H.B. 221 Enrolled

REVISOR'S STATUTE
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Susan J. Koehn
AN ACT RELATING TO STATE AFFAIRS; MAKING TECHNICAL AMENDMENTS; AND
REPEALING CERTAIN OUTDATED SECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
9-2-1610, as enacted by Chapter 236, Laws of Utah 1996
10-2-115, as enacted by Chapter 389, Laws of Utah 1997
10-2-416, as repealed and reenacted by Chapter 389, Laws of Utah 1997
10-3-106, as last amended by Chapter 17, Laws of Utah 1999
13-30-106, as last amended by Chapter 124, Laws of Utah 1999
17A-1-301, as last amended by Chapter 30, Laws of Utah 1992
17A-1-437, as last amended by Chapter 285, Laws of Utah 1992
17A-2-215, as last amended by Chapter 227, Laws of Utah 1993
17A-2-219, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-331, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-422, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-534, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-535, as last amended by Chapter 227, Laws of Utah 1993
17A-2-544, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-553, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-605, as last amended by Chapter 146, Laws of Utah 1994
17A-2-812, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-818, as last amended by Chapters 199 and 299, Laws of Utah 1995
17A-2-824, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1023, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1024, as renumbered and amended by Chapter 186, Laws of Utah 1990

17A-2-1030, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1202, as last amended by Chapter 320, Laws of Utah 1995
17A-2-1210, as last amended by Chapter 50, Laws of Utah 1993
17A-2-1302, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1411, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1425, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1437, as last amended by Chapter 152, Laws of Utah 1996
17A-2-1444, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1512, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1704, as last amended by Chapter 212, Laws of Utah 1993
17A-2-1709, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-2-1803, as last amended by Chapter 19, Laws of Utah 1998
17A-2-1805, as enacted by Chapter 216, Laws of Utah 1995
17A-3-209, as last amended by Chapter 365, Laws of Utah 1999
17A-3-210, as last amended by Chapter 30, Laws of Utah 1992
17A-3-303, as last amended by Chapter 47, Laws of Utah 1991
17A-3-412, as renumbered and amended by Chapter 186, Laws of Utah 1990
17A-3-701, as last amended by Chapter 106, Laws of Utah 1999
17B-2-201, as enacted by Chapter 368, Laws of Utah 1998
19-6-703, as enacted by Chapter 283, Laws of Utah 1993
26-8a-402, as enacted by Chapter 141, Laws of Utah 1999
26-8a-502, as enacted by Chapter 141, Laws of Utah 1999
26-18-2, as last amended by Chapter 61, Laws of Utah 1999
26-18-3.7, as last amended by Chapter 209, Laws of Utah 1997
26-21-2, as last amended by Chapters 13 and 192, Laws of Utah 1998
26-40-102, as enacted by Chapter 360, Laws of Utah 1998
26-44-101, as enacted by Chapter 344, Laws of Utah 1999
26-44-202, as enacted by Chapter 344, Laws of Utah 1999

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30-1-9, as last amended by Chapter 15, Laws of Utah 1999
30-3-38, as last amended by Chapters 235 and 329, Laws of Utah 1997
31A-5-103, as enacted by Chapter 242, Laws of Utah 1985
31A-16-103, as last amended by Chapter 131, Laws of Utah 1999
31A-22-302, as last amended by Chapter 132, Laws of Utah 1992
31A-22-604, as last amended by Chapter 102, Laws of Utah 1995
31A-23-102, as last amended by Chapter 131, Laws of Utah 1999
31A-23-503, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
31A-23-601, as last amended by Chapter 9, Laws of Utah 1996, Second Special Session
31A-25-205, as enacted by Chapter 242, Laws of Utah 1985
32A-1-105, as last amended by Chapter 141, Laws of Utah 1998
32A-1-113, as last amended by Chapter 169, Laws of Utah 1997
32A-1-117, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-118, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-121, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-1-504, as enacted by Chapter 20, Laws of Utah 1993
32A-3-102, as last amended by Chapter 132, Laws of Utah 1991
32A-4-102, as last amended by Chapter 132, Laws of Utah 1991
32A-4-106, as last amended by Chapter 127, Laws of Utah 1998
32A-4-202, as last amended by Chapter 132, Laws of Utah 1991
32A-4-206, as last amended by Chapter 127, Laws of Utah 1998
32A-5-102, as last amended by Chapter 132, Laws of Utah 1991
32A-5-107, as last amended by Chapter 127, Laws of Utah 1998
32A-7-102, as last amended by Chapter 132, Laws of Utah 1991
32A-8-102, as last amended by Chapter 132, Laws of Utah 1991
32A-8-106, as last amended by Chapters 77 and 88, Laws of Utah 1994
32A-8-502, as enacted by Chapter 20, Laws of Utah 1993
32A-8-505, as last amended by Chapter 141, Laws of Utah 1998

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32A-9-102, as last amended by Chapter 132, Laws of Utah 1991
32A-9-106, as last amended by Chapter 270, Laws of Utah 1998
32A-10-202, as last amended by Chapter 282, Laws of Utah 1998
32A-10-206, as last amended by Chapter 127, Laws of Utah 1998
32A-11-102, as last amended by Chapter 282, Laws of Utah 1998
32A-11-106, as last amended by Chapter 88, Laws of Utah 1994
32A-11a-102, as enacted by Chapter 328, Laws of Utah 1998
32A-12-303, as last amended by Chapter 132, Laws of Utah 1991
32A-12-304, as last amended by Chapter 132, Laws of Utah 1991
32A-12-305, as last amended by Chapter 132, Laws of Utah 1991
32A-12-306, as renumbered and amended by Chapter 23, Laws of Utah 1990
32A-12-307, as last amended by Chapter 20, Laws of Utah 1993
32A-12-308, as last amended by Chapter 132, Laws of Utah 1991
32A-12-310, as enacted by Chapter 132, Laws of Utah 1991
32A-13-109, as renumbered and amended by Chapter 23, Laws of Utah 1990
53-10-102, as renumbered and amended by Chapter 263, Laws of Utah 1998
53-10-304, as renumbered and amended by Chapter 263, Laws of Utah 1998
53-10-305, as renumbered and amended by Chapter 263, Laws of Utah 1998
53A-15-205, as enacted by Chapter 246, Laws of Utah 1994
58-37c-19, as enacted by Chapter 100, Laws of Utah 1998
58-37c-20, as enacted by Chapter 100, Laws of Utah 1998
58-56-3, as last amended by Chapter 42, Laws of Utah 1999
58-59-303, as repealed and reenacted by Chapter 247, Laws of Utah 1994
58-67-102, as last amended by Chapter 4, Laws of Utah 1999
58-68-102, as last amended by Chapter 4, Laws of Utah 1999
59-2-601, as last amended by Chapter 264, Laws of Utah 1998
62A-7-109, as last amended by Chapter 10, Laws of Utah 1999
62A-12-282.1, as last amended by Chapters 10, 329 and 365, Laws of Utah 1997

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63-25a-501, as enacted by Chapter 346, Laws of Utah 1999
63-55-209, as last amended by Chapters 21, 76 and 156, Laws of Utah 1999
63-55-254, as last amended by Chapter 189, Laws of Utah 1999
63-55-262, as last amended by Chapters 15 and 134, Laws of Utah 1997
63-55-263, as last amended by Chapters 13, 122 and 270, Laws of Utah 1998
63-55b-163, as renumbered and amended by Chapter 21, Laws of Utah 1999
63-75-7, as last amended by Chapter 136, Laws of Utah 1996
63A-9-801, as renumbered and amended by Chapter 252 and last amended by Chapter 375,
Laws of Utah 1997
63C-8-101, as enacted by Chapter 202, Laws of Utah 1997
76-8-508, as last amended by Chapter 175, Laws of Utah 1988
76-9-704, as last amended by Chapter 51, Laws of Utah 1999
76-10-105.1, as last amended by Chapter 412, Laws of Utah 1998
76-10-803, as last amended by Chapter 141, Laws of Utah 1992
76-10-1305, as last amended by Chapter 79, Laws of Utah 1996
76-10-1902, as last amended by Chapter 97, Laws of Utah 1999
77-19-11, as last amended by Chapter 113, Laws of Utah 1996
77-20-8.5, as last amended by Chapter 257, Laws of Utah 1998
77-32-401, as enacted by Chapter 354, Laws of Utah 1997
77-37-3, as last amended by Chapter 40, Laws of Utah 1993
78-3a-905, as last amended by Chapter 260, Laws of Utah 1999
78-3c-4, as last amended by Chapter 30, Laws of Utah 1992
78-3g-102, as last amended by Chapter 68, Laws of Utah 1998
REPEALS:
26-8-15, as last amended by Chapter 241, Laws of Utah 1991
78-32-12.3, as enacted by Chapter 152, Laws of Utah 1993
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 9-2-1610 is amended to read:

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9-2-1610. Recycling market development zones credit.
For a taxpayer within a recycling market development zone, there are allowed the credits
against tax as provided by Sections [ 59-7-608 ] 59-7-610 and 59-10-108.7 .
Section 2. Section 10-2-115 is amended to read:
10-2-115. Notice of number of commission or council members to be elected and of
district boundaries -- Declaration of candidacy for city office.
(1) (a) Within 20 days of the county legislative body's receipt of the information under
Subsection 10-2-114 (1)(d), the county clerk shall publish in a newspaper of general circulation within
the future city a notice containing:
(i) the number of commission or council members to be elected for the new city;
(ii) if some or all of the commission or council members are to be elected by district, a
description of the boundaries of those districts as designated by the petition sponsors under
Subsection 10-2-114 (1)(b);
(iii) information about the deadline for filing a declaration of candidacy for those seeking to
become candidates for mayor or city commission or council; and
(iv) information about the length of the initial term of each of the city officers, as determined
by the petition sponsors under Subsection 10-2-114 (1)(c).
(b) The notice under Subsection (1)(a) shall be published at least once a week for two
successive weeks.
(c) (i) If there is no newspaper of general circulation within the future city, the county clerk
shall post at least one notice per 1,000 population in conspicuous places within the future city that
are most likely to give notice to the residents of the future city.
(ii) The notice under Subsection (1)(c)(i) shall contain the information required under
Subsection (1)(a).
(iii) The petition sponsors shall post the notices under Subsection (1)(c)(i) at least seven days
before the deadline for filing a declaration of candidacy under Subsection (2).
(2) Notwithstanding Subsection [ 20A-2-203 ] 20A-9-203 (2)(a), each person seeking to
become a candidate for mayor or city commission or council of a city incorporating under this part

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shall, within 45 days of the incorporation election under Section 10-2-111 , file a declaration of
candidacy with the clerk of the county in which the future city is located.
Section 3. Section 10-2-416 is amended to read:
10-2-416. Commission decision -- Written decision -- Limitation.
(1) Subject to Subsection (3), after the public hearing under Subsection 10-2-415 (1) the
commission may:
(a) approve the proposed annexation, either with or without conditions;
(b) make minor modifications to the proposed annexation and approve it, either with or
without conditions; or
(c) disapprove the proposed annexation.
(2) The commission shall issue a written decision on the proposed annexation within 20 days
of the conclusion of the hearing under Subsection 10-2-415 (1) and send a copy of the decision to:
(a) the legislative body of the county in which the area proposed for annexation is located;
(b) the legislative body of the proposed annexing municipality;
(c) the contact person on the annexation petition;
(d) each entity that filed a protest; and
(e) if a protest was filed under Subsection 10-2-407 (1)[(d)](a)(iv), the contact person.
(3) The commission may not approve a proposed annexation unless the results of the
feasibility study under Section 10-2-413 show that the average annual amount under Subsection
10-2-413 (3)(a)(ix) does not exceed the average annual amount under Subsection 10-2-413 (3)(a)(viii)
by more than 5%.
Section 4. Section 10-3-106 is amended to read:
10-3-106. Governing body in towns.
The governing body of each town that has not adopted an optional form of government under
Part 12, Alternative Forms of Municipal Government Act, shall be a council of five persons one of
whom shall be the mayor and the remaining four shall be [councilmen] council members.
Section 5. Section 13-30-106 is amended to read:
13-30-106. Bond, certificate of deposit, or letter of credit.

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(1) (a) A person may not conduct a personal introduction service unless at the time of
conducting the personal introduction service the person has on file with the division a good and
sufficient bond, certificate of deposit, or letter of credit.
(b) If a personal introduction service business obtains and maintains a bond, the bond shall
be a performance bond issued by a surety authorized to transact surety business in this state.
(2) The bond, certificate of deposit, or letter of credit shall be for an amount prescribed by
rule, payable to the division.
(3) (a) The bond, certificate of deposit, or letter of credit shall provide that the person giving
it shall, upon written demand, remit to the division the amount necessary:
(i) as reimbursement for both administrative and civil violations of this chapter; and
(ii) in satisfaction of any civil [and or] judgments, criminal judgments, or both, rendered by
a court of competent jurisdiction for violations of this chapter.
(b) Notwithstanding Subsection (3)(a), recovery from a bond, certificate of deposit, or letter
of credit is limited to the amount of the bond, certificate of deposit, or letter of credit.
(4) The division may:
(a) specify the form of the bond, certificate of deposit, or letter of credit; and
(b) require that the bond, certificate of deposit, or letter of credit contain additional
provisions and conditions that the division considers necessary or proper to protect the persons for
whom the collection is undertaken.
(5) (a) A bond, certificate of deposit, or letter of credit required under this section shall be
for the term of one year from the date of issuance and shall run concurrently with the registration.
(b) The applicant shall maintain the bond, certificate of deposit, or letter of credit for the
entire duration of the registration and for a period of not less than one year after the division receives
notice in writing from the person engaged in the business of a personal introduction service that all
activities have ceased.
(c) An action on a bond, certificate of deposit, or letter of credit may not be initiated more
than two years from the date the bond, certificate of deposit, or letter of credit expires.
Section 6. Section 17A-1-301 is amended to read:

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17A-1-301. Exemptions.
This part does not apply to:
(1) public transit districts established under authority of Title 17A, Chapter 2, Part 10, Utah
Public Transit District Act;
(2) water conservancy districts established under Title 17A, Chapter 2, Part 14, Water
Conservancy Districts;
(3) soil conservation districts created under the authority of Title 17A, Chapter 3, Part 8, Soil
Conservation Districts;
(4) neighborhood redevelopment agencies established under authority of Title 17A, Chapter
2, Part 12, Utah Neighborhood Development Act;
(5) metropolitan water districts established under authority of Title 17A, Chapter 2, Part 8,
Metropolitan Water District Act;
(6) any dependent special district established under the authority of Title 17A, Chapter 3,
Dependent Special Districts; and
(7) a hazardous waste facilities [Management Authorities] authority established under
authority of [Title 17A,] Chapter 2, Part 17, Hazardous Waste Facilities Management Act.
Section 7. Section 17A-1-437 is amended to read:
17A-1-437. District treasurer -- Duties generally.
(1) (a) The governing body of the district shall appoint a district treasurer.
(b) (i) Where required, the treasurer may be chosen from among the members of the
governing board, except that the chairman of the board may not be district treasurer.
(ii) The district clerk may not also be the district treasurer.
(2) The district treasurer is custodian of all money, bonds, or other securities of the district.
(3) The district treasurer shall:
(a) determine the cash requirements of the district and provide for the deposit and investment
of all monies by following the procedures and requirements of Title 51, Chapter 7, State Money
Management Act;
(b) receive all public funds and money payable to the district within three business days after

