision.
             1400          (b) As used in this Subsection (5):
             1401          (i) "Municipal services" includes:


             1402          (A) public utilities; and
             1403          (B) services for:
             1404          (I) police;
             1405          (II) fire;
             1406          (III) storm water runoff;
             1407          (IV) traffic control;
             1408          (V) parking;
             1409          (VI) transportation;
             1410          (VII) beautification; or
             1411          (VIII) snow removal.
             1412          (ii) "Parking service business" means a business:
             1413          (A) that primarily provides off-street parking services for a public facility that is
             1414      wholly or partially funded by public money;
             1415          (B) that provides parking for one or more vehicles; and
             1416          (C) that charges a fee for parking.
             1417          (iii) "Public assembly or other related facility" means an assembly facility that:
             1418          (A) is wholly or partially funded by public money;
             1419          (B) is operated by a business; and
             1420          (C) requires a person attending an event at the assembly facility to purchase a ticket.
             1421          (c) (i) Before the legislative body of a municipality imposes a license fee on a business
             1422      that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the
             1423      legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
             1424      under Subsection (5)(a)(i)(C)(I):
             1425          (A) the costs that constitute disproportionate costs; and
             1426          (B) the amounts that are reasonably related to the costs of the municipal services
             1427      provided by the municipality.
             1428          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
             1429      the costs of the municipal services provided by the municipality.


             1430          (d) (i) Before the legislative body of a municipality imposes a license fee on a
             1431      purchaser from a business for which it provides an enhanced level of municipal services under
             1432      Subsection (5)(a)(i)(C)(II), the legislative body of the municipality shall adopt an ordinance
             1433      defining for purposes of the fee under Subsection (5)(a)(i)(C)(II):
             1434          (A) the level of municipal services that constitutes the basic level of municipal services
             1435      in the municipality; and
             1436          (B) the amounts that are reasonably related to the costs of providing an enhanced level
             1437      of municipal services in the municipality.
             1438          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
             1439      the costs of providing an enhanced level of the municipal services.
             1440          (6) All license fees and taxes shall be uniform in respect to the class upon which they
             1441      are imposed.
             1442          (7) The municipality shall transmit the information from each approved business
             1443      license application to the county assessor within 60 days following the approval of the
             1444      application.
             1445          (8) If challenged in court, an ordinance enacted by a municipality before January 1,
             1446      1994, imposing a business license fee on rental dwellings under this section shall be upheld
             1447      unless the business license fee is found to impose an unreasonable burden on the fee payer.
             1448          Section 40. Section 10-2-125 is amended to read:
             1449           10-2-125. Incorporation of a town -- Petition.
             1450          (1) As used in this section:
             1451          (a) "Assessed value," with respect to agricultural land, means the value at which the
             1452      land would be assessed without regard to a valuation for agricultural use under Section
             1453      59-2-503 .
             1454          (b) "Financial feasibility study" means a study described in Subsection [(8)] (7).
             1455          (c) "Feasibility consultant" means a person or firm:
             1456          (i) with expertise in the processes and economics of local government; and
             1457          (ii) who is independent of and not affiliated with a county or sponsor of a petition to


             1458      incorporate.
             1459          (d) "Municipal service" means a publicly provided service that is not provided on a
             1460      countywide basis.
             1461          (e) "Nonurban" means having a residential density of less than one unit per acre.
             1462          (2) (a) (i) A contiguous area of a county not within a municipality, with a population of
             1463      at least 100 but less than 1,000, may incorporate as a town as provided in this section.
             1464          (ii) An area within a county of the first class is not contiguous for purposes of
             1465      Subsection (2)(a)(i) if:
             1466          (A) the area includes a strip of land that connects geographically separate areas; and
             1467          (B) the distance between the geographically separate areas is greater than the average
             1468      width of the strip of land connecting the geographically separate areas.
             1469          (b) The population figure under Subsection (2)(a) shall be determined:
             1470          (i) as of the date the incorporation petition is filed; and
             1471          (ii) by the Utah Population Estimates Committee within 20 days after the county clerk's
             1472      certification under Subsection (6) of a petition filed under Subsection (4).
             1473          (3) (a) The process to incorporate an area as a town is initiated by filing a petition to
             1474      incorporate the area as a town with the clerk of the county in which the area is located.
             1475          (b) A petition under Subsection (3)(a) shall:
             1476          (i) be signed by:
             1477          (A) the owners of private real property that:
             1478          (I) is located within the area proposed to be incorporated; and
             1479          (II) is equal in assessed value to more than 1/5 of the assessed value of all private real
             1480      property within the area; and
             1481          (B) 1/5 of all registered voters within the area proposed to be incorporated as a town,
             1482      according to the official voter registration list maintained by the county on the date the petition
             1483      is filed;
             1484          (ii) designate as sponsors at least five of the property owners who have signed the
             1485      petition, one of whom shall be designated as the contact sponsor, with the mailing address of


             1486      each owner signing as a sponsor;
             1487          (iii) be accompanied by and circulated with an accurate map or plat, prepared by a
             1488      licensed surveyor, showing a legal description of the boundary of the proposed town; and
             1489          (iv) substantially comply with and be circulated in the following form:
             1490          PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
             1491      town)
             1492          To the Honorable County Legislative Body of (insert the name of the county in which
             1493      the proposed town is located) County, Utah:
             1494          We, the undersigned owners of real property and registered voters within the area
             1495      described in this petition, respectfully petition the county legislative body to submit to the
             1496      registered voters residing within the area described in this petition, at the next regular general
             1497      election, the question of whether the area should incorporate as a town. Each of the
             1498      undersigned affirms that each has personally signed this petition and is an owner of real
             1499      property or a registered voter residing within the described area, and that the current residence
             1500      address of each is correctly written after the signer's name. The area proposed to be
             1501      incorporated as a town is described as follows: (insert an accurate description of the area
             1502      proposed to be incorporated).
             1503          (c) A petition under this Subsection (3) may not describe an area that includes some or
             1504      all of an area proposed for annexation in an annexation petition under Section 10-2-403 that:
             1505          (i) was filed before the filing of the petition; and
             1506          (ii) is still pending on the date the petition is filed.
             1507          (d) A petition may not be filed under this section if the private real property owned by
             1508      the petition sponsors, designated under Subsection (3)(b)(ii), cumulatively exceeds 40% of the
             1509      total private land area within the area proposed to be incorporated as a town.
             1510          (e) A signer of a petition under this Subsection (3) may withdraw or, after withdrawn,
             1511      reinstate the signer's signature on the petition:
             1512          (i) at any time until the county clerk certifies the petition under Subsection (5); and
             1513          (ii) by filing a signed, written withdrawal or reinstatement with the county clerk.


             1514          (4) (a) If a petition is filed under Subsection (3)(a) proposing to incorporate as a town
             1515      an area located within a county of the first class, the county clerk shall deliver written notice of
             1516      the proposed incorporation:
             1517          (i) to each owner of private real property owning more than 1% of the assessed value
             1518      of all private real property within the area proposed to be incorporated as a town; and
             1519          (ii) within seven calendar days after the date on which the petition is filed.
             1520          (b) A private real property owner described in Subsection (4)(a)(i) may exclude all or
             1521      part of the owner's property from the area proposed to be incorporated as a town by filing a
             1522      notice of exclusion:
             1523          (i) with the county clerk; and
             1524          (ii) within 10 calendar days after receiving the clerk's notice under Subsection (4)(a).
             1525          (c) The county legislative body shall exclude from the area proposed to be incorporated
             1526      as a town the property identified in the notice of exclusion under Subsection (4)(b) if:
             1527          (i) the property:
             1528          (A) is nonurban; and
             1529          (B) does not and will not require a municipal service; and
             1530          (ii) exclusion will not leave an unincorporated island within the proposed town.
             1531          (d) If the county legislative body excludes property from the area proposed to be
             1532      incorporated as a town, the county legislative body shall send written notice of the exclusion to
             1533      the contact sponsor within five days after the exclusion.
             1534          (5) No later than 20 days after the filing of a petition under Subsection (3), the county
             1535      clerk shall:
             1536          (a) with the assistance of other county officers from whom the clerk requests
             1537      assistance, determine whether the petition complies with the requirements of Subsection (3);
             1538      and
             1539          (b) (i) if the clerk determines that the petition complies with those requirements:
             1540          (A) certify the petition and deliver the certified petition to the county legislative body;
             1541      and


             1542          (B) mail or deliver written notification of the certification to:
             1543          (I) the contact sponsor;
             1544          (II) if applicable, the chair of the planning commission of each township in which any
             1545      part of the area proposed for incorporation is located; and
             1546          (III) the Utah Population Estimates Committee; or
             1547          (ii) if the clerk determines that the petition fails to comply with any of those
             1548      requirements, reject the petition and notify the contact sponsor in writing of the rejection and
             1549      the reasons for the rejection.
             1550          (6) (a) (i) A petition that is rejected under Subsection (5)(b)(ii) may be amended to
             1551      correct a deficiency for which it was rejected and then refiled with the county clerk.
             1552          (ii) A valid signature on a petition filed under Subsection (3)(a) may be used toward
             1553      fulfilling the signature requirement of Subsection (3)(b) for the same petition that is amended
             1554      under Subsection (6)(a)(i) and then refiled with the county clerk.
             1555          (b) If a petition is amended and refiled under Subsection (6)(a)(i) after having been
             1556      rejected by the county clerk under Subsection (5)(b)(ii):
             1557          (i) the amended petition shall be considered as a newly filed petition; and
             1558          (ii) the amended petition's processing priority is determined by the date on which it is
             1559      refiled.
             1560          (7) (a) (i) The legislative body of a county with which a petition is filed under
             1561      Subsection (4) and certified under Subsection (6) shall commission and pay for a financial
             1562      feasibility study.
             1563          (ii) The feasibility consultant shall be chosen:
             1564          (A) (I) by the contact sponsor of the incorporation petition, as described in Subsection
             1565      (3)(b)(ii), with the consent of the county; or
             1566          (II) by the county if the contact sponsor states, in writing, that the sponsor defers
             1567      selection of the feasibility consultant to the county; and
             1568          (B) in accordance with applicable county procurement procedure.
             1569          (iii) The county legislative body shall require the feasibility consultant to complete the


             1570      financial feasibility study and submit written results of the study to the county legislative body
             1571      no later than 30 days after the feasibility consultant is engaged to conduct the financial
             1572      feasibility study.
             1573          (b) The financial feasibility study shall consider the:
             1574          (i) population and population density within the area proposed for incorporation and
             1575      the surrounding area;
             1576          (ii) current and five-year projections of demographics and economic base in the
             1577      proposed town and surrounding area, including household size and income, commercial and
             1578      industrial development, and public facilities;
             1579          (iii) projected growth in the proposed town and in adjacent areas during the next five
             1580      years;
             1581          (iv) subject to Subsection (7)(c), the present and five-year projections of the cost,
             1582      including overhead, of governmental services in the proposed town, including:
             1583          (A) culinary water;
             1584          (B) secondary water;
             1585          (C) sewer;
             1586          (D) law enforcement;
             1587          (E) fire protection;
             1588          (F) roads and public works;
             1589          (G) garbage;
             1590          (H) weeds; and
             1591          (I) government offices;
             1592          (v) assuming the same tax categories and tax rates as currently imposed by the county
             1593      and all other current service providers, the present and five-year projected revenue for the
             1594      proposed town; and
             1595          (vi) a projection of any new taxes per household that may be levied within the
             1596      incorporated area within five years of incorporation.
             1597          (c) (i) For purposes of Subsection (7)(b)(iv), the feasibility consultant shall assume a


             1598      level and quality of governmental services to be provided to the proposed town in the future
             1599      that fairly and reasonably approximate the level and quality of governmental services being
             1600      provided to the proposed town at the time of the feasibility study.
             1601          (ii) In determining the present cost of a governmental service, the feasibility consultant
             1602      shall consider:
             1603          (A) the amount it would cost the proposed town to provide governmental service for
             1604      the first five years after incorporation; and
             1605          (B) the county's present and five-year projected cost of providing governmental
             1606      service.
             1607          (iii) The costs calculated under Subsection (7)(b)(iv), shall take into account inflation
             1608      and anticipated growth.
             1609          (d) If the five year projected revenues under Subsection (7)(b)(v) exceed the five-year
             1610      projected costs under Subsection (7)(b)(iv) by more than 10%, the feasibility consultant shall
             1611      project and report the expected annual revenue surplus to the contact sponsor and the lieutenant
             1612      governor.
             1613          (e) The county legislative body shall approve a certified petition proposing the
             1614      incorporation of a town and hold a public hearing as provided in Section 10-2-126 .
             1615          Section 41. Section 10-2-126 is amended to read:
             1616           10-2-126. Incorporation of town -- Public hearing on feasibility.
             1617          (1) If, in accordance with Section 10-2-125 , the county clerk certifies a petition for
             1618      incorporation or an amended petition for incorporation, the county legislative body shall, at its
             1619      next regular meeting after completion of the feasibility study, schedule a public hearing to:
             1620          (a) be held no later than 60 days after the day on which the feasibility study is
             1621      completed; and
             1622          (b) consider, in accordance with Subsection (3)(b), the feasibility of incorporation for
             1623      the proposed town.
             1624          (2) The county legislative body shall give notice of the public hearing on the proposed
             1625      incorporation by:


             1626          (a) posting notice of the public hearing on the county's Internet website, if the county
             1627      has an Internet website;
             1628          (b) (i) publishing notice of the public hearing at least once a week for two consecutive
             1629      weeks in a newspaper of general circulation within the proposed town; or
             1630          (ii) if there is no newspaper of general circulation within the proposed town, posting
             1631      notice of the public hearing in at least five conspicuous public places within the proposed
             1632      town; and
             1633          (c) publishing notice of the public hearing on the Utah Public Notice Website created
             1634      in Section 63F-1-701 .
             1635          (3) At the public hearing scheduled in accordance with Subsection (1), the county
             1636      legislative body shall:
             1637          (a) (i) provide a copy of the feasibility study; and
             1638          (ii) present the results of the feasibility study to the public; and
             1639          (b) allow the public to:
             1640          (i) review the map or plat of the boundary of the proposed town;
             1641          (ii) ask questions and become informed about the proposed incorporation; and
             1642          (iii) express its views about the proposed incorporation, including their views about the
             1643      boundary of the area proposed to be incorporated.
             1644          (4) A county may not hold an election on the incorporation of a town in accordance
             1645      with Section 10-2-127 if the results of the feasibility study show that the five-year projected
             1646      revenues under Subsection 10-2-125 (7)(b)(v) exceed the five-year projected costs under
             1647      Subsection 10-2-125 (7)(b)(iv) by more than 10%.
             1648          Section 42. Section 10-8-62 is amended to read:
             1649           10-8-62. Cemeteries -- Purchase and operation.
             1650          The city legislative body may:
             1651          (1) purchase, hold, and pay for lands within or without the corporate limits for the
             1652      burial of the dead, and all necessary grounds for hospitals;
             1653          (2) have and exercise police jurisdiction over those lands, and over any cemetery used


             1654      by the inhabitants of the city;
             1655          (3) survey, plat, map, fence, ornament, and otherwise improve, manage, and operate
             1656      public burial and cemetery grounds;
             1657          (4) convey cemetery lots owned by the city, and pass ordinances for the protection and
             1658      governing of these grounds consistent with Title 8, Chapter 5, [Municipal Cemeteries] Rights
             1659      and Title to Cemetery Lots;
             1660          (5) contract for the care and improvement of cemeteries and cemetery lots, and for any
             1661      compensation for the care and improvement;
             1662          (6) receive deposits for the care of lots and invest the deposits by following the
             1663      procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
             1664          (7) pay the cost of the care from any proceeds from the investment.
             1665          Section 43. Section 10-8-63 is amended to read:
             1666           10-8-63. Burial of dead -- Vital statistics.
             1667          They may regulate the burial of the dead, consistent with Title 8, Chapter 5, [Municipal
             1668      Cemeteries] Rights and Title to Cemetery Lots, the registration of births and deaths, direct the
             1669      returning and keeping of bills of mortality, and impose penalties on physicians, sextons, and
             1670      others for any default therein.
             1671          Section 44. Section 10-18-104 is amended to read:
             1672           10-18-104. Application to existing contracts.
             1673          (1) (a) If before the sooner of March 1 or the effective date of the chapter, the
             1674      legislative body of a municipality authorized the municipality to offer or provide cable
             1675      television services or public telecommunications services, each authorized service:
             1676          (i) is exempt from Part 2, Conditions for Providing Services; and
             1677          (ii) is subject to Part 3, Operational Requirements and Limitations.
             1678          (b) The exemption described in Subsection (1)(a)(i) may not apply to any cable
             1679      television service or public telecommunications service authorized by the legislative body of a
             1680      municipality on or after the sooner of March 1 or the effective date of this chapter.
             1681          (2) This chapter does not:


             1682          (a) invalidate any contract entered into by a municipality before the sooner of March 1
             1683      or the effective date of this chapter:
             1684          (i) for the design, construction, equipping, operation, or maintenance of facilities used
             1685      or to be used by the municipality, or by a private provider under a contract with the
             1686      municipality for the purpose of providing:
             1687          (A) cable television services; or
             1688          (B) public telecommunications services;
             1689          (ii) with a private provider for the use of the facilities described in Subsection (2)(a)(i)
             1690      in connection with the private provider offering:
             1691          (A) cable television services; or
             1692          (B) public telecommunications services;
             1693          (iii) with a subscriber for providing:
             1694          (A) a cable television service; or
             1695          (B) a public telecommunications service; or
             1696          (iv) to obtain or secure financing for the acquisition or operation of the municipality's
             1697      facilities or equipment used in connection with providing:
             1698          (A) a cable television service; or
             1699          (B) a public telecommunications service; or
             1700          (b) impair any security interest granted by a municipality as collateral for the
             1701      municipality's obligations under a contract described in Subsection (2)(a).
             1702          (3) (a) A municipality meeting the one or more of the following conditions is exempt
             1703      from this chapter as provided in Subsection (3)(b):
             1704          (i) a municipality that adopts or enacts a bond resolution on or before January 1, 2001,
             1705      to fund facilities or equipment that the municipality uses to provide:
             1706          (A) cable television services; or
             1707          (B) public telecommunications services; or
             1708          (ii) a municipality that has operated for at least three years consecutively before the
             1709      sooner of March 1 or the effective date of this chapter:


             1710          (A) a cable television service; or
             1711          (B) a public telecommunications service.
             1712          (b) A municipality described in Subsection (3)(a) is exempt from this chapter except
             1713      for:
             1714          (i) Subsection 10-18-303 (4);
             1715          (ii) Subsection 10-18-303 (7);
             1716          (iii) Subsection 10-18-303 (9);
             1717          (iv) Section 10-18-304 ; and
             1718          (v) Section 10-18-305 .
             1719          (4) For the time period beginning on the effective date of this chapter and ending on
             1720      December 31, 2001, a municipality that operated a cable television service as of January 1,
             1721      2001, is exempt from Subsection 10-18-301 (1)(d).
             1722          Section 45. Section 11-13-303 is amended to read:
             1723           11-13-303. Source of project entity's payment of sales and use tax -- Gross
             1724      receipts taxes for facilities providing additional project capacity.
             1725          (1) A project entity is not exempt from sales and use taxes under Title 59, Chapter 12,
             1726      Sales and Use Tax Act, to the extent provided in Subsection 59-12-104 (2).
             1727          (2) A project entity may make payments or prepayments of sales and use taxes, as
             1728      provided in Title 63M, Chapter 5, Resource Development Act, from the proceeds of revenue
             1729      bonds issued under Section 11-13-218 or other revenues of the project entity.
             1730          (3) (a) This Subsection (3) applies with respect to facilities providing additional project
             1731      capacity.
             1732          (b) (i) The in lieu excise tax imposed under Title 59, Chapter 8, Gross Receipts Tax on
             1733      Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, shall be
             1734      imposed collectively on all gross receipts derived with respect to the ownership interests of all
             1735      project entities and other public agencies in facilities providing additional project capacity as
             1736      though all such ownership interests were held by a single project entity.
             1737          (ii) The in lieu excise tax shall be calculated as though the gross receipts derived with


             1738      respect to all such ownership interests were received by a single taxpayer that has no other
             1739      gross receipts.
             1740          (iii) The gross receipts attributable to such ownership interests shall consist solely of
             1741      gross receipts that are expended by each project entity and other public agency holding an
             1742      ownership interest in the facilities for the operation or maintenance of or ordinary repairs or
             1743      replacements to the facilities.
             1744          (iv) For purposes of calculating the in lieu excise tax, the determination of whether
             1745      there is a tax rate and, if so, what the tax rate is shall be governed by Section 59-8-104 , except
             1746      that the $10,000,000 figures in Section 59-8-104 indicating the amount of gross receipts that
             1747      determine the applicable tax rate shall be replaced with $5,000,000.
             1748          (c) Each project entity and public agency owning an interest in the facilities providing
             1749      additional project capacity shall be liable only for the portion of the gross receipts tax referred
             1750      to in Subsection (3)(b) that is proportionate to its percentage ownership interest in the facilities
             1751      and may not be liable for any other gross receipts taxes with respect to its percentage
             1752      ownership interest in the facilities.
             1753          (d) No project entity or other public agency that holds an ownership interest in the
             1754      facilities may be subject to the taxes imposed under Title 59, Chapter 7, Corporate Franchise
             1755      and Income Taxes, with respect to those facilities.
             1756          (4) For purposes of calculating the gross receipts tax imposed on a project entity or
             1757      other public agency under Title 59, Chapter 8, Gross Receipts Tax on Certain Corporations Not
             1758      Required to Pay Corporate Franchise or Income Tax Act, or Subsection (3), gross receipts
             1759      include only gross receipts from the first sale of capacity, services, or other benefits and do not
             1760      include gross receipts from any subsequent sale, resale, or layoff of the capacity, services, or
             1761      other benefits.
             1762          Section 46. Section 11-13-315 is amended to read:
             1763           11-13-315. Taxed interlocal entity.
             1764          (1) As used in this section:
             1765          (a) "Asset" means funds, money, an account, real or personal property, or personnel.


             1766          (b) "Public asset" means:
             1767          (i) an asset used by a public entity;
             1768          (ii) tax revenue;
             1769          (iii) state funds; or
             1770          (iv) public funds.
             1771          (c) (i) "Taxed interlocal entity" means a project entity that:
             1772          (A) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3,
             1773      Project Entity Provisions;
             1774          (B) does not receive a payment of funds from a federal agency or office, state agency or
             1775      office, political subdivision, or other public agency or office other than a payment that does not
             1776      materially exceed the greater of the fair market value and the cost of a service provided or
             1777      property conveyed by the project entity; and
             1778          (C) does not receive, expend, or have the authority to compel payment from tax
             1779      revenue.
             1780          (ii) Before and on May 1, 2014, "taxed interlocal entity" includes an interlocal entity
             1781      that:
             1782          (A) (I) was created before 1981 for the purpose of providing power supply at wholesale
             1783      to its members; or
             1784          (II) is described in Subsection 11-13-204 (7);
             1785          (B) does not receive a payment of funds from a federal agency or office, state agency or
             1786      office, political subdivision, or other public agency or office other than a payment that does not
             1787      materially exceed the greater of the fair market value and the cost of a service provided or
             1788      property conveyed by the interlocal entity; and
             1789          (C) does not receive, expend, or have the authority to compel payment from tax
             1790      revenue.
             1791          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
             1792      administer, receive, expend, appropriate, disburse, or have custody.
             1793          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each


             1794      term in Subsection (1)(d)(i), individually.
             1795          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
             1796      entity does not constitute the use of a public asset.
             1797          (3) Notwithstanding any other provision of law, a taxed interlocal entity's use of an
             1798      asset that was a public asset prior to the taxed interlocal entity's use of the asset does not
             1799      constitute a taxed interlocal entity's use of a public asset.
             1800          (4) Notwithstanding any other provision of law, an official of a project entity is not a
             1801      public treasurer.
             1802          (5) Notwithstanding any other provision of law, a taxed interlocal entity's governing
             1803      body, as described in Section 11-13-206 , shall determine and direct the use of an asset by the
             1804      taxed interlocal entity.
             1805          (6) (a) A taxed interlocal entity is not subject to the provisions of Title 63G, Chapter
             1806      6a, Utah Procurement Code.
             1807          (b) An agent of a taxed interlocal entity is not an external procurement unit as defined
             1808      in Section 63G-6a-104 .
             1809          (7) (a) A taxed interlocal entity is not a participating local entity as defined in Section
             1810      63A-3-401 .
             1811          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall
             1812      provide:
             1813          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
             1814      year and the prior fiscal year, including the taxed interlocal entity's balance sheet as of the end
             1815      of the fiscal year and the prior fiscal year, and the related statements of revenues and expenses
             1816      and of cash flows for the fiscal year; and
             1817          (ii) the accompanying auditor's report and management's discussion and analysis with
             1818      respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
             1819      year.
             1820          (c) The taxed interlocal entity shall provide the information described in Subsections
             1821      (7)(b)(i) and [(b)] (ii):


             1822          (i) in a manner described in Subsection 63A-3-405 (3); and
             1823          (ii) within a reasonable time after the taxed interlocal entity's independent auditor
             1824      delivers to the taxed interlocal entity's governing body the auditor's report with respect to the
             1825      financial statements for and as of the end of the fiscal year.
             1826          (d) Notwithstanding Subsections (7)(b) and (c) or a taxed interlocal entity's compliance
             1827      with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
             1828          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
             1829      Finance; and
             1830          (ii) the information described in Subsection (7)(b)(i) or (ii) does not constitute public
             1831      financial information as defined in Section 63A-3-401 .
             1832          (8) (a) A taxed interlocal entity's governing body is not a governing board as defined in
             1833      Section 51-2a-102 .
             1834          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
             1835      Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
             1836      Entities Act.
             1837          Section 47. Section 11-14-301 is amended to read:
             1838           11-14-301. Issuance of bonds by governing body -- Computation of indebtedness
             1839      under constitutional and statutory limitations.
             1840          (1) If the governing body has declared the bond proposition to have carried and no
             1841      contest has been filed, or if a contest has been filed and favorably terminated, the governing
             1842      body may proceed to issue the bonds voted at the election.
             1843          (2) (a) It is not necessary that all of the bonds be issued at one time, but, except as
             1844      otherwise provided in this Subsection (2), bonds approved by the voters may not be issued
             1845      more than 10 years after the day on which the election is held.
             1846          (b) The 10-year period described in Subsection (2)(a) is tolled if, at any time during the
             1847      10-year period:
             1848          (i) an application for a referendum petition is filed with a local clerk, in accordance
             1849      with Section 20A-7-602 and Subsection 20A-7-601 [(4)](3)(a), with respect to the local


             1850      obligation law relating to the bonds; or
             1851          (ii) the bonds are challenged in a court of law or an administrative proceeding in
             1852      relation to:
             1853          (A) the legality or validity of the bonds, or the election or proceedings authorizing the
             1854      bonds;
             1855          (B) the authority of the local political subdivision to issue the bonds;
             1856          (C) the provisions made for the security or payment of the bonds; or
             1857          (D) any other issue that materially and adversely affects the marketability of the bonds,
             1858      as determined by the individual or body that holds the executive powers of the local political
             1859      subdivision.
             1860          (c) A tolling period described in Subsection (2)(b)(i) ends on the later of the day on
             1861      which:
             1862          (i) the local clerk determines that the petition is insufficient, in accordance with
             1863      Subsection 20A-7-607 (2)(c), unless an application, described in Subsection 20A-7-607 (4)(a), is
             1864      made to the Supreme Court;
             1865          (ii) the Supreme Court determines, under Subsection 20A-7-607 (4)(c), that the petition
             1866      for the referendum is not legally sufficient; or
             1867          (iii) for a referendum petition that is sufficient, the governing body declares, as
             1868      provided by law, the results of the referendum election on the local obligation law.
             1869          (d) A tolling period described in Subsection (2)(b)(ii) ends after:
             1870          (i) there is a final settlement, a final adjudication, or another type of final resolution of
             1871      all challenges described in Subsection (2)(b)(ii); and
             1872          (ii) the individual or body that holds the executive powers of the local political
             1873      subdivision issues a document indicating that all challenges described in Subsection (2)(b)(ii)
             1874      are resolved and final.
             1875          (e) If the 10-year period described in Subsection (2)(a) is tolled under this Subsection
             1876      (2) and, when the tolling ends and after giving effect to the tolling, the period of time
             1877      remaining to issue the bonds is less than one year, the period of time remaining to issue the


             1878      bonds shall be extended to one year.
             1879          (f) The tolling provisions described in this Subsection (2) apply to all bonds described
             1880      in this section that were approved by voters on or after May 8, 2002.
             1881          (3) (a) Bonds approved by the voters may not be issued to an amount that will cause
             1882      the indebtedness of the local political subdivision to exceed that permitted by the Utah
             1883      Constitution or statutes.
             1884          (b) In computing the amount of indebtedness that may be incurred pursuant to
             1885      constitutional and statutory limitations, the constitutionally or statutorily permitted percentage,
             1886      as the case may be, shall be applied to the fair market value, as defined under Section 59-2-102 ,
             1887      of the taxable property in the local political subdivision, as computed from the last applicable
             1888      equalized assessment roll before the incurring of the additional indebtedness.
             1889          (c) In determining the fair market value of the taxable property in the local political
             1890      subdivision as provided in this section, the value of all tax equivalent property, as defined in
             1891      Section 59-3-102 , shall be included as a part of the total fair market value of taxable property
             1892      in the local political subdivision, as provided in Title 59, Chapter 3, Tax Equivalent Property
             1893      Act.
             1894          (4) Bonds of improvement districts issued in a manner that they are payable solely
             1895      from the revenues to be derived from the operation of the facilities of the district may not be
             1896      included as bonded indebtedness for the purposes of the computation.
             1897          (5) Where bonds are issued by a city, town, or county payable solely from revenues
             1898      derived from the operation of revenue-producing facilities of the city, town, or county, or
             1899      payable solely from a special fund into which are deposited excise taxes levied and collected by
             1900      the city, town, or county, or excise taxes levied by the state and rebated pursuant to law to the
             1901      city, town, or county, or any combination of those excise taxes, the bonds shall be included as
             1902      bonded indebtedness of the city, town, or county only to the extent required by the Utah
             1903      Constitution, and any bonds not so required to be included as bonded indebtedness of the city,
             1904      town, or county need not be authorized at an election, except as otherwise provided by the Utah
             1905      Constitution, the bonds being hereby expressly excluded from the election requirement of


             1906      Section 11-14-201 .
             1907          (6) A bond election is not void when the amount of bonds authorized at the election
             1908      exceeded the limitation applicable to the local political subdivision at the time of holding the
             1909      election, but the bonds may be issued from time to time in an amount within the applicable
             1910      limitation at the time the bonds are issued.
             1911          Section 48. Section 11-17-14 is amended to read:
             1912           11-17-14. Uniform Commercial Code not applicable.
             1913          Bonds issued under this act are exempt from the provisions of [the] Title 70A, Uniform
             1914      Commercial Code[, Title 70A].
             1915          Section 49. Section 11-32-4 is amended to read:
             1916           11-32-4. Assignment of rights to receive delinquent tax receivables to financing
             1917      authority -- Documentation -- Agreement.
             1918          (1) At any time following the date of delinquency for property in Title 59, Chapter 2,
             1919      Part 13, Collection of Taxes, the governing body of any county desiring to implement the
             1920      provisions of this chapter by assigning the delinquent tax receivables of the participant
             1921      members to its authority shall ascertain the amount of delinquent taxes owed to the participant
             1922      members within the county. After ascertaining the amount of delinquent tax receivables owed,
             1923      the governing body of the county may, as agent for the other participant members, assign the
             1924      rights of the participant members to receive the delinquent tax receivables, in whole or in part,
             1925      as designated by the governing body of the county, to the financing authority. The assignment
             1926      of rights described above shall take the form of an assignment of an account receivables. The
             1927      purchase price paid by the authority may be equal to, greater than, or less than the amount of
             1928      the delinquent tax receivables sold to the authority. The documentation by which the transfer
             1929      of the delinquent tax receivables are made shall contain the following:
             1930          (a) the tax year or years for which the delinquent taxes owing were levied;
             1931          (b) the amount of taxes, interest, and penalties due to the participant members with
             1932      respect to the tax years as of the date the accounts are assigned;
             1933          (c) the tax identification numbers or other descriptions of the specific properties with


             1934      respect to which the delinquent tax receivables are being assigned;
             1935          (d) the interest rate at which the delinquent taxes subject to the assignment bear interest
             1936      pursuant to Section 59-2-1331 ;
             1937          (e) the discount or premium, if any, at which the account is assigned;
             1938          (f) a certificate representing the transfer of the rights of the county and the other
             1939      participant members to receive the amounts due and owing the county and the other participant
             1940      members with respect to the delinquent tax receivables transferred; and
             1941          (g) certification by the governing body of the county that all amounts received by the
             1942      county with respect to the delinquent taxes, interest, and penalties assigned to the authority and
             1943      owed to the county and the other participant members, for the tax years specified, upon the
             1944      specified property, and the additional interest and penalties to accrue on the delinquent
             1945      amounts, shall be deposited upon receipt into a special fund of the county created for this
             1946      purpose and shall be used solely to pay the amounts falling due to the financing authority as
             1947      specified in the assignment agreement.
             1948          (2) The assignment agreement shall contain a statement to the effect that any amounts
             1949      falling due under it are payable solely from a special fund into which the county shall pay the
             1950      amounts collected with respect to the delinquent tax receivables pledged and shall state that
             1951      under no circumstances may the county or any of the other participant members be required to
             1952      use any other funds, property, or money of the county or the other participant members or to
             1953      levy any tax to satisfy amounts due under the agreement.
             1954          Section 50. Section 11-42-604 is amended to read:
             1955           11-42-604. Notice regarding resolution or ordinance authorizing interim
             1956      warrants or bond anticipation notes -- Complaint contesting warrants or notes --
             1957      Prohibition against contesting warrants and notes.
             1958          (1) A local entity may publish notice, as provided in Subsection (2), of a resolution or
             1959      ordinance that the governing body has adopted authorizing the issuance of interim warrants or
             1960      bond anticipation notes.
             1961          (2) (a) If a local entity chooses to publish notice under Subsection (1)[(a)], the notice


             1962      shall:
             1963          (i) be published:
             1964          (A) in a newspaper of general circulation within the local entity; and
             1965          (B) as required in Section 45-1-101 ; and
             1966          (ii) contain:
             1967          (A) the name of the issuer of the interim warrants or bond anticipation notes;
             1968          (B) the purpose of the issue;
             1969          (C) the maximum principal amount that may be issued;
             1970          (D) the maximum length of time over which the interim warrants or bond anticipation
             1971      notes may mature;
             1972          (E) the maximum interest rate, if there is a maximum rate; and
             1973          (F) the times and place where a copy of the resolution or ordinance may be examined,
             1974      as required under Subsection (2)(b).
             1975          (b) The local entity shall allow examination of the resolution or ordinance authorizing
             1976      the issuance of the interim warrants or bond anticipation notes at its office during regular
             1977      business hours.
             1978          (3) Any person may, within 30 days after publication of a notice under Subsection (1),
             1979      file a verified, written complaint in the district court of the county in which the person resides,
             1980      contesting the regularity, formality, or legality of the interim warrants or bond anticipation
             1981      notes issued by the local entity or the proceedings relating to the issuance of the interim
             1982      warrants or bond anticipation notes.
             1983          (4) After the 30-day period under Subsection (3), no person may contest the regularity,
             1984      formality, or legality of the interim warrants or bond anticipation notes issued by a local entity
             1985      under the resolution or ordinance that was the subject of the notice under Subsection (1), or the
             1986      proceedings relating to the issuance of the interim warrants or bond anticipation notes.
             1987          Section 51. Section 13-1a-5 is amended to read:
             1988           13-1a-5. Authority of director.
             1989          The director has authority:


