Representative Johnny Anderson proposes the following substitute bill:


1     
TRANSPORTATION NETWORK COMPANY AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: J. Stuart Adams

5     
House Sponsor: Daniel McCay

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to transportation network services.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires a transportation network company to register with the division of consumer
13     protection;
14          ▸     exempts a vehicle used to provide transportation network services from certain
15     requirements;
16          ▸     provides operation and eligibility requirements for a transportation network
17     company and a transportation network driver;
18          ▸     provides insurance requirements for a transportation network company and a
19     transportation network driver; and
20          ▸     provides that a local highway authority may not enact a rule, regulation, or
21     ordinance that requires a ground transportation vehicle to maintain liability
22     insurance coverage in an amount that is greater than the minimum amount a
23     transportation network company or transportation network driver is required to
24     maintain.
25     Money Appropriated in this Bill:

26          This bill appropriates in fiscal year 2016:
27          ▸     to Department of Commerce - Commerce General Regulation - Consumer
28     Protection, as an ongoing appropriation:
29               •     from the General Fund Restricted - Commerce Service Account, $20,000.
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          13-2-1, as last amended by Laws of Utah 2014, Chapter 360
35          41-6a-208, as last amended by Laws of Utah 2013, Chapters 157 and 360
36          53-3-102, as last amended by Laws of Utah 2014, Chapter 252
37          59-12-102, as last amended by Laws of Utah 2014, Chapters 380 and 414
38     ENACTS:
39          13-51-101, Utah Code Annotated 1953
40          13-51-102, Utah Code Annotated 1953
41          13-51-103, Utah Code Annotated 1953
42          13-51-104, Utah Code Annotated 1953
43          13-51-105, Utah Code Annotated 1953
44          13-51-106, Utah Code Annotated 1953
45          13-51-107, Utah Code Annotated 1953
46          13-51-108, Utah Code Annotated 1953
47          13-51-109, Utah Code Annotated 1953
48     

49     Be it enacted by the Legislature of the state of Utah:
50          Section 1. Section 13-2-1 is amended to read:
51          13-2-1. Consumer protection division established -- Functions.
52          (1) There is established within the Department of Commerce the Division of Consumer
53     Protection.
54          (2) The division shall administer and enforce the following:
55          (a) Chapter 5, Unfair Practices Act;
56          (b) Chapter 10a, Music Licensing Practices Act;

57          (c) Chapter 11, Utah Consumer Sales Practices Act;
58          (d) Chapter 15, Business Opportunity Disclosure Act;
59          (e) Chapter 20, New Motor Vehicle Warranties Act;
60          (f) Chapter 21, Credit Services Organizations Act;
61          (g) Chapter 22, Charitable Solicitations Act;
62          (h) Chapter 23, Health Spa Services Protection Act;
63          (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
64          (j) Chapter 26, Telephone Fraud Prevention Act;
65          (k) Chapter 28, Prize Notices Regulation Act;
66          (l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;
67          (m) Chapter 34, Utah Postsecondary Proprietary School Act;
68          (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
69          (o) Chapter 41, Price Controls During Emergencies Act;
70          (p) Chapter 42, Uniform Debt-Management Services Act; [and]
71          (q) Chapter 49, Immigration Consultants Registration Act[.]; and
72          (r) Chapter 51, Transportation Network Company Registration Act.
73          Section 2. Section 13-51-101 is enacted to read:
74     
CHAPTER 51. TRANSPORTATION NETWORK COMPANY REGISTRATION ACT

75          13-51-101. Title.
76          This chapter is known as "Transportation Network Company Registration Act."
77          Section 3. Section 13-51-102 is enacted to read:
78          13-51-102. Definitions.
79          (1) "Division" means the Division of Consumer Protection within the Department of
80     Commerce.
81          (2) "Prearranged ride" means a period of time that:
82          (a) begins when the transportation network driver has accepted a passenger's request
83     for a ride through the transportation network company's software application; and
84          (b) ends when the passenger exits the transportation network driver's vehicle.
85          (3) "Software application" means an Internet-connected software platform, including a
86     mobile application, that a transportation network company uses to:
87          (a) connect a transportation network driver to a passenger; and

88          (b) process passenger requests.
89          (4) "Transportation network company" means an entity that:
90          (a) uses a software application to connect a passenger to a transportation network
91     driver providing transportation network services;
92          (b) is not:
93          (i) a taxicab, as defined in Section 53-3-102; or
94          (ii) a motor carrier, as defined in Section 72-9-102; and
95          (c) does not own, control, operate, or manage the vehicle used to provide the
96     transportation network services.
97          (5) "Transportation network driver" means an individual who:
98          (a) pays a fee to a transportation network company, and, in exchange, receives a
99     connection to a potential passenger from the transportation network company;
100          (b) operates a motor vehicle that:
101          (i) the individual owns, leases, or is authorized to use; and
102          (ii) the individual uses to provide transportation network services; and
103          (c) receives, in exchange for providing a passenger a ride, compensation that exceeds
104     the individual's cost to provide the ride.
105          (6) "Transportation network services" means, for a transportation network driver
106     providing services through a transportation network company:
107          (a) providing a prearranged ride; or
108          (b) being engaged in a waiting period.
109          (7) "Waiting period" means a period of time when:
110          (a) a transportation network driver is logged into a transportation network company's
111     software application; and
112          (b) the transportation network driver is not engaged in a prearranged ride.
113          Section 4. Section 13-51-103 is enacted to read:
114          13-51-103. Exemptions -- Transportation network company and transportation
115     network driver.
116          A transportation network company or a transportation network driver is not subject to
117     the requirements applicable to:
118          (1) a motor carrier, under Title 72, Chapter 9, Motor Carrier Safety Act;

119          (2) a common carrier, under Title 59, Chapter 12, Sales and Use Tax Act; or
120          (3) a taxicab, under Title 53, Chapter 3, Uniform Driver License Act.
121          Section 5. Section 13-51-104 is enacted to read:
122          13-51-104. Licensure -- Division audits -- Fines.
123          (1) A person may not operate a transportation network company without registering
124     with the division under Subsection (2).
125          (2) The division shall register a person to operate a transportation network company if:
126          (a) the person:
127          (i) demonstrates to the division that the person meets the definition of a transportation
128     network company under Section 13-51-102; and
129          (ii) pays a registration fee in an amount determined by the division in accordance with
130     Section 63J-1-504; and
131          (b) the division determines that the person complies with the operating requirements
132     for a transportation network company described in this chapter.
133          (3) A transportation network company's registration under Subsection (2) is:
134          (a) valid until one year after the day on which the transportation network company
135     registers with the division; and
136          (b) renewable if the transportation network company meets the requirements of
137     Subsection (2).
138          (4) The division may audit the records of a transportation network company, including
139     a random sample of the transportation network company's records related to transportation
140     network drivers:
141          (a) no more than twice per year;
142          (b) at a location agreed to by the division and the transportation network company; and
143          (c) notwithstanding Subsection (4)(a), at any time to investigate a complaint.
144          (5) The division may fine a transportation network company up to $500 for each
145     violation of this chapter.
146          Section 6. Section 13-51-105 is enacted to read:
147          13-51-105. Operating requirements.
148          (1) A transportation network company shall maintain an agent for service of process in
149     the state and shall notify the division of the name and address of the agent.

150          (2) A transportation network company may collect, on behalf of a transportation
151     network driver, a fare for a prearranged ride if the transportation network company:
152          (a) posts the method for calculating the fare on the transportation network company's
153     software application;
154          (b) provides a passenger the rate used to calculate the fare for a prearranged ride; and
155          (c) allows a passenger the option to obtain an estimated fare for a prearranged ride
156     before the passenger enters a transportation network driver's vehicle.
157          (3) For each prearranged ride, a transportation network company shall:
158          (a) before a passenger enters a transportation network driver's vehicle, display on the
159     transportation network company's software application a picture of the transportation network
160     driver; and
161          (b) shortly after the prearranged ride is complete, transmit an electronic receipt to the
162     passenger that lists:
163          (i) the prearranged ride's origin and destination;
164          (ii) the prearranged ride's total time and distance; and
165          (iii) an itemization of the total fare the passenger paid, if any.
166          (4) A transportation network driver may not, while providing transportation network
167     services:
168          (a) provide a ride to an individual who requests the ride by a means other than a
169     transportation network company's software application;
170          (b) solicit or accept cash payments from a passenger; or
171          (c) accept any means of payment other than payment through a transportation network
172     company's software application.
173          (5) A transportation network company shall maintain a record of:
174          (a) all trips, for a minimum of five years after the day on which the trip occurred; and
175          (b) all information in a transportation network company's possession regarding a
176     transportation network driver, for a minimum of five years after the day on which the
177     transportation network driver last provided transportation network services using the
178     transportation network company's software application.
179          (6) A transportation network company shall adopt a policy that prohibits unlawful
180     discrimination with respect to a passenger and shall:

181          (a) provide a copy of the policy to each transportation network driver; or
182          (b) post the policy on the transportation network company's website.
183          (7) (a) A transportation network driver shall accommodate:
184          (i) a service animal; or
185          (ii) an individual with a physical disability.
186          (b) A transportation network driver or transportation network company may not impose
187     an additional charge to provide the accommodations described in Subsections (7)(a) and (8).
188          (8) A transportation network company shall:
189          (a) allow a passenger to request a prearranged ride in a wheelchair-accessible vehicle;
190     and
191          (b) if a wheelchair-accessible vehicle is not available to a passenger who requests a
192     wheelchair-accessible vehicle under Subsection (8)(a), direct the passenger to a transportation
193     service that provides wheelchair-accessible service, if available.
194          (9) A transportation network company shall disclose to a transportation network driver:
195          (a) a description of the insurance coverage the transportation network company
196     provides the transportation network driver while the transportation network driver is providing
197     transportation network services, including the insurance coverage's liability limit;
198          (b) that the transportation network company's personal automobile insurance policy
199     may not provide coverage to the transportation network driver during a waiting period or a
200     prearranged ride;
201          (c) that if the vehicle the transportation network driver uses to provide transportation
202     network services has a lien against the vehicle, the transportation network driver is required to
203     notify the lienholder that the transportation network driver is using the vehicle to provide
204     transportation network services; and
205          (d) that using a vehicle with a lien against the vehicle to provide transportation network
206     services may violate the transportation network driver's contract with the lienholder.
207          (10) A transportation network company and the transportation network company's
208     insurer shall, for an incident that occurs while a transportation network driver is providing
209     transportation network services:
210          (a) cooperate with a liability insurer that insures the vehicle the transportation network
211     driver uses to provide the transportation network services;

212          (b) provide, to the liability insurer, the precise date and time that an incident occurred,
213     including the precise time when a driver logged in or out of the transportation network
214     company's software application; and
215          (c) provide the information described in Subsection (10)(b) to a liability insurer no
216     later than 10 business days after the day on which the liability insurer requests the information
217     from the transportation network company.
218          (11) If a transportation network company's insurer insures a vehicle with a lien against
219     the vehicle, and the transportation network company's insurer covers a claim regarding the
220     vehicle under comprehensive or collision coverage, the transportation network company shall
221     direct the transportation network company's insurer to issue the payment for the claim:
222          (a) directly to the person that is repairing the vehicle; or
223          (b) jointly to the owner of the vehicle and the primary lienholder.
224          Section 7. Section 13-51-106 is enacted to read:
225          13-51-106. Transportation network driver drug or alcohol use policy.
226          (1) A transportation network company shall implement a policy that:
227          (a) provides that a transportation network driver may not use a drug or alcohol or be
228     under the influence of a drug or alcohol while providing transportation network services;
229          (b) is posted on the transportation network company's website or software application;
230     and
231          (c) provides procedures for a passenger to report to the transportation network
232     company a transportation network driver who the passenger suspects violated the policy.
233          (2) If a transportation network company receives a complaint about a transportation
234     network driver under Subsection (1)(c), the transportation network company shall:
235          (a) suspend the transportation network company driver; and
236          (b) conduct an investigation into the transportation network company driver and the
237     conduct alleged in the complaint.
238          (3) A transportation network company shall maintain records related to a complaint or
239     investigation under this section for a minimum of two years after the day on which the
240     transportation network company receives the complaint.
241          Section 8. Section 13-51-107 is enacted to read:
242          13-51-107. Driver requirements.