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collection, including all taxes, licenses, fines, and intergovernmental revenue;
(c) keep an accurate detailed account of all monies received under Subsection [(2)] (3)(b)
in the manner provided in this part and as directed by the governing body of the district by resolution;
and
(d) collect all special taxes and assessments as provided by law and ordinance.
Section 8. Section 17A-2-215 is amended to read:
17A-2-215. Board of cemetery maintenance commissioners -- Organization --
Vacancies -- Officers -- Certified copies of appointments -- Regular and special meetings --
Bills payable -- Oath of office and bond.
Immediately after qualifying, the board of cemetery maintenance commissioners shall meet
and organize as a board and, at that time, and whenever thereafter vacancies in the respective offices
may occur, they shall elect a president from their number and shall appoint a secretary and treasurer
who may also be from their number all of whom shall hold office during the pleasure of the board or
for terms fixed by the board. The offices of secretary and treasurer may be filled by the same person.
Certified copies of all such appointments under the hand of each of the commissioners shall be
forthwith filed with the clerk of the county legislative body and with the tax collector of the county.
As soon as practicable after the organization of the first board of cemetery maintenance
commissioners and thereafter when deemed expedient or necessary such board shall designate a day
and hour on which regular meetings shall be held and a place for the holding thereof which shall be
within the district. Regular meetings must show what bills are submitted, considered, allowed or
rejected. The secretary shall make a list of all bills presented, showing to whom payable, for what
service or material, when and where used, amount claimed, allowed or disallowed. Such list shall be
signed by the chairman and attested by the secretary; provided, that all special meetings must be
ordered by the president or a majority of the board, the order must be entered of record, and the
secretary must give each member not joining in the order[,] five days notice of special meetings;
provided further, that whenever all members of the board are present the same shall be deemed a legal
meeting and any lawful business may be transacted. All meetings of the board must be public and a
majority shall constitute a quorum for the transaction of business. All records shall be open to the

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inspection of any elector during business hours.
The officers of the district shall take and file with the secretary an oath for the faithful
performance of the duties of the respective officers. The treasurer shall on his appointment execute
and file with the secretary an official bond in such an amount as may be fixed by the cemetery
maintenance board which amount shall be at least sufficient to cover the probable amounts of money
coming into his hands and 25% thereof in addition thereto.
Section 9. Section 17A-2-219 is amended to read:
17A-2-219. Acquisition and possession of property -- Legal title -- Actions by and
against board.
The legal title to all property acquired under the provisions of this part shall immediately, and
by operation of law, vest in such cemetery maintenance district and shall be held by such district in
trust for and is dedicated and set aside to the uses and purposes set forth in this part. Said board is
authorized and empowered to hold, use, acquire, manage, occupy and possess said property as herein
provided and to institute and maintain any and all actions and proceedings, suits at law or in equity
or to enforce, maintain, protect or preserve any and all rights, privileges and immunities created by
this part or acquired in pursuance thereof. In all courts, actions, suits or proceedings, the said board
may sue, appear and defend, in person or by attorney and in the manner of such cemetery maintenance
district.
Section 10. Section 17A-2-331 is amended to read:
17A-2-331. Annexation of areas.
[Area] An area outside of any improvement district created under or operating under
provisions of Chapter 2, Part 3, County Improvement Districts for Water, Sewerage, Flood Control,
Electric and Gas, may be annexed to any such improvement district in the manner herein provided.
Section 11. Section 17A-2-422 is amended to read:
17A-2-422. Proposal to incur indebtedness -- Resolution -- Notice -- Hearing -- Calling
of bond election -- Written protests.
(1) (a) A proposal to incur indebtedness which would cause the total county debt to exceed
the county taxes for the current year or which would not be payable within one year, as the case may

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be, may be originated by a majority vote of the board of trustees or by petition of not less than 100
property owners or 10% of all the property owners, whichever is less, who own property within the
county service area or by petition of not less than 10% of all the qualified voters residing in the
county service area.
(b) The proposal shall specify the particular purpose for which the indebtedness is to be
created, the amount in money of bonds which it is proposed to issue and the name and number of the
county service area.
(2) After the proposal has been made, the board of trustees, as expeditiously as possible, shall
adopt a resolution fixing a time and place at which the proposal shall be heard, which time shall be
not less than 30 nor more than 60 days after the date of adoption of the resolution.
(3) (a) The board of trustees shall immediately issue a notice of the time and place of hearing,
which notice shall state that all persons who own property in the service area when the debt is payable
solely from within the county service area or all persons residing in the county when the debt is
countywide may appear at the hearing and contend for or protest against the incurrence of the debt
and the holding of a bond election.
(b) If the service area has issued bonds, the notice shall include a statement of the amount
of outstanding bonds of the service area and shall indicate whether the bonds are general obligations
of the county or are payable solely from within the county service area.
(4) (a) The board of trustees shall cause the notice to be published once a week during four
consecutive weeks in a newspaper of general circulation in the county, the first publication to be not
more than 60 days nor less than 28 days prior to the date of the hearing.
(b) It is not necessary that the notice be published on the same day of the week in each of
four calendar weeks, but not less than 20 days shall intervene between the first publication and the
last publication.
(5) At the time and place set for the hearing of the petition, or upon a subsequent date fixed
at the original hearing the board of trustees shall proceed to hear the proposal and all matters in
respect to a bond election.
(6) If, upon the hearing of the proposal, the board of trustees finds that due notice has been

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given and that the services under discussion would be for the benefit of all taxable property or the real
property owners situated in the service area, then the board shall make and cause to be entered of
record upon its minutes an order so finding, and shall proceed to call the bond election and, if a
majority of those voting, vote in the affirmative, to issue the bonds in the manner provided.
(7) The board may reduce the amount in money of the bonds named in the petition.
(8) (a) If written protests are filed prior to the date fixed for the original hearing, signed by
property owners owning taxable property in the service area with a taxable value in excess of 40%
of the taxable value of all the taxable property within the service area, according to the last
assessment roll for county taxes completed prior to the holding of the election or by 40% of all the
qualified voters residing in the county service area or by 40% of all the qualified voters residing in
the county, the board does not have authority to proceed with the calling of the election, and no new
petition for a bond election in the service area may be entertained for a period of 12 months from that
time.
(b) If written protests are filed and the board of trustees determines that the protests so filed
represent less than the 40% required, a resolution or finding in writing of the board calling the
election shall so recite and the recital shall be conclusive.
(9) The provisions of this section and of Section 17A-2-407 with regard to publication of
notice in a newspaper may be carried out concurrently.
Section 12. Section 17A-2-534 is amended to read:
17A-2-534. Public uses -- Right of entry on lands -- Penalty for interference.
(1) The use of any canal, ditch, or the like, created under the provisions of this part, shall be
deemed a public use and for a public benefit.
(2) The supervisors or their representatives from the time of their appointment may go upon
the lands lying within [said] the district for the purpose of examining the same, and making surveys,
and after the organization of [said] the district and payment or tender of compensation allowed, may
go upon [said] those lands with their servants, teams, tools, instruments, or other equipment, for the
purpose of constructing such proposed work, and may forever thereafter enter upon [said] those
lands, as aforesaid, for the purpose of maintaining or repairing such proposed work, doing no more

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damage than the necessity of the occasion may require[, any].
(3) Any person or persons who shall willfully prevent or prohibit any of such persons from
entering such lands for the purpose aforesaid shall be deemed guilty of a misdemeanor and upon
conviction be fined any sum not exceeding $25 per day for each day's hindrance, which sum shall be
paid into the county treasury for the use of [said] the district.
Section 13. Section 17A-2-535 is amended to read:
17A-2-535. Validation of organization proceedings -- Notice of proposed corrections,
amendments, or changes in assessment of benefits -- Hearing by county legislative body of
report of board of supervisors -- Board of equalization -- Increase of drainage benefits and
taxes -- Lien.
Whenever it shall appear to the board of supervisors that any proceedings for the organization
of a drainage district have not been strictly in compliance with law, or if any lands within the district
have been erroneously assessed for benefits or taxes, or inequitably assessed for benefits or taxes, or
that any assessment of damages or benefits under this part has been made in error as to description,
ownership, or acreage intended to be assessed, or if it shall appear to such board of supervisors that
the assessment of benefits has been inequitably distributed among the various parcels of land, or
unjustly equalized as between the various parcels of land within the district, or that any tract of land,
easement or interest in land, public[,] or private road, railroad or railroad right-of-way, has been
included in, or omitted from, any assessment roll of benefits or taxes by reason of clerical error or
otherwise, or that proper notice or notices as required by law has not or have not been given, such
noncompliance, error, omission or want of notice shall not invalidate such organization, neither shall
any such assessments of benefits or taxes be lost to the district in case of any omission, nor shall the
board of supervisors and the county legislative body be held to have lost jurisdiction to correct such
error or omission, or to readjust such assessments of benefits or to redistribute such assessment of
benefits upon the various parcels of land and interest in lands within such district, and to justly
equalize the same as between various parcels of land and interest in lands within the district, but the
board of supervisors of such district may report any such conditions and recommend such corrections
and changes as such board of supervisors may deem necessary to remedy the same; and upon

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receiving such report and recommendation the said county legislative body may make such
corrections, amendments or changes in the assessment rolls of benefits and taxes, or correct any error,
omission, mistake, inequality or want of sufficient notice, as may be just; provided, that when any
correction, amendment or change is sought to be made, notice of such proposed correction,
amendment or change in the assessment of benefits and taxes shall be given to all persons affected
thereby, in the following manner:
The board of supervisors of the drainage district shall file with the clerk of the county
legislative body of the county wherein the drainage district is located, a verified report containing the
proposed corrections, amendments, and/or changes in the assessments of benefits and taxes with their
recommendation with respect thereto, to the county legislative body. The county legislative body
shall, at its first meeting thereafter, fix a time and place for a hearing on said report and shall cause
a notice of the hearing thereon to be published three times if in a daily newspaper, twice if in a
semiweekly newspaper and once if in a weekly newspaper, not less than 15 days before said hearing,
and when the residence or post-office address of any landowner, whose assessment of benefits or
taxes is to be corrected, amended or changed is known the clerk of the county legislative body shall
cause a copy of the notice to be sent by United States mail to such landowner, not less than 15 days
before the time fixed for the hearing on the report. The notice shall state generally the purpose of the
hearing and the time and place where the county legislative body shall meet as a board of equalization
to hear and determine any complaint made against such report, corrections, amendments and changes
in the assessment roll of benefits and taxes.
The county legislative body at the time and place fixed in the notice shall sit as a board of
equalization and it shall make and finally determine such corrections, amendments and changes in the
roll of assessment of benefits and taxes, as it shall determine after such hearing, and thereafter all such
lands, easements or interest in lands shall be assessed in accordance with the assessment roll as thus
corrected, amended, or changed; and such changed assessment roll of benefits and taxes shall be the
basis of lien upon the parcels of land or interest in land, as corrected, amended or changed, for all
district indebtedness. Whenever it shall be made to appear to the board of supervisors of the drainage
district that any owner or operator of any land within the drainage district has so changed the use of

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such land so as to increase the benefits received by such land by reason of the construction,
maintenance, and operation of the drainage system, the board of supervisors of the drainage district
shall view each tract of such land and shall carefully consider the increased benefits such tract of land
is receiving from the construction, maintenance and operation of the drainage system and shall assess
such tract of land in accordance with the increased benefits received by it. After such assessment is
made, the secretary of the board of supervisors shall transmit the same to the county legislative body
and the county legislative body shall within 15 days after receipt thereof, cause not less than 15 days
notice to be sent by mail to each landowner in the district whose benefits have thus been increased,
showing the amount of the benefits as thus increased on the land owned by the landowner within the
district; and stating therein the time and place where the county legislative body shall meet as a board
of equalization to hear and determine complaints made against such increased assessments. At such
hearing any landowner upon whose lands the benefits are thus increased may appear and oppose such
increase or any part thereof. The county legislative body shall sit as a board of equalization of the
increased drainage benefits and taxes, and shall equalize and determine the assessment of benefits and
taxes to be made and levied upon such tract of land within the district. Such increased assessment of
benefits shall be the basis of a lien upon such lands within the district for all district indebtedness and
taxes.
Section 14. Section 17A-2-544 is amended to read:
17A-2-544. Bonds -- Lien on land and improvements.
Whenever any such drainage district bonds shall be issued, or contract with the United States
made, in accordance with the provisions of this part, such bonds or contract[,] shall constitute a lien
upon all of the lands and improvements thereon within the boundaries of the district, to the extent of
the total benefits, assessed and equalized, and pledged for such purpose, and not in excess thereof,
and the board of supervisors of said district shall from time to time, as by this part provided, levy a
sufficient tax to pay the annual interest charge on such bonds, and in addition thereto, such an amount
as a sinking fund which shall, in the course of events and ultimately, amount to a sufficient sum to
redeem said bonds, or in case of contract with the United States, shall levy a sufficient tax to meet
all payments due, or to become due thereunder, and in addition thereto, a sufficient tax to pay the

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interest or penalties on any delinquent payment or payments, as provided in said contract or as
required by the statutes of the United States.
Section 15. Section 17A-2-553 is amended to read:
17A-2-553. Taxes considered lien -- Sale of property -- Time of redemption -- Notice
-- Penalty -- Record.
All drainage taxes levied and assessed under the provisions of this title shall attach to and
become a lien on the real property assessed from and after the second Monday in March. Drainage
taxes shall become due and delinquent at the same time, and shall be collected by the same officers
and in the same manner and at the same time as state and county taxes, and when collected shall be
paid to the treasurer of the board of supervisors. The revenue laws of this state for the assessment,
levying, and collecting of taxes on real estate for county purposes, except as herein modified, shall
be applicable for the purposes of this part, including the enforcement of penalties and forfeiture for
delinquent taxes; provided, that lands sold for delinquent district taxes shall be sold separately for
such tax and a separate certificate of sale shall issue therefor, and provided further that the period of
redemption from sale for taxes under this part[,] shall be four years. At the same time and in the same
manner as the county treasurer publishes the delinquent tax list for state and county taxes in each
year, the county treasurer must publish a delinquent drainage tax list, which must contain the names
of the owners, when known and a description of the property delinquent or subject to lien of drainage
district taxes with the amount of taxes due exclusive of penalty. The county treasurer must publish
with such list a notice, each year, that unless the delinquent drainage taxes, together with the penalty,
are paid before the date for tax sales for state and county taxes the real property upon which such
taxes are a lien will be sold for taxes, penalty and costs, beginning on said date, at the front door of
the county courthouse. The delinquent list shall be published three times if in a daily newspaper,
twice if in a semiweekly and once if in a weekly newspaper. On the date for tax sales for state and
county taxes each year, the county treasurer shall expose for sale, between the hours of ten a.m. and
three p.m. sufficient of all delinquent real estate to pay the drainage district taxes, penalty and costs
for which such real estate is liable, at public auction, at the front door of the county courthouse, and
sell the same to the highest responsible bidder for cash, and the county treasurer shall continue to sell