             1990          (1) to make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             1991      Rulemaking Act, to administer the responsibilities of the division;
             1992          (2) to investigate, upon complaint, the corporation and commercial code filings and
             1993      compliance governed by the laws administered and enforced by the division; and
             1994          (3) under the provisions of Title 63G, Chapter 4, [Utah] Administrative Procedures
             1995      Act, to take administrative action against persons in violation of the division rules and the laws
             1996      administered by it, including the issuance of cease and desist orders.
             1997          Section 52. Section 13-22-8 is amended to read:
             1998           13-22-8. Exemptions.
             1999          (1) Section 13-22-5 does not apply to:
             2000          (a) a solicitation that an organization conducts among its own established and bona fide
             2001      membership exclusively through the voluntarily donated efforts of other members or officers of
             2002      the organization;
             2003          (b) a bona fide religious, ecclesiastical, or denominational organization if:
             2004          (i) the solicitation is made for a church, missionary, religious, or humanitarian purpose;
             2005      and
             2006          (ii) the organization is either:
             2007          (A) a lawfully organized corporation, institution, society, church, or established
             2008      physical place of worship, at which nonprofit religious services and activities are regularly
             2009      conducted and carried on;
             2010          (B) a bona fide religious group:
             2011          (I) that does not maintain specific places of worship;
             2012          (II) that is not subject to federal income tax; and
             2013          (III) not required to file an IRS Form 990 under any circumstance; or
             2014          (C) a separate group or corporation that is an integral part of an institution that is an
             2015      income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported
             2016      by funds solicited outside its own membership or congregation;
             2017          (c) a solicitation by a broadcast media owned or operated by an educational institution


             2018      or governmental entity, or any entity organized solely for the support of that broadcast media;
             2019          (d) except as provided in Subsection 13-22-21 (1), a solicitation for the relief of any
             2020      person sustaining a life-threatening illness or injury specified by name at the time of
             2021      solicitation if the entire amount collected without any deduction is turned over to the named
             2022      person;
             2023          (e) a political party authorized to transact its affairs within this state and any candidate
             2024      and campaign worker of the party if the content and manner of any solicitation make clear that
             2025      the solicitation is for the benefit of the political party or candidate;
             2026          (f) a political action committee or group soliciting funds relating to issues or candidates
             2027      on the ballot if the committee or group is required to file financial information with a federal or
             2028      state election commission;
             2029          (g) any school accredited by the state, any accredited institution of higher learning, or
             2030      club or parent, teacher, or student organization within and authorized by the school in support
             2031      of the operations or extracurricular activities of the school;
             2032          (h) a public or higher education foundation established under Title 53A [or 53B], State
             2033      System of Public Education, or Title 53B, State System Of Higher Education;
             2034          (i) a television station, radio station, or newspaper of general circulation that donates
             2035      air time or print space for no consideration as part of a cooperative solicitation effort on behalf
             2036      of a charitable organization, whether or not that organization is required to register under this
             2037      chapter;
             2038          (j) a volunteer fire department, rescue squad, or local civil defense organization whose
             2039      financial oversight is under the control of a local governmental entity;
             2040          (k) any governmental unit of any state or the United States; and
             2041          (l) any corporation:
             2042          (i) established by an act of the United States Congress; and
             2043          (ii) that is required by federal law to submit an annual report:
             2044          (A) on the activities of the corporation, including an itemized report of all receipts and
             2045      expenditures of the corporation; and


             2046          (B) to the United States Secretary of Defense to be:
             2047          (I) audited; and
             2048          (II) submitted to the United States Congress.
             2049          (2) Any organization claiming an exemption under this section bears the burden of
             2050      proving its eligibility for, or the applicability of, the exemption claimed.
             2051          (3) Each organization exempt from registration pursuant to this section that makes a
             2052      material change in its legal status, officers, address, or similar changes shall file a report
             2053      informing the division of its current legal status, business address, business phone, officers, and
             2054      primary contact person within 30 days of the change.
             2055          (4) The division may by rule:
             2056          (a) require organizations exempt from registration pursuant to this section to file a
             2057      notice of claim of exemption;
             2058          (b) prescribe the contents of the notice of claim; and
             2059          (c) require a filing fee for the notice, as determined under Section 63J-1-504 .
             2060          Section 53. Section 13-23-5 is amended to read:
             2061           13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required --
             2062      Penalties.
             2063          (1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the
             2064      facility is registered with the division.
             2065          (ii) Registration is effective for one year. If the health spa facility renews its
             2066      registration, the registration shall be renewed at least 30 days prior to its expiration.
             2067          (iii) The division shall provide by rule for the form, content, application process, and
             2068      renewal process of the registration.
             2069          (b) Each health spa registering in this state shall designate a registered agent for
             2070      receiving service of process. The registered agent shall be reasonably available from 8 a.m.
             2071      until 5 p.m. during normal working days.
             2072          (c) The division shall charge and collect a fee for registration under guidelines
             2073      provided in Section 63J-1-504 .


             2074          (d) If an applicant fails to file a registration application or renewal by the due date, or
             2075      files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for
             2076      each month or part of a month after the date on which the registration application or renewal
             2077      were due to be filed, in addition to the registration fee described in Subsection (1)(c).
             2078          (e) A health spa registering or renewing a registration shall provide the division a copy
             2079      of the liability insurance policy that:
             2080          (i) covers the health spa; and
             2081          (ii) is in effect at the time of the registration or renewal.
             2082          (2) (a) Each health spa shall obtain and maintain:
             2083          (i) a performance bond issued by a surety authorized to transact surety business in this
             2084      state;
             2085          (ii) an irrevocable letter of credit issued by a financial institution authorized to do
             2086      business in this state; or
             2087          (iii) a certificate of deposit.
             2088          (b) The bond, letter of credit, or certificate of deposit shall be payable to the division
             2089      for the benefit of any consumer who incurs damages as the result of:
             2090          (i) the health spa's violation of this chapter; or
             2091          (ii) the health spa's going out of business or relocating and failing to offer an alternate
             2092      location within five miles.
             2093          (c) (i) The division may recover from the bond, letter of credit, or certificate of deposit
             2094      the costs of collecting and distributing funds under this section, up to 10% of the face value of
             2095      the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered
             2096      their damages first.
             2097          (ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit
             2098      may not exceed the amount of the bond, letter of credit, or certificate of deposit.
             2099          (iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in
             2100      force for one year after it notifies the division in writing that it has ceased all activities
             2101      regulated by this chapter.


             2102          (d) A health spa providing services at more than one location shall comply with the
             2103      requirements of Subsection (2)(a) for each separate location.
             2104          (e) The division may impose a fine against a health spa that fails to comply with the
             2105      requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of
             2106      compliance. All penalties received shall be deposited into the Consumer Protection Education
             2107      and Training Fund created in Section 13-2-8 .
             2108          (3) (a) The minimum principal amount of the bond, letter of credit, or certificate of
             2109      credit required under Subsection (2) shall be based on the number of unexpired contracts for
             2110      health spa services to which the health spa is a party, in accordance with the following
             2111      schedule:
             2112      Principal Amount of
Bond, Letter of Credit,
or Certificate of Deposit
Number of Contracts
             2113      $15,000 500 or fewer
             2114      35,000 501 to 1,500
             2115      50,000 [1,500] 1,501 to 3,000
             2116      75,000 3,001 or more
             2117          (b) A health spa that is not exempt under Section 13-23-6 shall comply with
             2118      Subsection (3)(a) with respect to all of the health spa's unexpired contracts for health spa
             2119      services, regardless of whether a portion of those contracts satisfies the criteria in Section
             2120      13-23-6 .
             2121          (4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and
             2122      furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior
             2123      to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any
             2124      contract to provide health spa services. A health spa is considered to be in compliance with
             2125      this section only if the proof provided to the division shows that the bond, letter of credit, or
             2126      certificate of credit is current.


             2127          (5) Each health spa shall:
             2128          (a) maintain accurate records of the bond, letter of credit, or certificate of credit and of
             2129      any payments made, due, or to become due to the issuer; and
             2130          (b) open the records to inspection by the division at any time during normal business
             2131      hours.
             2132          (6) If a health spa changes ownership, ceases operation, discontinues facilities, or
             2133      relocates and fails to offer an alternate location within five miles within 30 days after its
             2134      closing, the health spa is subject to the requirements of this section as if it were a new health
             2135      spa coming into being at the time the health spa changed ownership. The former owner may
             2136      not release, cancel, or terminate the owner's liability under any bond, letter of credit, or
             2137      certificate of deposit previously filed with the division, unless:
             2138          (a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the
             2139      benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of
             2140      deposit; or
             2141          (b) the former owner has refunded all unearned payments to consumers.
             2142          (7) If a health spa ceases operation or relocates and fails to offer an alternative location
             2143      within five miles, the health spa shall provide the division with 45 days prior notice.
             2144          Section 54. Section 13-26-4 is amended to read:
             2145           13-26-4. Exemptions from registration.
             2146          (1) In any enforcement action initiated by the division, the person claiming an
             2147      exemption has the burden of proving that the person is entitled to the exemption.
             2148          (2) The following are exempt from the requirements of this chapter except for the
             2149      requirements of Sections 13-26-8 and 13-26-11 :
             2150          (a) a broker, agent, dealer, or sales professional licensed under the licensure laws of
             2151      this state, when soliciting sales within the scope of his license;
             2152          (b) the solicitation of sales by:
             2153          (i) a public utility that is regulated under Title 54, Public Utilities, or by an affiliate of
             2154      the utility;


             2155          (ii) a newspaper of general circulation;
             2156          (iii) a solicitation of sales made by a broadcaster licensed by any state or federal
             2157      authority;
             2158          (iv) a nonprofit organization if no part of the net earnings from the sale inures to the
             2159      benefit of any member, officer, trustee, or serving board member of the organization, or
             2160      individual, or family member of an individual, holding a position of authority or trust in the
             2161      organization; and
             2162          (v) a person who periodically publishes and delivers a catalog of the solicitor's
             2163      merchandise to prospective purchasers, if the catalog:
             2164          (A) contains the price and a written description or illustration of each item offered for
             2165      sale;
             2166          (B) includes the business address of the solicitor;
             2167          (C) includes at least 24 pages of written material and illustrations;
             2168          (D) is distributed in more than one state; and
             2169          (E) has an annual circulation by mailing of not less than 250,000;
             2170          (c) any publicly-traded corporation registered with the Securities and Exchange
             2171      Commission, or any subsidiary of the corporation;
             2172          (d) the solicitation of any depository institution as defined in Section 7-1-103 , a
             2173      subsidiary of a depository institution, personal property broker, securities broker, investment
             2174      adviser, consumer finance lender, or insurer subject to regulation by an official agency of this
             2175      state or the United States;
             2176          (e) the solicitation by a person soliciting only the sale of telephone services to be
             2177      provided by the person or the person's employer;
             2178          (f) the solicitation of a person relating to a transaction regulated by the Commodities
             2179      Futures Trading Commission, if:
             2180          (i) the person is registered with or temporarily licensed by the commission to conduct
             2181      that activity under the Commodity Exchange Act; and
             2182          (ii) the registration or license has not expired or been suspended or revoked;


             2183          (g) the solicitation of a contract for the maintenance or repair of goods previously
             2184      purchased from the person:
             2185          (i) who is making the solicitation; or
             2186          (ii) on whose behalf the solicitation is made;
             2187          (h) the solicitation of previous customers of the business on whose behalf the call is
             2188      made if the person making the call:
             2189          (i) does not offer any premium in conjunction with a sale or offer;
             2190          (ii) is not selling an investment or an opportunity for an investment that is not
             2191      registered with any state or federal authority; and
             2192          (iii) is not regularly engaged in telephone sales;
             2193          (i) the solicitation of a sale that is an isolated transaction and not done in the course of
             2194      a pattern of repeated transactions of a like nature;
             2195          (j) the solicitation of a person by a retail business establishment that has been in
             2196      operation for at least five years in Utah under the same name as that used in connection with
             2197      telemarketing if both of the following occur on a continuing basis:
             2198          (i) products are displayed and offered for sale at the place of business, or services are
             2199      offered for sale and provided at the place of business; and
             2200          (ii) a majority of the seller's business involves the buyer obtaining the products or
             2201      services at the seller's place of business;
             2202          (k) a person primarily soliciting the sale of a magazine or periodical sold by the
             2203      publisher or the publisher's agent through a written agreement, or printed or recorded material
             2204      through a contractual plan, such as a book or record club, continuity plan, subscription,
             2205      standing order arrangement, or supplement or series arrangement if:
             2206          (i) the seller provides the consumer with a form that the consumer may use to instruct
             2207      the seller not to ship the offered merchandise, and the arrangement is regulated by the Federal
             2208      Trade Commission trade regulation concerning use of negative option plans by sellers in
             2209      commerce; or
             2210          (ii) (A) the seller periodically ships merchandise to a consumer who has consented in


             2211      advance to receive the merchandise on a periodic basis; and
             2212          (B) the consumer retains the right to cancel at any time and receive a full refund for the
             2213      unused portion; or
             2214          (l) a telephone marketing service company that provides telemarketing sales services
             2215      under contract to sellers if:
             2216          (i) it has been doing business regularly with customers in Utah for at least five years
             2217      under the same business name and with its principal office in the same location;
             2218          (ii) at least 75% of its contracts are performed on behalf of persons exempted from
             2219      registration under this chapter; and
             2220          (iii) neither the company nor its principals have been enjoined from doing business or
             2221      subjected to criminal actions for their business activities in this or any other state.
             2222          Section 55. Section 13-32a-104 is amended to read:
             2223           13-32a-104. Register required to be maintained -- Contents -- Identification of
             2224      items -- Prohibition against pawning or selling certain property.
             2225          (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of each
             2226      article of property a person pawns or sells to the pawnbroker or secondhand merchandise
             2227      dealer, except as provided in Subsection 13-32a-102 (23)(b). Every pawn and secondhand
             2228      business owner or operator, or his employee, shall enter the following information regarding
             2229      every article pawned or sold to the owner or employee:
             2230          (a) the date and time of the transaction;
             2231          (b) the pawn transaction ticket number, if the article is pawned;
             2232          (c) the date by which the article must be redeemed;
             2233          (d) the following information regarding the person who pawns or sells the article:
             2234          (i) the person's name, residence address, and date of birth;
             2235          (ii) the number of the driver license or other form of positive identification presented
             2236      by the person, and notations of discrepancies if the person's physical description, including
             2237      gender, height, weight, race, age, hair color, and eye color, does not correspond with
             2238      identification provided by the person;


             2239          (iii) the person's signature; and
             2240          (iv) a legible fingerprint of the person's right index finger, or if the right index finger
             2241      cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying
             2242      the fingerprint and the reason why the index finger's print was unavailable;
             2243          (e) the amount loaned on or paid for the article, or the article for which it was traded;
             2244          (f) the identification of the pawn or secondhand business owner or the employee,
             2245      whoever is making the register entry; and
             2246          (g) an accurate description of the article of property, including available identifying
             2247      marks such as:
             2248          (i) names, brand names, numbers, serial numbers, model numbers, color,
             2249      manufacturers' names, and size;
             2250          (ii) metallic composition, and any jewels, stones, or glass;
             2251          (iii) any other marks of identification or indicia of ownership on the article;
             2252          (iv) the weight of the article, if the payment is based on weight;
             2253          (v) any other unique identifying feature;
             2254          (vi) gold content, if indicated; and
             2255          (vii) if multiple articles of a similar nature are delivered together in one transaction and
             2256      the articles do not bear serial or model numbers and do not include precious metals or
             2257      gemstones, such as musical or video recordings, books, or hand tools, the description of the
             2258      articles is adequate if it includes the quantity of the articles and a description of the type of
             2259      articles delivered.
             2260          (2) A pawn or secondhand business may not accept any personal property if, upon
             2261      inspection, it is apparent that serial numbers, model names, or identifying characteristics have
             2262      been intentionally defaced on that article of property.
             2263          (3) (a) A person may not pawn or sell any property to a business regulated under this
             2264      chapter if the property is subject to being turned over to a law enforcement agency in
             2265      accordance with Title 77, Chapter [24, Unclaimed] 24a, Lost or Mislaid Personal Property.
             2266          (b) If an individual attempts to sell or pawn property to a business regulated under this


             2267      chapter and the employee or owner of the business knows or has reason to know that the
             2268      property is subject to Title 77, Chapter [24, Unclaimed] 24a, Lost or Mislaid Personal Property,
             2269      the employee or owner shall advise the individual of the requirements of Title 77, Chapter [24,
             2270      Unclaimed] 24a, Lost or Mislaid Personal Property, and may not receive the property in pawn
             2271      or sale.
             2272          (4) A violation of this section is a class B misdemeanor and is also subject to civil
             2273      penalties under Section 13-32a-110 .
             2274          Section 56. Section 13-32a-115 is amended to read:
             2275           13-32a-115. Investigation phase and victim's responsibilities.
             2276          (1) If the property pawned or sold to a pawn or secondhand business is the subject of a
             2277      criminal investigation and a hold has been placed on the property under Section 13-32a-109 ,
             2278      the original victim shall do the following to establish a claim:
             2279          (a) positively identify to law enforcement the item stolen or lost;
             2280          (b) if a police report has not already been filed for the original theft or loss of property,
             2281      file a police report, and provide for the law enforcement agency information surrounding the
             2282      original theft or loss of property; and
             2283          (c) give a sworn statement under penalty of law that:
             2284          (i) claims ownership of the property;
             2285          (ii) references the original theft or loss; and
             2286          (iii) identifies the perpetrator if known.
             2287          (2) The pawn or secondhand business shall retain possession of any property subject to
             2288      a hold until a criminal prosecution is commenced relating to the property for which the hold
             2289      was placed unless:
             2290          (a) during the course of a criminal investigation the actual physical possession by law
             2291      enforcement of an article purchased or pawned is essential for the purpose of fingerprinting the
             2292      property, chemical testing of the property, or if the property contains unique or sensitive
             2293      personal identifying information; or
             2294          (b) an agreement between the original victim and the pawn or secondhand business to


             2295      return the property is reached.
             2296          (3) (a) Upon the commencement of a criminal prosecution, any article subject to a hold
             2297      for investigation under this chapter may be seized by the law enforcement agency which
             2298      requested the hold.
             2299          (b) Subsequent disposition of the property shall be consistent with Section [ 77-24-2 ]
             2300      24-3-103 regarding property not needed as evidence and this chapter.
             2301          (c) If a conflict exists between the provisions of Section [ 77-24-2 ] 24-3-103 regarding
             2302      property not needed as evidence and this chapter, this chapter takes precedence regarding
             2303      property held by pawn or secondhand businesses.
             2304          (4) At all times during the course of a criminal investigation and subsequent
             2305      prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or
             2306      secondhand business subject to the hold unless a pawned or sold article has been seized by the
             2307      law enforcement agency pursuant to Section 13-32a-109.5 .
             2308          Section 57. Section 13-32a-117 is amended to read:
             2309           13-32a-117. Property disposition if no criminal charges filed -- Administrative
             2310      hearing.
             2311          (1) The original victim or the pawn or secondhand business may request an
             2312      administrative property disposition hearing with the Division of Consumer Protection if:
             2313          (a) more than 30 days have passed since:
             2314          (i) the law enforcement agency placed a hold on the property; or
             2315          (ii) the property was seized by the law enforcement agency; and
             2316          (b) an agreement pursuant to Subsection 13-32a-115 (2)(b) has not been reached.
             2317          (2) The original victim or the pawn or secondhand business shall provide to the
             2318      Division of Consumer Protection at the time of the request for a property disposition hearing:
             2319          (a) a copy of the sworn statement of the original victim taken pursuant to Section
             2320      13-32a-115 and the case number assigned by the law enforcement agency; and
             2321          (b) a written notice from the prosecuting agency with jurisdiction over the case
             2322      involving the property that the prosecuting agency has made an initial determination under


             2323      Section [ 77-24-2 ] 13-32a-109 or 13-32a-109.5 and this chapter that the property is no longer
             2324      needed as evidence.
             2325          (3) (a) Within 30 days after receiving the request for a property disposition hearing
             2326      from the original victim or the pawn or secondhand business, the Division of Consumer
             2327      Protection shall schedule an adjudicative hearing in accordance with Title 63G, Chapter 4,
             2328      Administrative Procedures Act, to determine ownership of the claimed property. The division
             2329      shall provide written notice of the hearing to the pawn or secondhand business and the original
             2330      victim.
             2331          (b) The division shall conduct the hearing to determine disposition of the claimed
             2332      seized property, taking into consideration:
             2333          (i) the proof of ownership of the property and compliance with Subsection
             2334      13-32a-115 (1) by the original victim;
             2335          (ii) the claim of ownership by the pawn or secondhand business and the potential
             2336      financial loss to the business; and
             2337          (iii) compliance by the pawn or secondhand business with the requirements of this
             2338      chapter.
             2339          (c) If the division determines that the property should be released to the pawn or
             2340      secondhand business, the original victim retains a right of first refusal over the property for 15
             2341      days and may purchase the property at the amount financed or paid by the pawn or secondhand
             2342      business.
             2343          (d) The party to whom the division determines the property is to be released shall
             2344      maintain possession of the property for the duration of any time period regarding any
             2345      applicable right of appeal.
             2346          Section 58. Section 13-47-102 (Contingently Repealed) is amended to read:
             2347           13-47-102 (Contingently Repealed). Definitions.
             2348          As used in this chapter:
             2349          (1) "Department" means the Department of Commerce.
             2350          (2) "Employee" means an individual:


             2351          (a) who is hired to perform services in Utah; and
             2352          (b) to whom a private employer provides a federal form required for federal taxation
             2353      purposes to report income paid to the individual for the services performed.
             2354          (3) (a) Except as provided in Subsection (3)(b), "private employer" means a person
             2355      who for federal taxation purposes is required to provide a federal form:
             2356          (i) to an individual who performs services for the person in Utah; and
             2357          (ii) to report income paid to the individual who performs the services.
             2358          (b) "Private employer" does not mean a public employer as defined in Section
             2359      [ 63G-11-103 ] 63G-12-102 .
             2360          (4) (a) "Status verification system" means an electronic system operated by the federal
             2361      government, through which an employer may inquire to verify the federal legal working status
             2362      of an individual who is a newly hired employee.
             2363          (b) "Status verification system" includes:
             2364          (i) the electronic verification of the work authorization program of the Illegal
             2365      Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. Sec. 1324a;
             2366          (ii) a federal program equivalent to the program described in Subsection (4)(b)(i) that
             2367      is designated by the United States Department of Homeland Security or other federal agency
             2368      authorized to verify the employment eligibility status of a newly hired employee pursuant to the
             2369      Immigration Reform and Control Act of 1986;
             2370          (iii) the Social Security Number Verification Service or similar online verification
             2371      process implemented by the United States Social Security Administration; or
             2372          (iv) an independent third-party system with an equal or higher degree of reliability as
             2373      the programs, systems, or processes described in Subsection (4)(b)(i), (ii), or (iii).
             2374          Section 59. Section 13-47-201 (Contingently Repealed) is amended to read:
             2375           13-47-201 (Contingently Repealed). Verification required for new hires.
             2376          (1) A private employer who employs 15 or more employees [as of] on or after July 1,
             2377      2010, may not hire a new employee on or after July 1, 2010, unless the private employer:
             2378          (a) is registered with a status verification system to verify the federal legal working


             2379      status of any new employee; and
             2380          (b) uses the status verification system to verify the federal legal working status of the
             2381      new employee in accordance with the requirements of the status verification system.
             2382          (2) This section does not apply to a private employer of a foreign national if the foreign
             2383      national holds a visa issued in response to a petition by the private employer that is classified as
             2384      H-2A or H-2B.
             2385          Section 60. Section 15-8-4 is amended to read:
             2386           15-8-4. Inapplicability of other laws -- Exempted transactions.
             2387          (1) Rental purchase agreements that comply with this chapter are not governed by the
             2388      laws relating to:
             2389          (a) a security interest as defined in Subsection 70A-1a-201 (2)(ii); or
             2390          (b) Title 70C, Utah Consumer Credit Code, except that Sections 70C-7-102 through
             2391      70C-7-104 and 70C-2-205 shall apply to lessors as defined in this chapter to the same extent as
             2392      they apply to creditors under Title 70C, Utah Consumer Credit Code.
             2393          (2) The chapter does not apply to the following:
             2394          (a) rental purchase agreements primarily for business, commercial, or agricultural
             2395      purposes, or those made with governmental agencies or instrumentalities or with organizations;
             2396          (b) a lease of a safe deposit box;
             2397          (c) a lease or bailment of personal property which is incidental to the lease of real
             2398      property and which provides that the consumer has no option to purchase the leased property;
             2399      or
             2400          (d) a lease of a motor vehicle, as defined in Section 41-1a-102 .
             2401          Section 61. Section 15-9-103 is amended to read:
             2402           15-9-103. Administration -- Rulemaking -- Service of process.
             2403          (1) (a) This chapter shall be administered by the division and is subject to the
             2404      requirements of Title 58, Chapter 1, Division of Occupational and Professional Licensing Act,
             2405      so long as the requirements of Title 58, Chapter 1, Division of Occupational and Professional
             2406      Licensing Act, are not inconsistent with the requirements of this chapter.


             2407          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2408      division may make rules necessary to implement this chapter.
             2409          (2) By acting as an athlete agent in this state, a nonresident individual appoints the
             2410      director of the division as the individual's agent for service of process in any civil action in this
             2411      state related to the individual's acting as an athlete agent in this state.
             2412          Section 62. Section 15-10-201 is amended to read:
             2413           15-10-201. Notice requirement.
             2414          (1) Except as provided in Subsection [(1)] (2)(b), a service contract may not contain an
             2415      automatic renewal provision unless the seller provides the consumer written notice complying
             2416      with Subsection (2) that informs the consumer of the automatic renewal provision.
             2417          (2) (a) For a service contract executed on or after July 1, 2011, that exceeds 12 months
             2418      for a renewal period, a seller shall provide written notice of an automatic renewal provision
             2419      prominently displayed on the first page of the service contract.
             2420          (b) In addition to complying with Subsection (2)(a), a seller shall provide written
             2421      notice required under Subsection (1) to the consumer:
             2422          (i) personally;
             2423          (ii) by certified mail; or
             2424          (iii) prominently displayed on the first page of a monthly statement.
             2425          (c) (i) A seller shall provide written notice under Subsection (2)(b):
             2426          (A) no later than 30 calendar days before the last day on which the consumer may give
             2427      notice of the consumer's intention to terminate the service contract; and
             2428          (B) no sooner than 90 calendar days before the last day on which the consumer may
             2429      give notice of the consumer's intention to terminate the service contract.
             2430          (ii) A seller may not provide written notice required under Subsection (1) except:
             2431          (A) as provided in Subsection (2)(a); or
             2432          (B) during the time period described in Subsection (2)(c)(i).
             2433          (d) Written notice required under Subsection (1) shall be:
             2434          (i) written in clear and understandable language; and


             2435          (ii) printed in an easy-to-read type size and style.
             2436          Section 63. Section 15A-1-204 is amended to read:
             2437           15A-1-204. Adoption of State Construction Code -- Amendments by commission--
             2438      Approved codes -- Exemptions.
             2439          (1) (a) The State Construction Code is the construction codes adopted with any
             2440      modifications in accordance with this section that the state and each political subdivision of the
             2441      state shall follow.
             2442          (b) A person shall comply with the applicable provisions of the State Construction
             2443      Code when:
             2444          (i) new construction is involved; and
             2445          (ii) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
             2446          (A) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
             2447      conservation, or reconstruction of the building; or
             2448          (B) changing the character or use of the building in a manner that increases the
             2449      occupancy loads, other demands, or safety risks of the building.
             2450          (c) On and after July 1, 2010, the State Construction Code is the State Construction
             2451      Code in effect on July 1, 2010, until in accordance with this section:
             2452          (i) a new State Construction Code is adopted; or
             2453          (ii) one or more provisions of the State Construction Code are amended or repealed in
             2454      accordance with this section.
             2455          (d) A provision of the State Construction Code may be applicable:
             2456          (i) to the entire state; or
             2457          (ii) within a county, city, or town.
             2458          (2) (a) The Legislature shall adopt a State Construction Code by enacting legislation
             2459      that adopts a construction code with any modifications.
             2460          (b) Legislation enacted under this Subsection (2) shall state that it takes effect on the
             2461      July 1 after the day on which the legislation is enacted, unless otherwise stated in the
             2462      legislation.


             2463          (c) Subject to Subsection (5), a State Construction Code adopted by the Legislature is
             2464      the State Construction Code until, in accordance with this section, the Legislature adopts a new
             2465      State Construction Code by:
             2466          (i) adopting a new State Construction Code in its entirety; or
             2467          (ii) amending or repealing one or more provisions of the State Construction Code.
             2468          (3) (a) The commission shall by no later than November 30 of each year recommend to
             2469      the Business and Labor Interim Committee whether the Legislature should:
             2470          (i) amend or repeal one or more provisions of a State Construction Code; or
             2471          (ii) in a year of a regularly scheduled update of a nationally recognized code, adopt a
             2472      construction code with any modifications.
             2473          (b) The commission may recommend legislative action related to the State
             2474      Construction Code:
             2475          (i) on its own initiative;
             2476          (ii) upon the recommendation of the division; or
             2477          (iii) upon the receipt of a request by one of the following that the commission
             2478      recommend legislative action related to the State Construction Code:
             2479          (A) a local regulator;
             2480          (B) a state regulator;
             2481          (C) a state agency involved with the construction and design of a building;
             2482          (D) the Construction Services Commission;
             2483          (E) the Electrician Licensing Board;
             2484          (F) the Plumbers Licensing Board; or
             2485          (G) a recognized construction-related association.
             2486          (4) If the Business and Labor Interim Committee decides to recommend legislative
             2487      action to the Legislature, the Business and Labor Interim Committee shall prepare legislation
             2488      for consideration by the Legislature in the next general session that, if passed by the
             2489      Legislature, would:
             2490          (a) adopt a new State Construction Code in its entirety; or


             2491          (b) amend or repeal one or more provisions of the State Construction Code.
             2492          (5) (a) Notwithstanding Subsection (3), the commission may, in accordance with Title
             2493      63G, Chapter 3, Utah Administrative Rulemaking Act, amend the State Construction Code if
             2494      the commission determines that waiting for legislative action in the next general legislative
             2495      session would:
             2496          (i) cause an imminent peril to the public health, safety, or welfare; or
             2497          (ii) place a person in violation of federal or other state law.
             2498          (b) If the commission amends the State Construction Code in accordance with this
             2499      Subsection (5), the commission shall file with the division:
             2500          (i) the text of the amendment to the State Construction Code; and
             2501          (ii) an analysis that includes the specific reasons and justifications for the commission's
             2502      findings.
             2503          (c) If the State Construction Code is amended under this Subsection (5), the division
             2504      shall:
             2505          (i) publish the amendment to the State Construction Code in accordance with Section
             2506      15A-1-205 ; and
             2507          (ii) notify the Business and Labor Interim Committee of the amendment to the State
             2508      Construction Code, including a copy of the commission's analysis described in Subsection
             2509      (5)(b).
             2510          (d) If not formally adopted by the Legislature at its next annual general session, an
             2511      amendment to the State Construction Code under this Subsection (5) is repealed on the July 1
             2512      immediately following the next annual general session that follows the adoption of the
             2513      amendment.
             2514          (6) (a) The division, in consultation with the commission, may approve, without
             2515      adopting, one or more approved codes, including a specific edition of a construction code, for
             2516      use by a compliance agency.
             2517          (b) If the code adopted by a compliance agency is an approved code described in
             2518      Subsection (6)(a), the compliance agency may:


             2519          (i) adopt an ordinance requiring removal, demolition, or repair of a building;
             2520          (ii) adopt, by ordinance or rule, a dangerous building code; or
             2521          (iii) adopt, by ordinance or rule, a building rehabilitation code.
             2522          (7) (a) Except as provided in Subsection (7)(b), a structure used solely in conjunction
             2523      with agriculture use, and not for human occupancy, is exempt from the permit requirements of
             2524      the State Construction Code.
             2525          (b) (i) Unless exempted by a provision other than Subsection (7)(a), a plumbing,
             2526      electrical, and mechanical permit may be required when that work is included in a structure
             2527      described in Subsection (7)(a).
             2528          (ii) Unless located in whole or in part in an agricultural protection area created under
             2529      Title 17, Chapter 41, Agriculture and Industrial Protection [Area] Areas, a structure described
             2530      in Subsection (7)(a) is not exempt from a permit requirement if the structure is located on land
             2531      that is:
             2532          (A) within the boundaries of a city or town, and less than five contiguous acres; or
             2533          (B) within a subdivision for which the county has approved a subdivision plat under
             2534      Title 17, Chapter 27a, Part 6, Subdivisions, and less than two contiguous acres.
             2535          Section 64. Section 15A-2-102 is amended to read:
             2536           15A-2-102. Definitions.
             2537          As used in this chapter and [Chapters 3 and 4] Chapter 3, Statewide Amendments
             2538      Incorporated as Part of State Construction Code, and Chapter 4, Local Amendments
             2539      Incorporated as Part of State Construction Code:
             2540          (1) "HUD Code" means the Federal Manufactured Housing Construction and Safety
             2541      Standards Act, as issued by the Department of Housing and Urban Development and published
             2542      in 24 C.F.R. Parts 3280 and 3282 (as revised April 1, 1990).
             2543          (2) "IBC" means the edition of the International Building Code adopted under Section
             2544      15A-2-103 .
             2545          (3) "IECC" means the edition of the International Energy Conservation Code adopted
             2546      under Section 15A-2-103 .