243          (1) Before a transportation network company allows an individual to use the
244     transportation network company's software application as a transportation network driver, the
245     transportation network company shall:
246          (a) require the individual to submit to the transportation network company:
247          (i) the individual's name, address, and age;
248          (ii) a copy of the individual's driver license, including the driver license number; and
249          (iii) proof that the vehicle that the individual will use to provide transportation network
250     service is registered with the Division of Motor Vehicles;
251          (b) require the individual to consent to a criminal background check of the individual
252     by the transportation network company or the transportation network company's designee; and
253          (c) obtain and review a report that lists the individual's driving history.
254          (2) A transportation company may not allow an individual to provide transportation
255     network services as a transportation network driver if the individual:
256          (a) has committed more than three moving violations in the three years before the day
257     on which the individual applies to become a transportation network driver;
258          (b) has been convicted, in the seven years before the day on which the individual
259     applies to become a transportation network driver, of:
260          (i) driving under the influence of alcohol or drugs;
261          (ii) fraud;
262          (iii) a sexual offense;
263          (iv) a felony involving a motor vehicle;
264          (v) a crime involving property damage;
265          (vi) a crime involving theft;
266          (vii) a crime of violence; or
267          (viii) an act of terror;
268          (c) is required to register as a sex offender in accordance with Title 77, Chapter 41, Sex
269     and Kidnap Offender Registry;
270          (d) does not have a valid Utah driver license; or
271          (e) is not at least 19 years of age.
272          (3) A transportation network company shall prohibit a transportation network driver
273     from accepting a request for a prearranged ride if the motor vehicle that the transportation

274     network driver uses to provide transportation network services fails to comply with:
275          (a) safety and inspection requirements described in Section 53-8-205;
276          (b) equipment standards described in Section 41-6a-1601; and
277          (c) emission requirements adopted by a county under Section 41-6a-1642.
278          (4) A transportation network driver, while providing transportation network services,
279     shall carry proof, in physical or electronic form, that the transportation network driver is
280     covered by insurance that satisfies the requirements of Section 13-51-108.
281          Section 9. Section 13-51-108 is enacted to read:
282          13-51-108. Insurance.
283          (1) A transportation network company or a transportation network driver shall maintain
284     insurance that covers, on a primary basis, a transportation network driver's use of a vehicle
285     during a prearranged ride and that includes:
286          (a) an acknowledgment that the transportation network driver is using the vehicle in
287     connection with a transportation network company during a prearranged ride or that the
288     transportation network driver is otherwise using the vehicle for a commercial purpose;
289          (b) liability coverage for a minimum amount of $1,000,000 per occurrence;
290          (c) personal injury protection to the extent required under Sections 31A-22-306
291     through 31A-22-309;
292          (d) uninsured motorist coverage where required by Section 31A-22-305; and
293          (e) underinsured motorist coverage where required by Section 31A-22-305.3.
294          (2) A transportation network company or a transportation network driver shall maintain
295     insurance that covers, on a primary basis, a transportation network driver's use of a vehicle
296     during a waiting period and that includes:
297          (a) an acknowledgment that the transportation network driver is using the vehicle in
298     connection with a transportation network company during a waiting period or that the
299     transportation network driver is otherwise using the vehicle for a commercial purpose;
300          (b) liability coverage in a minimum amount, per occurrence, of:
301          (i) $50,000 to any one individual;
302          (ii) $100,000 to all individuals; and
303          (iii) $30,000 for property damage;
304          (c) personal injury protection to the extent required under Sections 31A-22-306

305     through 31A-22-309;
306          (d) uninsured motorist coverage where required by Section 31A-22-305; and
307          (e) underinsured motorist coverage where required by Section 31A-22-305.3.
308          (3) A transportation network company and a transportation network driver may satisfy
309     the requirements of Subsections (1) and (2) by:
310          (a) the transportation network driver purchasing coverage that complies with
311     Subsections (1) and (2);
312          (b) the transportation network company purchasing, on the transportation network
313     driver's behalf, coverage that complies with Subsections (1) and (2); or
314          (c) a combination of Subsections (3)(a) and (b).
315          (4) An insurer may offer to a transportation network driver a personal automobile
316     liability insurance policy, or an amendment or endorsement to a personal automobile liability
317     policy, that:
318          (a) covers a private passenger motor vehicle while used to provide transportation
319     network services; and
320          (b) satisfies the coverage requirements described in Subsection (1) or (2).
321          (5) Nothing in this section requires a personal automobile insurance policy to provide
322     coverage while a driver is providing transportation network services.
323          (6) If a transportation network company does not purchase a policy that complies with
324     Subsections (1) and (2) on behalf of a transportation network driver, the transportation network
325     company shall verify that the driver has purchased a policy that complies with Subsections (1)
326     and (2).
327          (7) An insurance policy that a transportation network company or a transportation
328     network driver maintains under Subsection (1) or (2):
329          (a) satisfies the security requirements of Section 41-12a-301; and
330          (b) may be placed with:
331          (i) an insurer that is certified under Section 31A-4-103; or
332          (ii) a surplus lines insurer licensed under Section 31A-23a-104.
333          (8) An insurer that provides coverage for a transportation network driver explicitly for
334     the transportation network driver's transportation network services under Subsection (1) or (2)
335     shall have the duty to defend a liability claim arising from an occurrence while the

336     transportation network driver is providing transportation network services.
337          (9) If insurance a transportation network driver maintains under Subsection (1) or (2)
338     lapses or ceases to exist, a transportation network company shall provide coverage complying
339     with Subsection (1) or (2) beginning with the first dollar of a claim.
340          (10) (a) An insurance policy that a transportation network company or transportation
341     network driver maintains under Subsection (1) or (2) may not provide that coverage is
342     dependent on a transportation network driver's personal automobile insurance policy first
343     denying a claim.
344          (b) Subsection (10)(a) does not apply to coverage a transportation network company
345     provides under Subsection (9) in the event a transportation network driver's coverage under
346     Subsection (1) or (2) lapses or ceases to exist.
347          (11) A personal automobile insurer:
348          (a) notwithstanding Section 31A-22-302, may offer a personal automobile liability
349     policy that excludes coverage for a loss that arises from the use of the insured vehicle to
350     provide transportation network services; and
351          (b) does not have the duty to defend or indemnify a loss if an exclusion described in
352     Subsection (11)(a) excludes coverage according to the policy's terms.
353          Section 10. Section 13-51-109 is enacted to read:
354          13-51-109. Preemption clause.
355          (1) Except as provided in Subsection (2), this chapter supersedes any regulation of a
356     municipality, county, or local government regarding a transportation network company, a
357     transportation network driver, or transportation network services.
358          (2) This chapter does not supersede a municipal, county, or local government
359     regulation regarding a transportation network driver providing transportation network services
360     at an airport.
361          Section 11. Section 41-6a-208 is amended to read:
362          41-6a-208. Regulatory powers of local highway authorities -- Traffic-control
363     device affecting state highway -- Necessity of erecting traffic-control devices.
364          (1) As used in this section:
365          (a) (i) "Ground transportation vehicle" means a motor vehicle used for the
366     transportation of persons, used in ride or shared ride, on demand, or for hire transportation of

367     passengers or baggage over public highways.
368          (ii) "Ground transportation vehicle" includes a:
369          (A) shared ride vehicle;
370          (B) bus;
371          (C) courtesy vehicle;
372          (D) hotel vehicle;
373          (E) limousine;
374          (F) minibus;
375          (G) special transportation vehicle;
376          (H) specialty vehicle;
377          (I) taxicab;
378          (J) van; or
379          (K) trailer being towed by a ground transportation vehicle.
380          (b) "Idle" means the operation of a vehicle engine while the vehicle is stationary or not
381     in the act of performing work or its normal function.
382          (2) The provisions of this chapter do not prevent a local highway authority for a
383     highway under its jurisdiction and within the reasonable exercise of police power, from:
384          (a) regulating or prohibiting stopping, standing, or parking;
385          (b) regulating traffic by means of a peace officer or a traffic-control device;
386          (c) regulating or prohibiting processions or assemblages on a highway;
387          (d) designating particular highways or roadways for use by traffic moving in one
388     direction under Section 41-6a-709;
389          (e) establishing speed limits for vehicles in public parks, which supersede Section
390     41-6a-603 regarding speed limits;
391          (f) designating any highway as a through highway or designating any intersection or
392     junction of roadways as a stop or yield intersection or junction;
393          (g) restricting the use of a highway under Section 72-7-408;
394          (h) requiring the registration and inspection of bicycles, including requiring a
395     registration fee;
396          (i) regulating or prohibiting:
397          (i) certain turn movements of a vehicle; or

398          (ii) specified types of vehicles;
399          (j) altering or establishing speed limits under Section 41-6a-603;
400          (k) requiring written accident reports under Section 41-6a-403;
401          (l) designating no-passing zones under Section 41-6a-708;
402          (m) prohibiting or regulating the use of controlled-access highways by any class or
403     kind of traffic under Section 41-6a-715;
404          (n) prohibiting or regulating the use of heavily traveled streets by any class or kind of
405     traffic found to be incompatible with the normal and safe movement of traffic;
406          (o) establishing minimum speed limits under Subsection 41-6a-605(3);
407          (p) prohibiting pedestrians from crossing a highway in a business district or any
408     designated highway except in a crosswalk under Section 41-6a-1001;
409          (q) restricting pedestrian crossings at unmarked crosswalks under Section 41-6a-1010;
410          (r) regulating persons upon skates, coasters, sleds, skateboards, and other toy vehicles;
411          (s) adopting and enforcing temporary or experimental ordinances as necessary to cover
412     emergencies or special conditions;
413          (t) prohibiting drivers of ambulances from exceeding maximum speed limits;
414          (u) adopting other traffic ordinances as specifically authorized by this chapter; or
415          (v) adopting an ordinance that requires a ground transportation vehicle to conform to
416     state safety standards and reasonable annual appearance requirements, in consultation with a
417     transportation advisory board of the local highway authority.
418          (3) A local highway authority may not:
419          (a) in accordance with Title 72, Chapter 3, Part 1, Highways in General, erect or
420     maintain any official traffic-control device at any location which regulates the traffic on a
421     highway not under the local highway authority's jurisdiction, unless written approval is
422     obtained from the highway authority having jurisdiction over the highway;
423          (b) prohibit or restrict the use of a cellular phone by the operator or passenger of a
424     motor vehicle;
425          (c) enact an ordinance that prohibits or restricts an owner or operator of a vehicle from
426     causing or permitting the vehicle's engine to idle unless the ordinance:
427          (i) is primarily educational;
428          (ii) provides that a person must be issued at least three warning citations before

429     imposing a fine;
430          (iii) has the same fine structure as a parking violation;
431          (iv) provides for the safety of law enforcement personnel who enforce the ordinance;
432     and
433          (v) provides that the ordinance may be enforced on:
434          (A) public property; or
435          (B) private property that is open to the general public unless the private property
436     owner:
437          (I) has a private business that has a drive-through service as a component of the private
438     property owner's business operations and posts a sign provided by or acceptable to the local
439     highway authority informing its customers and the public of the local highway authority's time
440     limit for idling vehicle engines; or
441          (II) adopts an idle reduction education policy approved by the local highway authority;
442          (d) enact an ordinance that prohibits a vehicle from being licensed as a ground
443     transportation vehicle:
444          (i) if the vehicle to be licensed otherwise passes all state safety inspection requirements
445     established by the Utah Highway Patrol Division in accordance with Section 53-8-204; and
446          (ii) (A) based on the manufacture date of the vehicle; or
447          (B) based on the number of miles the vehicle has accumulated;
448          (e) enact an ordinance, regulation, rule, fee, or criminal or civil fine pertaining to a
449     registration violation under Section 41-1a-201 or a registration decal issued under Section
450     41-1a-402 that conflicts with or is more stringent than the registration requirements under Title
451     41, Motor Vehicles; [or]
452          (f) enact an ordinance that:
453          (i) is inconsistent with the provisions of this chapter; or
454          (ii) prohibits the use of a bicycle on any public street or highway, except as allowed by
455     Section 41-6a-714, unless the local highway authority has:
456          (A) documented that the local highway authority has reviewed the safety history of the
457     highway and considered other reasonable alternatives, including signage and routes; and
458          (B) clearly marked a safe alternative route for the prohibited section of highway[.]; or
459          (g) enact an ordinance, regulation, or rule that requires the owner or driver of a ground