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from day to day between such hours until the property of all delinquents is exhausted or the taxes,
penalty and costs are paid. In offering such real estate for sale the treasurer shall offer the entire tract
assessed, and the first bid received in an amount sufficient to pay the taxes and costs shall be accepted
unless a further bid in the same amount for less than the entire tract shall be received; and the highest
and best bid shall be construed to mean the bid of that bidder who will pay the full amount of the
taxes and costs for the smallest undivided portion of said real estate. After receiving a bid for the full
amount of the taxes and costs it shall not be the duty of the treasurer to attempt to secure a higher
bid, but he shall accept it if made. The treasurer shall make a record of all sales of real property in
a book to be kept by him for that purpose therein describing the several parcels of real property on
which the taxes and costs were paid by the purchasers, in the same order as the published list of
delinquent sales contained in the list of advertisements on file in his office. Separate columns shall also
be provided in said record in which the treasurer shall enter the description of any tract sold that is
less than the entire tract on which the taxes are due, the date of sale, to whom sold, the penalty, and
costs, and the date of redemption. The purchaser shall be required to pay the penalty to the county
treasurer, which penalty shall in all cases accrue to the benefit of the drainage district. When all sales
have been made the county treasurer shall file the record in his office, in looseleaf bound form. It
shall be the duty of the county treasurer to issue a receipt to any person paying drainage district taxes
on an undivided interest in real estate, showing the interest on which taxes are paid, and in case any
portion of the drainage district taxes on such real estate remains unpaid, it shall be the duty of the
treasurer to sell only such undivided interest in said real estate as belongs to the co-owners who have
not paid their portion of the taxes. In absence or default of purchaser at any such public sale of
drainage district taxes, the drainage district in which taxes are delinquent shall become the purchaser
and shall receive from the county treasurer the tax sale certificate of the real property on which
drainage district taxes are delinquent upon the same terms upon which the county receives tax sales
certificates on sales for delinquent state and county taxes and shall hold the same in the same manner
as an individual may hold real property upon which state or county taxes are delinquent, subject to
the same rights of redemption. In all respects, a drainage district shall be the beneficiary of taxes
assessed and levied by it, provided, however, that county treasurer shall retain the costs and expense

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provided by law for the advertisement, sale and redemption of drainage district taxes.
Section 16. Section 17A-2-605 is amended to read:
17A-2-605. Organization of proposed district -- Adoption of ordinance -- Election --
Qualification of voters.
After the county legislative body has made its order finally fixing and determining the
boundaries of the proposed district, the district can be created by either (1) the county legislative
body adopting an ordinance creating the [said] district, which ordinance shall give the name thereof,
the county in which it is located and a description of the proposed area and boundaries of the district.
The [said] district shall become legally existent, provided no appeal is taken [as set forth in Section
17A-2-607 ], 30 days from the date of first publication of the ordinance creating the [said] fire district
or (2) the county legislative body shall give notice of an election to be held within the proposed
district for the purpose of determining whether or not the same shall be organized under the
provisions of this part. Such notice shall give the name of the proposed fire protection district,
describe the boundaries thereof, name the precinct or precincts therein with a description of the
boundaries of each, together with a designation of the polling places. The notice shall be published,
previous to the time of such election, in the same manner as provided in Section 17A-2-603 [above].
Such notice shall require the electors to cast ballots which shall contain the words " ____ fire
protection district, yes," or "____ fire protection district, no" or words equivalent thereto. Qualified
electors, under the general laws of the state, living within such district shall be entitled to vote on the
question of whether the district shall or shall not be created.
Section 17. Section 17A-2-812 is amended to read:
17A-2-812. Ballot.
The ballot used at such election shall contain the words "Shall the territory embraced within
the corporate boundaries of the city of .......... become a part of the .......... metropolitan water
district" (inserting the name of the city or water district as the case may be wherein such ballot shall
be used and the name of the metropolitan water district as stated in the initiating ordinance) and the
words "Yes" and "No" accompanied by voting squares set opposite thereto so that any elector may
record [his] a vote either for or against the [propositions] proposition.

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Section 18. Section 17A-2-818 is amended to read:
17A-2-818. Powers of incorporated districts -- Preferential right of city to purchase
water.
(1) (a) Any district incorporated as provided in this part may:
(i) have perpetual succession;
(ii) sue and be sued in all actions and proceedings and in all courts and tribunals of competent
jurisdiction;
(iii) adopt a corporate seal and alter it;
(iv) take by grant, purchase, bequest, devise, or lease, and hold, enjoy, lease, sell, encumber,
alienate, or otherwise dispose of, water, waterworks, water rights, and sources of water supply, and
any real and personal property of any kind within or without the district and within and without Utah
necessary or convenient to the full exercise of its powers;
(v) acquire, construct, or operate, control, and use works, facilities, and means necessary or
convenient to the exercise of its powers, both within and without the district and within and without
Utah; and
(vi) perform any and all things necessary or convenient to the full exercise of the powers
granted under this section.
(b) (i) Any district incorporated as provided in this part may have and exercise the power of
eminent domain and, in the manner provided by law for the condemnation of private property for
public use, take any property necessary to the exercise of the powers granted under this section.
(ii) In any proceeding relative to the exercise of the power of eminent domain, the district has
the same rights, powers, and privileges as a municipal corporation.
(2) (a) Any district incorporated as provided in this part may:
(i) construct and maintain works and establish and maintain facilities across or along any
public street or highway and in, upon, or over any vacant public lands, that are now, or may become,
the property of the state, other than those lands defined in Subsection 53C-1-103 (6); and
(ii) construct works and establish and maintain facilities across any stream of water or
watercourse if the district promptly restores the street or highway to its former state of usefulness as

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nearly as may be and does not use the street or highway in a manner that completely or unnecessarily
impairs the usefulness of it.
(b) (i) In the use of streets, the district is subject to the reasonable rules and regulations
concerning excavations and the refilling of excavations, the relaying of pavements and the protection
of the public during periods of construction of the county or municipality in which the streets are
located.
(ii) The county or municipality may not require the district to pay any license or permit fees,
or file any bonds.
(iii) The county or municipality may require the district to pay reasonable inspection fees.
(3) (a) Any district incorporated as provided in this part may borrow money, incur
indebtedness, and issue bonds and other obligations.
(b) A district may not issue bonds that pledge the full faith and credit of the district for
payment if those bonds, in the aggregate, exceed 10% of the fair market value, as defined under
Section 59-2-102 , of the taxable property in the district as computed from the last equalized
assessment roll for county purposes before the issuance of the bonds.
(c) For purposes of Subsection (3), the district shall include the fair market value of all tax
equivalent property, as defined under Section 59-3-102 , as a part of the fair market value of taxable
property in the district.
(4) Contracts and agreements with the United States of America, and with any water users'
association or any other public, cooperative, or private entity from which the district procures water,
and bonds payable solely from revenues of the district other than from the proceeds of ad valorem
taxes, are not within the limitation established by this Subsection (4).
(5) (a) Any district incorporated as provided in this part may fix and determine the funds
required for district purposes of every nature and apportion and charge the same against the area of
each city within the district by following the procedures and requirements of this Subsection (5).
(b) As to the costs of all water, water rights, reservoirs, canals, conduits, and other works
for which the district as a whole receives the benefit, and because of which the district is indebted or
because of which the district has made payment without any previous apportionment and charge

- 21 -

having been made, and the charges made against the district because of its ownership of stock in any
water users' association, in the same proportion as the water and water rights set apart or allotted to
each area bear to the total water and water rights owned or held by the district.
(c) As to that portion of these funds required for operation, maintenance, and the cost of
construction of distributing systems, the district shall equitably apportion these costs and determine
and base them on the benefits and the relative cost of service provided by the district to each
respective area.
(6) (a) Any district incorporated as provided in this part may:
(i) levy and collect taxes for the purposes of carrying on the operations and paying the
obligations of the district; and
(ii) in any year, levy a tax sufficient to cover in full any deficit that may have resulted from
tax delinquencies for any preceding year.
(b) (i) Taxes levied under this subsection for administering the district and maintaining and
operating its properties may not exceed .0005 per dollar of taxable value of taxable property in the
district.
(ii) Taxes levied to pay principal of and interest on the bonds of the district, to pay
indebtedness and interest owed to the United States of America, or to pay assessments or other
amounts due any water users' association or other public cooperative[,] or private entity from which
the district procures water are not subject to the limitation established by this Subsection [(5)] (6)(b).
(c) (i) The district shall:
(A) levy taxes for the payment of principal of and interest on the bonds of the district as
separate and special levies for that specific purpose; and
(B) apply the proceeds from them solely to the payment of this principal and interest.
(ii) As separate and special levies, these levies are not subject to any priorities in favor of
obligations of the district in existence at the time the bonds were issued.
(d) (i) The district may not levy any of the taxes authorized by this Subsection (6) unless it
has conducted, at its regular place of business, a public hearing on the purposes and necessities of
the taxation.

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(ii) The board of directors of the district shall publish notice of the public hearing at least
seven days prior to the hearing in a newspaper of general circulation published in the county or
counties in which the district is located.
(e) Any district incorporated as provided in this part may:
(i) enter into contracts, employ and retain personal services, and employ laborers;
(ii) create, establish, and maintain and elect, appoint, and employ necessary and convenient:
(A) officers, attorneys, and agents convenient for the transaction of the business of the
district;
(B) officers and positions as necessary; and
(C) employees.
(7) (a) Any district incorporated as provided in this part may:
(i) join with one or more other corporations, public or private, for the purpose of carrying
out any of its powers;
(ii) contract with any other corporation or corporations for the purposes of financing
acquisitions, constructions, and operations;
(iii) in the contract, obligate itself severally or jointly with the other corporations; and
(iv) secure, guarantee, or become surety for the payment of any indebtedness, or the
performance of any contract or other obligation that may be, or has been, incurred or entered into by
any corporation in which the district has acquired shares of stock by subscription or otherwise.
(b) The contracts may provide for:
(i) contributions to be made by each party to them;
(ii) the division and apportionment of the expenses of the acquisitions and operations;
(iii) the division and apportionment of the benefits, the services, and the products from them;
and
(iv) an agency to effect the acquisitions and carry on these operations.
(c) The contracts shall provide the powers and the methods of procedure for the agency the
method by which the agency may contract.
(d) The contract may contain further covenants and agreements as necessary and convenient

- 23 -

to accomplish its purposes.
(8) Any district incorporated as provided in this part may:
(a) acquire water and water rights within or without Utah;
(b) develop, store, and transport water;
(c) subscribe for, purchase, and acquire stock in canal companies, water companies, and
water users' associations;
(d) provide, sell, lease, and deliver water within or outside of the district for municipal and
domestic purposes, irrigation, power, milling, manufacturing, mining, and metallurgical and any and
all other beneficial uses;
(e) fix the rates;
(f) acquire, construct, operate, and maintain any works, facilities, improvements, and
property that are necessary or convenient; and
(g) in the doing of all of these things:
(i) obligate itself jointly with other persons and corporations, public and private; and
(ii) execute and perform these obligations according to their tenor.
(9) (a) Any district incorporated as provided in this part may invest any surplus money in the
district treasury, including any money in any sinking fund established for the purpose of providing for
the payment of the principal or interest of any bonded contract or other indebtedness or for any other
purpose, not required for immediate necessities of the district, by following the procedures and
requirements of Title 51, Chapter 7, State Money Management Act.
(b) The district shall ensure that the sales of any bonds or treasury notes purchased and held
are made in season so that the proceeds may be applied to the purposes for which the money, with
which the bonds or treasury notes were originally purchased, was placed in the treasury of the district.
(c) The treasurer and controller, with the approval of the attorney, shall perform the functions
and duties authorized by this subsection under rules adopted by the board of directors of the district.
(10) Each city, the area of which is a part or all of any district incorporated under this part,
has a preferential right to purchase from the district, at rates determined by the board of directors of
the district, for distribution by the city, or any public utility empowered by the city for the purpose,

- 24 -

for domestic, municipal, and other beneficial uses within the city, a portion of the water served by the
district which shall bear the same ratio to all of the water supply of the district as the total
accumulation of amounts levied as taxes by the district against the property of the city which is within
the area of the district shall bear to the total of all taxes levied by the district against the property in
all of the cities in the areas of which are within the area of the district.
Section 19. Section 17A-2-824 is amended to read:
17A-2-824. Revenue indebtedness or general obligation indebtedness -- Procedure for
incurring -- Terms.
(1) Any district which has determined to issue bonds shall issue its bonds under Title 11,
Chapter 14, the Utah Municipal Bond Act, for the acquisition through construction, purchase, or
otherwise and for the improvement or extension of any properties necessary or desirable in the
obtaining, treatment, and distribution of water and any other properties which the district is
authorized to own under this part. Bonds may be issued or a contract indebtedness or obligation
may be created (a) payable solely from the revenues of the district other than the proceeds of taxes,
in which case they shall be known for purposes of this section as "revenue indebtedness", or (b)
payable solely from the proceeds of taxes, in which case they shall be known for purposes of this
section as "general obligation indebtedness", or (c) payable from both operating revenues and the
proceeds of taxes, in which case they shall be known for purposes of this section as "general
obligation revenue indebtedness." The full faith and credit of the district shall be pledged to the
payment of its general obligation and general obligation revenue indebtedness, and taxes shall be
levied fully sufficient to pay that part of the principal of and interest on general obligation revenue
indebtedness as the revenues of the district pledged for this purpose may not be sufficient to meet.
General obligation indebtedness and general obligation revenue indebtedness may be issued only after
approval at an election as provided in Section 17A-2-821 . Revenue indebtedness may be similarly
submitted at an election as provided in Section 17A-2-821 if considered desirable by the board of
directors, but nothing in this part shall be construed to require such submission. Refunding bonds
may be issued without approval at an election.
(2) Revenue indebtedness and general obligation revenue indebtedness may be payable from

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and secured by the pledge of all or any specified part of the revenues to be derived by the district from
its water supply and the operation of its water facilities and other properties. It is the duty of the
board of directors to impose for water and water services rendered thereby, rates fully sufficient to
carry out all undertakings contained in the resolution authorizing the bonds or the contract. The
board of directors may in the resolution agree to pay the expenses of maintaining and operating the
properties of the district from the proceeds of the ad valorem taxes authorized in Subsection
17A-2-818 [(1)(i)](6) and may enter into those covenants with the future holders of the bonds or the
other contracting party as to the management and operation of the properties, the imposition and
collection of fees and charges for water and services furnished thereby, the disposition of the fees and
revenues, the issuance of future bonds or the creation of future contract indebtedness or obligations
and the creation of future liens and encumbrances against the properties and the revenues from them,
the carrying of insurance on the properties, the keeping of books and records, the deposit, securing,
and paying out of the proceeds of the bonds, and other pertinent matters, as deemed proper by the
board of directors to assure the marketability of the bonds or the making of the contract. The board
of directors may undertake in the resolution to make the revenues of the properties sufficient to pay
all or any specified part of the expense of the operation and maintenance of them. Covenants may
be contained in the resolution with respect to the manner of the imposition and collection of water
charges, and provision also may be made in it for the appointment of a receiver for the properties of
the district in the event of a default by the district in carrying out the covenants and agreements
contained in the resolution. Provision may also be made in the resolution for a trustee to perform
those services with respect to the holding and paying out of the revenues of the district and the
proceeds of the bonds, and otherwise, as may be considered advisable. Maintenance and operation
costs and expenses as referred to in this section shall be construed to include any payments made by
the district to the United States of America, to any water users' association, or to any other public
or private entity for the cost of operating facilities used in providing water for the district.
Section 20. Section 17A-2-1023 is amended to read:
17A-2-1023. Technical rules of evidence not to apply.
Oral evidence shall be taken on oath or affirmation. Hearings need not be conducted

- 26 -

according to technical rules of evidence, regardless of the existence of any common law or statutory
rule which might make improper the admission of such evidence over objection in a civil action.
Hearsay evidence is admissible for purposes of supplementing or explaining direct evidence but shall
not be sufficient in itself to support a finding unless it would be admissible over objection in a civil
action.
Section 21. Section 17A-2-1024 is amended to read:
17A-2-1024. Record of hearing -- Review.
A complete record of all proceedings and testimony before the board at the hearing shall be
taken by a reporter appointed by the board. If an action is brought to review any decision of the
board a transcript of testimony together with all exhibits or copies thereof introduced and the written
request for hearing and other proceedings in the cause shall constitute the record on review; provided,
that the board and other parties may stipulate in writing that a specified part of the evidence be
certified to the court for judgment and in that case the part of the evidence specified and the
stipulation specifying the evidence shall be the record on review.
Section 22. Section 17A-2-1030 is amended to read:
17A-2-1030. Employee rights and benefits extended under federal law to apply.
The rights, benefits and other employee protective conditions and remedies of Section 13(c)
of the Urban Mass Transportation Act of 1964, as amended (49 U.S.C. [1609(c)] 5333(b)), as
determined by the Secretary of Labor, shall apply to the establishment and operation by the district
of any public transit service or system and to any lease, contract, or other arrangement to operate
such system or services. Whenever the district shall operate such system or services, or enter into
any lease, contract, or other arrangement for the operation of such system or services, the district
shall take such action as may be necessary to extend to employees or affected public transit service
systems furnishing like services, in accordance with seniority, the first opportunity for reasonably
comparable employment in any available nonsupervisory jobs in respect to such operations for which
they can qualify after a reasonable training period. Such employment shall not result in any worsening
of the employee's position in his former employment or any loss of wages, hours, working conditions,
seniority, fringe benefits and rights and privileges pertaining thereto.