             2547          (4) "IFGC" means the edition of the International Fuel Gas Code adopted under
             2548      Section 15A-2-103 .
             2549          (5) "IMC" means the edition of the International Mechanical Code adopted under
             2550      Section 15A-2-103 .
             2551          (6) "IPC" means the edition of the International Plumbing Code adopted under Section
             2552      15A-2-103 .
             2553          (7) "IRC" means the edition of the International Residential Code adopted under
             2554      Section 15A-2-103 .
             2555          (8) "NEC" means the edition of the National Electrical Code adopted under Section
             2556      15A-2-103 .
             2557          (9) "UWUI" means the edition of the Utah Wildland Urban Interface Code adopted
             2558      under Section 15A-2-103 .
             2559          Section 65. Section 15A-2-104 is amended to read:
             2560           15A-2-104. Installation standards for manufactured housing.
             2561          (1) The following are the installation standards for manufactured housing for new
             2562      installations or for existing manufactured or mobile homes that are subject to relocation,
             2563      building alteration, remodeling, or rehabilitation in the state:
             2564          (a) The manufacturer's installation instruction for the model being installed is the
             2565      primary standard.
             2566          (b) If the manufacturer's installation instruction for the model being installed is not
             2567      available or is incomplete, the following standards apply:
             2568          (i) Appendix E of the 2012 edition of the IRC, as issued by the International Code
             2569      Council for installations defined in Section AE101 of Appendix E; or
             2570          (ii) if an installation is beyond the scope of the 2012 edition of the IRC as defined in
             2571      Section AE101 of Appendix E, the 2005 edition of the NFPA 225 Model Manufactured Home
             2572      Installation Standard, issued by the National Fire Protection Association.
             2573          (c) A manufacturer, dealer, or homeowner is permitted to design for unusual
             2574      installation of a manufactured home not provided for in the manufacturer's standard installation


             2575      instruction, Appendix E of the 2012 edition of the IRC, or the 2005 edition of the NFPA 225, if
             2576      the design is approved in writing by a professional engineer or architect licensed in Utah.
             2577          (d) For a mobile home built before June 15, 1976, the mobile home shall also comply
             2578      with the additional installation and safety requirements specified in Chapter 3, Part 8,
             2579      Installation and Safety Requirements for Mobile Homes Built Before June 15, 1976.
             2580          (2) Pursuant to the HUD Code Section 604(d), a manufactured home may be installed
             2581      in the state that does not meet the local snow load requirements as specified in Chapter 3, Part
             2582      2, Statewide Amendments to [IRC] International Residential Code, except that the
             2583      manufactured home shall have a protective structure built over the home that meets the IRC
             2584      and the snow load requirements under Chapter 3, Part 2, Statewide Amendments to [IRC]
             2585      International Residential Code.
             2586          Section 66. Section 15A-3-201 is amended to read:
             2587           15A-3-201. General provision.
             2588          (1) The amendments in this part are adopted as amendments to the IRC to be
             2589      applicable statewide.
             2590          (2) The statewide amendments to the following which may be applied to detached one-
             2591      and two-family dwellings and multiple single-family dwellings shall be applicable to the
             2592      corresponding provisions of the IRC:
             2593          (a) IBC under Part 1, Statewide Amendments to [IBC] International Building Code;
             2594          (b) IPC under Part 3, Statewide Amendments to [IPC] International Plumbing Code;
             2595          (c) IMC under Part 4, Statewide Amendments to [IMC] International Mechanical
             2596      Code;
             2597          (d) IFGC under Part 5, Statewide Amendments to [IFGC] International Fuel Gas Code;
             2598          (e) NEC under Part 6, Statewide Amendments to [NEC] National Electrical Code; and
             2599          (f) IECC under Part 7, Statewide Amendments to [IECC] International Energy
             2600      Conservation Code.
             2601          Section 67. Section 15A-3-306 is amended to read:
             2602           15A-3-306. Amendments to Chapter 6 of IPC.


             2603          (1) IPC, Section 602.3, is deleted and replaced with the following: "602.3 Individual
             2604      water supply. Where a potable public water supply is not available, individual sources of
             2605      potable water supply shall be utilized provided that the source has been developed in
             2606      accordance with Utah Code, Sections 73-3-1 , 73-3-3 , and 73-3-25 , as administered by the
             2607      Department of Natural Resources, Division of Water Rights. In addition, the quality of the
             2608      water shall be approved by the local health department having jurisdiction. The source shall
             2609      supply sufficient quantity of water to comply with the requirements of this chapter."
             2610          (2) IPC, Sections 602.3.1, 602.3.2, 602.3.3, 602.3.4, 602.3.5, and 602.3.5.1, are
             2611      deleted.
             2612          (3) A new IPC, Section 604.4.1, is added as follows: "604.4.1 Manually operated
             2613      metering faucets. Self closing or manually operated metering faucets shall provide a flow of
             2614      water for at least 15 seconds without the need to reactivate the faucet."
             2615          (4) IPC, Section 606.5, is deleted and replaced with the following: "606.5 Water
             2616      pressure booster systems. Water pressure booster systems shall be provided as required by
             2617      Section 606.5.1 through 606.5.11."
             2618          (5) A new IPC, Section 606.5.11, is added as follows: "606.5.11 Prohibited
             2619      installation. In no case shall a booster pump be allowed that will lower the pressure in the
             2620      public main to less than the minimum water pressure specified in Utah Administrative Code
             2621      R309-105-9."
             2622          (6) In IPC, Section 608.1, the words "and pollution" are added after the word
             2623      "contamination."
             2624          (7) IPC, Table 608.1, is deleted and replaced with the following:
             2625     
"TABLE 608.1
             2626     
Application of Back Flow Preventers
             2627      DEVICE DEGREE OF
HAZARDa
APPLICATIONb APPLICABLE
STANDARDS
             2628      BACKFLOW PREVENTION ASSEMBLIES:
             2629      Double check backflow
prevention assembly
and double check fire
protection backflow
prevention assembly
Low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1015, AWWA
C510, CSA B64.5,
CSA B64.5.1
             2630      Double check detector
fire protection
backflow prevention
assemblies
Low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1048
             2631      Pressure vacuum
breaker assembly
High or low hazard Backsiphonage only
Sizes 1/2" - 2"
ASSE 1020, CSA
B64.1.2
             2632      Reduced pressure
principle backflow
prevention assembly
and reduced pressure
principle fire
protection backflow
assembly
High or low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1013, AWWA
C511, CSA B64.4,
CSA B64.4.1
             2633      Reduced pressure
detector fire protection
backflow prevention
assemblies
High or low hazard Backpressure or
backsiphonage (Fire
Sprinkler Systems)
ASSE 1047
             2634      Spill-resistant vacuum
breaker assembly
High or low hazard Backsiphonage only
Sizes 1/2" - 2"
ASSE 1056
             2635      BACKFLOW PREVENTER PLUMBING DEVICES:
             2636      Antisiphon-type fill
valves for gravity water
closet flush tanks
High hazard Backsiphonage only ASSE 1002, CSA
B125.3
             2637      Backflow preventer for
carbonated beverage
machines
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 3/8"
ASSE 1022
             2638      Backflow preventer
with intermediate
atmospheric vents
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 3/8"
ASSE 1012, CSA
B64.3
             2639      Dual check valve type
backflow preventers
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 1"
ASSE 1024, CSA
B64.6
             2640      Hose connection
backflow preventer
High or low hazard Backsiphonage only
Sizes 1/2" - 1"
ASSE 1052, CSA
B64.2, B64.2.1
             2641      Hose connection
vacuum breaker
High or low hazard Backsiphonage only
Sizes 1/2", 3/4", 1"
ASSE 1011,
CAN/CSA B64.1.1
             2642      Atmospheric type
vacuum breaker
High or low hazard Backsiphonage only
Sizes 1/2" - 4"
ASSE 1001, CSA
B64.1.1
             2643      Vacuum breaker wall
hydrants, frost
resistant, automatic
draining type
High or low hazard Backsiphonage only
Sizes 3/4", 1"
ASSE 1019, CSA
B64.2.2
             2644      OTHER MEANS or METHODS:
             2645      Air gap High or low hazard Backsiphonage only ASME A112.1.2
             2646      Air gap fittings for use
with plumbing fixtures,
appliances and
appurtenances
High or low hazard Backpressure or
backsiphonage
ASME A112.1.3
             2647      For SI: 1 inch = 25.4 mm
             2648      a. Low Hazard - See Pollution (Section 202), High Hazard - See Contamination (Section
202)
             2649      b. See Backpressure (Section 202), See Backpressure, low head (Section 202), See
Backsiphonage (Section 202)
             2650      Installation Guidelines: The above specialty devices shall be installed in accordance with
their listing and the manufacturer's instructions and the specific provisions of this chapter."
             2651          (8) In IPC, Section 608.3, the word "and" after the word "contamination" is deleted and
             2652      replaced with a comma and the words "and pollution" are added after the word "contamination"
             2653      in the first sentence.
             2654          (9) In IPC, Section 608.5, the words "with the potential to create a condition of either
             2655      contamination or pollution or" are added after the word "substances".
             2656          (10) In IPC, Section 608.6, the following sentence is added at the end of the paragraph:
             2657      "Any connection between potable water piping and sewer-connected waste shall be protected
             2658      by an air gap in accordance with Section 608.13.1."
             2659          (11) IPC, Section 608.7, is deleted and replaced with the following: "608.7 Stop and
             2660      Waste Valves installed below grade. Combination stop-and-waste valves shall be permitted to
             2661      be installed underground or below grade. Freeze proof yard hydrants that drain the riser into
             2662      the ground are considered to be stop-and-waste valves and shall be permitted."
             2663          (12) In IPC, Section 608.11, the following sentence is added at the end of the
             2664      paragraph: "The coating and installation shall conform to NSF Standard 61 and application of
             2665      the coating shall comply with the manufacturer's instructions."
             2666          (13) IPC, Section 608.13.3, is deleted and replaced with the following: "608.13.3


             2667      Backflow preventer with intermediate atmospheric vent. Backflow preventers with
             2668      intermediate atmospheric vents shall conform to ASSE 1012 or CSA CAN/CSA-B64.3. These
             2669      devices shall be permitted to be installed on residential boilers only, without chemical
             2670      treatment, where subject to continuous pressure conditions. The relief opening shall discharge
             2671      by air gap and shall be prevented from being submerged."
             2672          (14) IPC, Section 608.13.4, is deleted.
             2673          (15) IPC, Section 608.13.9, is deleted and replaced with the following: "608.13.9
             2674      Chemical dispenser backflow devices. Backflow devices for chemical dispensers shall comply
             2675      with Section 608.16.7."
             2676          (16) IPC, Section 608.15.3, is deleted and replaced with the following: "608.15.3
             2677      Protection by a backflow preventer with intermediate atmospheric vent. Connections to
             2678      residential boilers only, without chemical treatment, shall be protected by a backflow preventer
             2679      with an intermediate atmospheric vent."
             2680          (17) IPC, Section 608.15.4, is deleted and replaced with the following: "608.15.4
             2681      Protection by a vacuum breaker. Openings and outlets shall be protected by atmospheric-type
             2682      or pressure-type vacuum breakers. Vacuum breakers shall not be installed under exhaust hoods
             2683      or similar locations that will contain toxic fumes or vapors. Fill valves shall be set in
             2684      accordance with Section 425.3.1. Atmospheric Vacuum Breakers - The critical level of the
             2685      atmospheric vacuum breaker shall be set a minimum of 6 inches (152 mm) above the flood
             2686      level rim of the fixture or device. Pipe-applied vacuum breakers shall be installed not less than
             2687      6 inches (152 mm) above the flood level rim of the fixture, receptor, or device served. No
             2688      valves shall be installed downstream of the atmospheric vacuum breaker. Pressure Vacuum
             2689      Breaker - The critical level of the pressure vacuum breaker shall be set a minimum of 12 inches
             2690      (304 mm) above the flood level of the fixture or device."
             2691          (18) In IPC, Section 608.15.4.2, the following is added after the first sentence:
             2692      "Add-on-backflow prevention devices shall be non-removable. In climates where freezing
             2693      temperatures occur, a listed self-draining frost proof hose bibb with an integral backflow
             2694      preventer shall be used."


             2695          (19) [In] IPC, Section 608.16.2, is deleted and replaced as follows: "608.16.2
             2696      Connections to boilers. The potable supply to a boiler shall be protected by an air gap or a
             2697      reduced pressure principle backflow preventer, complying with ASSE 1013, CSA B64.4 or
             2698      AWWA C511.
             2699      Exception: The potable supply to a residential boiler without chemical treatment may be
             2700      equipped with a backflow preventer with an intermediate atmospheric vent complying with
             2701      ASSE 1012 or CSA CAN/CSA-B64.3."
             2702          (20) IPC, Section 608.16.3, is deleted and replaced with the following: "608.16.3 Heat
             2703      exchangers. Heat exchangers shall be separated from potable water by double-wall
             2704      construction. An air gap open to the atmosphere shall be provided between the two walls.
             2705      Exceptions:
             2706      1. Single wall heat exchangers shall be permitted when all of the following conditions are met:
             2707      a. It utilizes a heat transfer medium of potable water or contains only substances which are
             2708      recognized as safe by the United States Food and Drug Administration (FDA);
             2709      b. The pressure of the heat transfer medium is maintained less than the normal minimum
             2710      operating pressure of the potable water system; and
             2711      c. The equipment is permanently labeled to indicate only additives recognized as safe by the
             2712      FDA shall be used.
             2713      2. Steam systems that comply with paragraph 1 above.
             2714      3. Approved listed electrical drinking water coolers."
             2715          (21) In IPC, Section 608.16.4.1, a new exception is added as follows: "Exception: All
             2716      class 1 and 2 systems containing chemical additives consisting of strictly glycerine (C.P. or
             2717      U.S.P. 96.5 percent grade) or propylene glycol shall be protected against backflow with a
             2718      double check valve assembly. Such systems shall include written certification of the chemical
             2719      additives at the time of original installation and service or maintenance."
             2720          (22) IPC, Section 608.16.7, is deleted and replaced with the following: "608.16.7
             2721      Chemical dispensers. Where chemical dispensers connect to the water distribution system, the
             2722      water supply system shall be protected against backflow in accordance with Section 608.13.1,


             2723      Section 608.13.2, Section 608.13.5, Section 608.13.6 or Section 608.13.8. Chemical
             2724      dispensers shall connect to a separate dedicated water supply separate from any sink faucet."
             2725          (23) IPC, Section 608.16.8, is deleted and replaced with the following: "608.16.8
             2726      Portable cleaning equipment. Where the portable cleaning equipment connects to the water
             2727      distribution system, the water supply system shall be protected against backflow in accordance
             2728      with Section 608.13.1, Section 608.13.2 or Section 608.13.8."
             2729          (24) A new IPC, Section 608.16.11, is added as follows: "608.16.11 Automatic and
             2730      coin operated car washes. The water supply to an automatic or coin operated car wash shall be
             2731      protected in accordance with Section 608.13.1 or Section 608.13.2."
             2732          (25) IPC, Section 608.17, is deleted and replaced with the following: "608.17
             2733      Protection of individual water supplies. See Section 602.3 for requirements."
             2734          Section 68. Section 15A-4-201 is amended to read:
             2735           15A-4-201. General provision.
             2736          (1) The amendments in this part are adopted as amendments to the IRC to be
             2737      applicable to specified jurisdiction.
             2738          (2) A local amendment to the following which may be applied to detached one and two
             2739      family dwellings and multiple single family dwellings shall be applicable to the corresponding
             2740      provisions of the IRC for the local jurisdiction to which the local amendment has been made:
             2741          (a) IBC under Part 1, Local Amendments to [IBC] International Building Code;
             2742          (b) IPC under Part 3, Local Amendments to [IPC] International Plumbing Code;
             2743          (c) IMC under Part 4, Local Amendments to [IMC] International Mechanical Code;
             2744          (d) IFGC under Part 5, Local Amendments to [IFGC] International Fuel Gas Code;
             2745          (e) NEC under Part 6, Local Amendments to [NEC] National Electrical Code; and
             2746          (f) IECC under Part 7, Local Amendments to [IECC] International Energy
             2747      Conservation Code.
             2748          Section 69. Section 15A-5-103 is amended to read:
             2749           15A-5-103. Nationally recognized codes incorporated by reference.
             2750          The following codes are incorporated by reference into the State Fire Code:


             2751          (1) the International Fire Code, 2012 edition, excluding appendices, as issued by the
             2752      International Code Council, Inc., except as amended by Part 2, Statewide Amendments and
             2753      Additions to [IFC] International Fire Code Incorporated as Part of State Fire Code;
             2754          (2) National Fire Protection Association, NFPA 96, Standard for Ventilation Control
             2755      and Fire Protection of Commercial Cooking Operations, 2011 edition, except as amended by
             2756      Part 3, Statewide Amendments and Additions to [NFPA] National Fire Protection Association
             2757      Incorporated as Part of State Fire Code; and
             2758          (3) National Fire Protection Association, NFPA 1403, Standard on Live Fire Training
             2759      Evolutions, 2012 edition, except as amended by Part 3, Statewide Amendments and Additions
             2760      to [NFPA] National Fire Protection Association Incorporated as Part of State Fire Code.
             2761          Section 70. Section 16-6a-1011 is amended to read:
             2762           16-6a-1011. Bylaw changing quorum or voting requirement for members.
             2763          (1) (a) If authorized by the articles of incorporation, the members may adopt, amend, or
             2764      repeal bylaws that fix a greater quorum or voting requirement for members, or voting groups of
             2765      members, than is required by this chapter.
             2766          (b) An action by the members under Subsection (1)(a) is subject to [Parts 6 and 7] Part
             2767      6, Members, and Part 7, Member Meetings and Voting.
             2768          (2) Bylaws that fix a greater quorum requirement or a greater voting requirement for
             2769      members pursuant to Section 16-6a-716 may not be amended by the board of directors.
             2770          Section 71. Section 16-6a-1202 is amended to read:
             2771           16-6a-1202. Sale of property other than in regular course of activities.
             2772          (1) (a) A nonprofit corporation may sell, lease, exchange, or otherwise dispose of all,
             2773      or substantially all, of its property, with or without its good will, other than in the usual and
             2774      regular course of business on the terms and conditions and for the consideration determined by
             2775      the board of directors, if:
             2776          (i) the board of directors proposes the transaction; and
             2777          (ii) the members entitled to vote on the transaction approve the transaction.
             2778          (b) A sale, lease, exchange, or other disposition of all, or substantially all, of the


             2779      property of a nonprofit corporation, with or without its good will, in connection with its
             2780      dissolution, other than in the usual and regular course of business, and other than pursuant to a
             2781      court order, shall be subject to this section.
             2782          (c) A sale, lease, exchange, or other disposition of all, or substantially all, of the
             2783      property of a nonprofit corporation, with or without its good will, pursuant to a court order is
             2784      not subject to this section.
             2785          (2) (a) A nonprofit corporation shall comply with Subsection (2)(b) to vote or
             2786      otherwise consent with respect to the sale, lease, exchange, or other disposition of all, or
             2787      substantially all, of the property with or without the good will of another entity that the
             2788      nonprofit corporation controls if:
             2789          (i) the nonprofit corporation is entitled to vote or otherwise consent; and
             2790          (ii) the property interests held by the nonprofit corporation in the other entity constitute
             2791      all, or substantially all, of the property of the nonprofit corporation.
             2792          (b) A nonprofit corporation may vote or otherwise consent to a transaction described in
             2793      Subsection (2)(a) only if:
             2794          (i) the board of the directors of the nonprofit corporation proposes the vote or consent;
             2795      and
             2796          (ii) the members, if any are entitled to vote on the vote or consent, approve giving the
             2797      vote or consent.
             2798          (3) For a transaction described in Subsection (1) or a consent described in Subsection
             2799      (2) to be approved by the members:
             2800          (a) (i) the board of directors shall recommend the transaction or the consent to the
             2801      members; or
             2802          (ii) the board of directors shall:
             2803          (A) determine that because of a conflict of interest or other special circumstance it
             2804      should make no recommendation; and
             2805          (B) communicate the basis for its determination to the members at a membership
             2806      meeting with the submission of the transaction or consent; and


             2807          (b) the members entitled to vote on the transaction or the consent shall approve the
             2808      transaction or the consent as provided in Subsection (6).
             2809          (4) The board of directors may condition the effectiveness of the transaction or the
             2810      consent on any basis.
             2811          (5) (a) The nonprofit corporation shall give notice, in accordance with Section
             2812      16-6a-704 to each member entitled to vote on the transaction described in Subsection (1) or the
             2813      consent described in Subsection (2), of the members' meeting at which the transaction or the
             2814      consent will be voted upon.
             2815          (b) The notice required by Subsection (1) shall:
             2816          (i) state that the purpose, or one of the purposes, of the meeting is to consider:
             2817          (A) in the case of action pursuant to Subsection (1), the sale, lease, exchange, or other
             2818      disposition of all, or substantially all, of the property of the nonprofit corporation; or
             2819          (B) in the case of action pursuant to Subsection (2), the nonprofit corporation's consent
             2820      to the sale, lease, exchange, or other disposition of all, or substantially all, of the property of
             2821      another entity, the property interests of which:
             2822          (I) are held by the nonprofit corporation; and
             2823          (II) constitute all, or substantially all, of the property of the nonprofit corporation;
             2824          (ii) contain or be accompanied by a description of:
             2825          (A) the transaction, in the case of action pursuant to Subsection (1); or
             2826          (B) the transaction underlying the consent, in the case of action pursuant to Subsection
             2827      (2); and
             2828          (iii) in the case of action pursuant to Subsection (2), identify the entity whose property
             2829      is the subject of the transaction.
             2830          (6) The transaction described in Subsection (1) or the consent described in Subsection
             2831      (2) shall be approved by the votes required by Sections 16-6a-714 and 16-6a-715 by every
             2832      voting group entitled to vote on the transaction or the consent unless a greater vote is required
             2833      by:
             2834          (a) this chapter;


             2835          (b) the articles of incorporation;
             2836          (c) bylaws adopted by the members; or
             2837          (d) the board of directors acting pursuant to Subsection (4).
             2838          (7) After a transaction described in Subsection (1) or a consent described in Subsection
             2839      (2) is authorized, the transaction may be abandoned or the consent withheld or revoked, subject
             2840      to any contractual rights or other limitations on such abandonment, withholding, or revocation,
             2841      without further action by the members.
             2842          (8) A transaction that constitutes a distribution is governed by Part 13, Distributions,
             2843      and not by this section.
             2844          Section 72. Section 16-6a-1701 is amended to read:
             2845           16-6a-1701. Application to existing domestic nonprofit corporations -- Reports of
             2846      domestic and foreign nonprofit corporation.
             2847          (1) Except as otherwise provided in Section 16-6a-1704 , this chapter applies to
             2848      domestic nonprofit corporations as follows:
             2849          (a) domestic nonprofit corporations in existence on April 30, 2001, that were
             2850      incorporated under any general statute of this state providing for incorporation of nonprofit
             2851      corporations, including all nonprofit corporations organized under any former provisions of
             2852      [Title 16, Chapter 6, Utah Nonprofit Corporation and Co-operative Association Act] this
             2853      chapter;
             2854          (b) mutual irrigation, canal, ditch, reservoir, and water companies and water users'
             2855      associations organized and existing under the laws of this state on April 30, 2001;
             2856          (c) corporations organized under the provisions of Title 16, Chapter 7, Corporations
             2857      Sole, for purposes of applying all provisions relating to merger or consolidation; and
             2858          (d) to actions taken by the directors, officers, and members of the entities described in
             2859      Subsections (1)(a), (b), and (c) after April 30, 2001.
             2860          (2) Domestic nonprofit corporations to which this chapter applies, that are organized
             2861      and existing under the laws of this state on April 30, 2001:
             2862          (a) shall continue in existence with all the rights and privileges applicable to nonprofit


             2863      corporations organized under this chapter; and
             2864          (b) from April 30, 2001 shall have all the rights and privileges and shall be subject to
             2865      all the remedies, restrictions, liabilities, and duties prescribed in this chapter except as
             2866      otherwise specifically provided in this chapter.
             2867          (3) Every existing domestic nonprofit corporation and foreign nonprofit corporation
             2868      qualified to conduct affairs in this state on April 30, 2001 shall file an annual report with the
             2869      division setting forth the information prescribed by Section 16-6a-1607 . The annual report
             2870      shall be filed at such time as would have been required had this chapter not taken effect and
             2871      shall be filed annually thereafter as required in Section 16-6a-1607 .
             2872          Section 73. Section 16-6a-1702 is amended to read:
             2873           16-6a-1702. Application to foreign nonprofit corporations.
             2874          (1) A foreign nonprofit corporation authorized to conduct affairs in this state on April
             2875      30, 2001, is subject to this chapter, but is not required to obtain a new certificate of authority to
             2876      conduct affairs under this chapter.
             2877          (2) A foreign nonprofit corporation that is qualified to do business in this state under
             2878      the provisions of [Title 16,] Chapter 8, which provisions were repealed by Laws of Utah 1961,
             2879      Chapter 28, shall be authorized to transact business in this state subject to all of the limitations,
             2880      restrictions, liabilities, and duties prescribed in this chapter.
             2881          (3) This chapter shall apply to all foreign nonprofit corporations sole qualified to do
             2882      business in this state with respect to mergers and consolidations.
             2883          Section 74. Section 16-10a-402 is amended to read:
             2884           16-10a-402. Reserved name.
             2885          (1) Any person may apply for the reservation of a name by delivering to the division
             2886      for filing an application setting forth the name and address of the applicant and the name
             2887      proposed to be reserved. If the division finds that the name applied for would be available for
             2888      use as a corporate name under Section 16-10a-401 , the division shall reserve the name for the
             2889      applicant for a 120-day period. Any person which has in effect a reservation of a name
             2890      permitted by this Subsection may renew the reservation by delivering to the division for filing


             2891      prior to expiration of the reservation a renewal application for reservation, which complies with
             2892      the requirements of this Subsection (1). When filed, the renewal application for reservation
             2893      renews the reservation for a period of 120 days from the date of filing.
             2894          (2) The applicant for a reserved name may transfer the reservation to another person by
             2895      delivering to the division a notice of the transfer signed by the applicant for which the name
             2896      was reserved and specifying the reserved name, the name of the holder of the name, and the
             2897      name and address of the transferee.
             2898          (3) A name reservation does not authorize the applicant to use the name until:
             2899          (a) the name is registered as a trade name under Section 42-2-5 ;
             2900          (b) articles of incorporation which bear the name are filed with the division; or
             2901          (c) an application for authority to transact business in this state under the name has
             2902      been filed with the division pursuant to Part 15 [of this chapter], Authority of Foreign
             2903      Corporation to Transact Business.
             2904          Section 75. Section 16-10a-901 is amended to read:
             2905           16-10a-901. Definitions.
             2906          As used in Part 9, Indemnification:
             2907          (1) "Corporation" includes any domestic or foreign entity that is a predecessor of a
             2908      corporation by reason of a merger or other transaction in which the predecessor's existence
             2909      ceased upon consummation of the transaction.
             2910          (2) "Director" means an individual who is or was a director of a corporation or an
             2911      individual who, while a director of a corporation, is or was serving at the corporation's request
             2912      as a director, officer, partner, trustee, employee, fiduciary, or agent of another domestic or
             2913      foreign corporation or other person or of an employee benefit plan. A director is considered to
             2914      be serving an employee benefit plan at the corporation's request if his duties to the corporation
             2915      also impose duties on, or otherwise involve services by, him to the plan or to participants in or
             2916      beneficiaries of the plan. "Director" includes, unless the context requires otherwise, the estate
             2917      or personal representative of a director.
             2918          (3) "Expenses" include counsel fees.


             2919          (4) "Liability" means the obligation incurred with respect to a proceeding to pay a
             2920      judgment, settlement, penalty, fine (including an excise tax assessed with respect to an
             2921      employee benefit plan), or reasonable expenses.
             2922          (5) "Officer," "employee," "fiduciary," and "agent" include any person who, while
             2923      serving the indicated relationship to the corporation, is or was serving at the corporation's
             2924      request as a director, officer, partner, trustee, employee, fiduciary, or agent of another domestic
             2925      or foreign corporation or other person or of an employee benefit plan. An officer, employee,
             2926      fiduciary, or agent is considered to be serving an employee benefit plan at the corporation's
             2927      request if that person's duties to the corporation also impose duties on, or otherwise involve
             2928      services by, that person to the plan or participants in, or beneficiaries of the plan. Unless the
             2929      context requires otherwise, such terms include the estates or personal representatives of such
             2930      persons.
             2931          (6) (a) "Official capacity" means:
             2932          (i) when used with respect to a director, the office of director in a corporation; and
             2933          (ii) when used with respect to a person other than a director, as contemplated in
             2934      Section 16-10a-907 , the office in a corporation held by the officer or the employment,
             2935      fiduciary, or agency relationship undertaken by him on behalf of the corporation.
             2936          (b) "Official capacity" does not include service for any other foreign or domestic
             2937      corporation, other person, or employee benefit plan.
             2938          (7) "Party" includes an individual who was, is, or is threatened to be made a named
             2939      defendant or respondent in a proceeding.
             2940          (8) "Proceeding" means any threatened, pending, or completed action, suit, or
             2941      proceeding, whether civil, criminal, administrative, or investigative and whether formal or
             2942      informal.
             2943          Section 76. Section 16-10a-1106 is amended to read:
             2944           16-10a-1106. Effect of merger or share exchange.
             2945          (1) When a merger takes effect:
             2946          (a) Every other corporation party to the merger merges into the surviving corporation


             2947      and the separate existence of every corporation except the surviving corporation ceases.
             2948          (b) The title to all real estate and other property owned by each corporation party to the
             2949      merger is transferred to and vested in the surviving corporation without reversion or
             2950      impairment. The transfer to and vesting in the surviving corporation occurs by operation of
             2951      law. No consent or approval of any other person is required in connection with the transfer or
             2952      vesting unless consent or approval is specifically required in the event of merger by law or by
             2953      express provision in any contract, agreement, decree, order, or other instrument to which any of
             2954      the corporations so merged is a party or by which it is bound.
             2955          (c) The surviving corporation has all liabilities of each corporation party to the merger.
             2956          (d) A proceeding pending against any corporation party to the merger may be
             2957      continued as if the merger did not occur, or the surviving corporation may be substituted in the
             2958      proceeding for the corporation whose existence ceased.
             2959          (e) The articles of incorporation of the surviving corporation are amended to the extent
             2960      provided in the plan of merger.
             2961          (f) The shares of each corporation party to the merger, which are to be converted into
             2962      shares, obligations, or other securities of the surviving or any other corporation or into money
             2963      or other property, are converted, and the former holders of the shares are entitled only to the
             2964      rights provided in the articles of merger or to their rights under Part 13, Dissenters' Rights.
             2965          (2) When a share exchange takes effect, the shares of each acquired corporation are
             2966      exchanged as provided in the plan, and the former holders of the shares are entitled only to the
             2967      exchange rights provided in the articles of share exchange or to their rights under Part 13,
             2968      Dissenters' Rights.
             2969          Section 77. Section 16-10a-1301 is amended to read:
             2970           16-10a-1301. Definitions.
             2971          For purposes of Part 13, Dissenters' Rights:
             2972          (1) "Beneficial shareholder" means the person who is a beneficial owner of shares held
             2973      in a voting trust or by a nominee as the record shareholder.
             2974          (2) "Corporation" means the issuer of the shares held by a dissenter before the


             2975      corporate action, or the surviving or acquiring corporation by merger or share exchange of that
             2976      issuer.
             2977          (3) "Dissenter" means a shareholder who is entitled to dissent from corporate action
             2978      under Section 16-10a-1302 and who exercises that right when and in the manner required by
             2979      Sections 16-10a-1320 through 16-10a-1328 .
             2980          (4) "Fair value" with respect to a dissenter's shares, means the value of the shares
             2981      immediately before the effectuation of the corporate action to which the dissenter objects,
             2982      excluding any appreciation or depreciation in anticipation of the corporate action.
             2983          (5) "Interest" means interest from the effective date of the corporate action until the
             2984      date of payment, at the statutory rate set forth in Section 15-1-1 , compounded annually.
             2985          (6) "Record shareholder" means the person in whose name shares are registered in the
             2986      records of a corporation or the beneficial owner of shares that are registered in the name of a
             2987      nominee to the extent the beneficial owner is recognized by the corporation as the shareholder
             2988      as provided in Section 16-10a-723 .
             2989          (7) "Shareholder" means the record shareholder or the beneficial shareholder.
             2990          Section 78. Section 16-10a-1405 is amended to read:
             2991           16-10a-1405. Effect of dissolution.
             2992          (1) A dissolved corporation continues its corporate existence but may not carry on any
             2993      business except that appropriate to wind up and liquidate its business and affairs, including:
             2994          (a) collecting its assets;
             2995          (b) disposing of its properties that will not be distributed in kind to its shareholders;
             2996          (c) discharging or making provision for discharging its liabilities;
             2997          (d) distributing its remaining property among its shareholders according to their
             2998      interests; and
             2999          (e) doing every other act necessary to wind up and liquidate its business and affairs.
             3000          (2) Dissolution of a corporation does not:
             3001          (a) transfer title to the corporation's property;
             3002          (b) prevent transfer of its shares or securities, although the authorization to dissolve


             3003      may provide for closing the corporation's share transfer records;
             3004          (c) subject its directors or officers to standards of conduct different from those
             3005      prescribed in Part 8, Directors and Officers;
             3006          (d) change:
             3007          (i) quorum or voting requirements for its board of directors or shareholders;
             3008          (ii) provisions for selection, resignation, or removal of its directors or officers or both;
             3009      or
             3010          (iii) provisions for amending its bylaws or its articles of incorporation;
             3011          (e) prevent commencement of a proceeding by or against the corporation in its
             3012      corporate name;
             3013          (f) abate or suspend a proceeding pending by or against the corporation on the effective
             3014      date of dissolution; or
             3015          (g) terminate the authority of the registered agent of the corporation.
             3016          Section 79. Section 16-16-113 is amended to read:
             3017           16-16-113. Effect of organic rules.
             3018          (1) The relations between a limited cooperative association and its members are
             3019      consensual. Unless required, limited, or prohibited by this chapter, the organic rules may
             3020      provide for any matter concerning the relations among the members of the association and
             3021      between the members and the association, the activities of the association, and the conduct of
             3022      its activities.
             3023          (2) The matters referred to in Subsections (2)(a) through (i) may be varied only in the
             3024      articles of organization. The articles may:
             3025          (a) state a term of existence for the association under Subsection 16-16-105 (3);
             3026          (b) limit or eliminate the acceptance of new or additional members by the initial board
             3027      of directors under Subsection 16-16-303 (2);
             3028          (c) vary the limitations on the obligations and liability of members for association
             3029      obligations under Section 16-16-504 ;
             3030          (d) require a notice of an annual members meeting to state a purpose of the meeting


             3031      under Subsection 16-16-508 (2);
             3032          (e) vary the board of directors meeting quorum under Subsection 16-16-815 (1);
             3033          (f) vary the matters the board of directors may consider in making a decision under
             3034      Section 16-16-820 ;
             3035          (g) specify causes of dissolution under Subsection 16-16-1202 (1);
             3036          (h) delegate amendment of the bylaws to the board of directors pursuant to Subsection
             3037      16-16-405 (6);
             3038          (i) provide for member approval of asset dispositions under [Subsection] Section
             3039      16-16-1501 ; and
             3040          (j) provide for any matters that may be contained in the organic rules, including those
             3041      under Subsection (3).
             3042          (3) The matters referred to in Subsections (3)(a) through (y) may be varied only in the
             3043      organic rules. The organic rules may:
             3044          (a) require more information to be maintained under Section 16-16-114 or provided to
             3045      members under Subsection 16-16-505 (11);
             3046          (b) provide restrictions on transactions between a member and an association under
             3047      Section 16-16-115 ;
             3048          (c) provide for the percentage and manner of voting on amendments to the organic
             3049      rules by district, class, or voting group under Subsection 16-16-404 (1);
             3050          (d) provide for the percentage vote required to amend the bylaws concerning the
             3051      admission of new members under Subsection 16-16-405 (5)(e);
             3052          (e) provide for terms and conditions to become a member under Section 16-16-502 ;
             3053          (f) restrict the manner of conducting members meetings under Subsections
             3054      16-16-506 (3) and 16-16-507 (5);
             3055          (g) designate the presiding officer of members meetings under Subsections
             3056      16-16-506 (5) and 16-16-507 (7);
             3057          (h) require a statement of purposes in the annual meeting notice under Subsection
             3058      16-16-508 (2);