460     transportation vehicle to maintain liability insurance coverage in an amount that is greater than
461     the minimum amount of liability coverage a transportation network company or transportation
462     network driver is required to maintain under Subsection 13-51-108(1)(b).
463          (4) An ordinance enacted under Subsection (2)(d), (e), (f), (g), (i), (j), (l), (m), (n), or
464     (q) is not effective until official traffic-control devices giving notice of the local traffic
465     ordinances are erected upon or at the entrances to the highway or part of it affected as is
466     appropriate.
467          (5) An ordinance enacted by a local highway authority that violates Subsection (3) is
468     not effective.
469          Section 12. Section 53-3-102 is amended to read:
470          53-3-102. Definitions.
471          As used in this chapter:
472          (1) "Cancellation" means the termination by the division of a license issued through
473     error or fraud or for which consent under Section 53-3-211 has been withdrawn.
474          (2) "Class D license" means the class of license issued to drive motor vehicles not
475     defined as commercial motor vehicles or motorcycles under this chapter.
476          (3) "Commercial driver license" or "CDL" means a license:
477          (a) issued substantially in accordance with the requirements of Title XII, Pub. L.
478     99-570, the Commercial Motor Vehicle Safety Act of 1986, and in accordance with Part 4,
479     Uniform Commercial Driver License Act, which authorizes the holder to drive a class of
480     commercial motor vehicle; and
481          (b) that was obtained by providing evidence of lawful presence in the United States
482     with one of the document requirements described in Subsection 53-3-410(1)(i)(i).
483          (4) (a) "Commercial motor vehicle" means a motor vehicle or combination of motor
484     vehicles designed or used to transport passengers or property if the motor vehicle:
485          (i) has a gross vehicle weight rating of 26,001 or more pounds or a lesser rating as
486     determined by federal regulation;
487          (ii) is designed to transport 16 or more passengers, including the driver; or
488          (iii) is transporting hazardous materials and is required to be placarded in accordance
489     with 49 C.F.R. Part 172, Subpart F.
490          (b) The following vehicles are not considered a commercial motor vehicle for purposes

491     of Part 4, Uniform Commercial Driver License Act:
492          (i) equipment owned and operated by the United States Department of Defense when
493     driven by any active duty military personnel and members of the reserves and national guard on
494     active duty including personnel on full-time national guard duty, personnel on part-time
495     training, and national guard military technicians and civilians who are required to wear military
496     uniforms and are subject to the code of military justice;
497          (ii) vehicles controlled and driven by a farmer to transport agricultural products, farm
498     machinery, or farm supplies to or from a farm within 150 miles of his farm but not in operation
499     as a motor carrier for hire;
500          (iii) firefighting and emergency vehicles; [and]
501          (iv) recreational vehicles that are not used in commerce and are driven solely as family
502     or personal conveyances for recreational purposes[.]; and
503          (v) vehicles used to provide transportation network services, as defined in Section
504     13-51-102.
505          (5) "Conviction" means any of the following:
506          (a) an unvacated adjudication of guilt or a determination that a person has violated or
507     failed to comply with the law in a court of original jurisdiction or an administrative proceeding;
508          (b) an unvacated forfeiture of bail or collateral deposited to secure a person's
509     appearance in court;
510          (c) a plea of guilty or nolo contendere accepted by the court;
511          (d) the payment of a fine or court costs; or
512          (e) violation of a condition of release without bail, regardless of whether the penalty is
513     rebated, suspended, or probated.
514          (6) "Denial" or "denied" means the withdrawal of a driving privilege by the division to
515     which the provisions of Title 41, Chapter 12a, Part 4, Proof of Owner's or Operator's Security,
516     do not apply.
517          (7) "Director" means the division director appointed under Section 53-3-103.
518          (8) "Disqualification" means either:
519          (a) the suspension, revocation, cancellation, denial, or any other withdrawal by a state
520     of a person's privileges to drive a commercial motor vehicle;
521          (b) a determination by the Federal Highway Administration, under 49 C.F.R. Part 386,

522     that a person is no longer qualified to drive a commercial motor vehicle under 49 C.F.R. Part
523     391; or
524          (c) the loss of qualification that automatically follows conviction of an offense listed in
525     49 C.F.R. Part 383.51.
526          (9) "Division" means the Driver License Division of the department created in Section
527     53-3-103.
528          (10) "Downgrade" means to obtain a lower license class than what was originally
529     issued during an existing license cycle.
530          (11) "Drive" means:
531          (a) to operate or be in physical control of a motor vehicle upon a highway; and
532          (b) in Subsections 53-3-414(1) through (3), Subsection 53-3-414(5), and Sections
533     53-3-417 and 53-3-418, the operation or physical control of a motor vehicle at any place within
534     the state.
535          (12) (a) "Driver" means any person who drives, or is in actual physical control of a
536     motor vehicle in any location open to the general public for purposes of vehicular traffic.
537          (b) In Part 4, Uniform Commercial Driver License Act, "driver" includes any person
538     who is required to hold a CDL under Part 4 or federal law.
539          (13) "Driving privilege card" means the evidence of the privilege granted and issued
540     under this chapter to drive a motor vehicle to a person whose privilege was obtained without
541     providing evidence of lawful presence in the United States.
542          (14) "Extension" means a renewal completed in a manner specified by the division.
543          (15) "Farm tractor" means every motor vehicle designed and used primarily as a farm
544     implement for drawing plows, mowing machines, and other implements of husbandry.
545          (16) "Highway" means the entire width between property lines of every way or place of
546     any nature when any part of it is open to the use of the public, as a matter of right, for traffic.
547          (17) "Identification card" means a card issued under Part 8, Identification Card Act, to
548     a person for identification purposes.
549          (18) "Indigent" means that a person's income falls below the federal poverty guideline
550     issued annually by the U.S. Department of Health and Human Services in the Federal Register.
551          (19) "License" means the privilege to drive a motor vehicle.
552          (20) (a) "License certificate" means the evidence of the privilege issued under this

553     chapter to drive a motor vehicle.
554          (b) "License certificate" evidence includes a:
555          (i) regular license certificate;
556          (ii) limited-term license certificate;
557          (iii) driving privilege card;
558          (iv) CDL license certificate;
559          (v) limited-term CDL license certificate;
560          (vi) temporary regular license certificate; and
561          (vii) temporary limited-term license certificate.
562          (21) "Limited-term commercial driver license" or "limited-term CDL" means a license:
563          (a) issued substantially in accordance with the requirements of Title XII, Pub. L.
564     99-570, the Commercial Motor Vehicle Safety Act of 1986, and in accordance with Part 4,
565     Uniform Commercial Driver License Act, which authorizes the holder to drive a class of
566     commercial motor vehicle; and
567          (b) that was obtained by providing evidence of lawful presence in the United States
568     with one of the document requirements described in Subsection 53-3-410(1)(i)(ii).
569          (22) "Limited-term identification card" means an identification card issued under this
570     chapter to a person whose card was obtained by providing evidence of lawful presence in the
571     United States with one of the document requirements described in Subsection
572     53-3-804(2)(i)(ii).
573          (23) "Limited-term license certificate" means the evidence of the privilege granted and
574     issued under this chapter to drive a motor vehicle to a person whose privilege was obtained
575     providing evidence of lawful presence in the United States with one of the document
576     requirements described in Subsection 53-3-205(8)(a)(ii)(B).
577          (24) "Motorboat" has the same meaning as provided under Section 73-18-2.
578          (25) "Motorcycle" means every motor vehicle, other than a tractor, having a seat or
579     saddle for the use of the rider and designed to travel with not more than three wheels in contact
580     with the ground.
581          (26) "Office of Recovery Services" means the Office of Recovery Services, created in
582     Section 62A-11-102.
583          (27) (a) "Owner" means a person other than a lien holder having an interest in the

584     property or title to a vehicle.
585          (b) "Owner" includes a person entitled to the use and possession of a vehicle subject to
586     a security interest in another person but excludes a lessee under a lease not intended as security.
587          (28) "Regular identification card" means an identification card issued under this
588     chapter to a person whose card was obtained by providing evidence of lawful presence in the
589     United States with one of the document requirements described in Subsection 53-3-804(2)(i)(i).
590          (29) "Regular license certificate" means the evidence of the privilege issued under this
591     chapter to drive a motor vehicle whose privilege was obtained by providing evidence of lawful
592     presence in the United States with one of the document requirements described in Subsection
593     53-3-205(8)(a)(ii)(A).
594          (30) "Renewal" means to validate a license certificate so that it expires at a later date.
595          (31) "Reportable violation" means an offense required to be reported to the division as
596     determined by the division and includes those offenses against which points are assessed under
597     Section 53-3-221.
598          (32) (a) "Resident" means an individual who:
599          (i) has established a domicile in this state, as defined in Section 41-1a-202, or
600     regardless of domicile, remains in this state for an aggregate period of six months or more
601     during any calendar year;
602          (ii) engages in a trade, profession, or occupation in this state, or who accepts
603     employment in other than seasonal work in this state, and who does not commute into the state;
604          (iii) declares himself to be a resident of this state by obtaining a valid Utah driver
605     license certificate or motor vehicle registration; or
606          (iv) declares himself a resident of this state to obtain privileges not ordinarily extended
607     to nonresidents, including going to school, or placing children in school without paying
608     nonresident tuition or fees.
609          (b) "Resident" does not include any of the following:
610          (i) a member of the military, temporarily stationed in this state;
611          (ii) an out-of-state student, as classified by an institution of higher education,
612     regardless of whether the student engages in any type of employment in this state;
613          (iii) a person domiciled in another state or country, who is temporarily assigned in this
614     state, assigned by or representing an employer, religious or private organization, or a

615     governmental entity; or
616          (iv) an immediate family member who resides with or a household member of a person
617     listed in Subsections (32)(b)(i) through (iii).
618          (33) "Revocation" means the termination by action of the division of a licensee's
619     privilege to drive a motor vehicle.
620          (34) (a) "School bus" means a commercial motor vehicle used to transport pre-primary,
621     primary, or secondary school students to and from home and school, or to and from school
622     sponsored events.
623          (b) "School bus" does not include a bus used as a common carrier as defined in Section
624     59-12-102.
625          (35) "Suspension" means the temporary withdrawal by action of the division of a
626     licensee's privilege to drive a motor vehicle.
627          (36) "Taxicab" means any class D motor vehicle transporting any number of
628     passengers for hire and that is subject to state or federal regulation as a taxi.
629          Section 13. Section 59-12-102 is amended to read:
630          59-12-102. Definitions.
631          As used in this chapter:
632          (1) "800 service" means a telecommunications service that:
633          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
634          (b) is typically marketed:
635          (i) under the name 800 toll-free calling;
636          (ii) under the name 855 toll-free calling;
637          (iii) under the name 866 toll-free calling;
638          (iv) under the name 877 toll-free calling;
639          (v) under the name 888 toll-free calling; or
640          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
641     Federal Communications Commission.
642          (2) (a) "900 service" means an inbound toll telecommunications service that:
643          (i) a subscriber purchases;
644          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
645     the subscriber's:

646          (A) prerecorded announcement; or
647          (B) live service; and
648          (iii) is typically marketed:
649          (A) under the name 900 service; or
650          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
651     Communications Commission.
652          (b) "900 service" does not include a charge for:
653          (i) a collection service a seller of a telecommunications service provides to a
654     subscriber; or
655          (ii) the following a subscriber sells to the subscriber's customer:
656          (A) a product; or
657          (B) a service.
658          (3) (a) "Admission or user fees" includes season passes.
659          (b) "Admission or user fees" does not include annual membership dues to private
660     organizations.
661          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
662     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
663     Agreement after November 12, 2002.
664          (5) "Agreement combined tax rate" means the sum of the tax rates:
665          (a) listed under Subsection (6); and
666          (b) that are imposed within a local taxing jurisdiction.
667          (6) "Agreement sales and use tax" means a tax imposed under:
668          (a) Subsection 59-12-103(2)(a)(i)(A);
669          (b) Subsection 59-12-103(2)(b)(i);
670          (c) Subsection 59-12-103(2)(c)(i);
671          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
672          (e) Section 59-12-204;
673          (f) Section 59-12-401;
674          (g) Section 59-12-402;
675          (h) Section 59-12-703;
676          (i) Section 59-12-802;

677          (j) Section 59-12-804;
678          (k) Section 59-12-1102;
679          (l) Section 59-12-1302;
680          (m) Section 59-12-1402;
681          (n) Section 59-12-1802;
682          (o) Section 59-12-2003;
683          (p) Section 59-12-2103;
684          (q) Section 59-12-2213;
685          (r) Section 59-12-2214;
686          (s) Section 59-12-2215;
687          (t) Section 59-12-2216;
688          (u) Section 59-12-2217; or
689          (v) Section 59-12-2218.
690          (7) "Aircraft" is as defined in Section 72-10-102.
691          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
692          (a) except for:
693          (i) an airline as defined in Section 59-2-102; or
694          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
695     includes a corporation that is qualified to do business but is not otherwise doing business in the
696     state, of an airline; and
697          (b) that has the workers, expertise, and facilities to perform the following, regardless of
698     whether the business entity performs the following in this state:
699          (i) check, diagnose, overhaul, and repair:
700          (A) an onboard system of a fixed wing turbine powered aircraft; and
701          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
702          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
703     engine;
704          (iii) perform at least the following maintenance on a fixed wing turbine powered
705     aircraft:
706          (A) an inspection;
707          (B) a repair, including a structural repair or modification;

708          (C) changing landing gear; and
709          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
710          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
711     completely apply new paint to the fixed wing turbine powered aircraft; and
712          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
713     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
714     authority that certifies the fixed wing turbine powered aircraft.
715          (9) "Alcoholic beverage" means a beverage that:
716          (a) is suitable for human consumption; and
717          (b) contains .5% or more alcohol by volume.
718          (10) "Alternative energy" means:
719          (a) biomass energy;
720          (b) geothermal energy;
721          (c) hydroelectric energy;
722          (d) solar energy;
723          (e) wind energy; or
724          (f) energy that is derived from:
725          (i) coal-to-liquids;
726          (ii) nuclear fuel;
727          (iii) oil-impregnated diatomaceous earth;
728          (iv) oil sands;
729          (v) oil shale;
730          (vi) petroleum coke; or
731          (vii) waste heat from:
732          (A) an industrial facility; or
733          (B) a power station in which an electric generator is driven through a process in which
734     water is heated, turns into steam, and spins a steam turbine.
735          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
736     facility" means a facility that:
737          (i) uses alternative energy to produce electricity; and
738          (ii) has a production capacity of two megawatts or greater.