- 27 -

Section 23. Section 17A-2-1202 is amended to read:
17A-2-1202. Definitions.
As used in this part:
(1) "Agency" means the legislative body of a community when designated by the legislative
body itself to act as a redevelopment agency.
(2) "Base tax amount" means that portion of taxes that would be produced by the rate upon
which the tax is levied each year by or for all taxing agencies upon the total sum of the taxable value
of the taxable property in a redevelopment project area as shown upon the assessment roll used in
connection with the taxation of the property by the taxing agencies, last equalized before the effective
date of the:
(a) ordinance approving the plan for projects for which a preliminary plan has been prepared
prior to April 1, 1993, and for which all of the following have occurred prior to July 1, 1993: the
agency blight study has been completed, and a hearing under Section 17A-2-1221 has in good faith
been commenced by the agency; or
(b) the first approved project area budget for projects for which a preliminary plan has been
prepared after April 1, 1993, and for which any of the following have occurred after July 1, 1993: the
completion of the agency blight study, and the good faith commencement of the hearing by the
agency under Section 17A-2-1221 ; and
(c) as adjusted by Sections 17A-2-1250.5 , 17A-2-1251 , 17A-2-1252 , and 17A-2-1253 .
(3) "Blighted area" or "blight" means:
(a) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and
for which all of the following have occurred prior to July 1, 1993: the agency blight study has been
completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
agency, an area used or intended to be used for residential, commercial, industrial, or other purposes
or any combination of such uses which is characterized by two or more of the following factors:
(i) defective design and character of physical construction;
(ii) faulty interior arrangement and exterior spacing;
(iii) high density of population and overcrowding;

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(iv) inadequate provision for ventilation, light, sanitation, open spaces, and recreation
facilities;
(v) age, obsolescence, deterioration, dilapidation, mixed character, or shifting of uses;
(vi) economic dislocation, deterioration, or disuse, resulting from faulty planning;
(vii) subdividing and sale of lots of irregular form and shape and inadequate size for proper
usefulness and development;
(viii) laying out of lots in disregard of the contours and other physical characteristics of the
ground and surrounding conditions;
(ix) existence of inadequate streets, open spaces, and utilities; and
(x) existence of lots or other areas which are subject to being submerged by water.
(b) For projects for which a preliminary plan has been prepared after April 1, 1993, and for
which any of the following have occurred after July 1, 1993: the completion of the agency blight
study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
when a finding of blight is required, an area with buildings or improvements, used or intended to be
used for residential, commercial, industrial, or other urban purposes or any combination of these uses,
which:
(i) contains buildings and improvements, not including out-buildings, on at least 50% of the
number of parcels and the area of those parcels is at least 50% of the project area; and
(ii) is unfit or unsafe to occupy or may be conducive to ill health, transmission of disease,
infant mortality, juvenile delinquency, or crime because of any three or more of the following factors:
(A) defective character of physical construction;
(B) high density of population and overcrowding;
(C) inadequate provision for ventilation, light, sanitation, and open spaces;
(D) mixed character and shifting of uses which results in obsolescence, deterioration, or
dilapidation;
(E) economic deterioration or continued disuse;
(F) lots of irregular form and shape and inadequate size for proper usefulness and
development, or laying out of lots in disregard of the contours and other physical characteristics of

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the ground and surrounding conditions;
(G) existence of inadequate streets, open spaces, and utilities;
(H) existence of lots or other areas which are subject to being submerged by water; and
(I) existence of any hazardous or solid waste defined as any substance defined, regulated, or
listed as "hazardous substances," "hazardous materials," "hazardous wastes," "toxic waste,"
"pollutant," "contaminant," or "toxic substances," or identified as hazardous to human health or the
environment under state or federal law or regulation.
(c) For purposes of Subsection (3)(b), if a developer involved in the project area
redevelopment or economic development causes any of the factors of blight listed in Subsection
(b)(ii), the developer-caused blight may not be used as one of the three required elements of blight.
Notwithstanding the provisions of this section, any blight caused by owners or tenants who may
become developers under the provisions of Section 17A-2-1214 shall not be subject to this
Subsection (3).
(4) "Bond" means any bonds, notes, interim certificates, debentures, or other obligations
issued by an agency.
(5) "Community" means a city, county, town, or any combination of these.
(6) "Economic development" means the planning or replanning, design or redesign,
development or redevelopment, construction or reconstruction, rehabilitation, business relocation or
any combination of these, within all or part of a project area and the provision of office, industrial,
manufacturing, warehousing, distribution, parking, public or other facilities, or improvements as may
benefit the state or the community in order for a public or private employer to create additional jobs
within the state.
(7) "Federal government" means the United States or any of its agencies or instrumentalities.
(8) "Legislative body" means the city council, city commission, county legislative body, or
other legislative body of the community.
(9) "Planning commission" means a city, town, or county planning commission established
pursuant to law or charter.
(10) "Project area" or "redevelopment project area" means an area of a community within

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a designated redevelopment survey area, the redevelopment of which is necessary to eliminate blight
or provide economic development and which is selected by the redevelopment agency pursuant to
this part.
(11) "Project area budget" means, for projects for which a preliminary plan has been prepared
after April 1, 1993, and for which any of the following have occurred after July 1, 1993: the
completion of the agency blight study, and the good faith commencement of the hearing by the
agency under Section 17A-2-1221 , a multiyear budget for the redevelopment plan prepared by the
redevelopment agency showing:
(a) the base year taxable value of the project area;
(b) the projected tax increment of the project area, including the amount of any tax increment
shared with other taxing districts which shall include:
(i) the tax increment expected to be used to implement the redevelopment plan including the
estimated amount of tax increment to be used for land acquisition, public, and infrastructure
improvements, and loans, grants, or tax incentives to private and public entities; and
(ii) the total principal amount of bonds expected to be issued by the redevelopment agency
to finance the project;
(c) the tax increment expected to be used to cover the cost of administering the project area
plan;
(d) a legal description for the portion of the project area from which tax increment will be
collected pursuant to Section 17A-2-1247.5 , if the area from which tax increment is to be collected
is less than the entire project area; and
(e) for properties to be sold, the expected total cost of the property to the agency and the
expected sales price to be paid by the purchaser.
(12) "Public body" means the state, or any city, county, district, authority, or any other
subdivision or public body of the state, their agencies, instrumentalities, or political subdivisions.
(13) (a) "Redevelopment" means the planning, development, replanning, redesign, clearance,
reconstruction, or rehabilitation, or any combination of these, of all or part of a project area, and the
provision of residential, commercial, industrial, public, or other structures or spaces that are

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appropriate or necessary to eliminate blight in the interest of the general welfare, including
recreational and other facilities incidental or appurtenant to them.
(b) "Redevelopment" includes:
(i) the alteration, improvement, modernization, reconstruction, or rehabilitation, or any
combination of these, of existing structures in a project area;
(ii) provision for open space types of use, such as streets and other public grounds and space
around buildings, and public or private buildings, structures and improvements, and improvements
of public or private recreation areas and other public grounds; and
(iii) the replanning or redesign or original development of undeveloped areas as to which
either of the following conditions exist:
(A) the areas are stagnant or improperly utilized because of defective or inadequate street
layout, faulty lot layout in relation to size, shape, accessibility, or usefulness, or for other causes; or
(B) the areas require replanning and land assembly for reclamation or development in the
interest of the general welfare.
(14) "Redevelopment plan" means a plan developed by the agency and adopted by ordinance
of the governing body of a community to guide and control redevelopment and economic
development undertakings in a specific project area.
(15) "Redevelopment survey area" or "survey area" means an area of a community designated
by resolution of the legislative body or the governing body of the agency for study by the agency to
determine if blight exists if redevelopment is planned, and if a redevelopment or economic
development project or projects within the area are feasible.
(16) "Taxes" include all levies on an ad valorem basis upon land, real property, personal
property, or any other property, tangible or intangible.
[(18)] (17) "Tax increment" means that portion of the levied taxes each year in excess of the
base tax amount which excess amount is to be paid into a special fund of an agency.
[(17)] (18) "Taxing agencies" mean the public entities, including the state, any city, county,
city and county, any school district, special district, or other public corporation, which levy property
taxes within the project area.

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Section 24. Section 17A-2-1210 is amended to read:
17A-2-1210. Limits on value and size of project areas using tax increment financing
without consent of local taxing agencies -- Time limits.
(1) (a) A redevelopment plan adopted after April 1, 1983, and projects for which a
preliminary plan has been prepared prior to April 1, 1993, and for which all of the following have
occurred prior to July 1, 1993: the agency blight study has been completed, and a hearing under
Section 17A-2-1221 has in good faith been commenced by the agency, may not incorporate the
provisions of tax increment financing under Section 17A-2-1247 if the taxable value of the project
area described in the redevelopment plan, when added to the total taxable value as shown on the last
equalized assessment roll certified by the county assessor for other redevelopment project areas of
the community for which an allocation of ad valorem taxes is provided, exceeds a figure at the time
of the adoption of the redevelopment plan after April 1, 1983, equal to 15% of the taxable value of
the locally assessed property of the community, unless the governing body of each local taxing agency
which levies taxes upon the property within the proposed redevelopment project area consents to the
redevelopment project area plan in writing.
(b) An agency may not obtain approval of a project area budget pursuant to Section
17A-2-1247.5 if the allocated incremental value of all existing project areas exceeds 10% of the total
taxable value of the community, or if the projected allocated incremental value of the project area as
described in the proposed project area budget, when added to the allocated incremental value of all
existing project areas, exceeds 12% of the total taxable value of the community unless the agency
obtains the majority consent of the taxing agency committee. The taxable value of the community
shall be the total taxable value for the community as shown on the last equalized assessment roles as
certified by the county assessor. The allocated incremental value shall be calculated as follows:
(i) for projects for which a preliminary plan has been prepared prior to April 1, 1993, and for
which all of the following have occurred prior to July 1, 1993: the agency blight study has been
completed, and a hearing under Section 17A-2-1221 has in good faith been commenced by the
agency, the allocated incremental value shall be the taxable value in excess of the adjusted base-year
taxable value in the tax increment collection area, multiplied by the applicable percentage of tax

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increment to be paid to the agency pursuant to Subsection 17A-2-1247 (2)(f); and
(ii) for projects for which a preliminary plan has been prepared after April 1, 1993, and for
which any of the following have occurred after July 1, 1993: the completion of the agency blight
study, and the good faith commencement of the hearing by the agency under Section 17A-2-1221 ,
the allocated incremental value shall be the taxable value in excess of the adjusted base value in the
tax increment collection area, multiplied by the applicable percentage of tax increment to be paid to
the agency in accordance with the approved and proposed project area budgets pursuant to
Subsections 17A-2-1247.5 (3), (4), and (5).
(c) "Tax increment collection area" means that area of a project area from which an agency
may receive an allocation of tax increment pursuant to a plan incorporating provisions of Section
17A-2-1247 or an approved or a proposed project area budget incorporating the provisions of
Section 17A-2-1247.5 .
(d) The consent of the taxing entities required by this section may be obtained by majority
consent of the taxing agency committee in accordance with Section 17A-2-1247.5 .
(2) If the county assessor fails to report the value of the locally assessed property within the
proposed redevelopment project area within 90 days after notice as provided in Section 17A-2-1222 ,
the 15% limitation does not apply.
(3) A redevelopment plan adopted before April 1, 1983, incorporating the provisions of tax
increment financing under Section 17A-2-1247 may not be amended after April 1, 1983, to add area
containing additional taxable value unless the governing body of each local taxing agency that levies
taxes upon the property within the area proposed to be added consents in writing to a higher
percentage of taxable value if the additional taxable value, when added to the taxable value in the
project area as the taxable value existed immediately before the adoption of the amendment, would
exceed the limits established in this subsection for a redevelopment plan adopted after April 1, 1983.
(4) (a) A project area with a redevelopment plan adopted after April 1, 1983, incorporating
the provisions of tax increment financing under Sections 17A-2-1247 and 17A-2-1247.5 may not
exceed 100 acres of privately owned property unless the governing body of each local taxing agency
that levies taxes upon property within the proposed redevelopment project area consents in writing

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to exceeding the limit of [100-acre] 100 acres of privately owned property in the redevelopment plan.
(b) A redevelopment plan adopted before April 1, 1983, may not be amended after April 1,
1983, to add any additional area if the project area exceeds 100 acres of privately owned property,
or the project area is less than 100 acres of privately owned property but would exceed 100 acres
of privately owned property with the additional area, unless the governing body of each local taxing
agency that levies taxes upon property within the area proposed to be added consents in writing to
the adding of the additional area to the project area.
(5) (a) For purposes of computing under Section 17A-2-1247 the amount to be allocated to
and when collected to be paid into a special fund of a redevelopment agency to pay the principal of
and interest on loans, moneys advanced to, or indebtedness (whether funded, refunded, assumed, or
otherwise) incurred by the redevelopment agency after April 1, 1983, from a project area with a
redevelopment plan adopted before April 1, 1983, incorporating the provisions of Section
17A-2-1247 and containing more than 100 acres of privately owned property, the redevelopment
agency may be paid only that portion of that amount levied each year from 100 acres selected by the
redevelopment agency from the entire project area. The amount allocated to and when collected to
be paid into a special fund of a redevelopment agency under Subsections 17A-2-1247 (2)(c) and
(2)(e) from the 100 acres of privately owned property shall be that portion of the levied taxes each
year in excess of the amount from the 100 acres allocated to and when collected paid to the taxing
agencies under Subsection 17A-2-1247 (2)(a). The 100 acres of privately owned property shall be
contiguous.
(b) The 100-acre limit of privately owned property established in this Subsection (5) does not
apply to loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or
otherwise, incurred by redevelopment agencies before April 1, 1983, in projects with redevelopment
plans adopted before April 1, 1983. The 100-acre limit of privately owned property does not apply
if the governing body of each local taxing agency which levies taxes upon the property within the
project area consents in writing to exceeding the 100-acre limit of privately owned property.
(c) Each agency shall establish by resolution adopted on or before August 1, 1983, which
areas in the project area shall be included in the 100 acres of privately owned property to be used for

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the purposes of computing the amount of tax increment to be paid to the agency. The resolution shall
also contain a legal description of the areas included in the 100 acres. A copy of the resolution shall
be filed with the county auditor and the State Tax Commission within 30 days of adoption of the
resolution. After the resolution has been adopted no person, entity, or public body may contest the
regularity, formality, or legality of the establishment of the 100 acres or of the resolution for any
cause.
(6) Each project area with a redevelopment plan adopted before April 1, 1983, that exceeds
590 acres of privately owned property shall be reduced to 590 acres of privately owned property
unless the governing body of each local taxing agency that levies taxes upon property within the
project area consents in writing to the project area not being reduced. Each agency shall establish by
resolution adopted on or before August 1, 1983, which areas in the project area shall be included in
the 590 acres of privately owned property to be used for the purposes of reducing to the 590 acre
limit of privately owned property. The resolution shall also contain a legal description of the areas
included in the 590 acres of privately owned property. A copy of the resolution shall be filed with the
county auditor and the State Tax Commission within 30 days of adoption of the resolution. After the
resolution has been adopted no person, entity, or public body may contest the regularity, formality,
or legality of the reduction to the 590 acre limit of privately owned property or of the resolution for
any cause.
(7) A redevelopment plan adopted after April 1, 1983, and redevelopment projects for which
a preliminary plan has been prepared prior to April 1, 1993, and for which all of the following have
occurred prior to July 1, 1993: the agency blight study has been completed, and a hearing under
Section 17A-2-1221 has in good faith been commenced by the agency, shall contain:
(a) a time limit not to exceed seven years from the date of the approval of the plan after
which the agency may not commence acquisition of property through eminent domain;
(b) a time limit not to exceed 15 years from the date of the approval of the plan after which
no bonds may be issued for redevelopment projects; and
(c) a time limit not to exceed 32 years from the date of the approval of the plan after which
no tax increment from the project area may be allocated to or used by the agency.