             3059          (i) increase quorum requirements for members meetings under Section 16-16-510 and
             3060      board of directors meetings under Section 16-16-815 ;
             3061          (j) allocate voting power among members, including patron members and investor
             3062      members, and provide for the manner of member voting and action as permitted by Sections
             3063      16-16-511 through 16-16-517 ;
             3064          (k) authorize investor members and expand or restrict the transferability of members'
             3065      interests to the extent provided in Sections 16-16-602 through 16-16-604 ;
             3066          (l) provide for enforcement of a marketing contract under Subsection 16-16-704 (1);
             3067          (m) provide for qualification, election, terms, removal, filling vacancies, and member
             3068      approval for compensation of directors in accordance with Sections 16-16-803 through
             3069      16-16-805 , 16-16-807 , 16-16-809 , and 16-16-810 ;
             3070          (n) restrict the manner of conducting board meetings and taking action without a
             3071      meeting under Sections 16-16-811 and 16-16-812 ;
             3072          (o) provide for frequency, location, notice and waivers of notice for board meetings
             3073      under Sections 16-16-813 and 16-16-814 ;
             3074          (p) increase the percentage of votes necessary for board action under Subsection
             3075      16-16-816 (2);
             3076          (q) provide for the creation of committees of the board of directors and matters related
             3077      to the committees in accordance with Section 16-16-817 ;
             3078          (r) provide for officers and their appointment, designation, and authority under Section
             3079      16-16-822 ;
             3080          (s) provide for forms and values of contributions under Section 16-16-1002 ;
             3081          (t) provide for remedies for failure to make a contribution under Subsection
             3082      16-16-1003 (2);
             3083          (u) provide for the allocation of profits and losses of the association, distributions, and
             3084      the redemption or repurchase of distributed property other than money in accordance with
             3085      Sections 16-16-1004 through 16-16-1007 ;
             3086          (v) specify when a member's dissociation is wrongful and the liability incurred by the


             3087      dissociating member for damage to the association under Subsections 16-16-1101 (2) and (3);
             3088          (w) provide the personal representative, or other legal representative of, a deceased
             3089      member or a member adjudged incompetent with additional rights under Section 16-16-1103 ;
             3090          (x) increase the percentage of votes required for board of director approval of:
             3091          (i) a resolution to dissolve under Subsection 16-16-1205 (1)(a);
             3092          (ii) a proposed amendment to the organic rules under Subsection 16-16-402 (1)(a);
             3093          (iii) a plan of conversion under Subsection 16-16-1603 (1);
             3094          (iv) a plan of merger under Subsection 16-16-1607 (1); and
             3095          (v) a proposed disposition of assets under Subsection 16-16-1503 (1); and
             3096          (y) vary the percentage of votes required for members' approval of:
             3097          (i) a resolution to dissolve under Section 16-16-1205 ;
             3098          (ii) an amendment to the organic rules under Section 16-16-405 ;
             3099          (iii) a plan of conversion under Section 16-16-1603 ;
             3100          (iv) a plan of merger under Section 16-16-1608 ; and
             3101          (v) a disposition of assets under Section 16-16-1504 .
             3102          (4) The organic rules shall address members' contributions pursuant to Section
             3103      16-16-1001 .
             3104          Section 80. Section 17-18a-405 is amended to read:
             3105           17-18a-405. Civil responsibilities of public prosecutors.
             3106          A public prosecutor may act as legal counsel to the state, county, government agency,
             3107      or government entity regarding the following matters of civil law:
             3108          (1) bail bond forfeiture actions;
             3109          (2) actions for the forfeiture of property or contraband, as provided in Title 24,
             3110      [Chapter 1, Utah Uniform Forfeiture Procedures Act] Forfeiture and Disposition of Property
             3111      Act;
             3112          (3) civil actions incidental to or appropriate to supplement a public prosecutor's duties,
             3113      including an injunction, a habeas corpus, a declaratory action, or an extraordinary writ action,
             3114      in which the interests of the state may be affected; and


             3115          (4) any other civil duties related to criminal prosecution that are otherwise provided by
             3116      statute.
             3117          Section 81. Section 17-23-17.5 is amended to read:
             3118           17-23-17.5. Corner perpetuation and filing -- Definitions -- Establishment of
             3119      corner file -- Preservation of map records -- Filing fees -- Exemptions.
             3120          (1) As used in this section:
             3121          (a) "Accessory to a corner" means any exclusively identifiable physical object whose
             3122      spatial relationship to the corner is recorded. Accessories may be bearing trees, bearing
             3123      objects, monuments, reference monuments, line trees, pits, mounds, charcoal-filled bottles,
             3124      steel or wooden stakes, or other objects.
             3125          (b) "Corner," unless otherwise qualified, means a property corner, a property
             3126      controlling corner, a public land survey corner, or any combination of these.
             3127          (c) "Geographic coordinates" means mathematical values that designate a position on
             3128      the earth relative to a given reference system. Coordinates shall be established pursuant to
             3129      Title 57, Chapter 10, Utah Coordinate System.
             3130          (d) "Land surveyor" means a surveyor who is licensed to practice land surveying in this
             3131      state in accordance with Title 58, Chapter 22, Professional Engineers and Professional Land
             3132      Surveyors Licensing Act.
             3133          (e) "Monument" means an accessory that is presumed to occupy the exact position of a
             3134      corner.
             3135          (f) "Property controlling corner" means a public land survey corner or any property
             3136      corner which does not lie on a property line of the property in question, but which controls the
             3137      location of one or more of the property corners of the property in question.
             3138          (g) "Property corner" means a geographic point of known geographic coordinates on
             3139      the surface of the earth, and is on, a part of, and controls a property line.
             3140          (h) "Public land survey corner" means any corner actually established and monumented
             3141      in an original survey or resurvey used as a basis of legal descriptions for issuing a patent for the
             3142      land to a private person from the United States government.


             3143          (i) "Reference monument" means a special monument that does not occupy the same
             3144      geographical position as the corner itself, but whose spatial relationship to the corner is
             3145      recorded and which serves to witness the corner.
             3146          (2) (a) Any land surveyor making a boundary survey of lands within this state and
             3147      utilizing a corner shall, within 90 days, complete, sign, and file with the county surveyor of the
             3148      county where the corner is situated, a written record to be known as a corner file for every
             3149      public land survey corner and accessory to the corner which is used as control in any survey by
             3150      the surveyor, unless the corner and its accessories are already a matter of record in the county.
             3151          (b) Where reasonably possible, the corner file shall include the geographic coordinates
             3152      of the corner.
             3153          (c) A surveyor may file a corner record as to any property corner, reference monument,
             3154      or accessory to a corner.
             3155          (d) Corner records may be filed concerning corners used before the effective date of
             3156      this section.
             3157          (3) The county surveyor of the county containing the corners shall have on record as
             3158      part of the official files maps of each township within the county, the bearings and lengths of
             3159      the connecting lines to government corners, and government corners looked for and not found.
             3160          (4) The county surveyor shall make these records available for public inspection at the
             3161      county facilities during normal business hours.
             3162          (5) Filing fees for corner records shall be established by the county legislative body
             3163      consistent with existing fees for similar services. All corners, monuments, and their
             3164      accessories used prior to the effective date of this section shall be accepted and filed with the
             3165      county surveyor without requiring the payment of the fees.
             3166          (6) When a corner record of a public land survey corner is required to be filed under
             3167      the provisions of this section and the monument needs to be reconstructed or rehabilitated, the
             3168      land surveyor shall contact the county surveyor in accordance with Section 17-23-14 .
             3169          (7) A corner record may not be filed unless it is signed by a land surveyor.
             3170          (8) All filings relative to official cadastral surveys of the Bureau of Land Management


             3171      of the United States of America performed by authorized personnel shall be exempt from filing
             3172      fees.
             3173          Section 82. Section 17-23-19 is amended to read:
             3174           17-23-19. County permitted to establish Public Land Corner Preservation Fund
             3175      -- Use of fund -- Fee schedule for filing maps.
             3176          (1) The county legislative body may establish by ordinance a fund to be known as the
             3177      Public Land Corner Preservation Fund. Money generated for the fund shall be used only to pay
             3178      expenses incurred and authorized by the county surveyor in the establishment, reestablishment,
             3179      and maintenance of corners of government surveys pursuant to the powers and duties provided
             3180      under Title 17, Chapter 23, County Surveyor, and Title 57, Chapter 10, Utah Coordinate
             3181      System.
             3182          (2) The county legislative body may by ordinance establish a fee schedule for filing
             3183      maps in the county surveyor's office of surveys filed under Section 17-23-17 , subdivisions,
             3184      road dedication plats, and other property plats. All money collected under this subsection shall
             3185      be deposited with the county treasurer to be credited to the Public Land Corner Preservation
             3186      Fund.
             3187          Section 83. Section 17-27a-205 is amended to read:
             3188           17-27a-205. Notice of public hearings and public meetings on adoption or
             3189      modification of land use ordinance.
             3190          (1) Each county shall give:
             3191          (a) notice of the date, time, and place of the first public hearing to consider the
             3192      adoption or modification of a land use ordinance; and
             3193          (b) notice of each public meeting on the subject.
             3194          (2) Each notice of a public hearing under Subsection (1)(a) shall be:
             3195          (a) mailed to each affected entity at least 10 calendar days before the public hearing;
             3196          (b) posted:
             3197          (i) in at least three public locations within the county; or
             3198          (ii) on the county's official website; and


             3199          (c) (i) published:
             3200          (A) in a newspaper of general circulation in the area at least 10 calendar days before
             3201      the public hearing; and
             3202          (B) on the Utah Public Notice Website created in Section 63F-1-701 , at least 10
             3203      calendar days before the public hearing; or
             3204          (ii) mailed at least 10 days before the public hearing to:
             3205          (A) each property owner whose land is directly affected by the land use ordinance
             3206      change; and
             3207          (B) each adjacent property owner within the parameters specified by county ordinance.
             3208          (3) Each notice of a public meeting under Subsection (1)(b) shall be at least 24 hours
             3209      before the hearing and shall be posted:
             3210          (a) in at least three public locations within the county; or
             3211          (b) on the county's official website.
             3212          (4) (a) If a county plans to hold a public hearing in accordance with Section
             3213      17-27a-502 to adopt a zoning map or map amendment, the [municipality] county shall send a
             3214      courtesy notice to each owner of private real property whose property is located entirely or
             3215      partially within the proposed map at least 10 days prior to the scheduled day of the public
             3216      hearing.
             3217          (b) The notice shall:
             3218          (i) identify with specificity each owner of record of real property that will be affected
             3219      by the proposed zoning map or map amendments;
             3220          (ii) state the current zone in which the real property is located;
             3221          (iii) state the proposed new zone for the real property;
             3222          (iv) provide information regarding or a reference to the proposed regulations,
             3223      prohibitions, and permitted uses that the property will be subject to if the zoning map or map
             3224      amendment is adopted;
             3225          (v) state that the owner of real property may no later than 10 days after the day of the
             3226      first public hearing file a written objection to the inclusion of the owner's property in the


             3227      proposed zoning map or map amendment;
             3228          (vi) state the address where the property owner should file the protest;
             3229          (vii) notify the property owner that each written objection filed with the county will be
             3230      provided to the [municipal] county legislative body; and
             3231          (viii) state the location, date, and time of the public hearing described in Section
             3232      17-27a-502 .
             3233          (c) If a county mails notice to a property owner in accordance with Subsection (2)(c)(ii)
             3234      for a public hearing on a zoning map or map amendment, the notice required in this Subsection
             3235      (4) may be included in or part of the notice described in Subsection (2)(c)(ii) rather than sent
             3236      separately.
             3237          Section 84. Section 17-27a-301 is amended to read:
             3238           17-27a-301. Ordinance establishing planning commission required -- Exception --
             3239      Ordinance requirements -- Township planning commission -- Compensation.
             3240          (1) (a) Except as provided in Subsection (1)(b), each county shall enact an ordinance
             3241      establishing a countywide planning commission for the unincorporated areas of the county not
             3242      within a township.
             3243          (b) Subsection (1)(a) does not apply if all of the county is included within any
             3244      combination of:
             3245          (i) municipalities; and
             3246          (ii) townships with their own planning commissions.
             3247          (2) (a) The ordinance shall define:
             3248          (i) the number and terms of the members and, if the county chooses, alternate
             3249      members;
             3250          (ii) the mode of appointment;
             3251          (iii) the procedures for filling vacancies and removal from office;
             3252          (iv) the authority of the planning commission;
             3253          (v) subject to Subsection (2)(b), the rules of order and procedure for use by the
             3254      planning commission in a public meeting; and


             3255          (vi) other details relating to the organization and procedures of the planning
             3256      commission.
             3257          (b) Subsection (2)(a)(v) does not affect the planning commission's duty to comply with
             3258      Title 52, Chapter 4, Open and Public Meetings Act.
             3259          (3) (a) (i) If the county establishes a township planning commission, the county
             3260      legislative body shall enact an ordinance that defines:
             3261          (A) appointment procedures;
             3262          (B) procedures for filling vacancies and removing members from office;
             3263          (C) subject to Subsection (3)(a)(ii), the rules of order and procedure for use by the
             3264      township planning commission in a public meeting; and
             3265          (D) details relating to the organization and procedures of each township planning
             3266      commission.
             3267          (ii) Subsection (3)(a)(i)(C) does not affect the township planning commission's duty to
             3268      comply with Title 52, Chapter 4, Open and Public Meetings Act.
             3269          (b) The planning commission for each township shall consist of seven members who,
             3270      except as provided in Subsection (4), shall be appointed by:
             3271          (i) in a county operating under a form of government in which the executive and
             3272      legislative functions of the governing body are separated, the county executive with the advice
             3273      and consent of the county legislative body; or
             3274          (ii) in a county operating under a form of government in which the executive and
             3275      legislative functions of the governing body are not separated, the county legislative body.
             3276          (c) (i) Members shall serve four-year terms and until their successors are appointed or,
             3277      as provided in Subsection (4), elected and qualified.
             3278          (ii) Notwithstanding the provisions of Subsection (3)(c)(i) and except as provided in
             3279      Subsection (4), members of the first planning commissions shall be appointed so that, for each
             3280      commission, the terms of at least one member and no more than two members expire each
             3281      year.
             3282          (d) (i) Except as provided in Subsection (3)(d)(ii), each member of a township


             3283      planning commission shall be a registered voter residing within the township.
             3284          (ii) (A) Notwithstanding Subsection (3)(d)(i), one member of a planning commission
             3285      of a township reconstituted under Laws of Utah 1997, Chapter 389, or reinstated or established
             3286      under Subsection 17-27a-306 (1)(k)(i) may be an appointed member who is a registered voter
             3287      residing outside the township if that member:
             3288          (I) is an owner of real property located within the township; and
             3289          (II) resides within the county in which the township is located.
             3290          (B) (I) Each appointee under Subsection (3)(d)(ii)(A) shall be chosen by the township
             3291      planning commission from a list of three persons submitted by the county legislative body.
             3292          (II) If the township planning commission has not notified the county legislative body of
             3293      its choice under Subsection (3)(d)(ii)(B)(I) within 60 days of the township planning
             3294      commission's receipt of the list, the county legislative body may appoint one of the three
             3295      persons on the list or a registered voter residing within the township as a member of the
             3296      township planning commission.
             3297          (4) (a) The legislative body of each county in which a township reconstituted under
             3298      Laws of Utah 1997, Chapter 389, or reinstated or established under Subsection
             3299      17-27a-306 (1)[(e)](k)(i) is located shall on or before January 1, 2012, enact an ordinance that
             3300      provides for the election of at least three members of the planning commission of that
             3301      township.
             3302          (b) (i) Beginning with the 2012 general election, the election of planning commission
             3303      members under Subsection (4)(a) shall coincide with the election of other county officers
             3304      during even-numbered years.
             3305          (ii) Approximately half the elected planning commission members shall be elected
             3306      every four years during elections held on even-numbered years, and the remaining elected
             3307      members shall be elected every four years on alternating even-numbered years.
             3308          (c) If no person files a declaration of candidacy in accordance with Section 20A-9-202
             3309      for an open township planning commission member position:
             3310          (i) the position may be appointed in accordance with Subsection (3)(b); and


             3311          (ii) a person appointed under Subsection (4)(c)(i) may not serve for a period of time
             3312      that exceeds the elected term for which there was no candidate.
             3313          (5) (a) A legislative body described in Subsection (4)(a) shall on or before January 1,
             3314      2012, enact an ordinance that:
             3315          (i) designates the seats to be elected; and
             3316          (ii) subject to Subsection (6)(b), appoints a member of the planning and zoning board
             3317      of the former township, established under Laws of Utah 1996, Chapter 308, as a member of the
             3318      planning commission of the reconstituted or reinstated township.
             3319          (b) A member appointed under Subsection (5)(a) is considered an elected member.
             3320          (6) (a) Except as provided in Subsection (6)(b), the term of each member appointed
             3321      under Subsection (5)(a) shall continue until the time that the member's term as an elected
             3322      member of the former township planning and zoning board would have expired.
             3323          (b) (i) Notwithstanding Subsection (6)(a), the county legislative body may adjust the
             3324      terms of the members appointed under Subsection (5)(a) so that the terms of those members
             3325      coincide with the schedule under Subsection (4)(b) for elected members.
             3326          (ii) Subject to Subsection (6)(b)(iii), the legislative body of a county in which a
             3327      township reconstituted under Laws of Utah 1997, Chapter 389, or reinstated or established
             3328      under Subsection 17-27a-306 (1)[(e)](k)(i) is located may enact an ordinance allowing each
             3329      appointed member of the planning and zoning board of the former township, established under
             3330      Laws of Utah 1996, Chapter 308, to continue to hold office as a member of the planning
             3331      commission of the reconstituted or reinstated township until the time that the member's term as
             3332      a member of the former township's planning and zoning board would have expired.
             3333          (iii) If a planning commission of a township reconstituted under Laws of Utah 1997,
             3334      Chapter 389, or reinstated or established under Subsection 17-27a-306 (1)[(e)](k)(i) has more
             3335      than one appointed member who resides outside the township, the legislative body of the
             3336      county in which that township is located shall, within 15 days of the effective date of this
             3337      Subsection (6)(b)(iii), dismiss all but one of the appointed members who reside outside the
             3338      township, and a new member shall be appointed under Subsection (3)(b) to fill the position of


             3339      each dismissed member.
             3340          (7) (a) Except as provided in Subsection (7)(b), upon the appointment or election of all
             3341      members of a township planning commission, each township planning commission under this
             3342      section shall begin to exercise the powers and perform the duties provided in Section
             3343      17-27a-302 with respect to all matters then pending that previously had been under the
             3344      jurisdiction of the countywide planning commission or township planning and zoning board.
             3345          (b) Notwithstanding Subsection (7)(a), if the members of a former township planning
             3346      and zoning board continue to hold office as members of the planning commission of the
             3347      township planning district under an ordinance enacted under Subsection (5)(a), the township
             3348      planning commission shall immediately begin to exercise the powers and perform the duties
             3349      provided in Section 17-27a-302 with respect to all matters then pending that had previously
             3350      been under the jurisdiction of the township planning and zoning board.
             3351          (8) The legislative body may fix per diem compensation for the members of the
             3352      planning commission, based on necessary and reasonable expenses and on meetings actually
             3353      attended.
             3354          Section 85. Section 17-27a-512 is amended to read:
             3355           17-27a-512. County's acquisition of billboard by eminent domain -- Removal
             3356      without providing compensation -- Limit on allowing nonconforming billboard to be
             3357      rebuilt or replaced -- Validity of county permit after issuance of state permit.
             3358          (1) As used in this section:
             3359          (a) "Clearly visible" means capable of being read without obstruction by an occupant of
             3360      a vehicle traveling on a street or highway within the visibility area.
             3361          (b) "Highest allowable height" means:
             3362          (i) if the height allowed by the county, by ordinance or consent, is higher than the
             3363      height under Subsection (1)(b)(ii), the height allowed by the county; or
             3364          (ii) (A) for a noninterstate billboard:
             3365          (I) if the height of the previous use or structure is 45 feet or higher, the height of the
             3366      previous use or structure; or


             3367          (II) if the height of the previous use or structure is less than 45 feet, the height of the
             3368      previous use or structure or the height to make the entire advertising content of the billboard
             3369      clearly visible, whichever is higher, but no higher than 45 feet; and
             3370          (B) for an interstate billboard:
             3371          (I) if the height of the previous use or structure is at or above the interstate height, the
             3372      height of the previous use or structure; or
             3373          (II) if the height of the previous use or structure is less than the interstate height, the
             3374      height of the previous use or structure or the height to make the entire advertising content of
             3375      the billboard clearly visible, whichever is higher, but no higher than the interstate height.
             3376          (c) "Interstate billboard" means a billboard that is intended to be viewed from a
             3377      highway that is an interstate.
             3378          (d) "Interstate height" means a height that is the higher of:
             3379          (i) 65 feet above the ground; and
             3380          (ii) 25 feet above the grade of the interstate.
             3381          (e) "Noninterstate billboard" means a billboard that is intended to be viewed from a
             3382      street or highway that is not an interstate.
             3383          (f) "Visibility area" means the area on a street or highway that is:
             3384          (i) defined at one end by a line extending from the base of the billboard across all lanes
             3385      of traffic of the street or highway in a plane that is perpendicular to the street or highway; and
             3386          (ii) defined on the other end by a line extending across all lanes of traffic of the street
             3387      or highway in a plane that is:
             3388          (A) perpendicular to the street or highway; and
             3389          (B) (I) for an interstate billboard, 500 feet from the base of the billboard; or
             3390          (II) for a noninterstate billboard, 300 feet from the base of the billboard.
             3391          (2) (a) A county is considered to have initiated the acquisition of a billboard structure
             3392      by eminent domain if the county prevents a billboard owner from:
             3393          (i) rebuilding, maintaining, repairing, or restoring a billboard structure that is damaged
             3394      by casualty, an act of God, or vandalism;


             3395          (ii) except as provided in Subsection (2)(c), relocating or rebuilding a billboard
             3396      structure, or taking other measures, to correct a mistake in the placement or erection of a
             3397      billboard for which the county has issued a permit, if the proposed relocation, rebuilding, or
             3398      other measure is consistent with the intent of that permit;
             3399          (iii) structurally modifying or upgrading a billboard;
             3400          (iv) relocating a billboard into any commercial, industrial, or manufacturing zone
             3401      within the unincorporated area of the county, if:
             3402          (A) the relocated billboard is:
             3403          (I) within 5,280 feet of its previous location; and
             3404          (II) no closer than:
             3405          (Aa) 300 feet from an off-premise sign existing on the same side of the street or
             3406      highway; or
             3407          (Bb) if the street or highway is an interstate or limited access highway that is subject to
             3408      Title 72, Chapter 7, Part 5, Utah Outdoor Advertising Act, the distance allowed under that act
             3409      between the relocated billboard and an off-premise sign existing on the same side of the
             3410      interstate or limited access highway; and
             3411          (B) (I) the billboard owner has submitted a written request under Subsection
             3412      17-27a-510 (3)(c); and
             3413          (II) the county and billboard owner are unable to agree, within the time provided in
             3414      Subsection 17-27a-510 (3)(c), to a mutually acceptable location; or
             3415          (v) making the following modifications, as the billboard owner determines, to a
             3416      billboard that is structurally modified or upgraded under Subsection (2)(a)(iii) or relocated
             3417      under Subsection (2)(a)(iv):
             3418          (A) erecting the billboard:
             3419          (I) to the highest allowable height; and
             3420          (II) as the owner determines, to an angle that makes the entire advertising content of
             3421      the billboard clearly visible; and
             3422          (B) installing a sign face on the billboard that is at least the same size as, but no larger


             3423      than, the sign face on the billboard before its relocation.
             3424          (b) A modification under Subsection [(1)] (2)(a)(v) shall comply with Title 72, Chapter
             3425      7, Part 5, Utah Outdoor Advertising Act, to the extent applicable.
             3426          (c) A county's denial of a billboard owner's request to relocate or rebuild a billboard
             3427      structure, or to take other measures, in order to correct a mistake in the placement or erection of
             3428      a billboard does not constitute the initiation of acquisition by eminent domain under Subsection
             3429      (2)(a) if the mistake in placement or erection of the billboard is determined by clear and
             3430      convincing evidence to have resulted from an intentionally false or misleading statement:
             3431          (i) by the billboard applicant in the application; and
             3432          (ii) regarding the placement or erection of the billboard.
             3433          (d) If a county is considered to have initiated the acquisition of a billboard structure by
             3434      eminent domain under Subsection (1)(a) or any other provision of applicable law, the county
             3435      shall pay just compensation to the billboard owner in an amount that is:
             3436          (i) the value of the existing billboard at a fair market capitalization rate, based on
             3437      actual annual revenue, less any annual rent expense;
             3438          (ii) the value of any other right associated with the billboard structure that is acquired;
             3439          (iii) the cost of the sign structure; and
             3440          (iv) damage to the economic unit described in Subsection 72-7-510 (3)(b), of which the
             3441      billboard owner's interest is a part.
             3442          (3) Notwithstanding Subsection (2) and Section 17-27a-511 , a county may remove a
             3443      billboard without providing compensation if:
             3444          (a) the county determines:
             3445          (i) by clear and convincing evidence that the applicant for a permit intentionally made a
             3446      false or misleading statement in the applicant's application regarding the placement or erection
             3447      of the billboard; or
             3448          (ii) by substantial evidence that the billboard:
             3449          (A) is structurally unsafe;
             3450          (B) is in an unreasonable state of repair; or


             3451          (C) has been abandoned for at least 12 months;
             3452          (b) the county notifies the owner in writing that the owner's billboard meets one or
             3453      more of the conditions listed in Subsections (3)(a)(i) and (ii);
             3454          (c) the owner fails to remedy the condition or conditions within:
             3455          (i) except as provided in Subsection (3)(c)(ii), 90 days following the billboard owner's
             3456      receipt of written notice under Subsection (3)(b); or
             3457          (ii) if the condition forming the basis of the county's intention to remove the billboard
             3458      is that it is structurally unsafe, 10 business days, or a longer period if necessary because of a
             3459      natural disaster, following the billboard owner's receipt of written notice under Subsection
             3460      (3)(b); and
             3461          (d) following the expiration of the applicable period under Subsection (3)(c) and after
             3462      providing the owner with reasonable notice of proceedings and an opportunity for a hearing,
             3463      the county finds:
             3464          (i) by clear and convincing evidence, that the applicant for a permit intentionally made
             3465      a false or misleading statement in the application regarding the placement or erection of the
             3466      billboard; or
             3467          (ii) by substantial evidence that the billboard is structurally unsafe, is in an
             3468      unreasonable state of repair, or has been abandoned for at least 12 months.
             3469          (4) A county may not allow a nonconforming billboard to be rebuilt or replaced by
             3470      anyone other than its owner or the owner acting through its contractors.
             3471          (5) A permit issued, extended, or renewed by a county for a billboard remains valid
             3472      from the time the county issues, extends, or renews the permit until 180 days after a required
             3473      state permit is issued for the billboard if:
             3474          (a) the billboard requires a state permit; and
             3475          (b) an application for the state permit is filed within 30 days after the county issues,
             3476      extends, or renews a permit for the billboard.
             3477          Section 86. Section 17-36-3 is amended to read:
             3478           17-36-3. Definitions.


             3479          As used in this chapter:
             3480          (1) "Accrual basis of accounting" means a method where revenues are recorded when
             3481      earned and expenditures recorded when they become liabilities notwithstanding that the receipt
             3482      of the revenue or payment of the expenditure may take place in another accounting period.
             3483          (2) "Appropriation" means an allocation of money for a specific purpose.
             3484          (3) (a) "Budget" means a plan for financial operations for a fiscal period, embodying
             3485      estimates for proposed expenditures for given purposes and the means of financing the
             3486      expenditures.
             3487          (b) "Budget" may refer to the budget of a fund for which a budget is required by law, or
             3488      collectively to the budgets for all those funds.
             3489          (4) "Budgetary fund" means a fund for which a budget is required, such as those
             3490      described in Section 17-36-8 .
             3491          (5) "Budget officer" means:
             3492          (a) for a county of the second, third, fourth, fifth, or sixth class, the county auditor,
             3493      county clerk, or county executive as provided in Subsection 17-19-19 (1); or
             3494          (b) for a county of the first class, a person described in Section 17-19a-203 .
             3495          (6) "Budget period" means the fiscal period for which a budget is prepared.
             3496          (7) "Check" means an order in a specific amount drawn upon the depositary by any
             3497      authorized officer in accordance with Section 17-19-3 , 17-19a-301 , 17-24-1 , or [ 17-24-1.1 ]
             3498      17-24-4 , as applicable.
             3499          (8) "Countywide service" means a service provided in both incorporated and
             3500      unincorporated areas of a county.
             3501          (9) "Current period" means the fiscal period in which a budget is prepared and adopted.
             3502          (10) "Department" means any functional unit within a fund which carries on a specific
             3503      activity.
             3504          (11) "Encumbrance system" means a method of budgetary control where part of an
             3505      appropriation is reserved to cover a specific expenditure by charging obligations, such as
             3506      purchase orders, contracts, or salary commitments to an appropriation account. An expenditure


             3507      ceases to be an encumbrance when paid or when the actual liability is entered in the books of
             3508      account.
             3509          (12) "Estimated revenue" means any revenue estimated to be received during the
             3510      budget period in any fund for which a budget is prepared.
             3511          (13) "Fiscal period" means the annual or biennial period for recording county fiscal
             3512      operations.
             3513          (14) "Fund" means an independent fiscal and accounting entity comprised of a sum of
             3514      money or other resources segregated for a specific purpose or objective.
             3515          (15) "Fund balance" means the excess of the assets over liabilities, reserves, and
             3516      contributions, as reflected by its books of account.
             3517          (16) "Fund deficit" means the excess of liabilities, reserves, and contributions over its
             3518      assets, as reflected by its books of account.
             3519          (17) "General Fund" means the fund used to account for all receipts, disbursements,
             3520      assets, liabilities, reserves, fund balances, revenues, and expenditures not required to be
             3521      accounted for in other funds.
             3522          (18) "Interfund loan" means a loan of cash from one fund to another, subject to future
             3523      repayment; but it does not constitute an expenditure or a use of retained earnings, fund balance,
             3524      or unappropriated surplus of the lending fund.
             3525          (19) "Last completed fiscal period" means the fiscal period next preceding the current
             3526      period.
             3527          (20) "Modified accrual basis of accounting" means a method under which expenditures
             3528      other than accrued interest on general long-term debt are recorded at the time liabilities are
             3529      incurred and revenues are recorded when they become measurable and available to finance
             3530      expenditures of the current period.
             3531          (21) "Municipal capital project" means the acquisition, construction, or improvement
             3532      of capital assets that facilitate providing municipal service.
             3533          (22) "Municipal service" means a service not provided on a countywide basis and not
             3534      accounted for in an enterprise fund, and includes police patrol, fire protection, culinary or


             3535      irrigation water retail service, water conservation, local parks, sewers, sewage treatment and
             3536      disposal, cemeteries, garbage and refuse collection, street lighting, airports, planning and
             3537      zoning, local streets and roads, curb, gutter, and sidewalk maintenance, and ambulance service.
             3538          (23) "Retained earnings" means that part of the net earnings retained by an enterprise
             3539      or internal service fund which is not segregated or reserved for any specific purpose.
             3540          (24) "Special fund" means any fund other than the General Fund, such as those
             3541      described in Section 17-36-6 .
             3542          (25) "Unappropriated surplus" means that part of a fund which is not appropriated for
             3543      an ensuing budget period.
             3544          (26) "Warrant" means an order in a specific amount drawn upon the treasurer by the
             3545      auditor.
             3546          Section 87. Section 17-36-39 is amended to read:
             3547           17-36-39. Independent audits.
             3548          Independent audits are required for all counties as provided in Title 51, Chapter 2a,
             3549      Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
             3550      Entities Act.
             3551          Section 88. Section 17-53-301 is amended to read:
             3552           17-53-301. General powers, duties, and functions of county executive.
             3553          (1) The elected county executive is the chief executive officer of the county.
             3554          (2) Except as expressly provided otherwise in statute and except as contrary to the
             3555      powers, duties, and functions of other county officers expressly provided for in [Chapters 16,
             3556      17, 18, 19, 20, 21, 22, 23, and 24] Chapter 16, County Officers; Chapter 17, County Assessor;
             3557      Chapter 18a, Powers and Duties of County and District Attorney; Chapter 19, County Auditor;
             3558      Chapter 19a, County Auditor; Chapter 20, County Clerk; Chapter 21, Recorder; Chapter 22,
             3559      Sheriff; Chapter 23, County Surveyor; and Chapter 24, County Treasurer, each county
             3560      executive shall exercise all executive powers, have all executive duties, and perform all
             3561      executive functions of the county, including those enumerated in this part.
             3562          (3) A county executive may take any action required by law and necessary to the full


             3563      discharge of the executive's duties, even though the action is not expressly authorized in
             3564      statute.
             3565          Section 89. Section 17B-1-121 is amended to read:
             3566           17B-1-121. Limit on fees -- Requirement to itemize and account for fees --
             3567      Appeals.
             3568          (1) A local district may not impose or collect:
             3569          (a) an application fee that exceeds the reasonable cost of processing the application; or
             3570          (b) an inspection or review fee that exceeds the reasonable cost of performing an
             3571      inspection or review.
             3572          (2) (a) Upon request by a service applicant who is charged a fee or an owner of
             3573      residential property upon which a fee is imposed, a local district shall provide a statement of
             3574      each itemized fee and calculation method for each fee.
             3575          (b) If an applicant who is charged a fee or an owner of residential property upon which
             3576      a fee is imposed submits a request for a statement of each itemized fee no later than 30 days
             3577      after the day on which the applicant or owner pays the fee, the local district shall, no later than
             3578      10 days after the day on which the request is received, provide or commit to provide within a
             3579      specific time:
             3580          (i) for each fee, any studies, reports, or methods relied upon by the local district to
             3581      create the calculation method described in Subsection (2)(a);
             3582          (ii) an accounting of each fee paid;
             3583          (iii) how each fee will be distributed by the local district; and
             3584          (iv) information on filing a fee appeal through the process described in Subsection
             3585      (2)(c).
             3586          (c) (i) A local district shall establish an impartial fee appeal process to determine
             3587      whether a fee reflects only the reasonable estimated cost of delivering the service for which the
             3588      fee was paid.
             3589          (ii) A party to a fee appeal described in Subsection (2)(c)(i) may petition for judicial
             3590      review of the local district's final decision.