739          (b) A facility is an alternative energy electricity production facility regardless of
740     whether the facility is:
741          (i) connected to an electric grid; or
742          (ii) located on the premises of an electricity consumer.
743          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
744     provision of telecommunications service.
745          (b) "Ancillary service" includes:
746          (i) a conference bridging service;
747          (ii) a detailed communications billing service;
748          (iii) directory assistance;
749          (iv) a vertical service; or
750          (v) a voice mail service.
751          (13) "Area agency on aging" is as defined in Section 62A-3-101.
752          (14) "Assisted amusement device" means an amusement device, skill device, or ride
753     device that is started and stopped by an individual:
754          (a) who is not the purchaser or renter of the right to use or operate the amusement
755     device, skill device, or ride device; and
756          (b) at the direction of the seller of the right to use the amusement device, skill device,
757     or ride device.
758          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
759     washing of tangible personal property if the cleaning or washing labor is primarily performed
760     by an individual:
761          (a) who is not the purchaser of the cleaning or washing of the tangible personal
762     property; and
763          (b) at the direction of the seller of the cleaning or washing of the tangible personal
764     property.
765          (16) "Authorized carrier" means:
766          (a) in the case of vehicles operated over public highways, the holder of credentials
767     indicating that the vehicle is or will be operated pursuant to both the International Registration
768     Plan and the International Fuel Tax Agreement;
769          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating

770     certificate or air carrier's operating certificate; or
771          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
772     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
773     stock in more than one state.
774          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
775     following that is used as the primary source of energy to produce fuel or electricity:
776          (i) material from a plant or tree; or
777          (ii) other organic matter that is available on a renewable basis, including:
778          (A) slash and brush from forests and woodlands;
779          (B) animal waste;
780          (C) waste vegetable oil;
781          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
782     wastewater residuals, or through the conversion of a waste material through a nonincineration,
783     thermal conversion process;
784          (E) aquatic plants; and
785          (F) agricultural products.
786          (b) "Biomass energy" does not include:
787          (i) black liquor; or
788          (ii) treated woods.
789          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
790     property, products, or services if the tangible personal property, products, or services are:
791          (i) distinct and identifiable; and
792          (ii) sold for one nonitemized price.
793          (b) "Bundled transaction" does not include:
794          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
795     the basis of the selection by the purchaser of the items of tangible personal property included in
796     the transaction;
797          (ii) the sale of real property;
798          (iii) the sale of services to real property;
799          (iv) the retail sale of tangible personal property and a service if:
800          (A) the tangible personal property:

801          (I) is essential to the use of the service; and
802          (II) is provided exclusively in connection with the service; and
803          (B) the service is the true object of the transaction;
804          (v) the retail sale of two services if:
805          (A) one service is provided that is essential to the use or receipt of a second service;
806          (B) the first service is provided exclusively in connection with the second service; and
807          (C) the second service is the true object of the transaction;
808          (vi) a transaction that includes tangible personal property or a product subject to
809     taxation under this chapter and tangible personal property or a product that is not subject to
810     taxation under this chapter if the:
811          (A) seller's purchase price of the tangible personal property or product subject to
812     taxation under this chapter is de minimis; or
813          (B) seller's sales price of the tangible personal property or product subject to taxation
814     under this chapter is de minimis; and
815          (vii) the retail sale of tangible personal property that is not subject to taxation under
816     this chapter and tangible personal property that is subject to taxation under this chapter if:
817          (A) that retail sale includes:
818          (I) food and food ingredients;
819          (II) a drug;
820          (III) durable medical equipment;
821          (IV) mobility enhancing equipment;
822          (V) an over-the-counter drug;
823          (VI) a prosthetic device; or
824          (VII) a medical supply; and
825          (B) subject to Subsection (18)(f):
826          (I) the seller's purchase price of the tangible personal property subject to taxation under
827     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
828          (II) the seller's sales price of the tangible personal property subject to taxation under
829     this chapter is 50% or less of the seller's total sales price of that retail sale.
830          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
831     service that is distinct and identifiable does not include:

832          (A) packaging that:
833          (I) accompanies the sale of the tangible personal property, product, or service; and
834          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
835     service;
836          (B) tangible personal property, a product, or a service provided free of charge with the
837     purchase of another item of tangible personal property, a product, or a service; or
838          (C) an item of tangible personal property, a product, or a service included in the
839     definition of "purchase price."
840          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
841     product, or a service is provided free of charge with the purchase of another item of tangible
842     personal property, a product, or a service if the sales price of the purchased item of tangible
843     personal property, product, or service does not vary depending on the inclusion of the tangible
844     personal property, product, or service provided free of charge.
845          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
846     does not include a price that is separately identified by tangible personal property, product, or
847     service on the following, regardless of whether the following is in paper format or electronic
848     format:
849          (A) a binding sales document; or
850          (B) another supporting sales-related document that is available to a purchaser.
851          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
852     supporting sales-related document that is available to a purchaser includes:
853          (A) a bill of sale;
854          (B) a contract;
855          (C) an invoice;
856          (D) a lease agreement;
857          (E) a periodic notice of rates and services;
858          (F) a price list;
859          (G) a rate card;
860          (H) a receipt; or
861          (I) a service agreement.
862          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal

863     property or a product subject to taxation under this chapter is de minimis if:
864          (A) the seller's purchase price of the tangible personal property or product is 10% or
865     less of the seller's total purchase price of the bundled transaction; or
866          (B) the seller's sales price of the tangible personal property or product is 10% or less of
867     the seller's total sales price of the bundled transaction.
868          (ii) For purposes of Subsection (18)(b)(vi), a seller:
869          (A) shall use the seller's purchase price or the seller's sales price to determine if the
870     purchase price or sales price of the tangible personal property or product subject to taxation
871     under this chapter is de minimis; and
872          (B) may not use a combination of the seller's purchase price and the seller's sales price
873     to determine if the purchase price or sales price of the tangible personal property or product
874     subject to taxation under this chapter is de minimis.
875          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
876     contract to determine if the sales price of tangible personal property or a product is de minimis.
877          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
878     the seller's purchase price and the seller's sales price to determine if tangible personal property
879     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
880     price of that retail sale.
881          (19) "Certified automated system" means software certified by the governing board of
882     the agreement that:
883          (a) calculates the agreement sales and use tax imposed within a local taxing
884     jurisdiction:
885          (i) on a transaction; and
886          (ii) in the states that are members of the agreement;
887          (b) determines the amount of agreement sales and use tax to remit to a state that is a
888     member of the agreement; and
889          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
890          (20) "Certified service provider" means an agent certified:
891          (a) by the governing board of the agreement; and
892          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
893     use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's

894     own purchases.
895          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
896     suitable for general use.
897          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
898     commission shall make rules:
899          (i) listing the items that constitute "clothing"; and
900          (ii) that are consistent with the list of items that constitute "clothing" under the
901     agreement.
902          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
903          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
904     fuels that does not constitute industrial use under Subsection (55) or residential use under
905     Subsection (105).
906          (24) (a) "Common carrier" means a person engaged in or transacting the business of
907     transporting passengers, freight, merchandise, or other property for hire within this state.
908          (b) (i) "Common carrier" does not include a person who, at the time the person is
909     traveling to or from that person's place of employment, transports a passenger to or from the
910     passenger's place of employment.
911          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
912     Utah Administrative Rulemaking Act, the commission may make rules defining what
913     constitutes a person's place of employment.
914          (c) "Common carrier" does not include a person that provides transportation network
915     services, as defined in Section 13-51-102.
916          (25) "Component part" includes:
917          (a) poultry, dairy, and other livestock feed, and their components;
918          (b) baling ties and twine used in the baling of hay and straw;
919          (c) fuel used for providing temperature control of orchards and commercial
920     greenhouses doing a majority of their business in wholesale sales, and for providing power for
921     off-highway type farm machinery; and
922          (d) feed, seeds, and seedlings.
923          (26) "Computer" means an electronic device that accepts information:
924          (a) (i) in digital form; or

925          (ii) in a form similar to digital form; and
926          (b) manipulates that information for a result based on a sequence of instructions.
927          (27) "Computer software" means a set of coded instructions designed to cause:
928          (a) a computer to perform a task; or
929          (b) automatic data processing equipment to perform a task.
930          (28) "Computer software maintenance contract" means a contract that obligates a seller
931     of computer software to provide a customer with:
932          (a) future updates or upgrades to computer software;
933          (b) support services with respect to computer software; or
934          (c) a combination of Subsections (28)(a) and (b).
935          (29) (a) "Conference bridging service" means an ancillary service that links two or
936     more participants of an audio conference call or video conference call.
937          (b) "Conference bridging service" may include providing a telephone number as part of
938     the ancillary service described in Subsection (29)(a).
939          (c) "Conference bridging service" does not include a telecommunications service used
940     to reach the ancillary service described in Subsection (29)(a).
941          (30) "Construction materials" means any tangible personal property that will be
942     converted into real property.
943          (31) "Delivered electronically" means delivered to a purchaser by means other than
944     tangible storage media.
945          (32) (a) "Delivery charge" means a charge:
946          (i) by a seller of:
947          (A) tangible personal property;
948          (B) a product transferred electronically; or
949          (C) services; and
950          (ii) for preparation and delivery of the tangible personal property, product transferred
951     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
952     purchaser.
953          (b) "Delivery charge" includes a charge for the following:
954          (i) transportation;
955          (ii) shipping;

956          (iii) postage;
957          (iv) handling;
958          (v) crating; or
959          (vi) packing.
960          (33) "Detailed telecommunications billing service" means an ancillary service of
961     separately stating information pertaining to individual calls on a customer's billing statement.
962          (34) "Dietary supplement" means a product, other than tobacco, that:
963          (a) is intended to supplement the diet;
964          (b) contains one or more of the following dietary ingredients:
965          (i) a vitamin;
966          (ii) a mineral;
967          (iii) an herb or other botanical;
968          (iv) an amino acid;
969          (v) a dietary substance for use by humans to supplement the diet by increasing the total
970     dietary intake; or
971          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
972     described in Subsections (34)(b)(i) through (v);
973          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
974          (A) tablet form;
975          (B) capsule form;
976          (C) powder form;
977          (D) softgel form;
978          (E) gelcap form; or
979          (F) liquid form; or
980          (ii) if the product is not intended for ingestion in a form described in Subsections
981     (34)(c)(i)(A) through (F), is not represented:
982          (A) as conventional food; and
983          (B) for use as a sole item of:
984          (I) a meal; or
985          (II) the diet; and
986          (d) is required to be labeled as a dietary supplement:

987          (i) identifiable by the "Supplemental Facts" box found on the label; and
988          (ii) as required by 21 C.F.R. Sec. 101.36.
989          [(36)] (35) "Digital audio-visual work" means a series of related images which, when
990     shown in succession, imparts an impression of motion, together with accompanying sounds, if
991     any.
992          [(35)] (36) (a) "Digital audio work" means a work that results from the fixation of a
993     series of musical, spoken, or other sounds.
994          (b) "Digital audio work" includes a ringtone.
995          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
996     sense as a book.
997          (38) (a) "Direct mail" means printed material delivered or distributed by United States
998     mail or other delivery service:
999          (i) to:
1000          (A) a mass audience; or
1001          (B) addressees on a mailing list provided:
1002          (I) by a purchaser of the mailing list; or
1003          (II) at the discretion of the purchaser of the mailing list; and
1004          (ii) if the cost of the printed material is not billed directly to the recipients.
1005          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1006     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1007          (c) "Direct mail" does not include multiple items of printed material delivered to a
1008     single address.
1009          (39) "Directory assistance" means an ancillary service of providing:
1010          (a) address information; or
1011          (b) telephone number information.
1012          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
1013     or supplies that:
1014          (i) cannot withstand repeated use; and
1015          (ii) are purchased by, for, or on behalf of a person other than:
1016          (A) a health care facility as defined in Section 26-21-2;
1017          (B) a health care provider as defined in Section 78B-3-403;