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(8) The time limits established in Subsections (5)(a), (b), and (c) shall apply to redevelopment
plans adopted before April 1, 1983, but shall be measured from April 1, 1983.
(9) Notwithstanding the provisions of Subsections (7) and (8) or of any corresponding
provisions of a redevelopment plan, an agency may issue bonds for the purpose of refunding bonds
previously issued for redevelopment projects (or to refund bonds issued for redevelopment projects)
without regard to the 15-year limit provided therein.
Section 25. Section 17A-2-1302 is amended to read:
17A-2-1302. Definitions.
As used in this part:
(1) "County" means a county of this state and includes any such county regardless of the form
of government under which it is operating.
[(7)] (2) "Facility" or "facilities" means any structure, building, system, land, water right, and
other real and personal property required to provide any service authorized by Section 17A-2-1304 ,
including, without limitation, all related and appurtenant easements and rights-of-way, improvements,
utilities, landscaping, sidewalks, roads, curbs and gutters, and equipment and furnishings.
(3) "Governing authority" means the board or body, however designated, in which the
general legislative powers of a county, municipality, or improvement district are vested and includes
the board of commissioners of a county or a city of the first or second class, the city council of a city
of the third class, the town council of a town, and the board of trustees of an improvement district.
[(6)] (4) "Guaranteed bonds" mean bonds the annual debt service on which is or will be
guaranteed by one or more taxpayers owning property within the boundaries of the service district.
[(2)] (5) "Improvement district" means an improvement district established under Chapter
2, Part 3.
[(4)] (6) "Municipality" means a city or town of this state.
[(5)] (7) "Service district" means a special service district established in the manner provided
by this part under Article XIV, Section 8 of the Constitution of Utah.
Section 26. Section 17A-2-1411 is amended to read:
17A-2-1411. Quorum.

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A majority of the directors shall constitute a quorum, and a concurrence of a majority of those
in attendance, in any matter, within their duties, shall be sufficient for its determination, except as
otherwise herein provided.
Section 27. Section 17A-2-1425 is amended to read:
17A-2-1425. Board may sell or lease water to irrigation districts -- Levy and collection
of special assessments under class C.
To levy and collect special assessments upon lands under class C as herein provided, the board
shall make an allotment of water to each of the petitioning irrigation districts within the district in the
manner as hereinafter provided in such quantity as will in the judgment of the board, when added to
the present supply of water of such irrigation district, make an adequate supply of water for such
irrigation district, and shall fix and determine the rates per acre-foot or other unit of measurement,
the service, turnout, connection, distribution system charges or other charges and terms at and upon
which water shall be sold, leased or otherwise disposed of to such irrigation district; provided,
however, that such rates and charges shall be equitable although not necessarily equal or uniform for
like classes of services throughout the district. In the event any irrigation district shall desire to
purchase, lease, or otherwise obtain the beneficial use of waters of the district, the board of such
irrigation district shall by resolution authorize and direct its president and secretary to petition the
board for an allotment of water, upon terms prescribed by the board, which petition shall contain,
inter alia, the following:
(1) Name of irrigation district.
(2) Quantity of water to be purchased or otherwise acquired.
(3) Price per acre-foot or other unit of measurement and the amount of any service,
connection, distribution system charge or other charges to be paid.
(4) Whether payments are to be made in cash or annual installments.
(5) Agreement by such irrigation district to make payments for the beneficial use of such
water, together with annual maintenance and operating charges, and to be bound by the provision of
this part and the rules and regulations of the board.
The secretary of the board shall cause notice of the filing of such petition to be given and

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published, which notice shall state the filing of such petition and giving notice to all persons interested
to appear at the office of the board at a time named in said notice and show cause in writing, if any
they have, why the petition should not be granted. The board at the time and place mentioned in said
notice, or at such time or times at which the hearing of said petition may be adjourned, shall proceed
to hear the petition and objections thereto, presented, in writing, by any person showing cause as
aforesaid why said petition should not be granted. The failure of any person interested to show cause
in writing, as aforesaid, shall be deemed and taken as an assent on his part to the granting of said
petition. The board may, at its discretion, accept or reject the said petition, but if it deems it for the
best interest of the district that the said petition shall be granted, shall enter an order to that effect
granting the said petition, and from and after such order, the irrigation district, and/or persons therein
shall be deemed to have purchased, leased, or otherwise acquired the beneficial use of water as set
forth in said order. If said petition is granted, the board shall, in each year, determine the amount of
money necessary to be raised by special assessment on lands within such irrigation district and shall
determine whether such special assessment shall be levied by the district or by the irrigation district.
If the board determines that such assessments shall be levied by the district, it shall certify to the
county auditor of the county in which the lands of such irrigation district are located the amount of
the assessment, plus a fair proportionate amount of the estimated operating and maintenance charges
for the next succeeding year on each tract of land on or before the 1st day of July of each year, and
such county auditor shall extend the amount of such special assessment, plus said operating and
maintenance charges on the tax roll as a special assessment against the lands on which said special
assessment is made. If the board determines that such assessments shall be levied by the irrigation
district, the district shall make a contract with the irrigation district which shall provide among other
things for the annual payment to the district of an amount to be obtained from the levy by the
irrigation district of annual assessments in accordance with the irrigation district law. If a subdistrict
or subdistricts are organized as herein provided, assessments of special benefits shall be made, spread
on the tax rolls, and collected in the same manner as herein provided in the case of irrigation districts.
Section 28. Section 17A-2-1437 is amended to read:
17A-2-1437. Change of boundaries -- Petitions for and against inclusion within district

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-- Hearing -- Petition protesting inclusion -- Hearing -- Appeal -- Annexation -- Hearings --
Objections -- Order of inclusion -- Findings and decrees -- Appeal.
(1) The boundaries of any district organized under this part may be changed as provided by
this section, but the change of boundaries of the district shall not impair or affect:
(a) its organization;
(b) its rights in or to property;
(c) any of its other rights or privileges; or
(d) any contract, obligation, lien, or charge for or upon which it might be liable or chargeable
had the change of boundaries not been made.
(2) (a) (i) The owners of lands which are either contiguous or noncontiguous to the district
and to each other may file a written petition with the board requesting that their lands be included in
the district. The petition shall contain:
(A) a description of the tracts or body of land sought to be included; and
(B) the signatures, acknowledged in the same form as conveyances of real estate, of the
owners of the lands.
(ii) A petition filed in this form will be considered to give assent of the petitioners to the
inclusion within the district of the lands described in the petition.
(b) The board shall, within 90 days after the filing of the petition, set and convene a hearing
to consider the petition and all objections.
(c) The secretary of the board shall cause notice of the filing of the petition to be given and
published in the county in which the lands are situated. This notice shall state:
(i) the names of petitioners;
(ii) a description of lands mentioned;
(iii) the request of the petitioners; and
(iv) that all persons interested must appear at the office of the board at the time named in the
notice and state in writing why the petition should not be granted.
(d) The board shall, at the appropriate time, proceed to hear the petition and review the
written objections to the petition. The failure of any person to show cause, in writing, shall be

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considered to be his assent to the inclusion of these lands within the district.
(e) If any of the lands proposed for inclusion in the district are located within a municipality,
the petitioners shall, before the date of the hearing set by the board, obtain from the municipality's
governing body its written consent to the inclusion of the land located within the municipality.
(f) (i) If any of the lands proposed for inclusion in the district are located within a
municipality's proposed municipal expansion area established by the municipality's annexation policy
declaration adopted under Title 10, Chapter 2, Part 4, [Extension of Corporate Limits - Local
Boundary Commissions] Annexation, the petitioners shall, before the date of the hearing set by the
board, obtain from that municipality's governing body its written consent to the inclusion of the land
located within the area proposed for municipal expansion.
(ii) Subsection (2)(f)(i) does not apply if the land proposed for inclusion in the district is
located within the proposed municipal expansion area of more than one municipality in a county of
the first class.
(g) If any of the lands proposed for inclusion in the district are located within a county not
previously containing any part of the district, the petitioners shall, before the date of the hearing set
by the board, obtain from the county's legislative body its written consent to the inclusion of the land
located within that county.
(h) If any of the lands proposed for inclusion in the district are located within the
unincorporated portion of a county, the petitioners shall, before the date of the hearing set by the
board, obtain from the county's legislative body its written consent to the inclusion of that land.
(i) If the petition is granted, the board shall make an order to that effect and file the petition
with the clerk of the court and upon order of the court the lands shall be included in the district.
(3) (a) In addition to the method provided in Subsection (2), additional areas may be included
in a district by petition as described in this subsection. A written petition may be filed to include:
(i) irrigated lands;
(ii) nonirrigated lands;
(iii) land in towns and cities;
(iv) other lands; or

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(v) any combination of lands under this subsection. These lands may be contiguous or
noncontiguous to the district and to each other.
(b) The petition must:
(i) be filed in the district court of the county in which the petition for organization of the
original district was filed;
(ii) include the signatures, acknowledged in the same form as conveyances of real estate, of
not fewer than 20% or 500, whichever is the lesser, of the owners of irrigated lands in the area, but
outside the corporate limits of a city or town;
(iii) include the signatures, acknowledged in the same form as conveyances of real estate, of
not fewer than 5% or 100, whichever is the lesser, of the owners of nonirrigated lands and lands
within the incorporated limits of a city or town, which are within the area specified in the petition;
(iv) list a description of each tract of land owned by the signer opposite the name of the
signer, with an indication that each tract, together with its improvements, has a taxable value of not
less than $300; and
(v) set forth:
(A) a general description of the territory in the area sought to be included in the district;
(B) the name of the district in which it is sought to be included;
(C) the terms and conditions upon which inclusion is sought;
(D) a statement that the property sought to be included will be benefited by the
accomplishment of the purposes for which the original district was formed; and
(E) a request for inclusion of the area in the district.
(c) No petition with the requisite signatures shall be declared null and void because of alleged
defects, but the court may permit the petition to be amended to conform to the facts by correcting
any errors. However, similar petitions or duplicate copies of the petition for the inclusion of the same
area may be filed and shall together be regarded as one petition. All petitions filed prior to the hearing
on the first petition shall be considered by the court the same as though filed with the first petition.
In determining whether the requisite number of landowners has signed the petition, the names as they
appear upon the tax roll shall be prima facie evidence of their ownership.

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(d) At the time of filing the petition or at any time before, and prior to the time of hearing on
the petition, a bond shall be filed, with security approved by the court sufficient to pay all expenses
connected with the proceedings in the case. If at any time during the proceeding the court determines
that the first bond is insufficient, the court may require that an additional bond be obtained within ten
days following the court's request. If the petitioner fails to obtain a bond, the petition shall be
dismissed.
(e) Immediately after the filing of the petition, the district court of the county where the
petition is filed shall fix a place and time between 60 and 90 days after the petition is filed for a
hearing. The clerk of the court shall then publish notice of the pendency of the petition and of the time
and place of hearing. The clerk of the court shall also mail a copy of the notice by registered mail to:
(i) the board of directors of the district;
(ii) the county legislative body of each of the counties with land within the area proposed to
be included in the district; and
(iii) the governing body of each of the cities or towns having territory within the area
proposed to be included within the district.
(f) If any of the lands proposed for inclusion in the district are located within a municipality,
the petitioners shall, before the date of the hearing set by the district court, obtain from the
municipality's governing body its written consent to the inclusion of the land located within the
municipality.
(g) (i) If any of the lands proposed for inclusion in the district are located within a
municipality's proposed municipal expansion area established by the municipality's annexation policy
declaration adopted under Title 10, Chapter 2, Part 4, [Extension of Corporate Limits - Local
Boundary Commissions] Annexation, the petitioners shall, before the date of the hearing set by the
board, obtain from that municipality's governing body its written consent to the inclusion of the land
located within the area proposed for municipal expansion.
(ii) Subsection (3)(g)(i) does not apply if the land proposed for inclusion in the district is
located within the proposed municipal expansion area of more than one municipality in a county of
the first class.