             3591          (3) A local district may not impose on or collect from a public agency a fee associated
             3592      with the public agency's development of the public agency's land other than:
             3593          (a) subject to Subsection (1), a hookup fee; or
             3594          (b) an impact fee, as defined in Section [ 11-36-102 ] 11-36a-102 and subject to Section
             3595      [ 11-36-202 ] 11-36a-402 , for a public facility listed in Subsection [ 11-36-102 (13)]
             3596      11-36a-102 (16)(a), (b), (c), (d), (e), or (g).
             3597          Section 90. Section 17B-1-512 is amended to read:
             3598           17B-1-512. Filing of notice and plat -- Recording requirements -- Contest period
             3599      -- Judicial review.
             3600          (1) (a) Within the time specified in Subsection (1)(b), the board of trustees shall file
             3601      with the lieutenant governor:
             3602          (i) a copy of a notice of an impending boundary action, as defined in Section 67-1a-6.5 ,
             3603      that meets the requirements of Subsection 67-1a-6.5 (3); and
             3604          (ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5 .
             3605          (b) The board of trustees shall file the documents listed in Subsection (1)(a):
             3606          (i) within 10 days after adopting a resolution approving a withdrawal under Section
             3607      17B-1-510 ; and
             3608          (ii) as soon as practicable after receiving a notice under Subsection 10-2-425 (2) of an
             3609      automatic withdrawal under Subsection 17B-1-502 (2), after receiving a copy of the municipal
             3610      legislative body's resolution approving an automatic withdrawal under Subsection
             3611      17B-1-502 (3)(a), or after receiving notice of a withdrawal of a municipality from a local
             3612      district under Section [ 17B-2-505 ] 17B-1-502 .
             3613          (c) Upon the lieutenant governor's issuance of a certificate of withdrawal under Section
             3614      67-1a-6.5 , the board shall:
             3615          (i) if the withdrawn area is located within the boundary of a single county, submit to
             3616      the recorder of that county:
             3617          (A) the original:
             3618          (I) notice of an impending boundary action;


             3619          (II) certificate of withdrawal; and
             3620          (III) approved final local entity plat; and
             3621          (B) if applicable, a certified copy of the resolution or notice referred to in Subsection
             3622      (1)(b); or
             3623          (ii) if the withdrawn area is located within the boundaries of more than a single county,
             3624      submit:
             3625          (A) the original of the documents listed in Subsections (1)(c)(i)(A)(I), (II), and (III)
             3626      and, if applicable, a certified copy of the resolution or notice referred to in Subsection (1)(b) to
             3627      one of those counties; and
             3628          (B) a certified copy of the documents listed in Subsections (1)(c)(i)(A)(I), (II), and (III)
             3629      and a certified copy of the resolution or notice referred to in Subsection (1)(b) to each other
             3630      county.
             3631          (2) (a) Upon the lieutenant governor's issuance of the certificate of withdrawal under
             3632      Section 67-1a-6.5 for a withdrawal under Section 17B-1-510 , for an automatic withdrawal
             3633      under Subsection 17B-1-502 (3), or for the withdrawal of a municipality from a local district
             3634      under Section 17B-1-505 , the withdrawal shall be effective, subject to the conditions of the
             3635      withdrawal resolution, if applicable.
             3636          (b) An automatic withdrawal under Subsection 17B-1-502 (3) shall be effective upon
             3637      the lieutenant governor's issuance of a certificate of withdrawal under Section 67-1a-6.5 .
             3638          (3) (a) The local district may provide for the publication of any resolution approving or
             3639      denying the withdrawal of an area:
             3640          (i) in a newspaper of general circulation in the area proposed for withdrawal; and
             3641          (ii) as required in Section 45-1-101 .
             3642          (b) In lieu of publishing the entire resolution, the local district may publish a notice of
             3643      withdrawal or denial of withdrawal, containing:
             3644          (i) the name of the local district;
             3645          (ii) a description of the area proposed for withdrawal;
             3646          (iii) a brief explanation of the grounds on which the board of trustees determined to


             3647      approve or deny the withdrawal; and
             3648          (iv) the times and place where a copy of the resolution may be examined, which shall
             3649      be at the place of business of the local district, identified in the notice, during regular business
             3650      hours of the local district as described in the notice and for a period of at least 30 days after the
             3651      publication of the notice.
             3652          (4) Any sponsor of the petition or receiving entity may contest the board's decision to
             3653      deny a withdrawal of an area from the local district by submitting a request, within 60 days
             3654      after the resolution is adopted under Section 17B-1-510 , to the board of trustees, suggesting
             3655      terms or conditions to mitigate or eliminate the conditions upon which the board of trustees
             3656      based its decision to deny the withdrawal.
             3657          (5) Within 60 days after the request under Subsection (4) is submitted to the board of
             3658      trustees, the board may consider the suggestions for mitigation and adopt a resolution
             3659      approving or denying the request in the same manner as provided in Section 17B-1-510 with
             3660      respect to the original resolution denying the withdrawal and file a notice of the action as
             3661      provided in Subsection (1).
             3662          (6) (a) Any person in interest may seek judicial review of:
             3663          (i) the board of trustees' decision to withdraw an area from the local district;
             3664          (ii) the terms and conditions of a withdrawal; or
             3665          (iii) the board's decision to deny a withdrawal.
             3666          (b) Judicial review under this Subsection (6) shall be initiated by filing an action in the
             3667      district court in the county in which a majority of the area proposed to be withdrawn is located:
             3668          (i) if the resolution approving or denying the withdrawal is published under Subsection
             3669      (3), within 60 days after the publication or after the board of trustees' denial of the request
             3670      under Subsection (5);
             3671          (ii) if the resolution is not published pursuant to Subsection (3), within 60 days after
             3672      the resolution approving or denying the withdrawal is adopted; or
             3673          (iii) if a request is submitted to the board of trustees of a local district under Subsection
             3674      (4), and the board adopts a resolution under Subsection (5), within 60 days after the board


             3675      adopts a resolution under Subsection (5) unless the resolution is published under Subsection
             3676      (3), in which event the action shall be filed within 60 days after the publication.
             3677          (c) A court in which an action is filed under this Subsection (6) may not overturn, in
             3678      whole or in part, the board of trustees' decision to approve or reject the withdrawal unless:
             3679          (i) the court finds the board of trustees' decision to be arbitrary or capricious; or
             3680          (ii) the court finds that the board materially failed to follow the procedures set forth in
             3681      this part.
             3682          (d) A court may award costs and expenses of an action under this section, including
             3683      reasonable attorney fees, to the prevailing party.
             3684          (7) After the applicable contest period under Subsection (4) or (6), no person may
             3685      contest the board of trustees' approval or denial of withdrawal for any cause.
             3686          Section 91. Section 17B-2a-902 is amended to read:
             3687           17B-2a-902. Provisions applicable to service areas.
             3688          (1) Each service area is governed by and has the powers stated in:
             3689          (a) this part; and
             3690          (b) except as provided in Subsection (5), Chapter 1, Provisions Applicable to All Local
             3691      Districts.
             3692          (2) This part applies only to service areas.
             3693          (3) A service area is not subject to the provisions of any other part of this chapter.
             3694          (4) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All
             3695      Local Districts, and a provision in this part, the provision in this part governs.
             3696          (5) (a) Except as provided in Subsection (5)(b), on or after December 31, 2012, a
             3697      service area may not charge or collect a fee under Section 17B-1-643 for:
             3698          (i) law enforcement services;
             3699          (ii) fire protection services;
             3700          (iii) 911 ambulance or paramedic services as defined in Section 26-8a-102 that are
             3701      provided under a contract in accordance with Section 26-8a-405.2 ; or
             3702          (iv) emergency services.


             3703          (b) Subsection (5)(a) does not apply to:
             3704          (i) a fee charged or collected on an individual basis rather than a general basis;
             3705          (ii) a non-911 service as defined in Section 26-8a-102 that is provided under a contract
             3706      in accordance with Section 26-8a-405.2 ;
             3707          (iii) an impact fee charged or collected for a public safety facility as defined in Section
             3708      [ 11-36-102 ] 11-36a-102 ; or
             3709          (iv) a service area that includes within the boundary of the service area a county of the
             3710      fifth or sixth class.
             3711          Section 92. Section 17B-2a-905 is amended to read:
             3712           17B-2a-905. Service area board of trustees.
             3713          (1) (a) Except as provided in Subsection (2) or (3):
             3714          (i) the initial board of trustees of a service area located entirely within the
             3715      unincorporated area of a single county may, as stated in the petition or resolution that initiated
             3716      the process of creating the service area:
             3717          (A) consist of the county legislative body;
             3718          (B) be appointed, as provided in Section 17B-1-304 ; or
             3719          (C) be elected, as provided in Section 17B-1-306 ;
             3720          (ii) if the board of trustees of a service area consists of the county legislative body, the
             3721      board may adopt a resolution providing for future board members to be appointed, as provided
             3722      in Section 17B-1-304 , or elected, as provided in Section 17B-1-306 ; and
             3723          (iii) members of the board of trustees of a service area shall be elected, as provided in
             3724      Section 17B-1-306 , if:
             3725          (A) the service area is not entirely within the unincorporated area of a single county;
             3726          (B) a petition is filed with the board of trustees requesting that board members be
             3727      elected, and the petition is signed by registered voters within the service area equal in number
             3728      to at least 10% of the number of registered voters within the service area who voted at the last
             3729      gubernatorial election; or
             3730          (C) an election is held to authorize the service area's issuance of bonds.


             3731          (b) If members of the board of trustees of a service area are required to be elected
             3732      under Subsection (1)(a)(iii)(C) because of a bond election:
             3733          (i) board members shall be elected in conjunction with the bond election;
             3734          (ii) the board of trustees shall:
             3735          (A) establish a process to enable potential candidates to file a declaration of candidacy
             3736      sufficiently in advance of the election; and
             3737          (B) provide a ballot for the election of board members separate from the bond ballot;
             3738      and
             3739          (iii) except as provided in this Subsection (1)(b), the election shall be held as provided
             3740      in Section 17B-1-306 .
             3741          (2) (a) This Subsection (2) applies to a service area created on or after May 5, 2003, if:
             3742          (i) the service area was created to provide:
             3743          (A) fire protection, paramedic, and emergency services; or
             3744          (B) law enforcement service;
             3745          (ii) in the creation of the service area, an election was not required under Subsection
             3746      17B-1-214 (3)(d); and
             3747          (iii) the service area is not a service area described in Subsection (3).
             3748          (b) (i) Each county whose unincorporated area is included within a service area
             3749      described in Subsection (2)(a), whether in conjunction with the creation of the service area or
             3750      by later annexation, shall appoint three members to the board of trustees.
             3751          (ii) Each municipality whose area is included within a service area described in
             3752      Subsection (2)(a), whether in conjunction with the creation of the service area or by later
             3753      annexation, shall appoint one member to the board of trustees.
             3754          (iii) Each member appointed by a county or municipality under Subsection (2)(b)(i) or
             3755      (ii) shall be an elected official of the appointing county or municipality, respectively.
             3756          (c) Notwithstanding Subsection 17B-1-302 (2), the number of members of a board of
             3757      trustees of a service area described in Subsection (2)(a) shall be the number resulting from
             3758      application of Subsection (2)(b).


             3759          (3) (a) This Subsection (3) applies to a service area created on or after May 14, 2013,
             3760      if:
             3761          (i) the service area was created to provide fire protection, paramedic, and emergency
             3762      services;
             3763          (ii) in the creation of the service area, an election was not required under Subsection
             3764      [ 17B-1-213 ] 17B-1-214 (3)(d); and
             3765          (iii) each municipality whose area is included within the service area or county whose
             3766      unincorporated area, whether in whole or in part, is included within a service area is a party to
             3767      an agreement:
             3768          (A) entered into in accordance with Title 11, Chapter 13, Interlocal Cooperation Act
             3769      with all the other municipalities or counties whose area is included in the service area;
             3770          (B) to provide the services described in Subsection (3)(a)(i); and
             3771          (C) at the time a resolution proposing the creation of the service area is adopted by
             3772      each applicable municipal or county legislative body in accordance with Subsection
             3773      17B-1-203 (1)(d).
             3774          (b) (i) Each county whose unincorporated area, whether in whole or in part, is included
             3775      within a service area described in Subsection (3)(a), whether in conjunction with the creation of
             3776      the service area or by later annexation, shall appoint one member to the board of trustees.
             3777          (ii) Each municipality whose area is included within a service area described in
             3778      Subsection (3)(a), whether in conjunction with the creation of the service area or by later
             3779      annexation, shall appoint one member to the board of trustees.
             3780          (iii) Each member appointed by a county or municipality under Subsection (3)(b)(i) or
             3781      (ii) shall be an elected official of the appointing county or municipality, respectively.
             3782          (iv) A vote by a member of the board of trustees may be weighted or proportional.
             3783          (c) Notwithstanding Subsection 17B-1-302 (2), the number of members of a board of
             3784      trustees of a service area described in Subsection (3)(a) shall be the number resulting from the
             3785      application of Subsection (3)(b).
             3786          Section 93. Section 17C-4-202 is amended to read:


             3787           17C-4-202. Resolution or interlocal agreement to provide funds for the
             3788      community development project area plan -- Notice -- Effective date of resolution or
             3789      interlocal agreement -- Time to contest resolution or interlocal agreement -- Availability
             3790      of resolution or interlocal agreement.
             3791          (1) The approval and adoption of each resolution or interlocal agreement under
             3792      Subsection 17C-4-201 (2) shall be in an open and public meeting.
             3793          (2) (a) Upon the adoption of a resolution or interlocal agreement under Section
             3794      17C-4-201 , the agency shall provide notice as provided in Subsection (2)(b) by:
             3795          (i) (A) publishing or causing to be published a notice in a newspaper of general
             3796      circulation within the agency's boundaries; or
             3797          (B) if there is no newspaper of general circulation within the agency's boundaries,
             3798      causing a notice to be posted in at least three public places within the agency's boundaries; and
             3799          (ii) publishing or causing to be published a notice on the Utah Public Notice Website
             3800      created in Section 63F-1-701 .
             3801          (b) Each notice under Subsection (2)(a) shall:
             3802          (i) set forth a summary of the resolution or interlocal agreement; and
             3803          (ii) include a statement that the resolution or interlocal agreement is available for
             3804      general public inspection and the hours of inspection.
             3805          (3) The resolution or interlocal agreement shall become effective on the date of:
             3806          (a) if notice was published under Subsection (2)(a)(i)(A) or (2)(a)(ii), publication of the
             3807      notice; or
             3808          (b) if notice was posted under Subsection (2)(a)(i)(B), posting of the notice.
             3809          (4) (a) For a period of 30 days after the effective date of the resolution or interlocal
             3810      agreement under Subsection (3), any person in interest may contest the resolution or interlocal
             3811      agreement or the procedure used to adopt the resolution or interlocal agreement if the
             3812      resolution or interlocal agreement or procedure fails to comply with applicable statutory
             3813      requirements.
             3814          (b) After the 30-day period under Subsection (4)(a) expires, a person may not, for any


             3815      cause, contest:
             3816          (i) the resolution or interlocal agreement;
             3817          (ii) a payment to the agency under the resolution or interlocal agreement; or
             3818          (iii) the agency's use of tax increment under the resolution or interlocal agreement.
             3819          (5) Each agency that is to receive funds under a resolution or interlocal agreement
             3820      under Section 17C-4-201 and each taxing entity or public entity that approves a resolution or
             3821      enters into an interlocal agreement under Section 17C-4-201 shall make the resolution or
             3822      interlocal agreement, as the case may be, available at its offices to the general public for
             3823      inspection and copying during normal business hours.
             3824          Section 94. Section 17D-3-105 is amended to read:
             3825           17D-3-105. Conservation districts subject to other provisions.
             3826          (1) A conservation district is, to the same extent as if it were a local district, subject to
             3827      and governed by:
             3828          (a) Sections 17B-1-105 , 17B-1-107 , 17B-1-108 , [ 17B-1-109, ] 17B-1-110 , 17B-1-112 ,
             3829      17B-1-113 , 17B-1-116 , 17B-1-121 , 17B-1-307 , 17B-1-311 , 17B-1-313 , and 17B-1-314 ;
             3830          (b) Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts;
             3831          (c) Title 17B, Chapter 1, Part 7, Local District Budgets and Audit Reports;
             3832          (d) Title 17B, Chapter 1, Part 8, Local District Personnel Management; and
             3833          (e) Title 17B, Chapter 1, Part 9, Collection of Service Fees and Charges.
             3834          (2) For purposes of applying the provisions listed in Subsection (1) to a conservation
             3835      district, each reference in those provisions to the local district board of trustees means the
             3836      board of supervisors described in Section 17D-3-301 .
             3837          Section 95. Section 20A-1-306 is amended to read:
             3838           20A-1-306. Electronic signatures prohibited.
             3839          Notwithstanding Title 46, Chapter 4, Uniform Electronic Transactions Act, and
             3840      Subsections 68-3-12 (1)(e) and 68-3-12.5 [(24)](26) and [(33)] (35), an electronic signature may
             3841      not be used to sign a petition to:
             3842          (1) qualify a ballot proposition for the ballot under Chapter 7, Issues Submitted to the


             3843      Voters;
             3844          (2) organize and register a political party under Chapter 8, Political Party Formation
             3845      and Procedures; or
             3846          (3) qualify a candidate for the ballot under Chapter 9, Candidate Qualifications and
             3847      Nominating Procedures.
             3848          Section 96. Section 26-28-112 is amended to read:
             3849           26-28-112. Search and notification.
             3850          (1) The following persons shall make a reasonable search of an individual who the
             3851      person reasonably believes is dead or near death for a document of gift or other information
             3852      identifying the individual as a donor or as an individual who made a refusal:
             3853          (a) a law enforcement officer, firefighter, paramedic, or other emergency rescuer
             3854      finding the individual;
             3855          (b) if no other source of the information is immediately available, a hospital, as soon as
             3856      practical after the individual's arrival at the hospital; and
             3857          (c) a law enforcement officer, firefighter, emergency medical services provider, or
             3858      other emergency rescuer who finds an individual who is deceased at the scene of a motor
             3859      vehicle accident, when the deceased individual is transported from the scene of the accident to
             3860      a funeral establishment licensed under Title 58, Chapter 9, Funeral Services Licensing Act:
             3861          (i) the law enforcement officer, firefighter, emergency medical services provider, or
             3862      other emergency rescuer shall as soon as reasonably possible, notify the appropriate organ
             3863      procurement organization, tissue bank, or eye bank of:
             3864          (A) the identity of the deceased individual, if known;
             3865          (B) information, if known, pertaining to the deceased individual's legal next-of-kin in
             3866      accordance with Section 26-28-109 ; and
             3867          (C) the name and location of the funeral establishment which received custody of and
             3868      transported the deceased individual; and
             3869          (ii) the funeral establishment receiving custody of the deceased individual under this
             3870      Subsection (1)(c) may not embalm the body of the deceased individual until:


             3871          (A) the funeral establishment receives notice from the organ procurement organization,
             3872      tissue bank, or eye bank that the readily available persons listed as having priority in Section
             3873      26-28-109 have been informed by the organ procurement organization of the option to make or
             3874      refuse to make an anatomical gift in accordance with Section [ 26-28-4 ] 26-28-104 , with
             3875      reasonable discretion and sensitivity appropriate to the circumstances of the family;
             3876          (B) in accordance with federal law, prior approval for embalming has been obtained
             3877      from a family member or other authorized person; and
             3878          (C) the period of time in which embalming is prohibited under Subsection (1)(c)(ii)
             3879      may not exceed 24 hours after death.
             3880          (2) If a document of gift or a refusal to make an anatomical gift is located by the search
             3881      required by Subsection (1)(a) and the individual or deceased individual to whom it relates is
             3882      taken to a hospital, the person responsible for conducting the search shall send the document of
             3883      gift or refusal to the hospital.
             3884          (3) A person is not subject to criminal or civil liability for failing to discharge the
             3885      duties imposed by this section but may be subject to administrative sanctions.
             3886          Section 97. Section 36-23-109 is amended to read:
             3887           36-23-109. Review of state regulation of occupations and professions.
             3888          Before the annual written report described in Section [ 36-23-107 ] 36-23-106 is
             3889      submitted for 2013, the committee shall study potentially less restrictive alternatives to
             3890      licensing for the regulation of occupations and professions, including registration and
             3891      certification if appropriate, that would better avoid unnecessary regulation and intrusion upon
             3892      individual liberties by the state, while still protecting the health and safety of the public.
             3893          Section 98. Section 38-8-3.5 is amended to read:
             3894           38-8-3.5. Right to tow certain vehicles subject to lien.
             3895          (1) If the property subject to a lien described in Section 38-3-2 is a vehicle, the
             3896      occupant is in default for a continuous 60-day period, and the owner chose not to sell the
             3897      vehicle under Section 38-8-3 , the owner may have the vehicle towed from the [self-storage]
             3898      self-service storage facility by an independent towing carrier that is certified by the Department


             3899      of Transportation as described in Section 72-9-602 .
             3900          (2) Within one day after the day on which a vehicle is towed under Subsection (1), the
             3901      owner shall send written notice by certified mail, postage prepaid, to the occupant's last known
             3902      address that states:
             3903          (a) the date the vehicle was towed; and
             3904          (b) the address and telephone number of the person that towed the vehicle.
             3905          (3) An owner that has a vehicle towed under Subsection (1) is not liable for any
             3906      damage that occurs to the vehicle after the independent towing carrier takes possession of the
             3907      vehicle.
             3908          Section 99. Section 39-6-36 is amended to read:
             3909           39-6-36. Desertion or absence without leave and other offenses -- Time limit on
             3910      trial -- Tolling of time limits.
             3911          (1) A person charged with desertion or absence without leave may be tried and
             3912      punished at any time, within four years after the preferral of charges.
             3913          (2) Except under Subsection (1), a person charged with any offense is not liable to be
             3914      tried by a military court or punished under Section [ 39-6-13 ] 39-6-14 if the offense was
             3915      committed more than two years before the receipt of sworn charges and specifications by an
             3916      officer exercising jurisdiction as a military court convening authority.
             3917          (3) Periods when the accused was outside the state's jurisdiction to apprehend him, or
             3918      when he is in the custody of civilian authorities, are excluded in computing limitations of time
             3919      under this section.
             3920          Section 100. Section 48-1d-1305 is amended to read:
             3921           48-1d-1305. Limit of one profession.
             3922          (1) A professional services partnership organized to provide a professional service
             3923      under this part may provide only:
             3924          (a) one specific type of professional service; and
             3925          (b) services ancillary to the professional service described in Subsection (1)(a).
             3926          (2) A professional services partnership organized to provide a professional service


             3927      under this part may not engage in a business other than to provide:
             3928          (a) the professional service that it was organized to provide; and
             3929          (b) services ancillary to the professional service described in Subsection (2)(a).
             3930          (3) Notwithstanding Subsections (1) and (2), a professional services partnership may:
             3931          (a) own real and personal property necessary or appropriate for providing the type of
             3932      professional service it was organized to provide; and
             3933          (b) invest the professional services partnership's money in one or more of the
             3934      following:
             3935          (i) real estate;
             3936          (ii) mortgages;
             3937          (iii) stocks;
             3938          [(vi)] (iv) bonds; or
             3939          (v) another type of investment.
             3940          Section 101. Section 53-5-707 is amended to read:
             3941           53-5-707. Concealed firearm permit -- Fees -- Disposition.
             3942          (1) (a) Each applicant for a concealed firearm permit shall pay a fee of $29.75 at the
             3943      time of filing an application, except that a nonresident applicant shall pay an additional $5 for
             3944      the additional cost of processing a nonresident application.
             3945          (b) The bureau shall waive the initial fee for an applicant who is a law enforcement
             3946      officer under Section 53-13-103 .
             3947          (c) Concealed firearm permit renewal fees for active duty servicemembers and
             3948      [spouses] the spouse of an active duty servicemember shall be waived.
             3949          (2) The renewal fee for the permit is $15.
             3950          (3) The replacement fee for the permit is $10.
             3951          (4) (a) The late fee for the renewal permit is $7.50.
             3952          (b) As used in this section, "late fee" means the fee charged by the bureau for a renewal
             3953      submitted on a permit that has been expired for more than 30 days but less than one year.
             3954          (5) The bureau shall use the fees collected under Subsections (1), (2), (3), and (4) as a


             3955      dedicated credit to cover the costs of issuing concealed firearm permits under this part.
             3956          (6) (a) The bureau may collect any fees charged by an outside agency for additional
             3957      services required by statute as a prerequisite for issuance of a permit.
             3958          (b) The bureau may modify the fee under Subsection (1)(a) by adjusting that fee so that
             3959      the total of the fee under Subsection (1)(a) and the fee under Subsection (6)(a) is the nearest
             3960      even dollar amount to that total.
             3961          (c) The bureau shall promptly forward any fees collected under Subsection (6)(a) to the
             3962      appropriate agency.
             3963          (7) The bureau shall make an annual report in writing to the Legislature's Law
             3964      Enforcement and Criminal Justice Interim Committee on the amount and use of the fees
             3965      collected under this section.
             3966          Section 102. Section 53-13-110 is amended to read:
             3967           53-13-110. Duties to investigate specified instances of abuse or neglect.
             3968          In accordance with the requirements of Section [ 62A-4a-202.5 ] 62A-4a-202.6 , law
             3969      enforcement officers shall investigate alleged instances of abuse or neglect of a child that occur
             3970      while the child is in the custody of the Division of Child and Family Services, within the
             3971      Department of Human Services.
             3972          Section 103. Section 53A-1a-521 is amended to read:
             3973           53A-1a-521. Authorization of a charter school by a board of trustees of a higher
             3974      education institution.
             3975          (1) Subject to the approval of the State Board of Education and except as provided in
             3976      Subsection (8), an individual or entity identified in Section 53A-1a-504 may enter into an
             3977      agreement with a board of trustees of a higher education institution authorizing the individual
             3978      or entity to establish and operate a charter school.
             3979          (2) (a) An individual or entity identified in Section 53A-1a-504 applying for
             3980      authorization from a board of trustees of a higher education institution to establish and operate
             3981      a charter school shall provide a copy of the application to the State Charter School Board and
             3982      the local school board of the school district in which the proposed charter school shall be


             3983      located either before or at the same time it files its application with the board of trustees.
             3984          (b) The State Charter School Board and the local school board may review the
             3985      application and may offer suggestions or recommendations to the applicant or the board of
             3986      trustees of a higher education institution prior to its acting on the application.
             3987          (c) The board of trustees of a higher education institution shall give due consideration
             3988      to suggestions or recommendations made by the State Charter School Board or the local school
             3989      board under Subsection (2)(b).
             3990          (3) (a) If a board of trustees of a higher education institution approves an application to
             3991      establish and operate a charter school, the board of trustees shall submit the application to the
             3992      State Board of Education.
             3993          (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
             3994      the application approve or deny an application approved by a board of trustees of a higher
             3995      education institution.
             3996          (c) The State Board of Education's action under Subsection (3)(b) is final action subject
             3997      to judicial review.
             3998          (4) The State Board of Education shall make a rule providing a timeline for the
             3999      opening of a charter school following the approval of a charter school application by a board of
             4000      trustees of a higher education institution.
             4001          (5) (a) After approval of a charter school application, the applicant and the board of
             4002      trustees of a higher education institution shall set forth the terms and conditions for the
             4003      operation of the charter school in a written contractual agreement.
             4004          (b) The agreement is the school's charter.
             4005          (6) (a) The school's charter may include a provision that the charter school pay an
             4006      annual fee for the board of trustees' costs in providing oversight of, and technical support to,
             4007      the charter school in accordance with Subsection (7).
             4008          (b) In the first two years that a charter school is in operation, an annual fee described in
             4009      Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
             4010      from the state in the current fiscal year.


             4011          (c) Beginning with the third year that a charter school is in operation, an annual fee
             4012      described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
             4013      school receives from the state in the current fiscal year.
             4014          (d) An annual fee described in Subsection (6)(a) shall be:
             4015          (i) paid to the board of trustees' higher education institution; and
             4016          (ii) expended as directed by the board of trustees.
             4017          (7) A board of trustees of a higher education institution shall:
             4018          (a) annually review and evaluate the performance of charter schools authorized by the
             4019      board of trustees and hold the schools accountable for their performance;
             4020          (b) monitor charter schools authorized by the board of trustees for compliance with
             4021      federal and state laws, rules, and regulations; and
             4022          (c) provide technical support to charter schools authorized by the board of trustees to
             4023      assist them in understanding and performing their charter obligations.
             4024          (8) (a) In addition to complying with the requirements of this section, a campus board
             4025      of directors of a college campus within the Utah College of Applied Technology shall obtain
             4026      the approval of the Utah College of Applied Technology Board of Trustees before entering into
             4027      an agreement to establish and operate a charter school.
             4028          (b) If a campus board of directors of a college campus with the Utah College of
             4029      Applied Technology approves an application to establish and operate a charter school, the
             4030      campus board of directors of the college campus shall submit the application to the Utah
             4031      College of Applied Technology Board of Trustees.
             4032          (c) The Utah College of Applied Technology Board of Trustees shall, by majority vote,
             4033      within 60 days [or] of receipt of the application, approve or deny the application approved by
             4034      the campus board of directors.
             4035          (d) The Utah College of Applied Technology Board of Trustees may deny an
             4036      application approved by a campus board of directors if the proposed charter school does not
             4037      accomplish a purpose of charter schools as provided in Section 53A-1a-503 .
             4038          (e) A charter school application may not be denied on the basis that the establishment


             4039      of the charter school will have any or all of the following impacts on a public school, including
             4040      another charter school:
             4041          (i) an enrollment decline;
             4042          (ii) a decrease in funding; or
             4043          (iii) a modification of programs or services.
             4044          (9) (a) Subject to the requirements of this part, a campus board of directors of a college
             4045      campus within the Utah College of Applied Technology may establish:
             4046          (i) procedures for submitting applications to establish and operate a charter school to a
             4047      campus board of directors of a college campus within the Utah College of Applied Technology;
             4048      and
             4049          (ii) criteria for a campus board of directors' approval of an application to establish and
             4050      operate a charter school.
             4051          (b) The Utah College of Applied Technology Board of Trustees may not establish
             4052      policy governing the procedures or criteria described in Subsection (9)(a).
             4053          Section 104. Section 53A-3-701 is amended to read:
             4054           53A-3-701. School and school district professional development plans.
             4055          (1) (a) Each public school and school district shall develop and implement a
             4056      systematic, comprehensive, and long-term plan for staff professional development.
             4057          (b) Each school shall use its school community council, school directors, or a
             4058      subcommittee or task force created by the school community council as provided in Section
             4059      53A-1a-108 to help develop and implement the plan.
             4060          (2) Each plan shall include the following components:
             4061          (a) an alignment of professional development activities at the school and school district
             4062      level with:
             4063          (i) the school improvement plan under Section 53A-1a-108.5 ;
             4064          (ii) the School LAND Trust Program authorized under Section 53A-16-101.5 ;
             4065          (iii) the Utah Performance Assessment System for Students under Title 53A, Chapter
             4066      1, Part 6, Achievement Tests;


             4067          (iv) Sections 53A-6-101 through 53A-6-104 of the Educator Licensing and
             4068      Professional Practices Act; and
             4069          (v) [Title 53A, Chapter 9, Teacher Career Ladders; and (vi)] Title 53A, Chapter [10,
             4070      Educator Evaluation] 8a, Public Education Human Resource Management Act;
             4071          (b) provision for the development of internal instructional leadership and support;
             4072          (c) the periodic presence of all stakeholders at the same time in the professional
             4073      development process, to include administrators, educators, support staff, parents, and students;
             4074          (d) provisions for the use of consultants to enhance and evaluators to assess the
             4075      effectiveness of the plan as implemented; and
             4076          (e) the time required for and the anticipated costs of implementing and maintaining the
             4077      plan.
             4078          (3) (a) Each local school board shall review and either approve or recommend
             4079      modifications for each school plan within its district so that each school's plan is compatible
             4080      with the district plan.
             4081          (b) The board shall:
             4082          (i) provide positive and meaningful assistance to a school, if requested by its
             4083      community council or school directors, in drafting and implementing its plan; and
             4084          (ii) monitor the progress of each school plan and hold each school accountable for
             4085      meeting the objectives of its plan.
             4086          (4) The State Board of Education, through the superintendent of public instruction,
             4087      shall work with school districts to identify the resources required to implement and maintain
             4088      each school's and school district's professional development plan required under this section.
             4089          Section 105. Section 53A-16-107 is amended to read:
             4090           53A-16-107. Capital outlay levy -- Authority to use proceeds of .0002 tax rate for
             4091      maintenance of school facilities -- Restrictions and procedure -- Limited authority to use
             4092      proceeds for general fund purposes -- Notification required when using proceeds for
             4093      general fund purposes -- Authority for small school districts to use levy proceeds for
             4094      operation and maintenance of plant services.


             4095          (1) Subject to Subsection (3) and except as provided in Subsections (2), (5), (6), and
             4096      (7), a local school board may annually impose a capital outlay levy not to exceed .0024 per
             4097      dollar of taxable value to be used for:
             4098          (a) capital outlay; or
             4099          (b) debt service.
             4100          (2) (a) A local school board with an enrollment of 2,500 students or more may utilize
             4101      the proceeds of a maximum of .0002 per dollar of taxable value of the local school board's
             4102      annual capital outlay levy for the maintenance of school facilities in the school district.
             4103          (b) A local school board that uses the option provided under Subsection (2)(a) shall:
             4104          (i) maintain the same level of expenditure for maintenance in the current year as it did
             4105      in the preceding year, plus the annual average percentage increase applied to the maintenance
             4106      and operation budget for the current year; and
             4107          (ii) identify the expenditure of capital outlay funds for maintenance by a district project
             4108      number to ensure that the funds are expended in the manner intended.
             4109          (c) The State Board of Education shall establish by rule the expenditure classification
             4110      for maintenance under this program using a standard classification system.
             4111          (3) Beginning January 1, 2009, and through the taxable year beginning January 1,
             4112      2011, in order to qualify for receipt of the state contribution toward the minimum school
             4113      program, a local school board in a county of the first class shall impose a capital outlay levy of
             4114      at least .0006 per dollar of taxable value.
             4115          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             4116      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             4117      districts within the county in accordance with Section 53A-16-114 .
             4118          (b) (i) Except as provided in Subsection (4)(b)(ii), if a school district in a county of the
             4119      first class imposes a capital outlay levy pursuant to this section which exceeds .0006 per dollar
             4120      of taxable value, the county treasurer of a county of the first class shall distribute revenues
             4121      generated by the portion of the capital outlay levy which exceeds .0006 to the school district
             4122      imposing the levy.