1018          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
1019          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
1020          (b) "Disposable home medical equipment or supplies" does not include:
1021          (i) a drug;
1022          (ii) durable medical equipment;
1023          (iii) a hearing aid;
1024          (iv) a hearing aid accessory;
1025          (v) mobility enhancing equipment; or
1026          (vi) tangible personal property used to correct impaired vision, including:
1027          (A) eyeglasses; or
1028          (B) contact lenses.
1029          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1030     commission may by rule define what constitutes medical equipment or supplies.
1031          (41) (a) "Drug" means a compound, substance, or preparation, or a component of a
1032     compound, substance, or preparation that is:
1033          (i) recognized in:
1034          (A) the official United States Pharmacopoeia;
1035          (B) the official Homeopathic Pharmacopoeia of the United States;
1036          (C) the official National Formulary; or
1037          (D) a supplement to a publication listed in Subsections (41)(a)(i)(A) through (C);
1038          (ii) intended for use in the:
1039          (A) diagnosis of disease;
1040          (B) cure of disease;
1041          (C) mitigation of disease;
1042          (D) treatment of disease; or
1043          (E) prevention of disease; or
1044          (iii) intended to affect:
1045          (A) the structure of the body; or
1046          (B) any function of the body.
1047          (b) "Drug" does not include:
1048          (i) food and food ingredients;

1049          (ii) a dietary supplement;
1050          (iii) an alcoholic beverage; or
1051          (iv) a prosthetic device.
1052          (42) (a) Except as provided in Subsection (42)(c), "durable medical equipment" means
1053     equipment that:
1054          (i) can withstand repeated use;
1055          (ii) is primarily and customarily used to serve a medical purpose;
1056          (iii) generally is not useful to a person in the absence of illness or injury; and
1057          (iv) is not worn in or on the body.
1058          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1059     equipment described in Subsection (42)(a).
1060          (c) "Durable medical equipment" does not include mobility enhancing equipment.
1061          (43) "Electronic" means:
1062          (a) relating to technology; and
1063          (b) having:
1064          (i) electrical capabilities;
1065          (ii) digital capabilities;
1066          (iii) magnetic capabilities;
1067          (iv) wireless capabilities;
1068          (v) optical capabilities;
1069          (vi) electromagnetic capabilities; or
1070          (vii) capabilities similar to Subsections (43)(b)(i) through (vi).
1071          (44) "Electronic financial payment service" means an establishment:
1072          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1073     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
1074     federal Executive Office of the President, Office of Management and Budget; and
1075          (b) that performs electronic financial payment services.
1076          (45) "Employee" is as defined in Section 59-10-401.
1077          (46) "Fixed guideway" means a public transit facility that uses and occupies:
1078          (a) rail for the use of public transit; or
1079          (b) a separate right-of-way for the use of public transit.

1080          (47) "Fixed wing turbine powered aircraft" means an aircraft that:
1081          (a) is powered by turbine engines;
1082          (b) operates on jet fuel; and
1083          (c) has wings that are permanently attached to the fuselage of the aircraft.
1084          (48) "Fixed wireless service" means a telecommunications service that provides radio
1085     communication between fixed points.
1086          (49) (a) "Food and food ingredients" means substances:
1087          (i) regardless of whether the substances are in:
1088          (A) liquid form;
1089          (B) concentrated form;
1090          (C) solid form;
1091          (D) frozen form;
1092          (E) dried form; or
1093          (F) dehydrated form; and
1094          (ii) that are:
1095          (A) sold for:
1096          (I) ingestion by humans; or
1097          (II) chewing by humans; and
1098          (B) consumed for the substance's:
1099          (I) taste; or
1100          (II) nutritional value.
1101          (b) "Food and food ingredients" includes an item described in Subsection (90)(b)(iii).
1102          (c) "Food and food ingredients" does not include:
1103          (i) an alcoholic beverage;
1104          (ii) tobacco; or
1105          (iii) prepared food.
1106          (50) (a) "Fundraising sales" means sales:
1107          (i) (A) made by a school; or
1108          (B) made by a school student;
1109          (ii) that are for the purpose of raising funds for the school to purchase equipment,
1110     materials, or provide transportation; and

1111          (iii) that are part of an officially sanctioned school activity.
1112          (b) For purposes of Subsection (50)(a)(iii), "officially sanctioned school activity"
1113     means a school activity:
1114          (i) that is conducted in accordance with a formal policy adopted by the school or school
1115     district governing the authorization and supervision of fundraising activities;
1116          (ii) that does not directly or indirectly compensate an individual teacher or other
1117     educational personnel by direct payment, commissions, or payment in kind; and
1118          (iii) the net or gross revenues from which are deposited in a dedicated account
1119     controlled by the school or school district.
1120          (51) "Geothermal energy" means energy contained in heat that continuously flows
1121     outward from the earth that is used as the sole source of energy to produce electricity.
1122          (52) "Governing board of the agreement" means the governing board of the agreement
1123     that is:
1124          (a) authorized to administer the agreement; and
1125          (b) established in accordance with the agreement.
1126          (53) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1127          (i) the executive branch of the state, including all departments, institutions, boards,
1128     divisions, bureaus, offices, commissions, and committees;
1129          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
1130     Office of the Court Administrator, and similar administrative units in the judicial branch;
1131          (iii) the legislative branch of the state, including the House of Representatives, the
1132     Senate, the Legislative Printing Office, the Office of Legislative Research and General
1133     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
1134     Analyst;
1135          (iv) the National Guard;
1136          (v) an independent entity as defined in Section 63E-1-102; or
1137          (vi) a political subdivision as defined in Section 17B-1-102.
1138          (b) "Governmental entity" does not include the state systems of public and higher
1139     education, including:
1140          (i) a college campus of the Utah College of Applied Technology;
1141          (ii) a school;

1142          (iii) the State Board of Education;
1143          (iv) the State Board of Regents; or
1144          (v) an institution of higher education.
1145          (54) "Hydroelectric energy" means water used as the sole source of energy to produce
1146     electricity.
1147          (55) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
1148     other fuels:
1149          (a) in mining or extraction of minerals;
1150          (b) in agricultural operations to produce an agricultural product up to the time of
1151     harvest or placing the agricultural product into a storage facility, including:
1152          (i) commercial greenhouses;
1153          (ii) irrigation pumps;
1154          (iii) farm machinery;
1155          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
1156     under Title 41, Chapter 1a, Part 2, Registration; and
1157          (v) other farming activities;
1158          (c) in manufacturing tangible personal property at an establishment described in SIC
1159     Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1160     Executive Office of the President, Office of Management and Budget;
1161          (d) by a scrap recycler if:
1162          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1163     one or more of the following items into prepared grades of processed materials for use in new
1164     products:
1165          (A) iron;
1166          (B) steel;
1167          (C) nonferrous metal;
1168          (D) paper;
1169          (E) glass;
1170          (F) plastic;
1171          (G) textile; or
1172          (H) rubber; and

1173          (ii) the new products under Subsection (55)(d)(i) would otherwise be made with
1174     nonrecycled materials; or
1175          (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
1176     cogeneration facility as defined in Section 54-2-1.
1177          (56) (a) Except as provided in Subsection (56)(b), "installation charge" means a charge
1178     for installing:
1179          (i) tangible personal property; or
1180          (ii) a product transferred electronically.
1181          (b) "Installation charge" does not include a charge for:
1182          (i) repairs or renovations of:
1183          (A) tangible personal property; or
1184          (B) a product transferred electronically; or
1185          (ii) attaching tangible personal property or a product transferred electronically:
1186          (A) to other tangible personal property; and
1187          (B) as part of a manufacturing or fabrication process.
1188          (57) "Institution of higher education" means an institution of higher education listed in
1189     Section 53B-2-101.
1190          (58) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1191     personal property or a product transferred electronically for:
1192          (i) (A) a fixed term; or
1193          (B) an indeterminate term; and
1194          (ii) consideration.
1195          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1196     amount of consideration may be increased or decreased by reference to the amount realized
1197     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1198     Code.
1199          (c) "Lease" or "rental" does not include:
1200          (i) a transfer of possession or control of property under a security agreement or
1201     deferred payment plan that requires the transfer of title upon completion of the required
1202     payments;
1203          (ii) a transfer of possession or control of property under an agreement that requires the

1204     transfer of title:
1205          (A) upon completion of required payments; and
1206          (B) if the payment of an option price does not exceed the greater of:
1207          (I) $100; or
1208          (II) 1% of the total required payments; or
1209          (iii) providing tangible personal property along with an operator for a fixed period of
1210     time or an indeterminate period of time if the operator is necessary for equipment to perform as
1211     designed.
1212          (d) For purposes of Subsection (58)(c)(iii), an operator is necessary for equipment to
1213     perform as designed if the operator's duties exceed the:
1214          (i) set-up of tangible personal property;
1215          (ii) maintenance of tangible personal property; or
1216          (iii) inspection of tangible personal property.
1217          (59) "Life science establishment" means an establishment in this state that is classified
1218     under the following NAICS codes of the 2007 North American Industry Classification System
1219     of the federal Executive Office of the President, Office of Management and Budget:
1220          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
1221          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
1222     Manufacturing; or
1223          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
1224          (60) "Life science research and development facility" means a facility owned, leased,
1225     or rented by a life science establishment if research and development is performed in 51% or
1226     more of the total area of the facility.
1227          (61) "Load and leave" means delivery to a purchaser by use of a tangible storage media
1228     if the tangible storage media is not physically transferred to the purchaser.
1229          (62) "Local taxing jurisdiction" means a:
1230          (a) county that is authorized to impose an agreement sales and use tax;
1231          (b) city that is authorized to impose an agreement sales and use tax; or
1232          (c) town that is authorized to impose an agreement sales and use tax.
1233          (63) "Manufactured home" is as defined in Section 15A-1-302.
1234          (64) "Manufacturing facility" means:

1235          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1236     Industrial Classification Manual of the federal Executive Office of the President, Office of
1237     Management and Budget;
1238          (b) a scrap recycler if:
1239          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1240     one or more of the following items into prepared grades of processed materials for use in new
1241     products:
1242          (A) iron;
1243          (B) steel;
1244          (C) nonferrous metal;
1245          (D) paper;
1246          (E) glass;
1247          (F) plastic;
1248          (G) textile; or
1249          (H) rubber; and
1250          (ii) the new products under Subsection (64)(b)(i) would otherwise be made with
1251     nonrecycled materials; or
1252          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1253     placed in service on or after May 1, 2006.
1254          (65) "Member of the immediate family of the producer" means a person who is related
1255     to a producer described in Subsection 59-12-104(20)(a) as a:
1256          (a) child or stepchild, regardless of whether the child or stepchild is:
1257          (i) an adopted child or adopted stepchild; or
1258          (ii) a foster child or foster stepchild;
1259          (b) grandchild or stepgrandchild;
1260          (c) grandparent or stepgrandparent;
1261          (d) nephew or stepnephew;
1262          (e) niece or stepniece;
1263          (f) parent or stepparent;
1264          (g) sibling or stepsibling;
1265          (h) spouse;

1266          (i) person who is the spouse of a person described in Subsections (65)(a) through (g);
1267     or
1268          (j) person similar to a person described in Subsections (65)(a) through (i) as
1269     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1270     Administrative Rulemaking Act.
1271          (66) "Mobile home" is as defined in Section 15A-1-302.
1272          (67) "Mobile telecommunications service" is as defined in the Mobile
1273     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1274          (68) (a) "Mobile wireless service" means a telecommunications service, regardless of
1275     the technology used, if:
1276          (i) the origination point of the conveyance, routing, or transmission is not fixed;
1277          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1278          (iii) the origination point described in Subsection (68)(a)(i) and the termination point
1279     described in Subsection (68)(a)(ii) are not fixed.
1280          (b) "Mobile wireless service" includes a telecommunications service that is provided
1281     by a commercial mobile radio service provider.
1282          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1283     commission may by rule define "commercial mobile radio service provider."
1284          (69) (a) Except as provided in Subsection (69)(c), "mobility enhancing equipment"
1285     means equipment that is:
1286          (i) primarily and customarily used to provide or increase the ability to move from one
1287     place to another;
1288          (ii) appropriate for use in a:
1289          (A) home; or
1290          (B) motor vehicle; and
1291          (iii) not generally used by persons with normal mobility.
1292          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1293     the equipment described in Subsection (69)(a).
1294          (c) "Mobility enhancing equipment" does not include:
1295          (i) a motor vehicle;
1296          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor