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(h) If any of the lands proposed for inclusion in the district are located within a county not
previously containing any part of the district, the petitioners shall, before the date of the hearing set
by the district court, obtain from the county's legislative body its written consent to the inclusion of
the land located within that county.
(i) If any of the lands proposed for inclusion in the district are located within the
unincorporated portion of a county, the petitioners shall, before the date of the hearing set by the
district court, obtain from the county's legislative body its written consent to the inclusion of that
land.
(j) After the filing of a petition for inclusion of an additional area and at least 30 days prior
to the time fixed by the court for the hearing on the petition, a petition protesting the inclusion of the
lands within the district may be filed in the clerk's office of the court where the proceeding for
inclusion is pending. The protest petition must contain:
(i) the signatures, acknowledged in the same form as conveyances of real estate, of at least:
(A) 35% of the owners of irrigated lands in the area sought to be included, but not within the
incorporated limits of a city or town; and
(B) 20% of the owners of nonirrigated lands and lands within the incorporated limits of a city
or town within the area proposed to be included within the district; and
(ii) a description of each tract of land opposite the name of the signer, with an indication that
each tract, together with its improvements, has an assessed value of at least $300.
(k) A landowner may protest if he:
(i) did not sign the petition for inclusion; and
(ii) owns land, including improvements thereon, which had a taxable value of at least $300
as shown by the last preceding assessment.
(l) If a petitioner signs the petition both as owner of irrigated and nonirrigated land, his name
counts only as an owner of irrigated lands.
(m) On the day set for the hearing on the original petition, if it appears to the court that the
protesting petition does not meet the requirements of Subsection (3)(j), the court shall dismiss the
protesting petition and proceed with the original hearing as provided in this section. If the court finds

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from the evidence that the protesting petition does qualify, the court shall dismiss the original petition
for inclusion. The finding of the court upon the question of valuation, the genuineness of the
signatures, and all matters of law and fact incident to this determination shall be final and conclusive
on all parties in interest whether appearing or not, unless within 30 days from entry of the order of
dismissal an appeal is taken to the Supreme Court.
(n) (i) Any owner of real property in the proposed area who did not individually sign a
petition for the inclusion, but who desires to object to the inclusion, may, on or before ten days prior
to the date set for the cause to be heard, file an objection to the inclusion. This objection shall be
heard by the court as an advanced case without unnecessary delay.
(ii) An owner of irrigated lands may file a petition asking to have his irrigated lands excluded
from the inclusion pursuant to the requirements of Subsection (3)(n)(i). This petition shall be heard
by the district court on the date set for the hearing of the petition for inclusion of the area and the
district court shall exclude these irrigated lands from the area proposed for inclusion within the
district.
(o) If it appears at the hearing that a petition for the inclusion has been signed and presented
as provided in Subsections (a) and (b), that each written consent required by Subsections (3)(f),
(g),(h), and (i) has been obtained, that the allegations of the petition are true, and that no protesting
petition has been filed, or if filed has been dismissed as provided in Subsection (3)(m), the court shall:
(i) adjudicate all questions of jurisdiction;
(ii) find that the property described in the petition will, if included, be benefited by the
accomplishment of the purposes for which the original district was formed;
(iii) declare the area included in the district;
(iv) declare whether the area is annexed to an existing division, or constitutes a separate
division; and
(v) declare whether the area can be properly represented by existing directors or whether the
number of directors shall be increased to provide for representation of the area annexed. However,
prior to the entry of its decree including such area within the district, the court shall obtain the
verified consent of the board of directors of the district to the inclusion of such area.

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(p) If the court finds that the petition for inclusion has not been signed and presented
pursuant to this section, that any written consent required by Subsections (3)(f), (g), (h), and (i) has
not been obtained, or that the material facts are not as set forth in the petition filed, it shall dismiss
the proceedings and adjudge the costs against the signers of the petition in such proportion as it
considers just and equitable. An appeal to the Supreme Court shall lie from an order dismissing the
proceeding. Nothing in this part shall be construed to prevent the filing of a subsequent petition or
petitions for similar purposes, and the right to renew such proceeding is expressly granted.
(4) (a) If lands are annexed into a public corporation which corporation is already part of the
district described in this part and these annexed lands are not located within the district's boundaries,
the board may make a finding that these lands are not part of the district, and that these lands are or
may be benefited from the service provided by the district. Upon making this finding, the board shall
set a time and place for a public hearing to hear objections as to why these lands should not be
annexed and included within the district. The secretary of the board shall cause notice of the time and
place of the hearing to consider the inclusion of the lands within the district to be given and published
in the county in which the lands are situated. The notice shall:
(i) state a general description of the lands;
(ii) state that the lands are being considered for inclusion within the district; and
(iii) give notice to all interested persons to appear at the time and place named in the notice
and show cause, in writing, as to why the lands should not be included within the district. The
secretary shall mail a copy of the notice by registered mail to the governing body of the public
corporation and to the landowners.
(b) Before the date set for the hearing, the board shall obtain the written consent of the public
corporation's governing body to the inclusion of the lands into the district.
(c) The board shall, at the time and place named in the notice or at any time at which the
hearing may be adjourned, proceed to hear all objections to the inclusion of the lands within the
district. The failure of any interested person to appear or show cause, in writing, shall be taken as an
assent on his part to the inclusion of the lands within the district. If, after hearing all objections to the
inclusion of the land within the district, the board has obtained the consent of the public corporation's

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governing body as required in Subsection (4)(b) and determines that the lands will be benefited by
inclusion within the district, the board shall make an order to that effect. Upon filing the order with
the clerk of the court and upon order of the court, the lands shall be included in the district.
(d) A finding by the board that the lands will not be benefited by inclusion within the district
shall not preclude the board at any subsequent date from finding that changed conditions or
circumstances now benefit the lands. After making this finding the board may renew the proceedings
for inclusion of these lands in whole or in part and find that the lands will be benefited by inclusion
in the district and make an order to that effect. Upon filing the order with the clerk of the court and
upon order of the court, the lands shall be included in the district.
(e) If the board finds that any portion of land to be annexed into the district is presently
receiving water from another public water system, the board shall exclude that portion of land from
the land to be annexed into the district.
(5) Upon the entry of the decree, the clerk of the court shall transmit to the Division of
Corporations and Commercial Code and the county recorder in each of the counties having lands in
the area, copies of the findings and decrees of the court. The findings and decrees shall be filed with
the Division of Corporations and Commercial Code pursuant to the general laws concerning
corporations. Copies shall also be filed in the office of the county recorder in each county in which
the district is located where they will become permanent records. The recorder in each county shall
receive the fee designated by the county legislative body for filing and preservation. The Office of
the Lieutenant Governor shall receive fees as may be provided by law for like services in similar cases.
(6) If an order is entered establishing the inclusion of the area into the district, such order
shall be final unless within 30 days an appeal is taken to the Supreme Court. The entry of a final order
shall conclusively establish the inclusion of the area against all persons, except that the state may
attack the order in an action in the nature of a writ of quo warranto, commenced by the attorney
general within three months after the decree declaring the area included. The inclusion of the area
shall not be directly or collaterally questioned in any suit, action, or proceeding, except as expressly
authorized.
(7) Any area included in a district pursuant to this part shall be subject to taxes and

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assessments levied for the payment of indebtedness of the district which was outstanding at the time
of the entry of the order for inclusion, and for the payment of indebtedness thereafter incurred as if
the area were a part of the district as originally established.
(8) The boundaries of any subdistrict may be changed in the manner provided in this part for
the change of the boundaries of districts.
Section 29. Section 17A-2-1444 is amended to read:
17A-2-1444. Hearings to be advanced.
All cases in which there may arise a question of the validity of the organization of a water
conservancy district[,] or a question of the validity of any proceeding under this part, the question
shall be advanced as a matter of immediate public interest and concern, and heard at the earliest
practicable moment. The courts shall be open at all times for the purposes of this part.
Section 30. Section 17A-2-1512 is amended to read:
17A-2-1512. Expense reimbursement.
A commissioner is entitled to the necessary expenses, including traveling expenses, incurred
in the discharge of official duties.
Section 31. Section 17A-2-1704 is amended to read:
17A-2-1704. Creation of authority -- Members.
(1) (a) The authority comprises ten members. If the requirements of Section 17A-2-1703 are
met, the governor shall, with the advice and consent of the Senate, appoint six members of the
authority from the public-at-large.
(b) The remaining four members of the authority are:
(i) the executive director of the Department of Environmental Quality;
(ii) the executive director of the Department of Community and Economic Development;
(iii) the executive director of the Department of Natural Resources; and
(iv) the executive director of the Department of Transportation.
(2) Public-at-large members, no more than three of whom shall be from the same political
party, shall be appointed to six-year terms of office, subject to removal by the governor with or
without cause.

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(3) The governor shall name one public-at-large member as chairman of the authority
responsible for the call and conduct of authority meetings.
(4) The authority may elect other officers as necessary.
(5) Five members of the authority present at a properly noticed meeting constitute a quorum
for the transaction of official authority business.
(6) Public-at-large members are entitled to per diem and expenses[,] for each day devoted
to authority business at the rates established by the director of the Division of Finance under Sections
63A-3-106 and 63A-3-107 .
Section 32. Section 17A-2-1709 is amended to read:
17A-2-1709. Security for obligations -- Provisions of security instruments.
(1) The principal and interest on any obligation issued pursuant to this part shall be secured
by:
(a) a pledge and assignment of the proceeds earned by the facility built and acquired with the
proceeds of the obligations;
(b) a mortgage or trust deed on the facility built and acquired with the proceeds from the
obligations; and
(c) such other security on the facility as is deemed most advantageous by the authority.
(2) Obligations authorized for issuance under this part and any mortgage or other security
given to secure such obligations may contain any provisions customarily contained in security
instruments, including, but not limited to:
(a) the fixing and collection of fees from the facility;
(b) the maintenance of insurance on the facility;
(c) the creation and maintenance of special funds to receive revenues earned by the facility;
and
(d) the rights and remedies available to obligation holders in the event of default.
(3) All mortgages, trust deeds, security agreements, or trust indentures on a facility shall
provide, in the event of foreclosure, that no deficiency judgment may be entered against the authority,
the state, or any of the state's political subdivisions.

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(4) Any mortgage or other security instrument securing such obligations may provide that
in the event of a default in the payment of principal or interest or in the performance of any
agreement, that payment or performance may be enforced by the appointment of a receiver with
power to charge and collect fees and to apply the revenues from the facility in accordance with the
provisions of the security instrument.
(5) Any mortgage or other security instrument made pursuant to this part may also provide
that in the event of default in payment or breach of a condition, that the mortgage may be foreclosed
or otherwise satisfied in any manner permitted by law, and that the trustee under the mortgage or the
holder of any obligation secured by such mortgage may, if the highest bidder, purchase the security
at foreclosure sale.
Section 33. Section 17A-2-1803 is amended to read:
17A-2-1803. Area -- Procedures -- Appeals.
(1) A regional service area may consist of:
(a) all or part of any county; and
(b) areas that are not contiguous.
(2) (a) Only one regional service area may be located in a county.
(b) (i) A county service area may not reorganize as a regional service area on or after May
4, 1998.
(ii) No regional service area may be created on or after May 4, 1998.
(3) The adoption of this part does not affect the existence, operation, or establishment of any
county service area operating under Title 17A, Chapter 2, Part 4, County Service Areas.
(4) After it is reorganized, the county service area shall be a regional service area subject to
this part containing all of the territory of the county service area, and not subject to Chapter 2, Part
4.
(5) (a) Beginning on the effective date of the resolution reorganizing the county service area
as a regional service area, the regional service area is reorganized with all the rights, privileges, [and]
powers, and limitations under this part.
(b) (i) Any outstanding bonds, notes, contracts, or other obligations of any former county

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service area shall be the bonds, notes, contracts, and obligations of the new regional service area
which is taking its place with like effect as if issued or entered into by the regional service area.
(ii) Any election authorizing the issuance of bonds of the former county service area shall have
the same effect as a bond election held under this part.
(c) Taxes at the most recent rate levied by the former county service area may continue to
be levied by the regional service area.
(d) All assets of the former county service area, including both real and personal property,
shall be the property of the regional service area with the same effect as if originally constructed,
purchased, leased, or otherwise acquired by the regional service area and the contracts of the former
county service area shall be the contracts of the regional service area.
(e) The employees, officers, and agents of the former county service area shall be the
employees, officers, and agents of the regional service area and all employee benefits, including
pension plans shall carry forward to the regional service area.
(f) Until amended, the bylaws, rules, regulations, policies, and procedures of the former
county service area shall be the bylaws, rules, regulations, policies, and procedures of the regional
service area.
(6) The conversion of a county service area to a regional service area may not impair or affect
any existing contract, obligation, lien, charge, or bond for or upon which the county service area
might be liable or chargeable had the conversion not taken place.
(7) (a) Any aggrieved person may appeal the decision of the governing authority of the
county service area to reorganize the county service area as a regional service area to the district
court in the county where the regional service area is located.
(b) If that appeal is not filed within 30 days after the effective date of the resolution
reorganizing the county service area as a regional service area, the reorganization shall be final and
conclusive.
(c) In the appeal, the district court shall affirm the reorganization unless the person
challenging the reorganization establishes by clear and convincing evidence that:
(i) the county service area did not qualify to reorganize as a regional service area under the

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criteria specified in this section; or
(ii) the board of trustees of the county service area substantially failed to follow the
procedural requirements of this section in reorganizing the county service area as a regional service
area.
Section 34. Section 17A-2-1805 is amended to read:
17A-2-1805. Body corporate -- Authority.
(1) Beginning on the effective date of the resolution reorganizing a county service area as a
regional service area, the regional service area shall be a body corporate and politic and a quasi-
municipal public corporation.
(2) The regional service area, acting through its board of trustees, shall, without in any way
limiting the powers granted to regional service areas by the provisions of this part, have the following
authority:
(a) The right to sue and be sued.
(b) The power to enter into contracts to carry out the functions of the regional service area,
including the power to enter into contracts with the United States of America and any of its agencies,
municipal corporations, counties, or other public corporations, county service areas or districts, or
any other political subdivision of the state, including any entity created under [the] Title 11, Chapter
13, Interlocal Cooperation Act, (and any county, municipal or other public corporation, or political
subdivision shall have the power to enter into contracts with regional service areas organized under
this part).
(c) The regional service area, the county, and any municipality lying in whole or in part within
the boundaries of the regional service area, are encouraged to coordinate and cooperate with one
another regarding such matters as traffic control and planning and zoning approvals in the vicinity of
facilities owned or operated by the regional service area, signs approaching or on property owned or
operated by the regional service area, approvals for mass gatherings for special events, and security
and crowd control at facilities owned or operated by the regional service area. This coordination and
cooperation may take the form of one or more interlocal cooperation agreements. Any bond
obligations of a legal or administrative entity created under the Utah Interlocal Cooperation Act with

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which a regional service area may contract as provided in this section may not be counted as an
obligation of the regional service area for purposes of this part.
(d) The power to impose and collect charges or fees for any commodities, services, or
facilities afforded by the regional service area to its customers and to pledge all or any part of the
revenues so derived to the payment of any bonds of the regional service area, whether the bonds are
issued as revenue bonds or as general obligations of the regional service area. Where revenue bonds
are issued payable solely from the revenues of commodities, services, and facilities, the fees and
charges imposed shall always be sufficient to carry out the provisions of the resolution authorizing
the bonds. The board of trustees may act and adopt the regulations necessary to assure the collection
and enforcement of all fees and charges imposed. Any of the commodities, services, and facilities
furnished to a consumer by the regional service area may be suspended if any fees and charges due
the regional service area are not paid in full when due. Higher fees may be charged for services
provided to participants who reside outside the boundaries of the regional service area.
(e) The power to sell, lease, mortgage, encumber, or otherwise dispose of any properties
owned by the regional service area under the terms and conditions approved by the board of trustees.
(f) The power to own any property or property interests approved by the board of trustees
to carry out the purposes of the regional service area and the power to acquire the same by purchase,
lease, gift, devise, bequest, or any other lawful means.
(g) The power to exercise all powers of eminent domain possessed by counties in the manner
provided by law for the exercise of eminent domain power by counties.
(h) The right to employ officers, employees, consultants, and agents, including attorneys,
accountants, engineers, and fiscal agents, and to fix their compensation.
(i) The power to cause to be levied taxes on all taxable property in the regional service area
as provided in this part.
(j) The right to set meeting times.
(k) The right to adopt an official seal.
(l) The right to adopt bylaws and regulations for the conduct of its business.
(m) The right to operate under a trade name or an assumed name.