             4123          (ii) If a new district and a remaining district are required to impose property tax levies
             4124      pursuant to Subsection 53A-2-118.4 (2), the county treasurer shall distribute revenues of the
             4125      new district or remaining district generated by the portion of a capital outlay levy that exceeds
             4126      .0006 in accordance with Section 53A-2-118.4 .
             4127          (5) (a) Notwithstanding Subsections (1)(a) and (b) and subject to Subsections (5)(b),
             4128      (c), and (d), for fiscal years 2010-11 and 2011-12, a local school board may use the proceeds of
             4129      the local school board's capital outlay levy for general fund purposes if the proceeds are not
             4130      committed or dedicated to pay debt service or bond payments.
             4131          (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
             4132      fund purposes, the local school board shall notify the public of the local school board's use of
             4133      the capital outlay levy proceeds for general fund purposes:
             4134          (i) prior to the board's budget hearing in accordance with the notification requirements
             4135      described in Section 53A-19-102 ; and
             4136          (ii) at a budget hearing required in Section 53A-19-102 .
             4137          (c) A local school board may not use the proceeds described in Subsection (5)(a) to
             4138      fund the following accounting function classifications as provided in the Financial Accounting
             4139      for Local and State School Systems guidelines developed by the National Center for Education
             4140      Statistics:
             4141          (i) 2300 Support Services - General District Administration; or
             4142          (ii) 2500 Support Services - Central Services.
             4143          (d) A local school board may not use the proceeds from a distribution described in
             4144      Section [ 53A-16-107.1 ] 53A-16-114 for general fund purposes.
             4145          (6) (a) In addition to the uses described in Subsection (1), a local school board of a
             4146      school district with an enrollment of fewer than 2,500 students, may use the proceeds of the
             4147      local school board's capital outlay levy, in fiscal years 2011-12, 2012-13, and 2013-14, for
             4148      expenditures made within the accounting function classification 2600, Operation and
             4149      Maintenance of Plant Services, of the Financial Accounting for Local and State School
             4150      Systems guidelines developed by the National Center for Education Statistics, excluding


             4151      expenditures for mobile phone service and vehicle operation and maintenance.
             4152          (b) If a local school board of a school district with an enrollment of fewer than 2,500
             4153      students uses the proceeds of a capital outlay levy for the operation and maintenance of plant
             4154      services as described in Subsection (6)(a), the local school board shall notify the public of the
             4155      local school board's use of the capital outlay levy proceeds for operation and maintenance of
             4156      plant services:
             4157          (i) prior to the board's budget hearing in accordance with the notification requirements
             4158      described in Section 53A-19-102 ; and
             4159          (ii) at a budget hearing required in Section 53A-19-102 .
             4160          (7) Beginning January 1, 2012, a local school board may not levy a tax in accordance
             4161      with this section.
             4162          Section 106. Section 53A-16-114 is amended to read:
             4163           53A-16-114. School capital outlay in counties of the first class -- Allocation --
             4164      Report to Education Interim Committee.
             4165          (1) For purposes of this section:
             4166          (a) "Average annual enrollment growth over the prior three years" means the quotient
             4167      of:
             4168          (i) (A) enrollment in the current school year, based on October 1 enrollment counts;
             4169      minus
             4170          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             4171      divided by
             4172          (ii) three.
             4173          (b) "Capital outlay increment money" means the amount of revenue equal to the
             4174      difference between:
             4175          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             4176      within a receiving school district during a fiscal year; and
             4177          (ii) the amount of revenue the receiving school district received during the same fiscal
             4178      year from the distribution described in Subsection (2).


             4179          (c) "Contributing school district" means a school district in a county of the first class
             4180      that in a fiscal year receives less revenue from the distribution described in Subsection (2) than
             4181      it would have received during the same fiscal year from a levy imposed within the school
             4182      district of .0006 per dollar of taxable value.
             4183          (d) "Receiving school district" means a school district in a county of the first class that
             4184      in a fiscal year receives more revenue from the distribution described in Subsection (2) than it
             4185      would have received during the same fiscal year from a levy imposed within the school district
             4186      of .0006 per dollar of taxable value.
             4187          (2) The county treasurer of a county of the first class shall distribute revenues
             4188      generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
             4189      or the capital local levy required in Section 53A-16-113 to school districts located within the
             4190      county of the first class as follows:
             4191          (a) 25% of the revenues shall be distributed in proportion to a school district's
             4192      percentage of the total enrollment growth in all of the school districts within the county that
             4193      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             4194      over the prior three years in all of the school districts within the county that have an increase in
             4195      enrollment over the prior three years, as of the October 1 enrollment counts; and
             4196          (b) 75% of the revenues shall be distributed in proportion to a school district's
             4197      percentage of the total current year enrollment in all of the school districts within the county, as
             4198      of the October 1 enrollment counts.
             4199          (3) If a new school district is created or school district boundaries are adjusted, the
             4200      enrollment and average annual enrollment growth for each affected school district shall be
             4201      calculated on the basis of enrollment in school district schools located within that school
             4202      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             4203          (4) On or before December 31 of each year, the State Board of Education shall provide
             4204      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             4205      to distribute revenues as required by this section.
             4206          (5) On or before March 31 of each year, a county treasurer in a county of the first class


             4207      shall distribute the revenue generated within the county of the first class during the prior
             4208      calendar year from the capital outlay levy described in Section 53A-16-107 or the capital local
             4209      levy described in Section [ 53A-17a-113 ] 53A-16-113 .
             4210          (6) On or before the November meeting of the Education Interim Committee of each
             4211      year, a receiving school district shall report to the committee:
             4212          (a) how the receiving school district spent the district's capital outlay increment money
             4213      during the prior fiscal year; and
             4214          (b) the receiving school district's plan to increase student capacity of existing school
             4215      buildings within the district.
             4216          (7) The Education Interim Committee shall consider the reports of receiving school
             4217      districts described in Subsection (6) as part of a review to reauthorize this section and
             4218      provisions related to this section, if the committee is directed to conduct a review pursuant to
             4219      Title 63I, Chapter 1, Legislative Oversight and Sunset Act.
             4220          Section 107. Section 53A-17a-133 is amended to read:
             4221           53A-17a-133. State-supported voted local levy authorized -- Election
             4222      requirements -- State guarantee -- Reconsideration of the program.
             4223          (1) As used in this section, "voted and board local levy funding balance" means the
             4224      difference between:
             4225          (a) the amount appropriated for the voted and board local levy program in a fiscal year;
             4226      and
             4227          (b) the amount necessary to provide the state guarantee per weighted pupil unit as
             4228      determined under this section and Section 53A-17a-164 in the same fiscal year.
             4229          (2) An election to consider adoption or modification of a voted local levy is required if
             4230      initiative petitions signed by 10% of the number of electors who voted at the last preceding
             4231      general election are presented to the local school board or by action of the board.
             4232          (3) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
             4233      an election in the manner set forth in Subsections (9) and (10) must vote in favor of a special
             4234      tax.


             4235          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             4236          (b) Except as provided in Subsection (3)(c), in order to receive state support the first
             4237      year, a district must receive voter approval no later than December 1 of the year prior to
             4238      implementation.
             4239          (c) Beginning on or after January 1, 2012, a school district may receive state support in
             4240      accordance with Subsection (4) without complying with the requirements of Subsection (3)(b)
             4241      if the local school board imposed a tax in accordance with this section during the taxable year
             4242      beginning on January 1, 2011 and ending on December 31, 2011.
             4243          (4) (a) In addition to the revenue a school district collects from the imposition of a levy
             4244      pursuant to this section, the state shall contribute an amount sufficient to guarantee $27.36 per
             4245      weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.
             4246          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             4247      of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
             4248      authorized in Section 53A-17a-164 , so that the guarantee shall apply up to a total of .002 per
             4249      dollar of taxable value if a school district levies a tax rate under both programs.
             4250          (c) (i) Beginning July 1, 2014, the $27.36 guarantee under Subsections (4)(a) and (b)
             4251      shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
             4252      program by making the value of the guarantee equal to .00963 times the value of the prior
             4253      year's weighted pupil unit for the grades 1 through 12 program.
             4254          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             4255      pupil unit for the grades 1 through 12 program for each succeeding year subject to the
             4256      Legislature appropriating funds for an increase in the guarantee.
             4257          (d) (i) The amount of state guarantee money to which a school district would otherwise
             4258      be entitled to receive under this Subsection (4) may not be reduced for the sole reason that the
             4259      district's levy is reduced as a consequence of changes in the certified tax rate under Section
             4260      59-2-924 pursuant to changes in property valuation.
             4261          (ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
             4262      the certified tax rate.


             4263          (e) The guarantee provided under this section does not apply to the portion of a voted
             4264      local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
             4265      year, unless an increase in the voted local levy rate was authorized in an election conducted on
             4266      or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
             4267          (f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
             4268      State Board of Education shall:
             4269          (A) use the voted and board local levy funding balance to increase the value of the state
             4270      guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
             4271          (B) distribute the state contribution to the voted and board local levy programs to
             4272      school districts based on the increased value of the state guarantee per weighted pupil unit
             4273      described in Subsection (4)(f)(i)(A).
             4274          (ii) The State Board of Education shall report action taken under this Subsection (4)(f)
             4275      to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
             4276      Budget.
             4277          (5) (a) An election to modify an existing voted local levy is not a reconsideration of the
             4278      existing authority unless the proposition submitted to the electors expressly so states.
             4279          (b) A majority vote opposing a modification does not deprive the district of authority to
             4280      continue the levy.
             4281          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
             4282      school board levies, the board must allow the electors, in an election, to consider modifying or
             4283      discontinuing the imposition of the levy prior to a subsequent increase in other levies that
             4284      would increase the total local school board levy.
             4285          (d) Nothing contained in this section terminates, without an election, the authority of a
             4286      school district to continue imposing an existing voted local levy previously authorized by the
             4287      voters as a voted leeway program.
             4288          (6) Notwithstanding Section 59-2-919 , a school district may budget an increased
             4289      amount of ad valorem property tax revenue derived from a voted local levy imposed under this
             4290      section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without


             4291      having to comply with the notice requirements of Section 59-2-919 , if:
             4292          (a) the voted local levy is approved:
             4293          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
             4294          (ii) within the four-year period immediately preceding the year in which the school
             4295      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             4296      the voted local levy; and
             4297          (b) for a voted local levy approved or modified in accordance with this section on or
             4298      after January 1, 2009, the school district complies with the requirements of Subsection (8).
             4299          (7) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             4300      section that exceeds the certified tax rate without having to comply with the notice
             4301      requirements of Section 59-2-919 if:
             4302          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             4303      increased amount of ad valorem property tax revenue derived from a voted local levy imposed
             4304      under this section;
             4305          (b) the voted local levy was approved:
             4306          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
             4307          (ii) within the four-year period immediately preceding the year in which the school
             4308      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             4309      the voted local levy; and
             4310          (c) for a voted local levy approved or modified in accordance with this section on or
             4311      after January 1, 2009, the school district complies with requirements of Subsection (8).
             4312          (8) For purposes of Subsection (6)(b) or (7)(c), the proposition submitted to the
             4313      electors regarding the adoption or modification of a voted local levy shall contain the following
             4314      statement:
             4315          "A vote in favor of this tax means that (name of the school district) may increase
             4316      revenue from this property tax without advertising the increase for the next five years."
             4317          (9) (a) Before imposing a property tax levy pursuant to this section, a school district
             4318      shall submit an opinion question to the school district's registered voters voting on the


             4319      imposition of the tax rate so that each registered voter has the opportunity to express the
             4320      registered voter's opinion on whether the tax rate should be imposed.
             4321          (b) The election required by this Subsection (9) shall be held:
             4322          (i) at a regular general election conducted in accordance with the procedures and
             4323      requirements of Title 20A, Election Code, governing regular elections;
             4324          (ii) at a municipal general election conducted in accordance with the procedures and
             4325      requirements of Section 20A-1-202 ; or
             4326          (iii) at a local special election conducted in accordance with the procedures and
             4327      requirements of Section 20A-1-203 .
             4328          (c) Notwithstanding the requirements of Subsections (9)(a) and (b), beginning on or
             4329      after January 1, 2012, a school district may levy a tax rate in accordance with this section
             4330      without complying with the requirements of Subsections (9)(a) and (b) if the school district
             4331      imposed a tax in accordance with this section at any time during the taxable year beginning on
             4332      January 1, 2011, and ending on December 31, 2011.
             4333          (10) If a school district determines that a majority of the school district's registered
             4334      voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
             4335      rate in accordance with Subsection (9), the school district may impose the tax rate.
             4336          Section 108. Section 53A-25a-102 is amended to read:
             4337           53A-25a-102. Definitions.
             4338          As used in this chapter:
             4339          (1) "Blind student" means an individual between ages three through 21 who is eligible
             4340      for special education services and who:
             4341          (a) has a visual acuity of 20/200 or less in the better eye with correcting lenses or has a
             4342      limited field of vision such that the widest diameter subtends an angular distance no greater
             4343      than 20 degrees;
             4344          (b) has a medically indicated expectation of visual deterioration; or
             4345          (c) has functional blindness.
             4346          (2) "Braille" means the system of reading and writing through touch, commonly known


             4347      as English Braille.
             4348          (3) "Functional blindness" means a visual impairment that renders a student unable to
             4349      read or write print at a level commensurate with the student's cognitive abilities.
             4350          (4) "Individualized education program" or "IEP" means a written statement developed
             4351      for a student eligible for special education services pursuant to [Section 602(a)(20) of part B
             4352      of] the Individuals with Disabilities Education Act, 20 U.S.C. Section [1401(a)] 1414(d).
             4353          Section 109. Section 54-3-31 is amended to read:
             4354           54-3-31. Electric utility service within a provider municipality -- Electrical
             4355      corporation authorized as continuing provider for service provided on or before June 15,
             4356      2013 -- Notice of service and agreement -- Transfer of customer.
             4357          (1) This section applies to an electrical corporation that:
             4358          (a) provides electric service to a customer on or before June 15, 2013, within the
             4359      municipal boundary of a municipality that provides electric service; and
             4360          (b) intends to continue providing service to that customer.
             4361          (2) Notwithstanding Section 54-3-30 , if an electrical corporation provides electric
             4362      service to a customer within the municipal boundary of a municipality on or before June 15,
             4363      2013, and the municipality provides electric service to another customer within its municipal
             4364      boundary, the electrical corporation may continue to provide electric service to the customer
             4365      within the municipality's boundary if:
             4366          (a) the electrical corporation provides, on or before December 15, 2013, the
             4367      municipality with an accurate and complete verified written notice, in accordance with
             4368      Subsection (3), identifying each customer within the municipality served by the electrical
             4369      corporation on or before June 15, 2013;
             4370          (b) the electrical corporation enters into a written agreement with the municipality no
             4371      later than June 15, 2014; and
             4372          (c) the commission approves the agreement in accordance with Section 54-4-40 .
             4373          (3) The written notice provided in accordance with Subsection (2)(a) shall include for
             4374      each customer:


             4375          (a) the customer's meter number;
             4376          (b) the location of the customer's meter by street address, global positioning system
             4377      coordinates, metes and bounds description, or other similar method of meter location;
             4378          (c) the customer's class of service; and
             4379          (d) a representation that the customer was receiving service from the electrical
             4380      corporation on or before June 15, 2013.
             4381          (4) The agreement entered into in accordance with Subsection (2) shall require the
             4382      following:
             4383          (a) The electrical corporation is the exclusive electric service provider to a customer
             4384      identified in the notice described in Subsection (2)(a) unless the municipality and electrical
             4385      corporation subsequently agree, in writing, that the municipality may provide electric service to
             4386      the identified customer.
             4387          (b) If a customer who is located within the municipal boundary and who is not
             4388      identified in Subsection (2)(a) requests service after June 15, 2013, from the electrical
             4389      corporation, the electrical corporation may not provide that customer electric service unless the
             4390      electrical corporation subsequently submits a request to and enters into a written agreement
             4391      with the municipality in accordance with Section [ 54-4-30 ] 54-3-30 .
             4392          (5) (a) Unless otherwise agreed in writing by the electrical corporation and the
             4393      municipality, the electrical corporation may terminate an agreement entered into in accordance
             4394      with Subsection (2)(b) by giving written notice of termination to the municipality:
             4395          (i) no earlier than two years before the day of termination; or
             4396          (ii) within a period of time shorter than two years if otherwise agreed to with the
             4397      municipality.
             4398          (b) Upon termination of an agreement in accordance with Subsection (5)(a):
             4399          (i) (A) the electrical corporation shall transfer an electric service customer located
             4400      within the municipality to the municipality; and
             4401          (B) the municipality shall provide electric service to the customer; and
             4402          (ii) the electrical corporation shall transfer a facility in accordance with and for the


             4403      value as provided in Section 10-2-421 .
             4404          (6) This section may not be construed to modify or terminate any written franchise
             4405      agreement or other agreement that expressly provides for electric service by an electrical
             4406      corporation to a customer within a municipality that was entered into between an electrical
             4407      corporation and a municipality on or before June 15, 2013.
             4408          Section 110. Section 57-8-7.5 (Effective 07/01/14) is amended to read:
             4409           57-8-7.5 (Effective 07/01/14). Reserve analysis -- Reserve fund.
             4410          (1) As used in this section:
             4411          (a) "Reserve analysis" means an analysis to determine:
             4412          (i) the need for a reserve fund to accumulate money to cover the cost of repairing,
             4413      replacing, or restoring common areas and facilities that have a useful life of three years or more
             4414      and a remaining useful life of less than 30 years, if the cost cannot reasonably be funded from
             4415      the general budget or other funds of the association of unit owners; and
             4416          (ii) the appropriate amount of any reserve fund.
             4417          (b) "Reserve fund line item" means the line item in an association of unit owners'
             4418      annual budget that identifies the amount to be placed into a reserve fund.
             4419          (2) Except as otherwise provided in the declaration, a management committee shall:
             4420          (a) cause a reserve analysis to be conducted no less frequently than every six years; and
             4421          (b) review and, if necessary, update a previously conducted reserve analysis no less
             4422      frequently than every three years.
             4423          (3) The management committee may conduct a reserve analysis itself or may engage a
             4424      reliable person or organization, as determined by the management committee, to conduct the
             4425      reserve analysis.
             4426          (4) A reserve fund analysis shall include:
             4427          (a) a list of the components identified in the reserve analysis that will reasonably
             4428      require reserve funds;
             4429          (b) a statement of the probable remaining useful life, as of the date of the reserve
             4430      analysis, of each component identified in the reserve analysis;


             4431          (c) an estimate of the cost to repair, replace, or restore each component identified in the
             4432      reserve analysis;
             4433          (d) an estimate of the total annual contribution to a reserve fund necessary to meet the
             4434      cost to repair, replace, or restore each component identified in the reserve analysis during the
             4435      component's useful life and at the end of the component's useful life; and
             4436          (e) a reserve funding plan that recommends how the association of unit owners may
             4437      fund the annual contribution described in Subsection (4)(d).
             4438          (5) An association of unit owners shall:
             4439          (a) annually provide unit owners a summary of the most recent reserve analysis or
             4440      update; and
             4441          (b) provide a copy of the complete reserve analysis or update to a unit owner who
             4442      requests a copy.
             4443          (6) In formulating its budget each year, an association of unit owners shall include a
             4444      reserve fund line item in:
             4445          (a) an amount the management committee determines, based on the reserve analysis, to
             4446      be prudent; or
             4447          (b) an amount required by the declaration, if the declaration requires an amount higher
             4448      than the amount determined under Subsection (6)(a).
             4449          (7) (a) Within 45 days after the day on which an association of unit owners adopts its
             4450      annual budget, the unit owners may veto the reserve fund line item by a 51% vote of the
             4451      allocated voting interests in the association of unit owners at a special meeting called by the
             4452      unit owners for the purpose of voting whether to veto a reserve fund line item.
             4453          (b) If the unit owners veto a reserve fund line item under Subsection (7)(a) and a
             4454      reserve fund line item exists in a previously approved annual budget of the association of unit
             4455      owners that was not vetoed, the association of unit owners shall fund the reserve account in
             4456      accordance with that prior reserve fund line item.
             4457          (8) (a) Subject to Subsection (8)(b), if an association of unit owners does not comply
             4458      with the requirements of Subsection (5), (6), or (7) and fails to remedy the noncompliance


             4459      within the time specified in Subsection (8)(c), a unit owner may file an action in state court for:
             4460          (i) injunctive relief requiring the association of unit owners to comply with the
             4461      requirements of Subsection (5), (6), or (7);
             4462          (ii) $500 or actual damages, whichever is greater;
             4463          (iii) any other remedy provided by law; and
             4464          (iv) reasonable costs and attorney fees.
             4465          (b) No fewer than 90 days before the day on which a unit owner files a complaint under
             4466      Subsection (8)(a), the unit owner shall deliver written notice described in Subsection (8)(c) to
             4467      the association of unit owners.
             4468          (c) A notice under Subsection (8)(b) shall state:
             4469          (i) the requirement in Subsection (5), (6), or (7) with which the association of unit
             4470      owners has failed to comply;
             4471          (ii) a demand that the association of unit owners come into compliance with the
             4472      requirements; and
             4473          (iii) a date, no fewer than 90 days after the day on which the unit owner delivers the
             4474      notice, by which the association of unit owners shall remedy its noncompliance.
             4475          (d) In a case filed under Subsection (8)(a), a court may order an association of unit
             4476      owners to produce the summary of the reserve analysis or the complete reserve analysis on an
             4477      expedited basis and at the association of unit owners' expense.
             4478          (9) (a) A management committee may not use money in a reserve fund:
             4479          (i) for daily maintenance expenses, unless a majority of the members of the association
             4480      of unit owners vote to approve the use of reserve fund money for that purpose; or
             4481          (ii) for any purpose other than the purpose for which the reserve fund was established.
             4482          (b) A management committee shall maintain a reserve fund separate from other funds
             4483      of the association of unit owners.
             4484          (c) This Subsection (9) may not be construed to limit a management committee from
             4485      prudently investing money in a reserve fund, subject to any investment constraints imposed by
             4486      the declaration.


             4487          (10) Subsections (2) through (9) do not apply to an association of unit owners during
             4488      the period of declarant control described in Subsection 57-8-16.5 (1).
             4489          (11) This section applies to each association of unit owners, regardless of when the
             4490      association of unit owners was created.
             4491          Section 111. Section 57-8-43 is amended to read:
             4492           57-8-43. Insurance.
             4493          (1) As used in this section, "reasonably available" means available using typical
             4494      insurance carriers and markets, irrespective of the ability of the association of unit owners to
             4495      pay.
             4496          (2) (a) This section applies to an insurance policy or combination of insurance policies:
             4497          (i) issued or renewed on or after July 1, 2011; and
             4498          (ii) issued to or renewed by:
             4499          (A) a unit owner; or
             4500          (B) an association of unit owners, regardless of when the association of unit owners is
             4501      formed.
             4502          (b) Unless otherwise provided in the declaration, this section does not apply to a
             4503      commercial condominium project insured under a policy or combination of policies issued or
             4504      renewed on or after July 1, [2013] 2014.
             4505          (3) Beginning not later than the day on which the first unit is conveyed to a person
             4506      other than a declarant, an association of unit owners shall maintain, to the extent reasonably
             4507      available:
             4508          (a) subject to Subsection (9), blanket property insurance or guaranteed replacement
             4509      cost insurance on the physical structures in the condominium project, including common areas
             4510      and facilities, limited common areas and facilities, and units, insuring against all risks of direct
             4511      physical loss commonly insured against, including fire and extended coverage perils; and
             4512          (b) subject to Subsection (10), liability insurance covering all occurrences commonly
             4513      insured against for death, bodily injury, and property damage arising out of or in connection
             4514      with the use, ownership, or maintenance of the common areas and facilities.


             4515          (4) If an association of unit owners becomes aware that property insurance under
             4516      Subsection (3)(a) or liability insurance under Subsection (3)(b) is not reasonably available, the
             4517      association of unit owners shall, within seven calendar days after becoming aware, give all unit
             4518      owners notice, as provided in Section 57-8-42 , that the insurance is not reasonably available.
             4519          (5) (a) The declaration or bylaws may require the association of unit owners to carry
             4520      other types of insurance in addition to those described in Subsection (3).
             4521          (b) In addition to any type of insurance coverage or limit of coverage provided in the
             4522      declaration or bylaws and subject to the requirements of this section, an association of unit
             4523      owners may, as the management committee considers appropriate, obtain:
             4524          (i) an additional type of insurance than otherwise required; or
             4525          (ii) a policy with greater coverage than otherwise required.
             4526          (6) Unless a unit owner is acting within the scope of the unit owner's authority on
             4527      behalf of an association of unit owners, a unit owner's act or omission may not:
             4528          (a) void a property insurance policy under Subsection (3)(a) or a liability insurance
             4529      policy under Subsection (3)(b); or
             4530          (b) be a condition to recovery under a policy.
             4531          (7) An insurer under a property insurance policy or liability insurance policy obtained
             4532      by an association of unit owners under this section waives the insurer's right to subrogation
             4533      under the policy against:
             4534          (a) any person residing with the unit owner, if the unit owner resides in the unit; and
             4535          (b) the unit owner.
             4536          (8) (a) An insurance policy issued to an association of unit owners may not be
             4537      inconsistent with any provision of this section.
             4538          (b) A provision of a declaration, bylaw, rule, or other document governing the
             4539      association of unit owners that is contrary to a provision of this section has no effect.
             4540          (c) Neither the governing documents nor a property insurance or liability insurance
             4541      policy issued to an association of unit owners may prevent a unit owner from obtaining
             4542      insurance for the unit owner's own benefit.


             4543          (9) (a) This Subsection (9) applies to property insurance required under Subsection
             4544      (3)(a).
             4545          (b) The total amount of coverage provided by blanket property insurance or guaranteed
             4546      replacement cost insurance may not be less than 100% of the full replacement cost of the
             4547      insured property at the time the insurance is purchased and at each renewal date, excluding:
             4548          (i) items normally excluded from property insurance policies; and
             4549          (ii) unless otherwise provided in the declaration, any commercial condominium unit in
             4550      a mixed-use condominium project, including any fixture, improvement, or betterment in a
             4551      commercial condominium unit in a mixed-use condominium project.
             4552          (c) Property insurance shall include coverage for any fixture, improvement, or
             4553      betterment installed at any time to a unit or to a limited common area associated with a unit,
             4554      whether installed in the original construction or in any remodel or later alteration, including a
             4555      floor covering, cabinet, light fixture, electrical fixture, heating or plumbing fixture, paint, wall
             4556      covering, window, and any other item permanently part of or affixed to a unit or to a limited
             4557      common element associated with a unit.
             4558          (d) Notwithstanding anything in this section and unless otherwise provided in the
             4559      declaration, an association of unit owners is not required to obtain property insurance for a loss
             4560      to a unit that is not physically attached to:
             4561          (i) another unit; or
             4562          (ii) a structure that is part of a common area or facility.
             4563          (e) Each unit owner is an insured person under a property insurance policy.
             4564          (f) If a loss occurs that is covered by a property insurance policy in the name of an
             4565      association of unit owners and another property insurance policy in the name of a unit owner:
             4566          (i) the association's policy provides primary insurance coverage; and
             4567          (ii) notwithstanding Subsection (9)(f)(i) and subject to Subsection (9)(g):
             4568          (A) the unit owner is responsible for the deductible of the association of unit owners;
             4569      and
             4570          (B) building property coverage, often referred to as coverage A, of the unit owner's


             4571      policy applies to that portion of the loss attributable to the policy deductible of the association
             4572      of unit owners.
             4573          (g) (i) As used in this Subsection (9)(g) and Subsection (9)(j):
             4574          (A) "Covered loss" means a loss, resulting from a single event or occurrence, that is
             4575      covered by a property insurance policy of an association of unit owners.
             4576          (B) "Unit damage" means damage to a unit or to a limited common area or facility
             4577      appurtenant to that unit, or both.
             4578          (C) "Unit damage percentage" means the percentage of total damage resulting in a
             4579      covered loss that is attributable to unit damage.
             4580          (ii) A unit owner who owns a unit that has suffered unit damage as part of a covered
             4581      loss is responsible for an amount calculated by applying the unit damage percentage for that
             4582      unit to the amount of the deductible under the property insurance policy of the association of
             4583      unit owners.
             4584          (iii) If a unit owner does not pay the amount required under Subsection (9)(g)(ii) within
             4585      30 days after substantial completion of the repairs to the unit or limited common areas and
             4586      facilities appurtenant to that unit, an association of unit owners may levy an assessment against
             4587      the unit owner for that amount.
             4588          (h) An association of unit owners shall set aside an amount equal to the amount of the
             4589      association's property insurance policy deductible or, if the policy deductible exceeds $10,000,
             4590      an amount not less than $10,000.
             4591          (i) (i) An association of unit owners shall provide notice in accordance with Section
             4592      57-8-42 to each unit owner of the unit owner's obligation under Subsection (9)(g) for the
             4593      association's policy deductible and of any change in the amount of the deductible.
             4594          (ii) (A) An association of unit owners that fails to provide notice as provided in
             4595      Subsection (9)(i)(i) is responsible for the portion of the deductible that the association of unit
             4596      owners could have assessed to a unit owner under Subsection (9)(g), but only to the extent that
             4597      the unit owner does not have insurance coverage that would otherwise apply under this
             4598      Subsection (9).


             4599          (B) Notwithstanding Subsection (9)(i)(ii), an association of unit owners that provides
             4600      notice of the association's policy deductible, as required under Subsection (9)(i)(i), but fails to
             4601      provide notice of a later increase in the amount of the deductible is responsible only for the
             4602      amount of the increase for which notice was not provided.
             4603          (iii) The failure of an association of unit owners to provide notice as provided in
             4604      Subsection (9)(i)(i) may not be construed to invalidate any other provision of this section.
             4605          (j) If, in the exercise of the business judgment rule, the management committee
             4606      determines that a covered loss is likely not to exceed the property insurance policy deductible
             4607      of the association of unit owners and until it becomes apparent the covered loss exceeds the
             4608      deductible of the property insurance of the association of unit owners and a claim is submitted
             4609      to the property insurance insurer of the association of unit owners:
             4610          (i) a unit owner's policy is considered the policy for primary coverage for a loss
             4611      occurring to the unit owner's unit or to a limited common area or facility appurtenant to the
             4612      unit;
             4613          (ii) the association of unit owners is responsible for any covered loss to any common
             4614      areas and facilities;
             4615          (iii) a unit owner who does not have a policy to cover the damage to that unit owner's
             4616      unit and appurtenant limited common areas and facilities is responsible for that damage, and
             4617      the association of unit owners may, as provided in Subsection (9)(g)(iii), recover any payments
             4618      the association of unit owners makes to remediate that unit and appurtenant limited common
             4619      areas and facilities; and
             4620          (iv) the association of unit owners need not tender the claim to the association's
             4621      insurer.
             4622          (k) (i) An insurer under a property insurance policy issued to an association of unit
             4623      owners shall adjust with the association of unit owners a loss covered under the association's
             4624      policy.
             4625          (ii) Notwithstanding Subsection (9)(k)(i), the insurance proceeds for a loss under a
             4626      property insurance policy of an association of unit owners:


             4627          (A) are payable to an insurance trustee that the association of unit owners designates
             4628      or, if no trustee is designated, to the association of unit owners; and
             4629          (B) may not be payable to a holder of a security interest.
             4630          (iii) An insurance trustee or an association of unit owners shall hold any insurance
             4631      proceeds in trust for the association of unit owners, unit owners, and lien holders.
             4632          (iv) (A) If damaged property is to be repaired or restored, insurance proceeds shall be
             4633      disbursed first for the repair or restoration of the damaged property.
             4634          (B) After the disbursements described in Subsection (9)(k)(iv)(A) are made and the
             4635      damaged property has been completely repaired or restored or the project terminated, any
             4636      surplus proceeds are payable to the association of unit owners, unit owners, and lien holders, as
             4637      provided in the declaration.
             4638          (l) An insurer that issues a property insurance policy under this section, or the insurer's
             4639      authorized agent, shall issue a certificate or memorandum of insurance to:
             4640          (i) the association of unit owners;
             4641          (ii) a unit owner, upon the unit owner's written request; and
             4642          (iii) a holder of a security interest, upon the holder's written request.
             4643          (m) A cancellation or nonrenewal of a property insurance policy under this section is
             4644      subject to the procedures stated in Section 31A-21-303 .
             4645          (n) A management committee that acquires from an insurer the property insurance
             4646      required in this section is not liable to unit owners if the insurance proceeds are not sufficient
             4647      to cover 100% of the full replacement cost of the insured property at the time of the loss.
             4648          (o) (i) Unless required in the declaration, property insurance coverage is not required
             4649      for fixtures, improvements, or betterments in a commercial unit or limited common areas and
             4650      facilities appurtenant to a commercial unit in a mixed-use condominium project.
             4651          (ii) Notwithstanding any other provision of this section, an association of unit owners
             4652      may obtain property insurance for fixtures, improvements, or betterments in a commercial unit
             4653      in a mixed-use condominium project if allowed or required in the declaration.
             4654          (p) (i) This Subsection (9) does not prevent a person suffering a loss as a result of


             4655      damage to property from asserting a claim, either directly or through subrogation, for the loss
             4656      against a person at fault for the loss.
             4657          (ii) Subsection (9)(p)(i) does not affect Subsection (7).
             4658          (10) (a) This Subsection (10) applies to a liability insurance policy required under
             4659      Subsection (3)(b).
             4660          (b) A liability insurance policy shall be in an amount determined by the management
             4661      committee but not less than an amount specified in the declaration or bylaws.
             4662          (c) Each unit owner is an insured person under a liability insurance policy that an
             4663      association of unit owners obtains, but only for liability arising from:
             4664          (i) the unit owner's ownership interest in the common areas and facilities;
             4665          (ii) maintenance, repair, or replacement of common areas and facilities; and
             4666          (iii) the unit owner's membership in the association of unit owners.
             4667          Section 112. Section 57-8a-211 (Superseded 07/01/14) is amended to read:
             4668           57-8a-211 (Superseded 07/01/14). Reserve analysis -- Reserve fund.
             4669          (1) As used in this section:
             4670          (a) "Reserve analysis" means an analysis to determine:
             4671          (i) the need for a reserve fund to accumulate money to cover the cost of repairing,
             4672      replacing, or restoring common areas that have a useful life of no fewer than three years but
             4673      less than 30 years, when the cost cannot reasonably be funded from the association's general
             4674      budget or from other association funds; and
             4675          (ii) the appropriate amount of any reserve fund.
             4676          (b) "Reserve fund line item" means a line item in the annual budget of an association
             4677      that identifies the amount to be placed into a reserve fund.
             4678          (2) Except as otherwise provided in the governing documents, a board shall:
             4679          (a) (i) subject to Subsection (2)(a)(ii), cause a reserve analysis to be conducted no less
             4680      frequently than every six years; and
             4681          (ii) if no reserve analysis has been conducted since March 1, 2008, cause a reserve
             4682      analysis to be conducted before July 1, 2012; and


             4683          (b) review and, if necessary, update a previously conducted reserve analysis no less
             4684      frequently than every three years.
             4685          (3) The board may conduct a reserve analysis itself or may engage a reliable person or
             4686      organization, as determined by the board, to conduct the reserve analysis.
             4687          (4) A reserve analysis shall include:
             4688          (a) a list of the components identified in the reserve analysis that will reasonably
             4689      require reserve funds;
             4690          (b) a statement of the probable remaining useful life, as of the date of the reserve
             4691      analysis, of each component identified in the reserve analysis;
             4692          (c) an estimate of the cost to repair, replace, or restore each component identified in the
             4693      reserve analysis;
             4694          (d) an estimate of the total annual contribution to a reserve fund necessary to meet the
             4695      cost to repair, replace, or restore each component identified in the reserve analysis during the
             4696      component's useful life and at the end of the component's useful life; and
             4697          (e) a reserve funding plan that recommends how the association may fund the annual
             4698      contribution described in Subsection (4)(d).
             4699          (5) Each year, an association shall provide:
             4700          (a) a summary of the most recent reserve analysis, including any updates, to each lot
             4701      owner; and
             4702          (b) a complete copy of the most recent reserve analysis, including any updates, to a lot
             4703      owner upon request.
             4704          (6) (a) An association shall include a reserve fund line item in its annual budget.
             4705          (b) The amount of the reserve fund line item shall be determined by:
             4706          (i) the board, based on the reserve analysis and the amount that the board determines is
             4707      prudent under the circumstances; or
             4708          (ii) the governing documents, if the governing documents require an amount greater
             4709      than the amount determined under Subsection (6)(b)(i).
             4710          (c) Within 45 days after the day on which an association adopts its annual budget, the


             4711      lot owners may veto the reserve fund line item by a 51% vote of the allocated voting interests
             4712      in the association at a special meeting called by the lot owners for the purpose of voting
             4713      whether to veto a reserve fund line item.
             4714          (d) If the lot owners veto a reserve fund line item under Subsection (6)(c) and a reserve
             4715      fund line item exists in a previously approved annual budget of the association that was not
             4716      vetoed, the association shall fund the reserve account in accordance with that prior reserve fund
             4717      line item.
             4718          (7) (a) Subject to Subsection (7)(b), if an association does not comply with the
             4719      requirements described in Subsection (5) or (6) and fails to remedy the noncompliance within
             4720      the time specified in Subsection (7)(c), a lot owner may file an action in state court for:
             4721          (i) injunctive relief requiring the association to comply with the requirements of
             4722      Subsection (5) or (6);
             4723          (ii) $500 or the lot owner's actual damages, whichever is greater;
             4724          (iii) any other remedy provided by law; and
             4725          (iv) reasonable costs and attorney fees.
             4726          (b) No fewer than 90 days before the day on which a lot owner files a complaint under
             4727      Subsection (7)(a), the lot owner shall deliver written notice described in Subsection (7)(c) to
             4728      the association.
             4729          (c) A notice described in Subsection (7)(b) shall state:
             4730          (i) the requirement in Subsection (5) or (6) with which the association has failed to
             4731      comply;
             4732          (ii) a demand that the association [of unit owners] come into compliance with the
             4733      requirements; and
             4734          (iii) a date, no fewer than 90 days after the day on which a lot owner delivers the
             4735      notice, by which the association shall remedy its noncompliance.
             4736          (d) In a case filed under Subsection (7)(a), a court may summarily order an association
             4737      to produce the summary of the reserve analysis or the complete reserve analysis on an
             4738      expedited basis and at the association's expense.