1297     vehicle manufacturer;
1298          (iii) durable medical equipment; or
1299          (iv) a prosthetic device.
1300          (70) "Model 1 seller" means a seller registered under the agreement that has selected a
1301     certified service provider as the seller's agent to perform all of the seller's sales and use tax
1302     functions for agreement sales and use taxes other than the seller's obligation under Section
1303     59-12-124 to remit a tax on the seller's own purchases.
1304          (71) "Model 2 seller" means a seller registered under the agreement that:
1305          (a) except as provided in Subsection (71)(b), has selected a certified automated system
1306     to perform the seller's sales tax functions for agreement sales and use taxes; and
1307          (b) retains responsibility for remitting all of the sales tax:
1308          (i) collected by the seller; and
1309          (ii) to the appropriate local taxing jurisdiction.
1310          (72) (a) Subject to Subsection (72)(b), "model 3 seller" means a seller registered under
1311     the agreement that has:
1312          (i) sales in at least five states that are members of the agreement;
1313          (ii) total annual sales revenues of at least $500,000,000;
1314          (iii) a proprietary system that calculates the amount of tax:
1315          (A) for an agreement sales and use tax; and
1316          (B) due to each local taxing jurisdiction; and
1317          (iv) entered into a performance agreement with the governing board of the agreement.
1318          (b) For purposes of Subsection (72)(a), "model 3 seller" includes an affiliated group of
1319     sellers using the same proprietary system.
1320          (73) "Model 4 seller" means a seller that is registered under the agreement and is not a
1321     model 1 seller, model 2 seller, or model 3 seller.
1322          (74) "Modular home" means a modular unit as defined in Section 15A-1-302.
1323          (75) "Motor vehicle" is as defined in Section 41-1a-102.
1324          (76) "Oil sands" means impregnated bituminous sands that:
1325          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1326     other hydrocarbons, or otherwise treated;
1327          (b) yield mixtures of liquid hydrocarbon; and

1328          (c) require further processing other than mechanical blending before becoming finished
1329     petroleum products.
1330          (77) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1331     material that yields petroleum upon heating and distillation.
1332          (78) "Optional computer software maintenance contract" means a computer software
1333     maintenance contract that a customer is not obligated to purchase as a condition to the retail
1334     sale of computer software.
1335          (79) (a) "Other fuels" means products that burn independently to produce heat or
1336     energy.
1337          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1338     personal property.
1339          (80) (a) "Paging service" means a telecommunications service that provides
1340     transmission of a coded radio signal for the purpose of activating a specific pager.
1341          (b) For purposes of Subsection (80)(a), the transmission of a coded radio signal
1342     includes a transmission by message or sound.
1343          (81) "Pawnbroker" is as defined in Section 13-32a-102.
1344          (82) "Pawn transaction" is as defined in Section 13-32a-102.
1345          (83) (a) "Permanently attached to real property" means that for tangible personal
1346     property attached to real property:
1347          (i) the attachment of the tangible personal property to the real property:
1348          (A) is essential to the use of the tangible personal property; and
1349          (B) suggests that the tangible personal property will remain attached to the real
1350     property in the same place over the useful life of the tangible personal property; or
1351          (ii) if the tangible personal property is detached from the real property, the detachment
1352     would:
1353          (A) cause substantial damage to the tangible personal property; or
1354          (B) require substantial alteration or repair of the real property to which the tangible
1355     personal property is attached.
1356          (b) "Permanently attached to real property" includes:
1357          (i) the attachment of an accessory to the tangible personal property if the accessory is:
1358          (A) essential to the operation of the tangible personal property; and

1359          (B) attached only to facilitate the operation of the tangible personal property;
1360          (ii) a temporary detachment of tangible personal property from real property for a
1361     repair or renovation if the repair or renovation is performed where the tangible personal
1362     property and real property are located; or
1363          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1364     Subsection (83)(c)(iii) or (iv).
1365          (c) "Permanently attached to real property" does not include:
1366          (i) the attachment of portable or movable tangible personal property to real property if
1367     that portable or movable tangible personal property is attached to real property only for:
1368          (A) convenience;
1369          (B) stability; or
1370          (C) for an obvious temporary purpose;
1371          (ii) the detachment of tangible personal property from real property except for the
1372     detachment described in Subsection (83)(b)(ii);
1373          (iii) an attachment of the following tangible personal property to real property if the
1374     attachment to real property is only through a line that supplies water, electricity, gas,
1375     telecommunications, cable, or supplies a similar item as determined by the commission by rule
1376     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1377          (A) a computer;
1378          (B) a telephone;
1379          (C) a television; or
1380          (D) tangible personal property similar to Subsections (83)(c)(iii)(A) through (C) as
1381     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1382     Administrative Rulemaking Act; or
1383          (iv) an item listed in Subsection (123)(c).
1384          (84) "Person" includes any individual, firm, partnership, joint venture, association,
1385     corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1386     municipality, district, or other local governmental entity of the state, or any group or
1387     combination acting as a unit.
1388          (85) "Place of primary use":
1389          (a) for telecommunications service other than mobile telecommunications service,

1390     means the street address representative of where the customer's use of the telecommunications
1391     service primarily occurs, which shall be:
1392          (i) the residential street address of the customer; or
1393          (ii) the primary business street address of the customer; or
1394          (b) for mobile telecommunications service, is as defined in the Mobile
1395     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1396          (86) (a) "Postpaid calling service" means a telecommunications service a person
1397     obtains by making a payment on a call-by-call basis:
1398          (i) through the use of a:
1399          (A) bank card;
1400          (B) credit card;
1401          (C) debit card; or
1402          (D) travel card; or
1403          (ii) by a charge made to a telephone number that is not associated with the origination
1404     or termination of the telecommunications service.
1405          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1406     service, that would be a prepaid wireless calling service if the service were exclusively a
1407     telecommunications service.
1408          (87) "Postproduction" means an activity related to the finishing or duplication of a
1409     medium described in Subsection 59-12-104(54)(a).
1410          (88) "Prepaid calling service" means a telecommunications service:
1411          (a) that allows a purchaser access to telecommunications service that is exclusively
1412     telecommunications service;
1413          (b) that:
1414          (i) is paid for in advance; and
1415          (ii) enables the origination of a call using an:
1416          (A) access number; or
1417          (B) authorization code;
1418          (c) that is dialed:
1419          (i) manually; or
1420          (ii) electronically; and

1421          (d) sold in predetermined units or dollars that decline:
1422          (i) by a known amount; and
1423          (ii) with use.
1424          (89) "Prepaid wireless calling service" means a telecommunications service:
1425          (a) that provides the right to utilize:
1426          (i) mobile wireless service; and
1427          (ii) other service that is not a telecommunications service, including:
1428          (A) the download of a product transferred electronically;
1429          (B) a content service; or
1430          (C) an ancillary service;
1431          (b) that:
1432          (i) is paid for in advance; and
1433          (ii) enables the origination of a call using an:
1434          (A) access number; or
1435          (B) authorization code;
1436          (c) that is dialed:
1437          (i) manually; or
1438          (ii) electronically; and
1439          (d) sold in predetermined units or dollars that decline:
1440          (i) by a known amount; and
1441          (ii) with use.
1442          (90) (a) "Prepared food" means:
1443          (i) food:
1444          (A) sold in a heated state; or
1445          (B) heated by a seller;
1446          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1447     item; or
1448          (iii) except as provided in Subsection (90)(c), food sold with an eating utensil provided
1449     by the seller, including a:
1450          (A) plate;
1451          (B) knife;

1452          (C) fork;
1453          (D) spoon;
1454          (E) glass;
1455          (F) cup;
1456          (G) napkin; or
1457          (H) straw.
1458          (b) "Prepared food" does not include:
1459          (i) food that a seller only:
1460          (A) cuts;
1461          (B) repackages; or
1462          (C) pasteurizes; or
1463          (ii) (A) the following:
1464          (I) raw egg;
1465          (II) raw fish;
1466          (III) raw meat;
1467          (IV) raw poultry; or
1468          (V) a food containing an item described in Subsections (90)(b)(ii)(A)(I) through (IV);
1469     and
1470          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1471     Food and Drug Administration's Food Code that a consumer cook the items described in
1472     Subsection (90)(b)(ii)(A) to prevent food borne illness; or
1473          (iii) the following if sold without eating utensils provided by the seller:
1474          (A) food and food ingredients sold by a seller if the seller's proper primary
1475     classification under the 2002 North American Industry Classification System of the federal
1476     Executive Office of the President, Office of Management and Budget, is manufacturing in
1477     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1478     Manufacturing;
1479          (B) food and food ingredients sold in an unheated state:
1480          (I) by weight or volume; and
1481          (II) as a single item; or
1482          (C) a bakery item, including:

1483          (I) a bagel;
1484          (II) a bar;
1485          (III) a biscuit;
1486          (IV) bread;
1487          (V) a bun;
1488          (VI) a cake;
1489          (VII) a cookie;
1490          (VIII) a croissant;
1491          (IX) a danish;
1492          (X) a donut;
1493          (XI) a muffin;
1494          (XII) a pastry;
1495          (XIII) a pie;
1496          (XIV) a roll;
1497          (XV) a tart;
1498          (XVI) a torte; or
1499          (XVII) a tortilla.
1500          (c) An eating utensil provided by the seller does not include the following used to
1501     transport the food:
1502          (i) a container; or
1503          (ii) packaging.
1504          (91) "Prescription" means an order, formula, or recipe that is issued:
1505          (a) (i) orally;
1506          (ii) in writing;
1507          (iii) electronically; or
1508          (iv) by any other manner of transmission; and
1509          (b) by a licensed practitioner authorized by the laws of a state.
1510          (92) (a) Except as provided in Subsection (92)(b)(ii) or (iii), "prewritten computer
1511     software" means computer software that is not designed and developed:
1512          (i) by the author or other creator of the computer software; and
1513          (ii) to the specifications of a specific purchaser.

1514          (b) "Prewritten computer software" includes:
1515          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1516     software is not designed and developed:
1517          (A) by the author or other creator of the computer software; and
1518          (B) to the specifications of a specific purchaser;
1519          (ii) computer software designed and developed by the author or other creator of the
1520     computer software to the specifications of a specific purchaser if the computer software is sold
1521     to a person other than the purchaser; or
1522          (iii) except as provided in Subsection (92)(c), prewritten computer software or a
1523     prewritten portion of prewritten computer software:
1524          (A) that is modified or enhanced to any degree; and
1525          (B) if the modification or enhancement described in Subsection (92)(b)(iii)(A) is
1526     designed and developed to the specifications of a specific purchaser.
1527          (c) "Prewritten computer software" does not include a modification or enhancement
1528     described in Subsection (92)(b)(iii) if the charges for the modification or enhancement are:
1529          (i) reasonable; and
1530          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1531     invoice or other statement of price provided to the purchaser at the time of sale or later, as
1532     demonstrated by:
1533          (A) the books and records the seller keeps at the time of the transaction in the regular
1534     course of business, including books and records the seller keeps at the time of the transaction in
1535     the regular course of business for nontax purposes;
1536          (B) a preponderance of the facts and circumstances at the time of the transaction; and
1537          (C) the understanding of all of the parties to the transaction.
1538          (93) (a) "Private [communication] communications service" means a
1539     telecommunications service:
1540          (i) that entitles a customer to exclusive or priority use of one or more communications
1541     channels between or among termination points; and
1542          (ii) regardless of the manner in which the one or more communications channels are
1543     connected.
1544          (b) "Private communications service" includes the following provided in connection

1545     with the use of one or more communications channels:
1546          (i) an extension line;
1547          (ii) a station;
1548          (iii) switching capacity; or
1549          (iv) another associated service that is provided in connection with the use of one or
1550     more communications channels as defined in Section 59-12-215.
1551          (94) (a) Except as provided in Subsection (94)(b), "product transferred electronically"
1552     means a product transferred electronically that would be subject to a tax under this chapter if
1553     that product was transferred in a manner other than electronically.
1554          (b) "Product transferred electronically" does not include:
1555          (i) an ancillary service;
1556          (ii) computer software; or
1557          (iii) a telecommunications service.
1558          (95) (a) "Prosthetic device" means a device that is worn on or in the body to:
1559          (i) artificially replace a missing portion of the body;
1560          (ii) prevent or correct a physical deformity or physical malfunction; or
1561          (iii) support a weak or deformed portion of the body.
1562          (b) "Prosthetic device" includes:
1563          (i) parts used in the repairs or renovation of a prosthetic device;
1564          (ii) replacement parts for a prosthetic device;
1565          (iii) a dental prosthesis; or
1566          (iv) a hearing aid.
1567          (c) "Prosthetic device" does not include:
1568          (i) corrective eyeglasses; or
1569          (ii) contact lenses.
1570          (96) (a) "Protective equipment" means an item:
1571          (i) for human wear; and
1572          (ii) that is:
1573          (A) designed as protection:
1574          (I) to the wearer against injury or disease; or
1575          (II) against damage or injury of other persons or property; and