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(n) The right to establish a fiscal year, beginning either on January 1 or July 1.
(o) Other rights and powers as are reasonably necessary for the efficient operation of the
regional service area or to undertake any lawful activity, including all the rights, powers, and
authority of the former county service area, and the authority to provide all the services and facilities
that were provided by the former county service area.
Section 35. Section 17A-3-209 is amended to read:
17A-3-209. Payment of contracts -- Progress payments -- Retainage.
(1) (a) Any contract for work in any special improvement district and any contract for the
purchase or exchange of property necessary to be acquired in order to make improvements in any
special improvement district may provide that the contract price or property price shall be paid, or,
at the option of the governing entity, may be paid, in whole or in part, by the issuance of special
improvement bonds issued against the funds created by assessments levied to pay the costs and
expenses of improvements in the special improvement district or by interim warrants issued as
authorized by this part at the time the special improvement bonds or interim warrants, as the case may
be, may be legally issued and delivered. If any contract is not paid from these sources in whole or
in part, or if paid in part, to the extent not so paid from these sources, the governing entity shall be
responsible for advancing funds for payment of the contract price or property price from the general
funds of the governing entity or from other funds legally available for this purpose as provided in the
contract.
(b) From the proceeds of the sale of interim warrants or special improvement bonds, or from
funds paid on assessments not pledged for the payment of the bonds or warrants, the governing entity
may reimburse itself for the amount paid from its general funds or other funds, except that the
governing entity may not reimburse itself for any of the costs of making the improvements properly
chargeable to the governing entity for which assessments may not be levied.
(2) Any contract for work in a special improvement district may provide for payments to the
contractor as the work progresses. If the contract so provides, payments may be made from time to
time [to the extent of] for an amount not to exceed 95% of the value of the work done to the date
of payment, as determined by estimates of the project engineer, with final payment to be made only

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after completion of the work by the contractor and acceptance of the work by the governing entity.
If moneys payable to the contractor as the work progresses are retained, they shall be retained or
withheld and released as provided in Section 13-8-5 .
Section 36. Section 17A-3-210 is amended to read:
17A-3-210. Interim warrants.
(1) (a) As work proceeds in a special improvement district, the governing body may issue
interim warrants against the district:
(i) for an amount not to exceed 90% [in] of the value of the work previously done, upon
estimates of the project engineer;
(ii) after completion of the work and acceptance of the work by the project engineer and by
the governing body, for 100% of the value of the work completed; and
(iii) where improvements in the district require the acquisition of property, for not more than
the property price.
(b) Subject to the provisions of Section 17A-3-209 , the governing body may issue warrants
to:
(i) a contractor, to apply at par value on the contract price for the improvements; or
(ii) to the owner of the acquired property, to apply at par value on the property price.
(c) The governing body may also issue and sell warrants at not less than par value in a manner
determined by the governing body and apply the proceeds of the sale towards payment of the contract
price and property price.
(2) (a) Interim warrants shall bear interest from date of issue until paid.
(b) The governing body shall fix the interest rate or rates.
(c) The governing body may fix a maturity date for each interim warrant. If a warrant
matures before the governing body has available to it the sources of payment itemized in Subsection
(3)(a), (b), (c), or (d), it may authorize the issuance of a new interim warrant to pay the principal and
interest on the warrant falling due.
(d) Interest accruing on interim warrants shall be included as a cost of the improvements.
(3) The governing body shall pay interim warrants and interest on the warrants from one or

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more of the following sources:
(a) issuance of or proceeds from the sale of special improvement bonds issued against the
district;
(b) cash received from the payment for improvements;
(c) payment of assessments not pledged to the payment of the bonds;
(d) the guaranty fund if appropriate; or
(e) proceeds of an interim warrant.
(4) With the authorization of the governing body, the governing entity may purchase any or
all of the interim warrants issued against the district and may use the governing entity's general funds
for this purchase.
Section 37. Section 17A-3-303 is amended to read:
17A-3-303. Definitions.
As used in this part:
(1) (a) "Assessment" means a special tax levied against property within a special improvement
district to pay all or a portion of the costs of making improvements in the district.
(b) "Assessment" or "assessments" in Subsection 17A-3-321 (3) and Sections 17A-3-322 ,
17A-3-324 , 17A-3-325 , 17A-3-326 , 17A-3-331 , 17A-3-332 , 17A-3-333 , 17A-3-338 , and
17A-3-340 , include any reduced payment obligations.
(2) (a) "Bonds" or "special improvement bonds" means bonds issued under this part payable
from assessments, improvement revenues, and from the special improvement guaranty fund, or
reserve fund, as applicable, established as provided in this part.
(b) "Bonds" or "special improvement bonds" in the following provisions include any special
improvement refunding bonds:
(i) Subsection 17A-3-304 [(2)](3)(d);
(ii) Sections 17A-3-321 , 17A-3-322 , 17A-3-325 , 17A-3-326 , 17A-3-327 , 17A-3-331 ,
17A-3-332 , and 17A-3-333 ;
(iii) Section 17A-3-336 , except the reference in that section to "bond fund"; and
(iv) Sections 17A-3-337 , 17A-3-339 , and 17A-3-342 .

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(3) (a) "Connection fee" means a fee:
(i) charged by the governing body to connect onto the municipal sewer, water, gas, or
electrical system; and
(ii) used to finance special improvements in a special improvement district or to pay for the
privilege of using existing improvements of the municipality.
(b) "Connection fee" includes a fee charged by the governing body to pay for the costs of
connecting onto the municipal sewer, water, gas, or electrical system even though the improvements
are installed on the assessed owner's property.
(4) "Contract price" means the amount payable to one or more contractors for the designing,
engineering, inspection, and making of improvements in a special improvement district. The costs
of improvements, other than designing, engineering, and inspection costs, shall be incurred under any
contract let to the lowest responsible bidder as required by this part, including amounts payable for
extra or additional work when authorized by the governing body or in accordance with the terms of
the contract, less appropriate credit for work deleted from the contract when authorized by the
governing body, or in accordance with the contract.
(5) "Economic promotion activities" means promotion and developmental activities such as
sponsoring festivals and markets in the downtown area, promoting business investment in the
downtown area, helping to coordinate public and private actions in the downtown area, and
developing and issuing publications on the downtown area designed to improve the economic
well-being of the downtown area.
(6) "Governing body" means the board of commissioners or city council of a city or the town
council of a town.
(7) "Improvement revenues" means any charges, fees, or other revenues received by a
municipality from improvements described in Section 17A-3-304 .
(8) "Incidental refunding costs" means any costs of issuing special improvement refunding
bonds and of calling, retiring, or paying prior bonds, including legal fees, accounting fees, charges of
fiscal agents, escrow agents, and trustees, underwriting discount, printing costs, giving of notices, any
premium necessary in the calling or retiring of the prior bonds, any other costs that the governing

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body determines are necessary or desirable in connection with the issuance of special improvement
refunding bonds, and any interest on the prior bonds that is required to be paid in connection with the
issuance of the special improvement refunding bonds.
(9) "Installment payment date" means the date on which installment payments of assessments
are payable.
(10) "Municipality" means a city or town of this state.
(11) (a) "Net improvement revenues" means all improvement revenues received by a
municipality since the last installment payment date minus all amounts payable by the municipality
from those improvement revenues for items other than the payment of interim warrants and special
improvement bonds.
(b) "Net improvement revenues" shall be calculated as of any installment payment date.
(12) "Optional improvements" means improvements in a special improvement district that
may be conveniently installed at the same time as other improvements in the district and that the
governing body provides may be installed at the option of the property owner on whose property or
for whose particular benefit the improvements are made, including private driveways, irrigation
ditches, and water turnouts.
(13) "Overhead costs" means the actual costs incurred by a municipality in connection with
a special improvement district for appraisals, legal fees, financial advisory charges, escrow and trustee
fees, publishing and mailing notices, levying assessments, and all other incidental costs relating to the
district.
(14) "Prior bonds" means the outstanding special improvement bonds that are refunded by
an issue of special improvement refunding bonds.
(15) "Prior ordinance" means the ordinance levying the assessments from which the prior
bonds and the interest on those bonds are payable.
(16) "Property" means real property or any interest in real property.
(17) "Property price" means the purchase or condemnation price of property acquired in
order to make improvements in a special improvement district.
(18) "Reduced payment obligations" means the reduced amounts of the assessments levied,

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the interest on assessments established in the prior ordinance, or both, as set forth in the amending
ordinance described in Section 17A-3-329 .
(19) "Special improvement district" or "district" means a district created for the purpose of
making improvements under this part.
(20) "Special improvement fund" means the fund established under Section 17A-3-326 .
(21) "Special improvement refunding bonds" means any obligations issued to refund any
special improvement bonds.
Section 38. Section 17A-3-412 is amended to read:
17A-3-412. Control of district by governing authority -- Administrative board of
directors -- Powers.
(1) After the adoption of the resolution establishing a district, the district so established shall
be under the control of the governing authority. However, the governing authority may appoint an
administrative board consisting of any number of directors as the governing authority shall determine.
[Said director] The directors shall receive no pay for their services as directors, but may be
reimbursed for reasonable and authorized out-of-pocket expenses they may incur as directors.
(2) All actions taken by the board shall constitute recommendations to the governing
authority and shall not constitute official action. The board shall have the power, subject to approval
of the governing authority, to:
(a) adopt and alter rules and regulations for the operation of the district;
(b) determine broad matters of policy regarding the operation of the district; and
(c) assist the governing authority in the operation of the district in any manner that the
governing authority may direct.
Section 39. Section 17A-3-701 is amended to read:
17A-3-701. Local substance abuse authorities -- Responsibilities.
(1) All county governing bodies in this state are local substance abuse authorities. Within
legislative appropriations and county matching funds required by this section, and under the policy
direction of the state Board of Substance Abuse and the administrative direction of the Division of
Substance Abuse within the Department of Human Services, local substance abuse authorities shall

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provide substance abuse services to residents of their respective counties. Two or more county
governing bodies may join to provide substance abuse prevention and treatment services.
(2) The governing bodies may establish acceptable ways of apportioning the cost of substance
abuse services. Any agreement for joint substance abuse services may designate the treasurer of one
of the participating counties as the custodian of moneys available for those joint services, and that the
designated treasurer, or other disbursing officer, may make payments from those moneys for such
purposes upon audit of the appropriate auditing officer or officers representing the participating
counties. The agreement may provide for joint operation of services and facilities or for operation
of services and facilities under contract by one participating local substance abuse authority for other
participating local substance abuse authorities.
(3) (a) All county governing bodies, as local substance abuse authorities, are accountable to
the Department of Human Services, the Department of Health, and the state with regard to the use
of state and federal funds received from those departments for substance abuse services, regardless
of whether the services are provided by a private contract provider.
(b) A local substance abuse authority shall comply, and require compliance by its contract
provider, with all directives issued by the Department of Human Services and the Department of
Health regarding the use and expenditure of state and federal funds received from those departments
for the purpose of providing substance abuse programs and services. The Department of Human
Services and Department of Health shall ensure that those directives are not duplicative or conflicting,
and shall consult and coordinate with local substance abuse authorities with regard to programs and
services.
(4) Local substance abuse authorities shall:
(a) review and evaluate substance abuse prevention and treatment needs and services;
(b) annually prepare and submit a plan to the division for funding and service delivery; the
plan shall include, but is not limited to, primary prevention, targeted prevention, early intervention,
and treatment services;
(c) establish and maintain, either directly or by contract, programs licensed under Title 62A,
Chapter 2, Licensure of Programs and Facilities;

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(d) appoint directly or by contract[,] a full or part time director for substance abuse
programs, and prescribe his duties;
(e) provide input and comment on new and revised policies established by the state Board
of Substance Abuse;
(f) establish and require contract providers to establish administrative, clinical, personnel,
financial, and management policies regarding substance abuse services and facilities, in accordance
with the policies of the state Board of Substance Abuse, and state and federal law;
(g) establish mechanisms allowing for direct citizen input;
(h) annually contract with the Division of Substance Abuse to provide substance abuse
programs and services in accordance with the provisions of Title 62A, Chapter 8, Substance Abuse;
(i) comply with all applicable state and federal statutes, policies, audit requirements, contract
requirements, and any directives resulting from those audits and contract requirements;
(j) promote or establish programs for the prevention of substance abuse within the community
setting through community-based prevention programs;
(k) provide funding equal to at least 20% of the state funds that it receives to fund services
described in the plan; and
(l) comply with the requirements and procedures of Title 11, Chapter 13, Interlocal
Cooperation Act, Title 51, Chapter 2, Audits of Political Subdivisions, Interlocal Organizations and
Other Local Entities, and Title 17A, Chapter 1, Part 4, Uniform Fiscal Procedures for Special
Districts Act.
(5) Before disbursing any public funds, local substance abuse authorities shall require that all
entities that receive any public funds from a local substance abuse authority agree in writing that:
(a) the division may examine the entity's financial records;
(b) the county auditor may examine and audit the entity's financial records; and
(c) the entity will comply with the provisions of Subsection (3)(b).
(6) Local substance abuse authorities may receive property, grants, gifts, supplies, materials,
contributions, and any benefit derived therefrom, for substance abuse services. If those gifts are
conditioned upon their use for a specified service or program, they shall be so used.

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(7) (a) For purposes of this section "public funds" means the same as that term is defined in
Section 17A-3-703 .
(b) Nothing in this section limits or prohibits an organization exempt under Section 501(c)(3),
Internal Revenue Code, from using public funds for any business purpose or in any financial
arrangement that is otherwise lawful for that organization.
Section 40. Section 17B-2-201 is amended to read:
17B-2-201. Definitions and general provisions.
(1) As used in this part:
(a) "Applicable area" means:
(i) for a county, the unincorporated area of the county that is included within the proposed
local district; or
(ii) for a municipality, the area of the municipality that is included within the proposed local
district.
(b) "Municipal" means of or relating to a municipality.
(c) "Municipality" means a city or town.
(d) "Petition" means a petition under Subsection 17B-2-203 (1)(a) or (b).
(e) "Political subdivision" means a county, city, town, local district under this chapter,
independent special district under Title 17A, Chapter 2, Independent Special Districts, or an entity
created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal Cooperation Act.
(f) "Private," with respect to real property, means not owned by the United States or any
agency of the federal government, the state, a county, a municipality, a school district, an independent
special district under Title 17A, Chapter 2, Independent Special Districts, a local district, or any other
political subdivision of the state.
(g) "Property owner petition" means a petition under Subsection 17B-2-203 (1)(a).
(h) "Property owner request" means a request under Section 17B-2-204 that is signed by
owners of real property as provided in Subsection 17B-2-204 (2)(b)(i).
[(j)] (i) "Registered owner request" means a request under Section 17B-2-204 that is signed
by registered voters as provided in Subsection 17B-2-204 (2)(b)(ii).