             4739          (8) (a) A board may not use money in a reserve fund:
             4740          (i) for daily maintenance expenses, unless a majority of association members vote to
             4741      approve the use of reserve fund money for that purpose; or
             4742          (ii) for any purpose other than the purpose for which the reserve fund was established.
             4743          (b) A board shall maintain a reserve fund separate from other association funds.
             4744          (c) This Subsection (4) may not be construed to limit a board from prudently investing
             4745      money in a reserve fund, subject to any investment constraints imposed by the governing
             4746      documents.
             4747          (9) Subsections (2), (3), (4), and (6) do not apply to an association during the period of
             4748      administrative control.
             4749          (10) This section applies to each association, regardless of when the association was
             4750      created.
             4751          Section 113. Section 58-40-302 is amended to read:
             4752           58-40-302. Qualifications for licensure.
             4753          (1) An applicant for licensure under this chapter shall:
             4754          (a) submit an application in a form prescribed by the division;
             4755          (b) pay a fee determined by the department under [Subsection 63-38-3 (2)] Section
             4756      63J-1-504 ; and
             4757          (c) be of good moral character.
             4758          (2) In addition to the requirements of Subsection (1), an applicant for licensure as a
             4759      master therapeutic recreation specialist under this chapter shall as defined by division rule:
             4760          (a) complete an approved graduate degree;
             4761          (b) complete 4,000 qualifying hours of paid experience as:
             4762          (i) a licensed therapeutic recreation specialist if completed in the state; or
             4763          (ii) a certified therapeutic recreation specialist certified by the National Council for
             4764      Therapeutic Recreation Certification if completed outside of the state; and
             4765          (c) pass an approved examination.
             4766          (3) In addition to the requirements of Subsection (1), an applicant for licensure as a


             4767      therapeutic recreation specialist under this chapter shall, as defined by division rule:
             4768          (a) complete an approved:
             4769          (i) bachelor's degree in therapeutic recreation or recreational therapy;
             4770          (ii) bachelor's degree with an approved emphasis, option, or concentration in
             4771      therapeutic recreation or recreational therapy; or
             4772          (iii) graduate degree;
             4773          (b) complete an approved practicum; and
             4774          (c) pass an approved examination.
             4775          (4) In addition to the requirements of Subsection (1), an applicant for licensure as a
             4776      therapeutic recreation technician under this chapter shall, as defined by division rule:
             4777          (a) have a high school diploma or GED equivalent;
             4778          (b) complete an approved:
             4779          (i) educational course in therapeutic recreation taught by a licensed master therapeutic
             4780      recreation specialist; or
             4781          (ii) six semester hours or nine quarter hours in therapeutic recreation or recreational
             4782      therapy from an accredited college or university;
             4783          (c) complete an approved practicum under the supervision of:
             4784          (i) a licensed master therapeutic recreation specialist; or
             4785          (ii) an on-site, full-time, employed therapeutic recreation specialist; and
             4786          (d) pass an approved examination.
             4787          Section 114. Section 58-60-506 is amended to read:
             4788           58-60-506. Qualifications for licensure on and after July 1, 2012.
             4789          (1) An applicant for licensure under this part on and after July 1, 2012, must meet the
             4790      following qualifications:
             4791          (a) submit an application in a form prescribed by the division;
             4792          (b) pay a fee determined by the department under Section 63J-1-504 ;
             4793          (c) be of good moral character;
             4794          (d) satisfy the requirements of Subsection (2), (3), (4), (5), (6), or (7) respectively; and


             4795          (e) except for licensure as a certified substance use disorder counselor intern and a
             4796      certified advanced substance use disorder counselor intern, satisfy the examination requirement
             4797      established by division rule under Section 58-1-203 .
             4798          (2) In accordance with division rules, an applicant for licensure as an advanced
             4799      substance use disorder counselor shall produce:
             4800          (a) certified transcripts from an accredited institution of higher education that:
             4801          (i) meet division standards;
             4802          (ii) verify the satisfactory completion of a baccalaureate or graduate degree; and
             4803          (iii) verify the completion of prerequisite courses established by division rules;
             4804          (b) documentation of the applicant's completion of a substance use disorder education
             4805      program that includes:
             4806          (i) at least 300 hours of substance use disorder related education, of which 200 hours
             4807      may have been obtained while qualifying for a substance use disorder counselor license; and
             4808          (ii) a supervised practicum of at least 350 hours, of which 200 hours may have been
             4809      obtained while qualifying for a substance use disorder counselor license; and
             4810          (c) documentation of the applicant's completion of at least 4,000 hours of supervised
             4811      experience in substance use disorder treatment, of which 2,000 hours may have been obtained
             4812      while qualifying for a substance use disorder counselor license, that:
             4813          (i) meets division standards; and
             4814          (ii) is performed within a four-year period after the applicant's completion of the
             4815      substance use disorder education program described in Subsection (2)(b), unless, as determined
             4816      by the division after consultation with the board, the time for performance is extended due to
             4817      an extenuating circumstance.
             4818          (3) An applicant for licensure as a certified advanced substance use disorder counselor
             4819      shall meet the requirements in Subsections (2)(a) and (b).
             4820          (4) (a) An applicant for licensure as a certified advanced substance use disorder
             4821      counselor intern shall meet the requirements in Subsections (2)(a) and (b).
             4822          (b) A certified advanced substance use disorder counselor intern license expires at the


             4823      earlier of:
             4824          (i) the licensee passing the examination required for licensure as a certified advanced
             4825      substance use disorder counselor; or
             4826          (ii) six months after the certified advanced substance use disorder counselor intern
             4827      license is issued.
             4828          (5) In accordance with division rules, an applicant for licensure as a substance use
             4829      disorder counselor shall produce:
             4830          (a) certified transcripts from an accredited institution that:
             4831          (i) meet division standards;
             4832          (ii) verify satisfactory completion of an associate's degree or equivalent as defined by
             4833      the division in rule; and
             4834          (iii) verify the completion of prerequisite courses established by division rules;
             4835          (b) documentation of the applicant's completion of a substance use disorder education
             4836      program that includes:
             4837          (i) completion of at least 200 hours of substance use disorder related education; and
             4838          (ii) completion of a supervised practicum of at least 200 hours; and
             4839          (c) documentation of the applicant's completion of at least 2,000 hours of supervised
             4840      experience in substance use disorder treatment that:
             4841          (i) meets division standards; and
             4842          (ii) is performed within a two-year period after the applicant's completion of the
             4843      substance use disorder education program described in Subsection (5)(b), unless, as determined
             4844      by the division after consultation with the board, the time for performance is extended due to
             4845      an extenuating circumstance.
             4846          (6) An applicant for licensure as a certified substance use disorder counselor shall meet
             4847      the requirements of Subsections (5)(a) and (b).
             4848          (7) (a) An applicant for licensure as a certified substance use disorder counselor intern
             4849      shall meet the requirements of Subsections (5)(a) and (b).
             4850          (b) A certified substance use disorder counselor intern license expires at the earlier of:


             4851          (i) the licensee passing the examination required for licensure as a certified substance
             4852      use disorder counselor; or
             4853          (ii) six months after the certified substance use disorder counselor intern license is
             4854      issued.
             4855          Section 115. Section 58-77-601 is amended to read:
             4856           58-77-601. Standards of practice.
             4857          (1) (a) Prior to providing any services, a licensed Direct-entry midwife must obtain an
             4858      informed consent from a client.
             4859          (b) The consent must include:
             4860          (i) the name and license number of the Direct-entry midwife;
             4861          (ii) the client's name, address, telephone number, and primary care provider, if the
             4862      client has one;
             4863          (iii) the fact, if true, that the licensed Direct-entry midwife is not a certified nurse
             4864      midwife or a physician;
             4865          (iv) a description of the licensed Direct-entry midwife's education, training, continuing
             4866      education, and experience in midwifery;
             4867          (v) a description of the licensed Direct-entry midwife's peer review process;
             4868          (vi) the licensed Direct-entry midwife's philosophy of practice;
             4869          (vii) a promise to provide the client, upon request, separate documents describing the
             4870      rules governing licensed Direct-entry midwifery practice, including a list of conditions
             4871      indicating the need for consultation, collaboration, referral, transfer or mandatory transfer, and
             4872      the licensed Direct-entry midwife's personal written practice guidelines;
             4873          (viii) a medical back-up or transfer plan;
             4874          (ix) a description of the services provided to the client by the licensed Direct-entry
             4875      midwife;
             4876          (x) the licensed Direct-entry midwife's current legal status;
             4877          (xi) the availability of a grievance process;
             4878          (xii) client and licensed Direct-entry midwife signatures and the date of signing; and


             4879          (xiii) whether the licensed Direct-entry midwife is covered by a professional liability
             4880      insurance policy.
             4881          (2) A licensed Direct-entry midwife shall:
             4882          (a) (i) limit the licensed Direct-entry midwife's practice to a normal pregnancy, labor,
             4883      postpartum, newborn and interconceptual care, which for purposes of this section means a
             4884      normal labor:
             4885          (A) that is not pharmacologically induced;
             4886          (B) that is low risk at the start of labor;
             4887          (C) that remains low risk through out the course of labor and delivery;
             4888          (D) in which the infant is born spontaneously in the vertex position between 37 and 43
             4889      completed weeks of pregnancy; and
             4890          (E) except as provided in Subsection (2)(a)(ii), in which after delivery, the mother and
             4891      infant remain low risk; and
             4892          (ii) the limitation of Subsection (2)(a)(i) does not prohibit a licensed Direct-entry
             4893      midwife from delivering an infant when there is:
             4894          (A) intrauterine fetal demise; or
             4895          (B) a fetal anomaly incompatible with life; and
             4896          (b) appropriately recommend and facilitate consultation with, collaboration with,
             4897      referral to, or transfer or mandatory transfer of care to a licensed health care professional when
             4898      the circumstances require that action in accordance with this section and standards established
             4899      by division rule.
             4900          (3) If after a client has been informed that she has or may have a condition indicating
             4901      the need for medical consultation, collaboration, referral, or transfer and the client chooses to
             4902      decline, then the licensed Direct-entry midwife shall:
             4903          (a) terminate care in accordance with procedures established by division rule; or
             4904          (b) continue to provide care for the client if the client signs a waiver of medical
             4905      consultation, collaboration, referral, or transfer.
             4906          (4) If after a client has been informed that she has or may have a condition indicating


             4907      the need for mandatory transfer, the licensed Direct-entry midwife shall, in accordance with
             4908      procedures established by division rule, terminate the care or initiate transfer by:
             4909          (a) calling 911 and reporting the need for immediate transfer;
             4910          (b) immediately transporting the client by private vehicle to the receiving provider; or
             4911          (c) contacting the physician to whom the client will be transferred and following that
             4912      physician's orders.
             4913          (5) The standards for consultation and transfer [under Subsection 58-77-204 (4)] are the
             4914      minimum standards that a licensed Direct-entry midwife must follow. A licensed Direct-entry
             4915      midwife shall initiate consultation, collaboration, referral, or transfer of a patient sooner than
             4916      required by [Subsection 58-77-204 (4) or] administrative rule if in the opinion and experience
             4917      of the licensed Direct-entry midwife, the condition of the client or infant warrant a
             4918      consultation, collaboration, referral, or transfer.
             4919          (6) For the period from 2006 through 2011, a licensed Direct-entry midwife must
             4920      submit outcome data to the Midwives' Alliance of North America's Division of Research on the
             4921      form and in the manner prescribed by rule.
             4922          (7) This chapter does not mandate health insurance coverage for midwifery services.
             4923          Section 116. Section 59-14-302 is amended to read:
             4924           59-14-302. Tax basis -- Rates.
             4925          (1) As used in this section:
             4926          (a) "Manufacturer's sales price" means the amount the manufacturer of a tobacco
             4927      product charges after subtracting a discount.
             4928          (b) "Manufacturer's sales price" includes an original Utah destination freight charge,
             4929      regardless of:
             4930          (i) whether the tobacco product is shipped f.o.b. origin or f.o.b. destination; or
             4931          (ii) who pays the original Utah destination freight charge.
             4932          (2) There is levied a tax upon the sale, use, or storage of tobacco products in the state.
             4933          (3) (a) Subject to Subsection (3)(b), the tax levied under Subsection (2) shall be paid
             4934      by the manufacturer, jobber, distributor, wholesaler, retailer, user, or consumer.


             4935          (b) The tax levied under Subsection (2) on a cigarette produced from a cigarette rolling
             4936      machine shall be paid by the cigarette rolling machine operator.
             4937          (4) For tobacco products except for moist snuff, a little cigar, or a cigarette produced
             4938      from a cigarette rolling machine, the rate of the tax under this section is .86 multiplied by the
             4939      manufacturer's sales price.
             4940          (5) (a) Subject to Subsection (5)(b), the tax under this section on moist snuff is
             4941      imposed:
             4942          (i) at a rate of $1.83 per ounce; and
             4943          (ii) on the basis of the net weight of the moist snuff as listed by the manufacturer.
             4944          (b) If the net weight of moist snuff is in a quantity that is a fractional part of one ounce,
             4945      a proportionate amount of the tax described in Subsection (5)(a) is imposed:
             4946          (i) on that fractional part of one ounce; and
             4947          (ii) in accordance with rules made by the commission in accordance with Title 63G,
             4948      Chapter 3, Utah Administrative Rulemaking Act.
             4949          (6) (a) A little cigar is taxed at the same tax rates [manner] as a cigarette is taxed under
             4950      Subsection 59-14-204 (2).
             4951          (b) (i) Subject to Subsection (6)(b)(ii), a cigarette produced from a cigarette rolling
             4952      machine is taxed at the same tax rates as a cigarette is taxed under Subsection 59-14-204 (2).
             4953          (ii) A tax under this Subsection (6)(b) is imposed on the date the cigarette is produced
             4954      from the cigarette rolling machine.
             4955          (7) (a) Moisture content of a tobacco product is determined at the time of packaging.
             4956          (b) A manufacturer who distributes a tobacco product in, or into, Utah, shall:
             4957          (i) for a period of three years after the last day on which the manufacturer distributes
             4958      the tobacco product in, or into, Utah, keep valid scientific evidence of the moisture content of
             4959      the tobacco product available for review by the commission, upon demand; and
             4960          (ii) provide a document, to the person described in Subsection (3) to whom the
             4961      manufacturer distributes the tobacco product, that certifies the moisture content of the tobacco
             4962      product, as verified by the scientific evidence described in Subsection (7)(b)(i).


             4963          (c) A manufacturer who fails to comply with the requirements of Subsection (7)(b) is
             4964      liable for the nonpayment or underpayment of taxes on the tobacco product by a person who
             4965      relies, in good faith, on the document described in Subsection (7)(b)(ii).
             4966          (d) A person described in Subsection (3) who is required to pay tax on a tobacco
             4967      product:
             4968          (i) shall, for a period of three years after the last day on which the person pays the tax
             4969      on the tobacco product, keep the document described in Subsection (7)(b)(ii) available for
             4970      review by the commission, upon demand; and
             4971          (ii) is not liable for nonpayment or underpayment of taxes on the tobacco product due
             4972      to the person's good faith reliance on the document described in Subsection (7)(b)(ii).
             4973          Section 117. Section 63C-13-107 is amended to read:
             4974           63C-13-107. Compensation and expenses of authority members.
             4975          (1) Salaries and expenses of authority members who are legislators shall be paid in
             4976      accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3, [Expense and
             4977      Mileage Reimbursement for Authorized Legislative Meetings, Special Sessions, and Veto
             4978      Override Sessions] Legislator Compensation.
             4979          (2) An authority member who is not a legislator may not receive compensation or
             4980      benefits for the member's service on the authority, but may receive per diem and
             4981      reimbursement for travel expenses incurred as an authority member at the rates established by
             4982      the Division of Finance under:
             4983          (a) Sections 63A-3-106 and 63A-3-107 ; and
             4984          (b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             4985      63A-3-107 .
             4986          Section 118. Section 63G-12-306 is amended to read:
             4987           63G-12-306. Penalties.
             4988          (1) As used in this section:
             4989          (a) "Applicable license" means a license issued under:
             4990          (i) Title 32B, Alcoholic Beverage Control Act;


             4991          (ii) Title 58, Occupations and Professions; or
             4992          (iii) Title 61, Securities Division - Real Estate Division.
             4993          (b) "First violation" means the first time the department imposes a penalty under this
             4994      section, regardless of the number of individuals the private employer hired in violation of
             4995      Subsection 63G-12-301 (1).
             4996          (c) "Second violation" means the second time the department imposes a penalty under
             4997      this section, regardless of the number of individuals the private employer hired in violation of
             4998      Subsection 63G-12-301 (1).
             4999          (d) "Third or subsequent violation" means a violation of Subsection 63G-12-301 (1)
             5000      committed after a second violation.
             5001          (2) (a) On or after the program start date, a private employer who violates Subsection
             5002      63G-12-301 (1) is subject to a penalty provided in this section under an action brought by the
             5003      department in accordance with Section [ 63B-12-305 ] 63G-12-305 .
             5004          (b) For a first violation of Subsection 63G-12-301 (1), the department shall impose a
             5005      civil penalty on the private employer not to exceed $100 for each individual employed by the
             5006      private employer during the time period specified in the notice of agency action who is an
             5007      unauthorized alien who does not hold a valid permit.
             5008          (c) For a second violation of Subsection 63G-12-301 (1), the department shall impose a
             5009      civil penalty on the private employer not to exceed $500 for each individual employed by the
             5010      private employer during the time period specified in the notice of agency action who is an
             5011      unauthorized alien who does not hold a valid permit.
             5012          (d) For a third or subsequent violation of Subsection [ 63-12-301 ] 63G-12-301 (1), the
             5013      department shall:
             5014          (i) order the revocation of the one or more applicable licenses that are issued to an
             5015      owner, officer, director, manager, or other individual in a similar position for the private
             5016      employer for a period not to exceed one year; or
             5017          (ii) if no individual described in Subsection (2)(d)(i) holds an applicable license,
             5018      impose a civil penalty on the private employer not to exceed $10,000.


             5019          (3) (a) If the department finds a third or subsequent violation, the department shall
             5020      notify the Department of Commerce and the Department of Alcoholic Beverage Control once
             5021      the department's order:
             5022          (i) is not appealed, and the time to appeal has expired; or
             5023          (ii) is appealed, and is affirmed, in whole or in part on appeal.
             5024          (b) The notice required under Subsection (3)(a) shall state:
             5025          (i) that the department has found a third or subsequent violation;
             5026          (ii) that any applicable license held by an individual described in Subsection (2)(d)(i) is
             5027      to be revoked; and
             5028          (iii) the time period for the revocation, not to exceed one year.
             5029          (c) The department shall base its determination of the length of revocation under this
             5030      section on evidence or information submitted to the department during the action under which
             5031      a third or subsequent violation is found, and shall consider the following factors, if relevant:
             5032          (i) the number of unauthorized aliens who do not hold a permit that are employed by
             5033      the private employer;
             5034          (ii) prior misconduct by the private employer;
             5035          (iii) the degree of harm resulting from the violation;
             5036          (iv) whether the private employer made good faith efforts to comply with any
             5037      applicable requirements;
             5038          (v) the duration of the violation;
             5039          (vi) the role of the individuals described in Subsection (2)(d)(i) in the violation; and
             5040          (vii) any other factor the department considers appropriate.
             5041          (4) Within 10 business days of receipt of notice under Subsection (3), the Department
             5042      of Commerce and the Department of Alcoholic Beverage Control shall:
             5043          (a) (i) if the Department of Commerce or Alcoholic Beverage Control Commission has
             5044      issued an applicable license to an individual described in Subsection (2)(d)(i), notwithstanding
             5045      any other law, revoke the applicable license; and
             5046          (ii) notify the department that the applicable license is revoked; or


             5047          (b) if the Department of Commerce or Alcoholic Beverage Control Commission has
             5048      not issued an applicable license to an individual described in Subsection (2)(d)(i), notify the
             5049      department that an applicable license has not been issued to an individual described in
             5050      Subsection (2)(d)(i).
             5051          (5) If an individual described in Subsection (2)(d)(i) is licensed to practice law in the
             5052      state and the department finds a third or subsequent violation of Subsection 63G-12-301 (1), the
             5053      department shall notify the Utah State Bar of the third and subsequent violation.
             5054          Section 119. Section 63I-1-253 is amended to read:
             5055           63I-1-253. Repeal dates, Titles 53, 53A, and 53B.
             5056          The following provisions are repealed on the following dates:
             5057          (1) Section 53-3-232 , Conditional [licenses] license, is repealed July 1, 2015.
             5058          (2) Title 53A, Chapter 1a, Part 6, Public Education Job Enhancement Program, is
             5059      repealed July 1, 2020.
             5060          (3) The State Instructional Materials Commission, created in Section 53A-14-101 , is
             5061      repealed July 1, 2016.
             5062          (4) Subsections 53A-16-113 (3) and (4) are repealed December 31, 2016.
             5063          (5) Section 53A-16-114 is repealed December 31, 2016.
             5064          (6) Section 53A-17a-163 , Performance-based Compensation Pilot Program, is repealed
             5065      July 1, 2016.
             5066          (7) Section 53B-24-402 , Rural residency training program, is repealed July 1, 2015.
             5067          [(7)] (8) Subsection 53C-3-203 (4)(b)(vii), which provides for the distribution of money
             5068      from the Land Exchange Distribution Account to the Geological Survey for test wells, other
             5069      hydrologic studies, and air quality monitoring in the West Desert, is repealed July 1, 2020.
             5070          Section 120. Section 63I-1-263 is amended to read:
             5071           63I-1-263. Repeal dates, Titles 63A to 63M.
             5072          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             5073      any public school district which chooses to participate, is repealed July 1, 2016.
             5074          (2) Subsections 63A-5-104 (4)(d) and (e) are repealed on July 1, 2014.


             5075          (3) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1, 2016.
             5076          (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
             5077      1, 2018.
             5078          [(5) Section 53B-24-402 , rural residency training program, is repealed July 1, 2015.]
             5079          [(6)] (5) Title 63C, Chapter 13, Prison Relocation and Development Authority Act, is
             5080      repealed July 1, 2014.
             5081          [(7)] (6) Title 63C, Chapter 14, Federal Funds Commission, is repealed July 1, 2018.
             5082          [(8)] (7) Subsection 63G-6a-1402 (7) authorizing certain transportation agencies to
             5083      award a contract for a design-build transportation project in certain circumstances, is repealed
             5084      July 1, 2015.
             5085          [(9)] (8) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed
             5086      July 1, 2020.
             5087          [(10)] (9) The Resource Development Coordinating Committee, created in Section
             5088      63J-4-501 , is repealed July 1, 2015.
             5089          [(11)] (10) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
             5090          [(12)] (11) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone
             5091      Act, is repealed January 1, 2021.
             5092          (b) Subject to Subsection [(12)] (11)(c), Sections 59-7-610 and 59-10-1007 regarding
             5093      tax credits for certain persons in recycling market development zones, are repealed for taxable
             5094      years beginning on or after January 1, 2021.
             5095          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007 :
             5096          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             5097      59-10-1007 , if the machinery or equipment is purchased on or after January 1, 2021; or
             5098          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             5099      the expenditure is made on or after January 1, 2021.
             5100          (d) Notwithstanding Subsections [(12)] (11)(b) and (c), a person may carry forward a
             5101      tax credit in accordance with Section 59-7-610 or 59-10-1007 if:
             5102          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and


             5103          (ii) (A) for the purchase price of machinery or equipment described in Section
             5104      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before December 31,
             5105      2020; or
             5106          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             5107      expenditure is made on or before December 31, 2020.
             5108          [(13)] (12) (a) Section 63M-1-2507 , Health Care Compact, is repealed on July 1, 2014.
             5109          (b) (i) The Legislature shall, before reauthorizing the Health Care Compact:
             5110          (A) direct the Health System Reform Task Force to evaluate the issues listed in
             5111      Subsection [(13)] (12)(b)(ii), and by January 1, 2013, develop and recommend criteria for the
             5112      Legislature to use to negotiate the terms of the Health Care Compact; and
             5113          (B) prior to July 1, 2014, seek amendments to the Health Care Compact among the
             5114      member states that the Legislature determines are appropriate after considering the
             5115      recommendations of the Health System Reform Task Force.
             5116          (ii) The Health System Reform Task Force shall evaluate and develop criteria for the
             5117      Legislature regarding:
             5118          (A) the impact of the Supreme Court ruling on the Affordable Care Act;
             5119          (B) whether Utah is likely to be required to implement any part of the Affordable Care
             5120      Act prior to negotiating the compact with the federal government, such as Medicaid expansion
             5121      in 2014;
             5122          (C) whether the compact's current funding formula, based on adjusted 2010 state
             5123      expenditures, is the best formula for Utah and other state compact members to use for
             5124      establishing the block grants from the federal government;
             5125          (D) whether the compact's calculation of current year inflation adjustment factor,
             5126      without consideration of the regional medical inflation rate in the current year, is adequate to
             5127      protect the state from increased costs associated with administering a state based Medicaid and
             5128      a state based Medicare program;
             5129          (E) whether the state has the flexibility it needs under the compact to implement and
             5130      fund state based initiatives, or whether the compact requires uniformity across member states


             5131      that does not benefit Utah;
             5132          (F) whether the state has the option under the compact to refuse to take over the federal
             5133      Medicare program;
             5134          (G) whether a state based Medicare program would provide better benefits to the
             5135      elderly and disabled citizens of the state than a federally run Medicare program;
             5136          (H) whether the state has the infrastructure necessary to implement and administer a
             5137      better state based Medicare program;
             5138          (I) whether the compact appropriately delegates policy decisions between the
             5139      legislative and executive branches of government regarding the development and
             5140      implementation of the compact with other states and the federal government; and
             5141          (J) the impact on public health activities, including communicable disease surveillance
             5142      and epidemiology.
             5143          [(14)] (13) The Crime Victim Reparations and Assistance Board, created in Section
             5144      63M-7-504 , is repealed July 1, 2017.
             5145          [(15)] (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
             5146      2017.
             5147          Section 121. Section 63I-2-217 is amended to read:
             5148           63I-2-217. Repeal dates -- Title 17.
             5149          (1) Subsection 17-8-7 (2), the language that states "Sections 17-19-1 to 17-19-28 and"
             5150      and ", as applicable," is repealed January 1, 2015.
             5151          (2) Title 17, Chapter 19, County Auditor, is repealed January 1, 2015.
             5152          (3) Subsection 17-24-1 (4)(b), the language that states ", as applicable, Sections
             5153      17-19-1 , 17-19-3 , and 17-19-5 or" is repealed January 1, 2015.
             5154          (4) Subsection 17-24-4 (2), the language that states ", as applicable, Subsection
             5155      17-19-3 (3)(b) or" is repealed January 1, 2015.
             5156          [(5) Subsection 17-27a-305 (2) is repealed July 1, 2013.]
             5157          [(6)] (5) (a) Subsection 17-36-3 (5)(a), the language that states "for a county of the
             5158      second, third, fourth, fifth, or sixth class, the county auditor, county clerk, or county executive


             5159      as provided in Subsection 17-19-19 (1); or" is repealed January 1, 2015.
             5160          (b) Subsection 17-36-3 (5)(b), the language that states "for a county of the first class," is
             5161      repealed January 1, 2015.
             5162          (c) Subsection 17-36-3 (7), the language that states "17-19-3," and ", or [ 17-24-1.1 ]
             5163      17-24-4 , as applicable" is repealed January 1, 2015.
             5164          [(7)] (6) Subsection 17-36-9 (1)(a)(iii), the language that states "17-36-10.1, as
             5165      applicable, or" is repealed January 1, 2015.
             5166          [(8)] (7) Subsection 17-36-10 (1), the language that states the following is repealed
             5167      January 1, 2015:
             5168          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5169      sixth class is not subject to the provisions of this section; and
             5170          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5171      is subject to the provisions of this section.".
             5172          [(9)] (8) Section 17-36-10.1 is repealed January 1, 2015.
             5173          [(10)] (9) Subsection 17-36-11 (1), the language that states the following is repealed
             5174      January 1, 2015:
             5175          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5176      sixth class is not subject to the provisions of this section; and
             5177          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5178      is subject to the provisions of this section.".
             5179          [(11)] (10) Section 17-36-11.1 is repealed January 1, 2015.
             5180          [(12)] (11) Subsection 17-36-15 (1), the language that states the following is repealed
             5181      January 1, 2015:
             5182          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5183      sixth class is not subject to the provisions of this section; and
             5184          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5185      is subject to the provisions of this section.".
             5186          [(13)] (12) Section 17-36-15.1 is repealed January 1, 2015.


             5187          [(14)] (13) Subsection 17-36-20 (1), the language that states the following is repealed
             5188      January 1, 2015:
             5189          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5190      sixth class is not subject to the provisions of this section; and
             5191          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5192      is subject to the provisions of this section.".
             5193          [(15)] (14) Section 17-36-20.1 is repealed January 1, 2015.
             5194          [(l6)] (15) Subsection 17-36-32 (4), the language that states "or 17-36-20.1 , as
             5195      applicable, and" is repealed January 1, 2015.
             5196          [(17)] (16) Subsection 17-36-43 (1), the language that states the following is repealed
             5197      January 1, 2015:
             5198          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5199      sixth class is not subject to the provisions of this section; and
             5200          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5201      is subject to the provisions of this section.".
             5202          [(18)] (17) Section 17-36-43.1 is repealed January 1, 2015.
             5203          [(19)] (18) Section 17-36-44 , the language that states "or 17-36-43.1 , as applicable" is
             5204      repealed January 1, 2015.
             5205          [(20)] (19) Subsection 17-50-401 (1), the language that states the following is repealed
             5206      January 1, 2015:
             5207          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5208      sixth class is not subject to the provisions of this section; and
             5209          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5210      is subject to the provisions of this section.".
             5211          [(21)] (20) Section 17-50-401.1 is repealed January 1, 2015.
             5212          [(22)] (21) Subsection 17-52-101 (2), the language that states "or 17-52-401.1 , as
             5213      applicable" is repealed January 1, 2015.
             5214          [(23)] (22) Subsection 17-52-401 (1), the language that states the following is repealed


             5215      January 1, 2015:
             5216          "(1)(a) On or before December 31, 2014, a county of the second, third, fourth, fifth, or
             5217      sixth class is not subject to the provisions of this section; and
             5218          (b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth class
             5219      is subject to the provisions of this section.".
             5220          [(24)] (23) Section 17-52-401.1 is repealed January 1, 2015.
             5221          [(25)] (24) Subsection 17-52-403 (1)(a), the language that states "or 17-52-401.1 (2)(c),
             5222      as applicable" is repealed January 1, 2015.
             5223          [(26)] (25) On January 1, 2015, when making the changes in this section, the Office of
             5224      Legislative Research and General Counsel shall:
             5225          (a) in addition to its authority under Subsection 36-12-12 (3), make corrections
             5226      necessary to ensure that sections and subsections identified in this section are complete
             5227      sentences and accurately reflect the office's perception of the Legislature's intent; and
             5228          (b) identify the text of the affected sections and subsections based upon the section and
             5229      subsection numbers used in Laws of Utah 2012, Chapter 17.
             5230          Section 122. Section 63I-2-236 is amended to read:
             5231           63I-2-236. Repeal dates -- Title 36.
             5232          [(1)] Section 36-12-15.1 is repealed July 1, 2015.
             5233          [(2) Sections 36-16a-101 through 36-16a-108 are repealed January 1, 2013.]
             5234          Section 123. Section 63I-2-253 is amended to read:
             5235           63I-2-253. Repeal dates -- Titles 53, 53A, and 53B.
             5236          (1) Section 53A-1-402.7 is repealed July 1, 2014.
             5237          (2) Section 53A-1-403.5 is repealed July 1, 2017.
             5238          (3) Section 53A-1-411 is repealed July 1, 2016.
             5239          [(4) Section 53A-1-412 is repealed July 1, 2013.]
             5240          [(5)] (4) Section 53A-1a-513.5 is repealed July 1, 2017.
             5241          [(6)] (5) Title 53A, Chapter 1a, Part 10, UPSTART, is repealed July 1, 2014.
             5242          [(7)] (6) Title 53A, Chapter 8a, Part 8, Peer Assistance and Review Pilot Program, is


             5243      repealed July 1, 2017.
             5244          [(8) Subsection 53A-13-110 (4) is repealed July 1, 2013.]
             5245          [(9)] (7) Section 53A-17a-169 is repealed July 1, 2016.
             5246          Section 124. Section 63I-2-277 is amended to read:
             5247           63I-2-277. Repeal dates, Title 77.
             5248          [(1) Section 77-2a-3.1 is repealed June 30, 2008.]
             5249          [(2)] Subsection 77-32-304.5 (2)(d)(i), the language that states "or 17-50-401.1 , as
             5250      applicable" is repealed January 1, 2015.
             5251          Section 125. Section 63I-4a-202 is amended to read:
             5252           63I-4a-202. Free Market Protection and Privatization Board -- Created --
             5253      Membership -- Operations -- Expenses.
             5254          (1) (a) There is created [a] the Free Market Protection and Privatization [Policy] Board
             5255      composed of 17 members.
             5256          (b) The governor shall appoint board members as follows:
             5257          (i) two senators, one each from the majority and minority political parties, from names
             5258      recommended by the president of the Senate;
             5259          (ii) two representatives, one each from the majority and minority political parties, from
             5260      names recommended by the speaker of the House of Representatives;
             5261          (iii) two members representing public employees, from names recommended by the
             5262      largest public employees' association;
             5263          (iv) one member from state management;
             5264          (v) seven members from the private business community;
             5265          (vi) one member representing the Utah League of Cities and Towns from names
             5266      recommended by the Utah League of Cities and Towns;
             5267          (vii) one member representing the Utah Association of Counties from names
             5268      recommended by the Utah Association of Counties; and
             5269          (viii) one member representing the Utah Association of Special Districts, from names
             5270      recommended by the Utah Association of Special Districts.