1576          (B) not suitable for general use.
1577          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1578     commission shall make rules:
1579          (i) listing the items that constitute "protective equipment"; and
1580          (ii) that are consistent with the list of items that constitute "protective equipment"
1581     under the agreement.
1582          (97) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1583     printed matter, other than a photocopy:
1584          (i) regardless of:
1585          (A) characteristics;
1586          (B) copyright;
1587          (C) form;
1588          (D) format;
1589          (E) method of reproduction; or
1590          (F) source; and
1591          (ii) made available in printed or electronic format.
1592          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1593     commission may by rule define the term "photocopy."
1594          (98) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1595          (i) valued in money; and
1596          (ii) for which tangible personal property, a product transferred electronically, or
1597     services are:
1598          (A) sold;
1599          (B) leased; or
1600          (C) rented.
1601          (b) "Purchase price" and "sales price" include:
1602          (i) the seller's cost of the tangible personal property, a product transferred
1603     electronically, or services sold;
1604          (ii) expenses of the seller, including:
1605          (A) the cost of materials used;
1606          (B) a labor cost;

1607          (C) a service cost;
1608          (D) interest;
1609          (E) a loss;
1610          (F) the cost of transportation to the seller; or
1611          (G) a tax imposed on the seller;
1612          (iii) a charge by the seller for any service necessary to complete the sale; or
1613          (iv) consideration a seller receives from a person other than the purchaser if:
1614          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1615     and
1616          (II) the consideration described in Subsection (98)(b)(iv)(A)(I) is directly related to a
1617     price reduction or discount on the sale;
1618          (B) the seller has an obligation to pass the price reduction or discount through to the
1619     purchaser;
1620          (C) the amount of the consideration attributable to the sale is fixed and determinable by
1621     the seller at the time of the sale to the purchaser; and
1622          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1623     seller to claim a price reduction or discount; and
1624          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1625     coupon, or other documentation with the understanding that the person other than the seller
1626     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1627          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1628     organization allowed a price reduction or discount, except that a preferred customer card that is
1629     available to any patron of a seller does not constitute membership in a group or organization
1630     allowed a price reduction or discount; or
1631          (III) the price reduction or discount is identified as a third party price reduction or
1632     discount on the:
1633          (Aa) invoice the purchaser receives; or
1634          (Bb) certificate, coupon, or other documentation the purchaser presents.
1635          (c) "Purchase price" and "sales price" do not include:
1636          (i) a discount:
1637          (A) in a form including:

1638          (I) cash;
1639          (II) term; or
1640          (III) coupon;
1641          (B) that is allowed by a seller;
1642          (C) taken by a purchaser on a sale; and
1643          (D) that is not reimbursed by a third party; or
1644          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1645     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1646     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1647     transaction in the regular course of business, including books and records the seller keeps at the
1648     time of the transaction in the regular course of business for nontax purposes, by a
1649     preponderance of the facts and circumstances at the time of the transaction, and by the
1650     understanding of all of the parties to the transaction:
1651          (A) the following from credit extended on the sale of tangible personal property or
1652     services:
1653          (I) a carrying charge;
1654          (II) a financing charge; or
1655          (III) an interest charge;
1656          (B) a delivery charge;
1657          (C) an installation charge;
1658          (D) a manufacturer rebate on a motor vehicle; or
1659          (E) a tax or fee legally imposed directly on the consumer.
1660          (99) "Purchaser" means a person to whom:
1661          (a) a sale of tangible personal property is made;
1662          (b) a product is transferred electronically; or
1663          (c) a service is furnished.
1664          (100) "Regularly rented" means:
1665          (a) rented to a guest for value three or more times during a calendar year; or
1666          (b) advertised or held out to the public as a place that is regularly rented to guests for
1667     value.
1668          (101) "Rental" is as defined in Subsection (58).

1669          (102) (a) Except as provided in Subsection (102)(b), "repairs or renovations of tangible
1670     personal property" means:
1671          (i) a repair or renovation of tangible personal property that is not permanently attached
1672     to real property; or
1673          (ii) attaching tangible personal property or a product transferred electronically to other
1674     tangible personal property or detaching tangible personal property or a product transferred
1675     electronically from other tangible personal property if:
1676          (A) the other tangible personal property to which the tangible personal property or
1677     product transferred electronically is attached or from which the tangible personal property or
1678     product transferred electronically is detached is not permanently attached to real property; and
1679          (B) the attachment of tangible personal property or a product transferred electronically
1680     to other tangible personal property or detachment of tangible personal property or a product
1681     transferred electronically from other tangible personal property is made in conjunction with a
1682     repair or replacement of tangible personal property or a product transferred electronically.
1683          (b) "Repairs or renovations of tangible personal property" does not include:
1684          (i) attaching prewritten computer software to other tangible personal property if the
1685     other tangible personal property to which the prewritten computer software is attached is not
1686     permanently attached to real property; or
1687          (ii) detaching prewritten computer software from other tangible personal property if the
1688     other tangible personal property from which the prewritten computer software is detached is
1689     not permanently attached to real property.
1690          (103) "Research and development" means the process of inquiry or experimentation
1691     aimed at the discovery of facts, devices, technologies, or applications and the process of
1692     preparing those devices, technologies, or applications for marketing.
1693          (104) (a) "Residential telecommunications services" means a telecommunications
1694     service or an ancillary service that is provided to an individual for personal use:
1695          (i) at a residential address; or
1696          (ii) at an institution, including a nursing home or a school, if the telecommunications
1697     service or ancillary service is provided to and paid for by the individual residing at the
1698     institution rather than the institution.
1699          (b) For purposes of Subsection (104)(a)(i), a residential address includes an:

1700          (i) apartment; or
1701          (ii) other individual dwelling unit.
1702          (105) "Residential use" means the use in or around a home, apartment building,
1703     sleeping quarters, and similar facilities or accommodations.
1704          (106) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1705     than:
1706          (a) resale;
1707          (b) sublease; or
1708          (c) subrent.
1709          (107) (a) "Retailer" means any person engaged in a regularly organized business in
1710     tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
1711     who is selling to the user or consumer and not for resale.
1712          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1713     engaged in the business of selling to users or consumers within the state.
1714          (108) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1715     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1716     Subsection 59-12-103(1), for consideration.
1717          (b) "Sale" includes:
1718          (i) installment and credit sales;
1719          (ii) any closed transaction constituting a sale;
1720          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1721     chapter;
1722          (iv) any transaction if the possession of property is transferred but the seller retains the
1723     title as security for the payment of the price; and
1724          (v) any transaction under which right to possession, operation, or use of any article of
1725     tangible personal property is granted under a lease or contract and the transfer of possession
1726     would be taxable if an outright sale were made.
1727          (109) "Sale at retail" is as defined in Subsection (106).
1728          (110) "Sale-leaseback transaction" means a transaction by which title to tangible
1729     personal property or a product transferred electronically that is subject to a tax under this
1730     chapter is transferred:

1731          (a) by a purchaser-lessee;
1732          (b) to a lessor;
1733          (c) for consideration; and
1734          (d) if:
1735          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1736     of the tangible personal property or product transferred electronically;
1737          (ii) the sale of the tangible personal property or product transferred electronically to the
1738     lessor is intended as a form of financing:
1739          (A) for the tangible personal property or product transferred electronically; and
1740          (B) to the purchaser-lessee; and
1741          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1742     is required to:
1743          (A) capitalize the tangible personal property or product transferred electronically for
1744     financial reporting purposes; and
1745          (B) account for the lease payments as payments made under a financing arrangement.
1746          (111) "Sales price" is as defined in Subsection (98).
1747          (112) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1748     amounts charged by a school:
1749          (i) sales that are directly related to the school's educational functions or activities
1750     including:
1751          (A) the sale of:
1752          (I) textbooks;
1753          (II) textbook fees;
1754          (III) laboratory fees;
1755          (IV) laboratory supplies; or
1756          (V) safety equipment;
1757          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1758     that:
1759          (I) a student is specifically required to wear as a condition of participation in a
1760     school-related event or school-related activity; and
1761          (II) is not readily adaptable to general or continued usage to the extent that it takes the

1762     place of ordinary clothing;
1763          (C) sales of the following if the net or gross revenues generated by the sales are
1764     deposited into a school district fund or school fund dedicated to school meals:
1765          (I) food and food ingredients; or
1766          (II) prepared food; or
1767          (D) transportation charges for official school activities; or
1768          (ii) amounts paid to or amounts charged by a school for admission to a school-related
1769     event or school-related activity.
1770          (b) "Sales relating to schools" does not include:
1771          (i) bookstore sales of items that are not educational materials or supplies;
1772          (ii) except as provided in Subsection (112)(a)(i)(B):
1773          (A) clothing;
1774          (B) clothing accessories or equipment;
1775          (C) protective equipment; or
1776          (D) sports or recreational equipment; or
1777          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1778     event or school-related activity if the amounts paid or charged are passed through to a person:
1779          (A) other than a:
1780          (I) school;
1781          (II) nonprofit organization authorized by a school board or a governing body of a
1782     private school to organize and direct a competitive secondary school activity; or
1783          (III) nonprofit association authorized by a school board or a governing body of a
1784     private school to organize and direct a competitive secondary school activity; and
1785          (B) that is required to collect sales and use taxes under this chapter.
1786          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1787     commission may make rules defining the term "passed through."
1788          (113) For purposes of this section and Section 59-12-104, "school":
1789          (a) means:
1790          (i) an elementary school or a secondary school that:
1791          (A) is a:
1792          (I) public school; or

1793          (II) private school; and
1794          (B) provides instruction for one or more grades kindergarten through 12; or
1795          (ii) a public school district; and
1796          (b) includes the Electronic High School as defined in Section 53A-15-1002.
1797          (114) "Seller" means a person that makes a sale, lease, or rental of:
1798          (a) tangible personal property;
1799          (b) a product transferred electronically; or
1800          (c) a service.
1801          (115) (a) "Semiconductor fabricating, processing, research, or development materials"
1802     means tangible personal property or a product transferred electronically if the tangible personal
1803     property or product transferred electronically is:
1804          (i) used primarily in the process of:
1805          (A) (I) manufacturing a semiconductor;
1806          (II) fabricating a semiconductor; or
1807          (III) research or development of a:
1808          (Aa) semiconductor; or
1809          (Bb) semiconductor manufacturing process; or
1810          (B) maintaining an environment suitable for a semiconductor; or
1811          (ii) consumed primarily in the process of:
1812          (A) (I) manufacturing a semiconductor;
1813          (II) fabricating a semiconductor; or
1814          (III) research or development of a:
1815          (Aa) semiconductor; or
1816          (Bb) semiconductor manufacturing process; or
1817          (B) maintaining an environment suitable for a semiconductor.
1818          (b) "Semiconductor fabricating, processing, research, or development materials"
1819     includes:
1820          (i) parts used in the repairs or renovations of tangible personal property or a product
1821     transferred electronically described in Subsection (115)(a); or
1822          (ii) a chemical, catalyst, or other material used to:
1823          (A) produce or induce in a semiconductor a:

1824          (I) chemical change; or
1825          (II) physical change;
1826          (B) remove impurities from a semiconductor; or
1827          (C) improve the marketable condition of a semiconductor.
1828          (116) "Senior citizen center" means a facility having the primary purpose of providing
1829     services to the aged as defined in Section 62A-3-101.
1830          (117) (a) Subject to Subsections (117)(b) and (c), "short-term lodging consumable"
1831     means tangible personal property that:
1832          (i) a business that provides accommodations and services described in Subsection
1833     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1834     to a purchaser;
1835          (ii) is intended to be consumed by the purchaser; and
1836          (iii) is:
1837          (A) included in the purchase price of the accommodations and services; and
1838          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1839     to the purchaser.
1840          (b) "Short-term lodging consumable" includes:
1841          (i) a beverage;
1842          (ii) a brush or comb;
1843          (iii) a cosmetic;
1844          (iv) a hair care product;
1845          (v) lotion;
1846          (vi) a magazine;
1847          (vii) makeup;
1848          (viii) a meal;
1849          (ix) mouthwash;
1850          (x) nail polish remover;
1851          (xi) a newspaper;
1852          (xii) a notepad;
1853          (xiii) a pen;
1854          (xiv) a pencil;

1855          (xv) a razor;
1856          (xvi) saline solution;
1857          (xvii) a sewing kit;
1858          (xviii) shaving cream;
1859          (xix) a shoe shine kit;
1860          (xx) a shower cap;
1861          (xxi) a snack item;
1862          (xxii) soap;
1863          (xxiii) toilet paper;
1864          (xxiv) a toothbrush;
1865          (xxv) toothpaste; or
1866          (xxvi) an item similar to Subsections (117)(b)(i) through (xxv) as the commission may
1867     provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1868     Rulemaking Act.
1869          (c) "Short-term lodging consumable" does not include:
1870          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1871     property to be reused; or
1872          (ii) a product transferred electronically.
1873          (118) "Simplified electronic return" means the electronic return:
1874          (a) described in Section 318(C) of the agreement; and
1875          (b) approved by the governing board of the agreement.
1876          (119) "Solar energy" means the sun used as the sole source of energy for producing
1877     electricity.
1878          (120) (a) "Sports or recreational equipment" means an item:
1879          (i) designed for human use; and
1880          (ii) that is:
1881          (A) worn in conjunction with:
1882          (I) an athletic activity; or
1883          (II) a recreational activity; and
1884          (B) not suitable for general use.
1885          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