             5271          (2) (a) Except as provided in Subsection (2)(b), a board member shall serve a two-year
             5272      term.
             5273          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             5274      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             5275      board members are staggered so that approximately half of the board is appointed every [two
             5276      years] year.
             5277          (3) (a) A board member shall hold office until the board member's successor is
             5278      appointed and qualified.
             5279          (b) When a vacancy occurs in the membership for any reason, a replacement shall be
             5280      appointed for the unexpired term.
             5281          (c) Nine members of the board constitute a quorum.
             5282          (d) The vote of a majority of board members voting when a quorum is present is
             5283      necessary for the board to act.
             5284          (4) (a) The board shall select one of the members to serve as chair of the board.
             5285          (b) A chair shall serve as chair for a term of one-year, and may be selected as chair for
             5286      more than one term.
             5287          (5) The Governor's Office of Management and Budget shall staff the board. The board
             5288      may contract for additional staff from the private sector under Section 63I-4a-204 .
             5289          (6) The board shall meet:
             5290          (a) at least quarterly; and
             5291          (b) as necessary to conduct its business, as called by the chair.
             5292          (7) A member may not receive compensation or benefits for the member's service, but
             5293      may receive per diem and travel expenses in accordance with:
             5294          (a) Section 63A-3-106 ;
             5295          (b) Section 63A-3-107 ; and
             5296          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             5297      63A-3-107 .
             5298          Section 126. Section 63J-1-206 is amended to read:


             5299           63J-1-206. Appropriations governed by chapter -- Restrictions on expenditures --
             5300      Transfer of funds -- Exclusion.
             5301          (1) As used in this section, "work program" means a budget that contains revenues and
             5302      expenditures for specific purposes or functions within an item of appropriation.
             5303          (2) (a) Except as provided in Subsection (2)(b), (3)(e), or where expressly exempted in
             5304      the appropriating act:
             5305          (i) all money appropriated by the Legislature is appropriated upon the terms and
             5306      conditions set forth in this chapter; and
             5307          (ii) any department, agency, or institution that accepts money appropriated by the
             5308      Legislature does so subject to the requirements of this chapter.
             5309          (b) This section does not apply to:
             5310          (i) the Legislature and its committees; and
             5311          (ii) the Investigation Account of the Water Resources Construction Fund, which is
             5312      governed by Section 73-10-8 .
             5313          (3) (a) Each appropriation item is to be expended subject to any schedule of programs
             5314      and any restriction attached to the appropriation item, as designated by the Legislature.
             5315          (b) Each schedule of programs or restriction attached to an appropriation item:
             5316          (i) is a restriction or limitation upon the expenditure of the respective appropriation
             5317      made;
             5318          (ii) does not itself appropriate any money; and
             5319          (iii) is not itself an item of appropriation.
             5320          (c) An appropriation or any surplus of any appropriation may not be diverted from any
             5321      department, agency, institution, or division to any other department, agency, institution, or
             5322      division.
             5323          (d) The money appropriated subject to a schedule or programs or restriction may be
             5324      used only for the purposes authorized.
             5325          (e) In order for a department, agency, or institution to transfer money appropriated to it
             5326      from one program to another program within an item of appropriation, the following procedure


             5327      shall be followed:
             5328          (i) The department, agency, or institution seeking to make the transfer shall prepare:
             5329          (A) a new work program for the fiscal year involved that consists of the currently
             5330      approved work program and the transfer sought to be made; and
             5331          (B) a written justification for the new work program that sets forth the purpose and
             5332      necessity for the transfer.
             5333          (ii) The Division of Finance shall process the new work program with written
             5334      justification and make this information available to the Governor's Office of Management and
             5335      Budget and the legislative fiscal analyst.
             5336          (f) (i) Except as provided in Subsection (3)(f)(ii), money may not be transferred from
             5337      one item of appropriation to any other item of appropriation.
             5338          (ii) The state superintendent may transfer money appropriated for the Minimum School
             5339      Program between line items of appropriation in accordance with Section 53A-17a-105 .
             5340          (g) (i) The procedures for transferring money between programs within an item of
             5341      appropriation as provided by Subsection (3)(e) do not apply to money appropriated to the State
             5342      Board of Education for the Minimum School Program or capital outlay programs created in
             5343      Title 53A, Chapter 21, Public Education Capital Outlay Act.
             5344          (ii) The state superintendent may transfer money appropriated for the programs
             5345      specified in Subsection (3)(g)(i) only as provided by Section 53A-17a-105 .
             5346          Section 127. Section 63J-1-505 is amended to read:
             5347           63J-1-505. Payment of fees prerequisite to service -- Exception.
             5348          (1) (a) State and county officers required by law to charge fees may not perform any
             5349      official service unless the fees prescribed for that service are paid in advance.
             5350          (b) When the fee is paid, the officer shall perform the services required.
             5351          (c) An officer is liable upon the officer's official bond for every failure or refusal to
             5352      perform an official duty when the fees are tendered.
             5353          (2) (a) Except as provided in Subsection (2)(b), no fees may be charged:
             5354          (i) to the officer's state, or any county or subdivision of the state;


             5355          (ii) to any public officer acting for the state, county, or subdivision;
             5356          (iii) in cases of habeas corpus;
             5357          (iv) in criminal causes before final judgment;
             5358          (v) for administering and certifying the oath of office;
             5359          (vi) for swearing pensioners and their witnesses; or
             5360          (vii) for filing and recording bonds of public officers.
             5361          (b) Fees may be charged for payment:
             5362          (i) of recording fees for assessment area recordings in compliance with Section
             5363      11-42-205 ;
             5364          (ii) of recording fees for judgments recorded in compliance with Sections 57-3-106 and
             5365      [ 78A-7-117 ] 78A-7-105 ; and
             5366          (iii) to the state engineer under Section 73-2-14 .
             5367          Section 128. Section 63J-1-602.3 is amended to read:
             5368           63J-1-602.3. List of nonlapsing funds and accounts -- Title 46 through Title 60.
             5369          (1) Funding for the Search and Rescue Financial Assistance Program, as provided in
             5370      Section [ 53-2a-1101 ] 53-2a-1102 .
             5371          (2) Appropriations made to the Division of Emergency Management from the State
             5372      Disaster Recovery Restricted Account, as provided in Section 53-2a-603 .
             5373          (3) Appropriations made to the Department of Public Safety from the Department of
             5374      Public Safety Restricted Account, as provided in Section 53-3-106 .
             5375          (4) Appropriations to the Motorcycle Rider Education Program, as provided in Section
             5376      53-3-905 .
             5377          (5) Appropriations from the Utah Highway Patrol Aero Bureau Restricted Account
             5378      created in Section 53-8-303 .
             5379          (6) Appropriations from the DNA Specimen Restricted Account created in Section
             5380      53-10-407 .
             5381          (7) The Canine Body Armor Restricted Account created in Section 53-16-201 .
             5382          (8) Appropriations to the State Board of Education, as provided in Section


             5383      53A-17a-105 .
             5384          (9) Money received by the State Office of Rehabilitation for the sale of certain products
             5385      or services, as provided in Section 53A-24-105 .
             5386          (10) Certain funds appropriated from the General Fund to the State Board of Regents
             5387      for teacher preparation programs, as provided in Section 53B-6-104 .
             5388          (11) Funding for the Medical Education Program administered by the Medical
             5389      Education Council, as provided in Section 53B-24-202 .
             5390          [(11)] (12) A certain portion of money collected for administrative costs under the
             5391      School Institutional Trust Lands Management Act, as provided under Section 53C-3-202 .
             5392          [(12)] (13) Certain surcharges on residential and business telephone numbers imposed
             5393      by the Public Service Commission, as provided in Section 54-8b-10 .
             5394          [(13)] (14) Certain fines collected by the Division of Occupational and Professional
             5395      Licensing for violation of unlawful or unprofessional conduct that are used for education and
             5396      enforcement purposes, as provided in Section 58-17b-505 .
             5397          [(14)] (15) Certain fines collected by the Division of Occupational and Professional
             5398      Licensing for use in education and enforcement of the Security Personnel Licensing Act, as
             5399      provided in Section 58-63-103 .
             5400          [(15)] (16) Appropriations from the Relative Value Study Restricted Account created
             5401      in Section 59-9-105 .
             5402          [(16)] (17) The Cigarette Tax Restricted Account created in Section 59-14-204 .
             5403          Section 129. Section 63J-1-602.4 is amended to read:
             5404           63J-1-602.4. List of nonlapsing funds and accounts -- Title 61 through Title 63M.
             5405          (1) Funds paid to the Division of Real Estate for the cost of a criminal background
             5406      check for a mortgage loan license, as provided in Section 61-2c-202 .
             5407          (2) Funds paid to the Division of Real Estate for the cost of a criminal background
             5408      check for principal broker, associate broker, and sales agent licenses, as provided in Section
             5409      61-2f-204 .
             5410          (3) Certain funds donated to the Department of Human Services, as provided in


             5411      Section 62A-1-111 .
             5412          (4) Certain funds donated to the Division of Child and Family Services, as provided in
             5413      Section 62A-4a-110 .
             5414          (5) Appropriations from the Choose Life Adoption Support Restricted Account created
             5415      in Section 62A-4a-608 .
             5416          (6) Appropriations to the Division of Services for People with Disabilities, as provided
             5417      in Section 62A-5-102 .
             5418          (7) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
             5419      provided in Section 63C-6-104 .
             5420          [(8) Funding for the Medical Education Program administered by the Medical
             5421      Education Council, as provided in Section 53B-24-202 .]
             5422          [(9)] (8) Certain money payable for commission expenses of the Pete Suazo Utah
             5423      Athletic Commission, as provided under Section 63C-11-301 .
             5424          [(10)] (9) Funds appropriated or collected for publishing the Division of
             5425      Administrative Rules' publications, as provided in Section 63G-3-402 .
             5426          [(11)] (10) The Immigration Act Restricted Account created in Section 63G-12-103 .
             5427          [(12)] (11) Money received by the military installation development authority, as
             5428      provided in Section 63H-1-504 .
             5429          [(13) The appropriation] (12) Appropriations to fund the Governor's Office of
             5430      Economic Development's Enterprise Zone Act, as provided in [Section 63M-1-416 ] Title 63M,
             5431      Chapter 1, Part 4, Enterprise Zone Act.
             5432          [(14)] (13) The Motion Picture Incentive Account created in Section 63M-1-1803 .
             5433          [(15)] (14) Appropriations to the Utah Science Technology and Research Governing
             5434      Authority, created under Section 63M-2-301 , as provided under Section 63M-2-302 .
             5435          Section 130. Section 63M-1-3203 is amended to read:
             5436           63M-1-3203. STEM Action Center Board -- Duties.
             5437          (1) The board shall:
             5438          (a) establish a STEM Action Center [program] to:


             5439          (i) coordinate STEM activities in the state among the following stakeholders:
             5440          (A) the State Board of Education;
             5441          (B) school districts and charter schools;
             5442          (C) the State Board of Regents;
             5443          (D) institutions of higher education;
             5444          (E) parents of home-schooled students; and
             5445          (F) other state agencies;
             5446          (ii) align public education STEM activities with higher education STEM activities; and
             5447          (iii) create and coordinate best practices among public education and higher education;
             5448          (b) with the consent of the Senate, appoint an executive director to oversee the
             5449      administration of the STEM Action Center;
             5450          (c) select a physical location for the STEM Action Center;
             5451          (d) strategically engage industry and business entities to cooperate with the board:
             5452          (i) to support professional development and provide other assistance for educators and
             5453      students; and
             5454          (ii) to provide private funding and support for the STEM Action Center;
             5455          (e) give direction to the STEM Action Center and the providers selected through a
             5456      request for proposals process pursuant to this part; and
             5457          (f) work to meet the following expectations:
             5458          (i) that at least 50 educators are implementing best practice learning tools in
             5459      classrooms per each product specialist or manager working with the STEM Action Center;
             5460          (ii) performance change in student achievement in each classroom working with a
             5461      STEM Action Center product specialist or manager; and
             5462          (iii) that students from at least 50 high schools participate in the STEM competitions,
             5463      fairs, and camps described in Subsection 63M-1-3204 (2)(d).
             5464          (2) The board may:
             5465          (a) enter into contracts for the purposes of this part;
             5466          (b) apply for, receive, and disburse funds, contributions, or grants from any source for


             5467      the purposes set forth in this part;
             5468          (c) employ, compensate, and prescribe the duties and powers of individuals necessary
             5469      to execute the duties and powers of the board;
             5470          (d) prescribe the duties and powers of the STEM Action Center providers; and
             5471          (e) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             5472      make rules to administer this part.
             5473          Section 131. Section 70A-2a-533 is amended to read:
             5474           70A-2a-533. Effective date.
             5475          (1) Except as provided in Subsection (2), this act takes effect on July 1, 1990 and shall
             5476      apply to all lease contracts that are first made or that first become effective between the parties
             5477      on or after that date, but shall not apply to lease contracts first made or that first became
             5478      effective prior to that date unless the parties thereto specifically agree in writing that the lease
             5479      contract as extended, amended, modified, renewed or supplemented, shall be governed by
             5480      applicable law as supplemented or amended by this act. Absent such specific agreement
             5481      transactions validly entered into before that date and the rights, duties, and interests flowing
             5482      from them remain valid thereafter and may be terminated, completed, consummated or
             5483      enforced as though this act had not taken effect.
             5484          (2) The amendments to former Sections 70A-1-201 , 70A-9-113 , 70A-9-306 , and
             5485      70A-9-318 take effect on July 1, 1990.
             5486          Section 132. Section 76-1-501 is amended to read:
             5487           76-1-501. Presumption of innocence -- "Element of the offense" defined.
             5488          (1) A defendant in a criminal proceeding is presumed to be innocent until each element
             5489      of the offense charged against him is proved beyond a reasonable doubt. In the absence of this
             5490      proof, the defendant shall be acquitted.
             5491          (2) As used in this part [the words], "element of the offense" [mean] means:
             5492          (a) the conduct, attendant circumstances, or results of conduct proscribed, prohibited,
             5493      or forbidden in the definition of the offense; and
             5494          (b) the culpable mental state required.


             5495          (3) The existence of jurisdiction and venue are not elements of the offense but shall be
             5496      established by a preponderance of the evidence.
             5497          Section 133. Section 76-5-102.4 is amended to read:
             5498           76-5-102.4. Assault against peace officer or a military servicemember in uniform
             5499      -- Penalties.
             5500          (1) As used in this section:
             5501          (a) "Military servicemember in uniform" means:
             5502          (i) a member of any branch of the United States military who is wearing a uniform as
             5503      authorized by the member's branch of service; or
             5504          (ii) a member of the National Guard serving as provided in Section 39-1-5 or 39-1-9 .
             5505          (b) "Peace officer" means a law enforcement officer certified under Section 53-13-103 .
             5506          (2) A person is guilty of a class A misdemeanor, except as provided in Subsections (3)
             5507      and (4), who:
             5508          (a) assaults a peace officer, with knowledge that the person is a peace officer, and when
             5509      the peace officer is acting within the scope of authority as a peace officer; or
             5510          (b) assaults a military servicemember in uniform when that servicemember is on orders
             5511      and acting within the scope of authority granted to the military servicemember in uniform.
             5512          (3) A person who violates Subsection (2) is guilty of a third degree felony if the
             5513      person:
             5514          (a) has been previously convicted of a [violation of a] class A misdemeanor or a felony
             5515      violation of this section; or
             5516          (b) the person causes substantial bodily injury.
             5517          (4) A person who violates Subsection (2) is guilty of a second degree felony if the
             5518      person uses:
             5519          (a) a dangerous weapon as defined in Section 76-1-601 ; or
             5520          (b) other means or force likely to produce death or serious bodily injury.
             5521          (5) A person who violates this section shall serve, in jail or another correctional
             5522      facility, a minimum of:


             5523          (a) 90 consecutive days for a second offense; and
             5524          (b) 180 consecutive days for each subsequent offense.
             5525          (6) The court may suspend the imposition or execution of the sentence required under
             5526      Subsection (5) if the court finds that the interests of justice would be best served by the
             5527      suspension and the court makes specific findings concerning the disposition on the record.
             5528          (7) This section does not affect or limit any individual's constitutional right to the
             5529      lawful expression of free speech, the right of assembly, or any other recognized rights secured
             5530      by the Constitution or laws of Utah or by the Constitution or laws of the United States.
             5531          Section 134. Section 78A-2-301 is amended to read:
             5532           78A-2-301. Civil fees of the courts of record -- Courts complex design.
             5533          (1) (a) The fee for filing any civil complaint or petition invoking the jurisdiction of a
             5534      court of record not governed by another subsection is $360.
             5535          (b) The fee for filing a complaint or petition is:
             5536          (i) $75 if the claim for damages or amount in interpleader exclusive of court costs,
             5537      interest, and attorney fees is $2,000 or less;
             5538          (ii) $185 if the claim for damages or amount in interpleader exclusive of court costs,
             5539      interest, and attorney fees is greater than $2,000 and less than $10,000;
             5540          (iii) $360 if the claim for damages or amount in interpleader is $10,000 or more;
             5541          (iv) $310 if the petition is filed under Title 30, Chapter 3, Divorce, or Title 30, Chapter
             5542      4, Separate Maintenance;
             5543          (v) $35 for a motion for temporary separation order filed under Section 30-3-4.5 ; and
             5544          (vi) $125 if the petition is for removal from the Sex Offender and Kidnap Offender
             5545      Registry under [Subsection 77-27-21.5 (32)] Section 77-41-112 .
             5546          (c) The fee for filing a small claims affidavit is:
             5547          (i) $60 if the claim for damages or amount in interpleader exclusive of court costs,
             5548      interest, and attorney fees is $2,000 or less;
             5549          (ii) $100 if the claim for damages or amount in interpleader exclusive of court costs,
             5550      interest, and attorney fees is greater than $2,000, but less than $7,500; and


             5551          (iii) $185 if the claim for damages or amount in interpleader exclusive of court costs,
             5552      interest, and attorney fees is $7,500 or more.
             5553          (d) The fee for filing a counter claim, cross claim, complaint in intervention, third party
             5554      complaint, or other claim for relief against an existing or joined party other than the original
             5555      complaint or petition is:
             5556          (i) $55 if the claim for relief exclusive of court costs, interest, and attorney fees is
             5557      $2,000 or less;
             5558          (ii) $150 if the claim for relief exclusive of court costs, interest, and attorney fees is
             5559      greater than $2,000 and less than $10,000;
             5560          (iii) $155 if the original petition is filed under Subsection (1)(a), the claim for relief is
             5561      $10,000 or more, or the party seeks relief other than monetary damages; and
             5562          (iv) $115 if the original petition is filed under Title 30, Chapter 3, Divorce, or Title 30,
             5563      Chapter 4, Separate Maintenance.
             5564          (e) The fee for filing a small claims counter affidavit is:
             5565          (i) $50 if the claim for relief exclusive of court costs, interest, and attorney fees is
             5566      $2,000 or less;
             5567          (ii) $70 if the claim for relief exclusive of court costs, interest, and attorney fees is
             5568      greater than $2,000, but less than $7,500; and
             5569          (iii) $120 if the claim for relief exclusive of court costs, interest, and attorney fees is
             5570      $7,500 or more.
             5571          (f) The fee for depositing funds under Section 57-1-29 when not associated with an
             5572      action already before the court is determined under Subsection (1)(b) based on the amount
             5573      deposited.
             5574          (g) The fee for filing a petition is:
             5575          (i) $225 for trial de novo of an adjudication of the justice court or of the small claims
             5576      department; and
             5577          (ii) $65 for an appeal of a municipal administrative determination in accordance with
             5578      Section 10-3-703.7 .


             5579          (h) The fee for filing a notice of appeal, petition for appeal of an interlocutory order, or
             5580      petition for writ of certiorari is $225.
             5581          (i) The fee for filing a petition for expungement is $135.
             5582          (j) (i) Fifteen dollars of the fees established by Subsections (1)(a) through (i) shall be
             5583      allocated to and between the Judges' Contributory Retirement Trust Fund and the Judges'
             5584      Noncontributory Retirement Trust Fund, as provided in Title 49, Chapter 17, Judges'
             5585      Contributory Retirement Act, and Title 49, Chapter 18, Judges' Noncontributory Retirement
             5586      Act.
             5587          (ii) Four dollars of the fees established by Subsections (1)(a) through (i) shall be
             5588      allocated by the state treasurer to be deposited in the restricted account, Children's Legal
             5589      Defense Account, as provided in Section 51-9-408 .
             5590          (iii) Three dollars of the fees established under Subsections (1)(a) through (e), (1)(g),
             5591      and (1)(s) shall be allocated to and deposited with the Dispute Resolution Account as provided
             5592      in Section 78B-6-209 .
             5593          (iv) Fifteen dollars of the fees established by Subsections (1)(a), (1)(b)(iii) and (iv),
             5594      (1)(d)(iii) and (iv), (1)(g)(ii), (1)(h), and (1)(i) shall be allocated by the state treasurer to be
             5595      deposited in the restricted account, Court Security Account, as provided in Section 78A-2-602 .
             5596          (v) Five dollars of the fees established by Subsections (1)(b)(i) and (ii), (1)(d)(ii) and
             5597      (1)(g)(i) shall be allocated by the state treasurer to be deposited in the restricted account, Court
             5598      Security Account, as provided in Section 78A-2-602 .
             5599          (k) The fee for filing a judgment, order, or decree of a court of another state or of the
             5600      United States is $35.
             5601          (l) The fee for filing a renewal of judgment in accordance with Section 78B-6-1801 is
             5602      50% of the fee for filing an original action seeking the same relief.
             5603          (m) The fee for filing probate or child custody documents from another state is $35.
             5604          (n) (i) The fee for filing an abstract or transcript of judgment, order, or decree of the
             5605      Utah State Tax Commission is $30.
             5606          (ii) The fee for filing an abstract or transcript of judgment of a court of law of this state


             5607      or a judgment, order, or decree of an administrative agency, commission, board, council, or
             5608      hearing officer of this state or of its political subdivisions other than the Utah State Tax
             5609      Commission, is $50.
             5610          (o) The fee for filing a judgment by confession without action under Section
             5611      78B-5-205 is $35.
             5612          (p) The fee for filing an award of arbitration for confirmation, modification, or
             5613      vacation under Title 78B, Chapter 11, Utah Uniform Arbitration Act, that is not part of an
             5614      action before the court is $35.
             5615          (q) The fee for filing a petition or counter-petition to modify a decree of divorce is
             5616      $100.
             5617          (r) The fee for filing any accounting required by law is:
             5618          (i) $15 for an estate valued at $50,000 or less;
             5619          (ii) $30 for an estate valued at $75,000 or less but more than $50,000;
             5620          (iii) $50 for an estate valued at $112,000 or less but more than $75,000;
             5621          (iv) $90 for an estate valued at $168,000 or less but more than $112,000; and
             5622          (v) $175 for an estate valued at more than $168,000.
             5623          (s) The fee for filing a demand for a civil jury is $250.
             5624          (t) The fee for filing a notice of deposition in this state concerning an action pending in
             5625      another state under Utah Rule of Civil Procedure 26 is $35.
             5626          (u) The fee for filing documents that require judicial approval but are not part of an
             5627      action before the court is $35.
             5628          (v) The fee for a petition to open a sealed record is $35.
             5629          (w) The fee for a writ of replevin, attachment, execution, or garnishment is $50 in
             5630      addition to any fee for a complaint or petition.
             5631          (x) (i) The fee for a petition for authorization for a minor to marry required by Section
             5632      30-1-9 is $5.
             5633          (ii) The fee for a petition for emancipation of a minor provided in Title 78A, Chapter 6,
             5634      Part 8, Emancipation, is $50.


             5635          (y) The fee for a certificate issued under Section 26-2-25 is $8.
             5636          (z) The fee for a certified copy of a document is $4 per document plus 50 cents per
             5637      page.
             5638          (aa) The fee for an exemplified copy of a document is $6 per document plus 50 cents
             5639      per page.
             5640          (bb) The Judicial Council shall by rule establish a schedule of fees for copies of
             5641      documents and forms and for the search and retrieval of records under Title 63G, Chapter 2,
             5642      Government Records Access and Management Act. Fees under this Subsection (1)(bb) shall
             5643      be credited to the court as a reimbursement of expenditures.
             5644          (cc) There is no fee for services or the filing of documents not listed in this section or
             5645      otherwise provided by law.
             5646          (dd) Except as provided in this section, all fees collected under this section are paid to
             5647      the General Fund. Except as provided in this section, all fees shall be paid at the time the clerk
             5648      accepts the pleading for filing or performs the requested service.
             5649          (ee) The filing fees under this section may not be charged to the state, its agencies, or
             5650      political subdivisions filing or defending any action. In judgments awarded in favor of the
             5651      state, its agencies, or political subdivisions, except the Office of Recovery Services, the court
             5652      shall order the filing fees and collection costs to be paid by the judgment debtor. The sums
             5653      collected under this Subsection (1)(ee) shall be applied to the fees after credit to the judgment,
             5654      order, fine, tax, lien, or other penalty and costs permitted by law.
             5655          (2) (a) (i) From March 17, 1994, until June 30, 1998, the administrator of the courts
             5656      shall transfer all revenues representing the difference between the fees in effect after May 2,
             5657      1994, and the fees in effect before February 1, 1994, as dedicated credits to the Division of
             5658      Facilities Construction and Management Capital Projects Fund.
             5659          (ii) (A) Except as provided in Subsection (2)(a)(ii)(B), the Division of Facilities
             5660      Construction and Management shall use up to $3,750,000 of the revenue deposited in the
             5661      Capital Projects Fund under this Subsection (2)(a) to design and take other actions necessary to
             5662      initiate the development of a courts complex in Salt Lake City.


             5663          (B) If the Legislature approves funding for construction of a courts complex in Salt
             5664      Lake City in the 1995 Annual General Session, the Division of Facilities Construction and
             5665      Management shall use the revenue deposited in the Capital Projects Fund under this Subsection
             5666      (2)(a)(ii) to construct a courts complex in Salt Lake City.
             5667          (C) After the courts complex is completed and all bills connected with its construction
             5668      have been paid, the Division of Facilities Construction and Management shall use any money
             5669      remaining in the Capital Projects Fund under this Subsection (2)(a)(ii) to fund the Vernal
             5670      District Court building.
             5671          (iii) The Division of Facilities Construction and Management may enter into
             5672      agreements and make expenditures related to this project before the receipt of revenues
             5673      provided for under this Subsection (2)(a)(iii).
             5674          (iv) The Division of Facilities Construction and Management shall:
             5675          (A) make those expenditures from unexpended and unencumbered building funds
             5676      already appropriated to the Capital Projects Fund; and
             5677          (B) reimburse the Capital Projects Fund upon receipt of the revenues provided for
             5678      under this Subsection (2).
             5679          (b) After June 30, 1998, the administrator of the courts shall ensure that all revenues
             5680      representing the difference between the fees in effect after May 2, 1994, and the fees in effect
             5681      before February 1, 1994, are transferred to the Division of Finance for deposit in the restricted
             5682      account.
             5683          (c) The Division of Finance shall deposit all revenues received from the court
             5684      administrator into the restricted account created by this section.
             5685          (d) (i) From May 1, 1995, until June 30, 1998, the administrator of the courts shall
             5686      transfer $7 of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor
             5687      Vehicles, in a court of record to the Division of Facilities Construction and Management
             5688      Capital Projects Fund. The division of money pursuant to Section 78A-5-110 shall be
             5689      calculated on the balance of the fine or bail forfeiture paid.
             5690          (ii) After June 30, 1998, the administrator of the courts or a municipality shall transfer


             5691      $7 of the amount of a fine or bail forfeiture paid for a violation of Title 41, Motor Vehicles, in
             5692      a court of record to the Division of Finance for deposit in the restricted account created by this
             5693      section. The division of money pursuant to Section 78A-5-110 shall be calculated on the
             5694      balance of the fine or bail forfeiture paid.
             5695          (3) (a) There is created within the General Fund a restricted account known as the State
             5696      Courts Complex Account.
             5697          (b) The Legislature may appropriate money from the restricted account to the
             5698      administrator of the courts for the following purposes only:
             5699          (i) to repay costs associated with the construction of the court complex that were
             5700      funded from sources other than revenues provided for under this Subsection (3)(b)(i); and
             5701          (ii) to cover operations and maintenance costs on the court complex.
             5702          Section 135. Section 78A-7-301 is amended to read:
             5703           78A-7-301. Justice Court Technology, Security, and Training Account
             5704      established -- Funding -- Uses.
             5705          There is created a restricted account in the General Fund known as the Justice Court
             5706      Technology, Security, and Training Account.
             5707          (1) The state treasurer shall deposit in the account money collected from the surcharge
             5708      established in Subsection [ 78A-6-122 (3)] 78A-7-122 (4)(b)(iii).
             5709          (2) Money shall be appropriated from the account to the Administrative Office of the
             5710      Courts to be used for audit, technology, security, and training needs in justice courts throughout
             5711      the state.
             5712          Section 136. Section 78B-3-421 is amended to read:
             5713           78B-3-421. Arbitration agreements.
             5714          (1) After May 2, 1999, for a binding arbitration agreement between a patient and a
             5715      health care provider to be validly executed or, if the requirements of this Subsection (1) have
             5716      not been previously met on at least one occasion, renewed:
             5717          (a) the patient shall be given, in writing, the following information on:
             5718          (i) the requirement that the patient must arbitrate a claim instead of having the claim


             5719      heard by a judge or jury;
             5720          (ii) the role of an arbitrator and the manner in which arbitrators are selected under the
             5721      agreement;
             5722          (iii) the patient's responsibility, if any, for arbitration-related costs under the agreement;
             5723          (iv) the right of the patient to decline to enter into the agreement and still receive health
             5724      care if Subsection (3) applies;
             5725          (v) the automatic renewal of the agreement each year unless the agreement is canceled
             5726      in writing before the renewal date;
             5727          (vi) the right of the patient to have questions about the arbitration agreement answered;
             5728          (vii) the right of the patient to rescind the agreement within 10 days of signing the
             5729      agreement; and
             5730          (viii) the right of the patient to require mediation of the dispute prior to the arbitration
             5731      of the dispute;
             5732          (b) the agreement shall require that:
             5733          (i) except as provided in Subsection (1)(b)(ii), a panel of three arbitrators shall be
             5734      selected as follows:
             5735          (A) one arbitrator collectively selected by all persons claiming damages;
             5736          (B) one arbitrator selected by the health care provider; and
             5737          (C) a third arbitrator:
             5738          (I) jointly selected by all persons claiming damages and the health care provider; or
             5739          (II) if both parties cannot agree on the selection of the third arbitrator, the other two
             5740      arbitrators shall appoint the third arbitrator from a list of individuals approved as arbitrators by
             5741      the state or federal courts of Utah; or
             5742          (ii) if both parties agree, a single arbitrator may be selected;
             5743          (iii) all parties waive the requirement of Section 78B-3-416 to appear before a hearing
             5744      panel in a malpractice action against a health care provider;
             5745          (iv) the patient be given the right to rescind the agreement within 10 days of signing
             5746      the agreement;


             5747          (v) the term of the agreement be for one year and that the agreement be automatically
             5748      renewed each year unless the agreement is canceled in writing by the patient or health care
             5749      provider before the renewal date;
             5750          (vi) the patient has the right to retain legal counsel;
             5751          (vii) the agreement only apply to:
             5752          (A) an error or omission that occurred after the agreement was signed, provided that
             5753      the agreement may allow a person who would be a proper party in court to participate in an
             5754      arbitration proceeding;
             5755          (B) the claim of:
             5756          (I) a person who signed the agreement;
             5757          (II) a person on whose behalf the agreement was signed under Subsection (6); and
             5758          (III) the unborn child of the person described in this Subsection (1)(b)(vii)(B), for 12
             5759      months from the date the agreement is signed; and
             5760          (C) the claim of a person who is not a party to the contract if the sole basis for the
             5761      claim is an injury sustained by a person described in Subsection (1)(b)(vii)(B); and
             5762          (c) the patient shall be verbally encouraged to:
             5763          (i) read the written information required by Subsection (1)(a) and the arbitration
             5764      agreement; and
             5765          (ii) ask any questions.
             5766          (2) When a medical malpractice action is arbitrated, the action shall:
             5767          (a) be subject to Chapter [31a] 11, Utah Uniform Arbitration Act; and
             5768          (b) include any one or more of the following when requested by the patient before an
             5769      arbitration hearing is commenced:
             5770          (i) mandatory mediation;
             5771          (ii) retention of the jointly selected arbitrator for both the liability and damages stages
             5772      of an arbitration proceeding if the arbitration is bifurcated; and
             5773          (iii) the filing of the panel's award of damages as a judgement against the provider in
             5774      the appropriate district court.


             5775          (3) Notwithstanding Subsection (1), a patient may not be denied health care on the sole
             5776      basis that the patient or a person described in Subsection (6) refused to enter into a binding
             5777      arbitration agreement with a health care provider.
             5778          (4) A written acknowledgment of having received a written explanation of a binding
             5779      arbitration agreement signed by or on behalf of the patient shall be a defense to a claim that the
             5780      patient did not receive a written explanation of the agreement as required by Subsection (1)
             5781      unless the patient:
             5782          (a) proves that the person who signed the agreement lacked the capacity to do so; or
             5783          (b) shows by clear and convincing evidence that the execution of the agreement was
             5784      induced by the health care provider's affirmative acts of fraudulent misrepresentation or
             5785      fraudulent omission to state material facts.
             5786          (5) The requirements of Subsection (1) do not apply to a claim governed by a binding
             5787      arbitration agreement that was executed or renewed before May 3, 1999.
             5788          (6) A legal guardian or a person described in Subsection 78B-3-406 (6), except a person
             5789      temporarily standing in loco parentis, may execute or rescind a binding arbitration agreement
             5790      on behalf of a patient.
             5791          (7) This section does not apply to any arbitration agreement that is subject to the
             5792      Federal Arbitration Act, 9 U.S.C. Sec. 1 et seq.
             5793          Section 137. Repealer.
             5794          This bill repeals:
             5795          Section 63G-13-203 , Collaboration on integration of immigrants.
             5796          Section 138. Effective date.
             5797          This bill takes effect on May 13, 2014, except that the amendments in this bill to
             5798      Section 57-8-7.5 (Effective 07/01/14) take effect on July 1, 2014.


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