1886     commission shall make rules:
1887          (i) listing the items that constitute "sports or recreational equipment"; and
1888          (ii) that are consistent with the list of items that constitute "sports or recreational
1889     equipment" under the agreement.
1890          (121) "State" means the state of Utah, its departments, and agencies.
1891          (122) "Storage" means any keeping or retention of tangible personal property or any
1892     other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1893     sale in the regular course of business.
1894          (123) (a) Except as provided in Subsection (123)(d) or (e), "tangible personal property"
1895     means personal property that:
1896          (i) may be:
1897          (A) seen;
1898          (B) weighed;
1899          (C) measured;
1900          (D) felt; or
1901          (E) touched; or
1902          (ii) is in any manner perceptible to the senses.
1903          (b) "Tangible personal property" includes:
1904          (i) electricity;
1905          (ii) water;
1906          (iii) gas;
1907          (iv) steam; or
1908          (v) prewritten computer software, regardless of the manner in which the prewritten
1909     computer software is transferred.
1910          (c) "Tangible personal property" includes the following regardless of whether the item
1911     is attached to real property:
1912          (i) a dishwasher;
1913          (ii) a dryer;
1914          (iii) a freezer;
1915          (iv) a microwave;
1916          (v) a refrigerator;

1917          (vi) a stove;
1918          (vii) a washer; or
1919          (viii) an item similar to Subsections (123)(c)(i) through (vii) as determined by the
1920     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1921     Rulemaking Act.
1922          (d) "Tangible personal property" does not include a product that is transferred
1923     electronically.
1924          (e) "Tangible personal property" does not include the following if attached to real
1925     property, regardless of whether the attachment to real property is only through a line that
1926     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1927     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1928     Rulemaking Act:
1929          (i) a hot water heater;
1930          (ii) a water filtration system; or
1931          (iii) a water softener system.
1932          (124) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1933     software" means an item listed in Subsection (124)(b) if that item is purchased or leased
1934     primarily to enable or facilitate one or more of the following to function:
1935          (i) telecommunications switching or routing equipment, machinery, or software; or
1936          (ii) telecommunications transmission equipment, machinery, or software.
1937          (b) The following apply to Subsection (124)(a):
1938          (i) a pole;
1939          (ii) software;
1940          (iii) a supplementary power supply;
1941          (iv) temperature or environmental equipment or machinery;
1942          (v) test equipment;
1943          (vi) a tower; or
1944          (vii) equipment, machinery, or software that functions similarly to an item listed in
1945     Subsections (124)(b)(i) through (vi) as determined by the commission by rule made in
1946     accordance with Subsection (124)(c).
1947          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the

1948     commission may by rule define what constitutes equipment, machinery, or software that
1949     functions similarly to an item listed in Subsections (124)(b)(i) through (vi).
1950          (125) "Telecommunications equipment, machinery, or software required for 911
1951     service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1952     Sec. 20.18.
1953          (126) "Telecommunications maintenance or repair equipment, machinery, or software"
1954     means equipment, machinery, or software purchased or leased primarily to maintain or repair
1955     one or more of the following, regardless of whether the equipment, machinery, or software is
1956     purchased or leased as a spare part or as an upgrade or modification to one or more of the
1957     following:
1958          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1959          (b) telecommunications switching or routing equipment, machinery, or software; or
1960          (c) telecommunications transmission equipment, machinery, or software.
1961          (127) (a) "Telecommunications service" means the electronic conveyance, routing, or
1962     transmission of audio, data, video, voice, or any other information or signal to a point, or
1963     among or between points.
1964          (b) "Telecommunications service" includes:
1965          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1966     processing application is used to act:
1967          (A) on the code, form, or protocol of the content;
1968          (B) for the purpose of electronic conveyance, routing, or transmission; and
1969          (C) regardless of whether the service:
1970          (I) is referred to as voice over Internet protocol service; or
1971          (II) is classified by the Federal Communications Commission as enhanced or value
1972     added;
1973          (ii) an 800 service;
1974          (iii) a 900 service;
1975          (iv) a fixed wireless service;
1976          (v) a mobile wireless service;
1977          (vi) a postpaid calling service;
1978          (vii) a prepaid calling service;

1979          (viii) a prepaid wireless calling service; or
1980          (ix) a private communications service.
1981          (c) "Telecommunications service" does not include:
1982          (i) advertising, including directory advertising;
1983          (ii) an ancillary service;
1984          (iii) a billing and collection service provided to a third party;
1985          (iv) a data processing and information service if:
1986          (A) the data processing and information service allows data to be:
1987          (I) (Aa) acquired;
1988          (Bb) generated;
1989          (Cc) processed;
1990          (Dd) retrieved; or
1991          (Ee) stored; and
1992          (II) delivered by an electronic transmission to a purchaser; and
1993          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1994     or information;
1995          (v) installation or maintenance of the following on a customer's premises:
1996          (A) equipment; or
1997          (B) wiring;
1998          (vi) Internet access service;
1999          (vii) a paging service;
2000          (viii) a product transferred electronically, including:
2001          (A) music;
2002          (B) reading material;
2003          (C) a ring tone;
2004          (D) software; or
2005          (E) video;
2006          (ix) a radio and television audio and video programming service:
2007          (A) regardless of the medium; and
2008          (B) including:
2009          (I) furnishing conveyance, routing, or transmission of a television audio and video

2010     programming service by a programming service provider;
2011          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
2012          (III) audio and video programming services delivered by a commercial mobile radio
2013     service provider as defined in 47 C.F.R. Sec. 20.3;
2014          (x) a value-added nonvoice data service; or
2015          (xi) tangible personal property.
2016          (128) (a) "Telecommunications service provider" means a person that:
2017          (i) owns, controls, operates, or manages a telecommunications service; and
2018          (ii) engages in an activity described in Subsection (128)(a)(i) for the shared use with or
2019     resale to any person of the telecommunications service.
2020          (b) A person described in Subsection (128)(a) is a telecommunications service provider
2021     whether or not the Public Service Commission of Utah regulates:
2022          (i) that person; or
2023          (ii) the telecommunications service that the person owns, controls, operates, or
2024     manages.
2025          (129) (a) "Telecommunications switching or routing equipment, machinery, or
2026     software" means an item listed in Subsection (129)(b) if that item is purchased or leased
2027     primarily for switching or routing:
2028          (i) an ancillary service;
2029          (ii) data communications;
2030          (iii) voice communications; or
2031          (iv) telecommunications service.
2032          (b) The following apply to Subsection (129)(a):
2033          (i) a bridge;
2034          (ii) a computer;
2035          (iii) a cross connect;
2036          (iv) a modem;
2037          (v) a multiplexer;
2038          (vi) plug in circuitry;
2039          (vii) a router;
2040          (viii) software;

2041          (ix) a switch; or
2042          (x) equipment, machinery, or software that functions similarly to an item listed in
2043     Subsections (129)(b)(i) through (ix) as determined by the commission by rule made in
2044     accordance with Subsection (129)(c).
2045          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2046     commission may by rule define what constitutes equipment, machinery, or software that
2047     functions similarly to an item listed in Subsections (129)(b)(i) through (ix).
2048          (130) (a) "Telecommunications transmission equipment, machinery, or software"
2049     means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
2050     sending, receiving, or transporting:
2051          (i) an ancillary service;
2052          (ii) data communications;
2053          (iii) voice communications; or
2054          (iv) telecommunications service.
2055          (b) The following apply to Subsection (130)(a):
2056          (i) an amplifier;
2057          (ii) a cable;
2058          (iii) a closure;
2059          (iv) a conduit;
2060          (v) a controller;
2061          (vi) a duplexer;
2062          (vii) a filter;
2063          (viii) an input device;
2064          (ix) an input/output device;
2065          (x) an insulator;
2066          (xi) microwave machinery or equipment;
2067          (xii) an oscillator;
2068          (xiii) an output device;
2069          (xiv) a pedestal;
2070          (xv) a power converter;
2071          (xvi) a power supply;

2072          (xvii) a radio channel;
2073          (xviii) a radio receiver;
2074          (xix) a radio transmitter;
2075          (xx) a repeater;
2076          (xxi) software;
2077          (xxii) a terminal;
2078          (xxiii) a timing unit;
2079          (xxiv) a transformer;
2080          (xxv) a wire; or
2081          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2082     Subsections (130)(b)(i) through (xxv) as determined by the commission by rule made in
2083     accordance with Subsection (130)(c).
2084          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2085     commission may by rule define what constitutes equipment, machinery, or software that
2086     functions similarly to an item listed in Subsections (130)(b)(i) through (xxv).
2087          (131) (a) "Textbook for a higher education course" means a textbook or other printed
2088     material that is required for a course:
2089          (i) offered by an institution of higher education; and
2090          (ii) that the purchaser of the textbook or other printed material attends or will attend.
2091          (b) "Textbook for a higher education course" includes a textbook in electronic format.
2092          (132) "Tobacco" means:
2093          (a) a cigarette;
2094          (b) a cigar;
2095          (c) chewing tobacco;
2096          (d) pipe tobacco; or
2097          (e) any other item that contains tobacco.
2098          (133) "Unassisted amusement device" means an amusement device, skill device, or
2099     ride device that is started and stopped by the purchaser or renter of the right to use or operate
2100     the amusement device, skill device, or ride device.
2101          (134) (a) "Use" means the exercise of any right or power over tangible personal
2102     property, a product transferred electronically, or a service under Subsection 59-12-103(1),

2103     incident to the ownership or the leasing of that tangible personal property, product transferred
2104     electronically, or service.
2105          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
2106     property, a product transferred electronically, or a service in the regular course of business and
2107     held for resale.
2108          (135) "Value-added nonvoice data service" means a service:
2109          (a) that otherwise meets the definition of a telecommunications service except that a
2110     computer processing application is used to act primarily for a purpose other than conveyance,
2111     routing, or transmission; and
2112          (b) with respect to which a computer processing application is used to act on data or
2113     information:
2114          (i) code;
2115          (ii) content;
2116          (iii) form; or
2117          (iv) protocol.
2118          (136) (a) Subject to Subsection (136)(b), "vehicle" means the following that are
2119     required to be titled, registered, or titled and registered:
2120          (i) an aircraft as defined in Section 72-10-102;
2121          (ii) a vehicle as defined in Section 41-1a-102;
2122          (iii) an off-highway vehicle as defined in Section 41-22-2; or
2123          (iv) a vessel as defined in Section 41-1a-102.
2124          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
2125          (i) a vehicle described in Subsection (136)(a); or
2126          (ii) (A) a locomotive;
2127          (B) a freight car;
2128          (C) railroad work equipment; or
2129          (D) other railroad rolling stock.
2130          (137) "Vehicle dealer" means a person engaged in the business of buying, selling, or
2131     exchanging a vehicle as defined in Subsection (136).
2132          (138) (a) "Vertical service" means an ancillary service that:
2133          (i) is offered in connection with one or more telecommunications services; and

2134          (ii) offers an advanced calling feature that allows a customer to:
2135          (A) identify a caller; and
2136          (B) manage multiple calls and call connections.
2137          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2138     conference bridging service.
2139          (139) (a) "Voice mail service" means an ancillary service that enables a customer to
2140     receive, send, or store a recorded message.
2141          (b) "Voice mail service" does not include a vertical service that a customer is required
2142     to have in order to utilize a voice mail service.
2143          (140) (a) Except as provided in Subsection (140)(b), "waste energy facility" means a
2144     facility that generates electricity:
2145          (i) using as the primary source of energy waste materials that would be placed in a
2146     landfill or refuse pit if it were not used to generate electricity, including:
2147          (A) tires;
2148          (B) waste coal;
2149          (C) oil shale; or
2150          (D) municipal solid waste; and
2151          (ii) in amounts greater than actually required for the operation of the facility.
2152          (b) "Waste energy facility" does not include a facility that incinerates:
2153          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2154          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2155          (141) "Watercraft" means a vessel as defined in Section 73-18-2.
2156          (142) "Wind energy" means wind used as the sole source of energy to produce
2157     electricity.
2158          (143) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
2159     location by the United States Postal Service.
2160          Section 14. Appropriation.
2161          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
2162     the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following sums of money
2163     are appropriated from resources not otherwise appropriated, or reduced from amounts
2164     previously appropriated, out of the funds or accounts indicated. These sums of money are in

2165     addition to any amounts previously appropriated for fiscal year 2016.
2166          To Department of Commerce - Commerce General Regulation
2167          From General Fund Restricted - Commerce Service Account
$20,000

2168          Schedule of Programs:
2169               Consumer Protection                              $20,000