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[(i)] (j) "Registered voter petition" means a petition under Subsection 17B-2-203 (1)(b).
(k) "Request" means a request as described in Section 17B-2-204 .
(l) "Responsible body" means the legislative body of:
(i) the municipality in which the proposed local district is located, if the petition proposes the
creation of a local district located entirely within a single municipality;
(ii) the county in which the proposed local district is located, if the petition proposes the
creation of a local district located entirely within a single county and all or part of the proposed local
district is located within:
(A) the unincorporated part of the county; or
(B) more than one municipality within the county; or
(iii) if the petition proposes the creation of a local district located within more than one
county, the county whose boundaries include more of the area of the proposed local district than is
included within the boundaries of any other county.
(m) "Responsible clerk" means the clerk of the county or the clerk or recorder of the
municipality whose legislative body is the responsible body.
(n) "Unincorporated" means not included within a municipality.
(2) For purposes of this part:
(a) the owner of real property shall be the record title owner according to the records of the
county recorder on the date of the filing of the request or petition; and
(b) the value of private real property shall be determined according to the last assessment
before the filing of the request or petition, as determined by:
(i) the county under Title 59, Chapter 2, Part 3, County Assessment, for property subject to
assessment by the county;
(ii) the State Tax Commission under Title 59, Chapter 2, Part 2, Assessment of Property, for
property subject to assessment by the State Tax Commission; or
(iii) the county, for all other property.
(3) For purposes of each provision of this part that requires the owners of private real
property covering a percentage of the total private land area within the proposed local district to sign

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a request, petition, or protest:
(a) a parcel of real property may not be included in the calculation of the required percentage
unless the request or petition is signed by:
(i) except as provided in Subsection (3)(a)(ii), owners representing a majority ownership
interest in that parcel; or
(ii) if the parcel is owned by joint tenants or tenants by the entirety, 50% of the number of
owners of that parcel;
(b) the signature of a person signing a request or petition in a representative capacity on
behalf of an owner is invalid unless:
(i) the person's representative capacity and the name of the owner the person represents are
indicated on the request or petition with the person's signature; and
(ii) the person provides documentation accompanying the request or petition that reasonably
substantiates the person's representative capacity; and
(c) subject to Subsection (3)(b), a duly appointed personal representative may sign a request
or petition on behalf of a deceased owner.
Section 41. Section 19-6-703 is amended to read:
19-6-703. Definitions.
(1) "Board" means the Solid and Hazardous Waste Control Board created in Section
19-1-106 .
(2) "Commission" means the State Tax Commission.
(3) "Department" means the Department of Environmental Quality created in Title 19,
Chapter 1, General Provisions.
(4) "Division" means the Division of Solid and Hazardous Waste as created in Section
19-1-105 .
(5) "DIY" means do it yourself.
(6) "DIYer" means a person who generates used oil through household activities, including
maintenance of personal vehicles.
(7) "DIYer used oil" means used oil a person generates through household activities,

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including maintenance of personal vehicles.
(8) "DIYer used oil collection center" means any site or facility that accepts or aggregates
and stores used oil collected only from DIYers.
(9) "Executive secretary" means the executive secretary of the board.
(10) "Hazardous waste" means any substance defined as hazardous waste under Title 19,
Chapter 6, Hazardous Substances.
(11) "Lubricating oil" means the fraction of crude oil or synthetic oil used to reduce friction
in an industrial or mechanical device. Lubricating oil includes rerefined oil.
(12) "Lubricating oil vendor" means the person making the first sale of a lubricating oil in
Utah.
(13) "Manifest" means the form used for identifying the quantity and composition and the
origin, routing, and destination of used oil during its transportation from the point of collection to the
point of storage, processing, use, or disposal.
(14) "Off-specification used oil" means used oil that exceeds levels of constituents and
properties as specified by board rule and consistent with 40 CFR 279, Standards for the Management
of Used Oil.
(15) "On-specification used oil" means used oil that does not exceed levels of [constitutents]
constituents and properties as specified by board rule and consistent with 40 CFR 279, Standards for
the Management of Used Oil.
(16) (a) "Processing" means chemical or physical operations under Subsection (b) designed
to produce from used oil, or to make used oil more amenable for production of:
(i) gasoline, diesel, and other petroleum derived fuels;
(ii) lubricants; or
(iii) other products derived from used oil.
(b) Processing includes:
(i) blending used oil with virgin petroleum products;
(ii) blending used oils to meet fuel specifications;
(iii) filtration;

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(iv) simple distillation;
(v) chemical or physical separation; and
(vi) rerefining.
(17) "Recycled oil" means oil reused for any purpose following its original use, including:
(a) the purpose for which the oil was originally used; and
(b) used oil processed or burned for energy recovery.
(18) "Rerefining distillation bottoms" means the heavy fraction produced by vacuum
distillation of filtered and dehydrated used oil. The composition varies with column operation and
feedstock.
(19) "Used oil" means any oil, refined from crude oil or a synthetic oil, that has been used and
as a result of that use is contaminated by physical or chemical impurities.
(20) (a) "Used oil aggregation point" means any site or facility that accepts, aggregates, or
stores used oil collected only from other used oil generation sites owned or operated by the owner
or operator of the aggregation point, from which used oil is transported to the aggregation point in
shipments of no more than 55 gallons.
(b) A used oil aggregation point may also accept oil from DIYers.
(21) "Used oil burner" means a person who burns used oil for energy recovery.
(22) "Used oil collection center" means any site or facility registered with the state to manage
used oil and that accepts or aggregates and stores used oil collected from used oil generators, other
than DIYers, who are regulated under this part and bring used oil to the collection center in shipments
of no more than 55 gallons and under the provisions of this part. Used oil collection centers may
accept DIYer used oil also.
(23) "Used oil fuel marketer" means any person who:
(a) directs a shipment of off-specification used oil from its facility to a used oil burner; or
(b) first claims the used oil to be burned for energy recovery meets the used oil fuel
specifications of 40 CFR 279, Standards for the Management of Used Oil, except when the oil is to
be burned in accordance with rules for on-site burning in space heaters in accordance with 40 CFR
279.

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(24) "Used oil generator" means any person, by site, whose act or process produces used oil
or whose act first causes used oil to become subject to regulation.
(25) "Used oil handler" means a person generating used oil, collecting used oil, transporting
used oil, operating a transfer facility or aggregation point, processing or rerefining used oil, or
marketing used oil.
(26) "Used oil processor or rerefiner" means a facility that processes used oil.
(27) "Used oil transfer facility" means any transportation-related facility, including loading
docks, parking areas, storage areas, and other areas where shipments of used oil are held for more
than 24 hours during the normal course of transportation and not longer than 35 days.
(28) (a) "Used oil transporter" means the following persons unless they are exempted under
Subsection (28)(b):
(i) any person who transports used oil;
(ii) any person who collects used oil from more than one generator and transports the
collected oil;
(iii) except as exempted under Subsection (28)(b)(i), (ii), or (iii), any person who transports
collected DIYer used oil from used oil generators, collection centers, aggregation points, or other
facilities required to be permitted or registered under this part and where household DIYer used oil
is collected; and
(iv) owners and operators of used oil transfer facilities.
(b) "Used oil transporter" does not include:
(i) persons who transport oil on site;
(ii) generators who transport shipments of used oil totalling 55 gallons or less from the
generator to a used oil collection center as allowed under 40 CFR 279.24, Off-site Shipments;
(iii) generators who transport shipments of used oil totalling 55 gallons or less from the
generator to a used oil aggregation point owned or operated by the same generator as allowed under
40 CFR 279.24, Off-site Shipments;
(iv) persons who transport used oil generated by DIYers from the initial generator to a used
oil generator, used oil collection center, used oil aggregation point, used oil processor or rerefiner,

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or used oil burner subject to permitting or registration under this part; or
(v) railroads that transport used oil and are regulated under [45] 49 U.S.C. [421 et seq.]
Subtitle V, Rail Programs, [federal Railroad Safety Act,] and 49 U.S.C. [1801] 5101 et seq., federal
Hazardous Materials Transportation Uniform Safety Act.
Section 42. Section 26-8a-402 is amended to read:
26-8a-402. Exclusive geographic service areas.
(1) Each ground ambulance provider license issued under this part shall be for an exclusive
geographic service area as described in the license. Only the licensed ground ambulance provider may
respond to an ambulance request that originates within the provider's exclusive geographic service
area, except as provided in Subsection (5) and Section 26-8a-416 .
(2) Each paramedic provider license issued under this part shall be for an exclusive
geographic service area as described in the license. Only the licensed paramedic provider may
respond to a paramedic request that originates within the exclusive geographic service area, except
as provided in Subsection (6) and Section 26-8a-416 .
(3) Nothing in this section may be construed as either requiring or prohibiting that the
formation of boundaries in a given location be the same for a licensed paramedic provider as it is for
a licensed ambulance provider.
(4) (a) A licensed ground ambulance or paramedic provider may, as necessary, enter into a
mutual aid agreement to allow another licensed provider to give assistance in times of unusual
demand, as that term is defined by the committee in rule.
(b) A mutual aid agreement shall include a formal written plan detailing the type of assistance
and the circumstances under which it would be given.
(c) The parties to a mutual aid agreement shall submit a copy of the agreement to the
department.
(d) Notwithstanding this Subsection (4), a licensed provider may not subcontract with
another entity to provide services in the licensed provider's exclusive geographic service area.
(5) Notwithstanding Subsection (1), a licensed ground ambulance provider may respond to
an ambulance request that originates from the exclusive geographic area of another provider:

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(a) pursuant to a mutual aid agreement;
(b) to render assistance on a case-by-case basis to that provider; and
(c) as necessary to meet needs in time of disaster or other major emergency.
(6) Notwithstanding Subsection (2), a licensed paramedic provider may respond to a
paramedic request that originates from the exclusive geographic area of another provider:
(a) pursuant to a mutual aid agreement;
(b) to render assistance on a case-by-case basis to that provider; and
(c) as necessary to meet needs in time of disaster or other major emergency.
Section 43. Section 26-8a-502 is amended to read:
26-8a-502. Illegal activity.
(1) Except as provided in Section 26-8a-308 , a person may not:
(a) practice or engage in the practice, represent himself to be practicing or engaging in the
practice, or [attempting] attempt to practice or engage in the practice of any activity that requires a
license, certification, or designation under this chapter unless that person is so licensed, certified, or
designated; or
(b) offer an emergency medical service that requires a license, certificate, or designation
unless the person is so licensed, certified, or designated.
(2) A person may not advertise or hold himself out as one holding a license, certification, or
designation required under this chapter, unless that person holds the license, certification, or
designation.
(3) A person may not employ or permit any employee to perform any service for which a
license or certificate is required by this chapter, unless the person performing the service possesses
the required license or certificate.
(4) A person may not wear, display, sell, reproduce, or otherwise use any Utah Emergency
Medical Services insignia without authorization from the department.
(5) A person may not reproduce or otherwise use materials developed by the department for
certification or recertification testing or examination without authorization from the department.
(6) A person may not willfully summon an ambulance or emergency response vehicle or

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report that one is needed when such person knows that the ambulance or emergency response vehicle
is not needed.
(7) A person who violates this section is subject to Section 26-23-6 .
Section 44. Section 26-18-2 is amended to read:
26-18-2. Definitions.
As used in this chapter:
(1) "Applicant" means any person who requests assistance under the medical programs of the
state.
[(3)] (2) "Client" means a person who the department has determined to be eligible for
assistance under the Medicaid program or the Utah Medical Assistance Program established under
Section 26-18-10 .
[(2)] (3) "Division" means the Division of Health Care Financing within the department,
established under Section 26-18-2.1 .
(4) "Medicaid program" means the state program for medical assistance for persons who are
eligible under the state plan adopted pursuant to Title XIX of the federal Social Security Act.
(5) "Medical or hospital assistance" means services furnished or payments made to or on
behalf of recipients of medical or hospital assistance under state medical programs.
(6) (a) "Passenger vehicle" means a self-propelled, two-axle vehicle intended primarily for
operation on highways and used by an applicant or recipient to meet basic transportation needs and
has a fair market value below 40% of the applicable amount of the federal luxury passenger
automobile tax established in 26 U.S.C. Sec. 4001 and adjusted annually for inflation.
(b) "Passenger vehicle" does not include:
(i) a commercial vehicle, as defined in Section 41-1a-102 ;
(ii) an off-highway vehicle, as defined in Section 41-1a-102 ; or
(iii) a motor home, as defined in Section 13-14-102 .
(7) "Recipient" means a person who has received medical or hospital assistance under the
Medicaid program or the Utah Medical Assistance Program established under Section 26-18-10 .
Section 45. Section 26-18-3.7 is amended to read:

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26-18-3.7. Prepaid health care delivery systems.
(1) (a) Before July 1, 1996, the division shall submit to the Health Care Financing
Administration within the United States Department of Health and Human Services, an amendment
to the state's freedom of choice waiver. That amendment shall provide that the following persons
who are eligible for services under the state plan for medical assistance, who reside in Salt Lake,
Utah, Davis, or Weber counties, shall enroll in the recipient's choice of a health care delivery system
that meets the requirements of Subsection (2):
(i) by July 1, 1994, 40% of eligible persons;
(ii) by July 1, 1995, 65% of eligible persons; and
(iii) by July 1, 1996, 100% of eligible persons.
(b) The division may not enter into any agreements with mental health providers that establish
a prepaid capitated delivery system for mental health services that were not in existence prior to July
1, 1993, until the application of the Utah Medicaid Hospital Provider Temporary Assessment Act
with regard to a specialty hospital as defined in Section 26-21-2 that may be engaged exclusively in
rendering psychiatric or other mental health treatment is repealed.
(c) The following are exempt from the requirements of Subsection (1)(a):
(i) persons who:
(A) receive medical assistance for the first time after July 1, 1996;
(B) have a mental illness, as that term is defined in Section 62A-12-202 ; and
(C) are receiving treatment for that mental illness. The division, when appropriate, shall
enroll these persons in a health care delivery system that meets the requirements of this section;
(ii) persons who are institutionalized in a facility designated by the division as a nursing
facility or an intermediate care facility for the mentally retarded; or
(iii) persons with a health condition that requires specialized medical treatment that is not
available from a health care delivery system that meets the requirements of this section.
(2) In submitting the amendment to the state's freedom of choice waiver under Subsection
(1), the division shall ensure that the proposed health care delivery systems have at least the following
characteristics, so that the system:

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(a) is financially at risk, for a specified continuum of health care services, for a defined
population, and has incentives to balance the patient's need for care against the need for cost control;
(b) follows utilization and quality controls developed by the department;
(c) is encouraged to promote the health of patients through primary and preventive care;
(d) coordinates care to avoid unnecessary duplication and services;
(e) conserves health care resources; and
(f) if permissible under the waiver, utilizes private insurance plans including health
maintenance organizations and other private health care delivery organizations.
(3) Subsection (2) does not prevent the division from contracting with other health care
delivery organizations if the division determines that it is advantageous to do so.
(4) Health care delivery systems that meet the requirements of this section may provide all
services otherwise available under the state plan for medical assistance, except prescribed drugs.
(5) The division shall periodically report to the [Legislative] Health and [Environment and]
Human Services Interim [Committees] Committee regarding the development and implementation
of the amendment to the state's freedom of choice waiver required under this section.
Section 46. Section 26-21-2 is amended to read:
26-21-2. Definitions.
As used in this chapter:
(1) "Abortion clinic" means a facility, other than a general acute or specialty hospital, that
performs abortions and provides abortion services during the second trimester of pregnancy.
(2) "Activities of daily living" means essential activities including:
(a) dressing;
(b) eating;
(c) grooming;
(d) bathing;
(e) toileting;
(f) ambulation;
(g) transferring; and

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(h) self-administration of medication.
(3) "Ambulatory surgical facility" means a freestanding facility, which provides surgical
services to patients not requiring hospitalization.
(4) "Assistance with activities of daily living" means providing of or arranging for the
provision of assistance with activities of daily living.
(5) (a) "Assisted living facility" means:
(i) a type I assisted living facility, which is a residential facility that provides assistance with
activities of daily living and social care to two or more residents who:
(A) require protected living arrangements; and
(B) are capable of achieving mobility sufficient to exit the facility without the assistance of
another person; and
(ii) a type II assisted living facility, which is a residential facility with a home-like setting that
provides an array of coordinated supportive personal and health care services available 24 hours per
day to residents who have been assessed under department rule to need any of these services.
(b) Each resident in a type I or type II assisted living facility shall have a service plan based
on the assessment, which may include:
[(a)] (i) specified services of intermittent nursing care;
[(b)] (ii) administration of medication; and
[(c)] (iii) support services promoting residents' independence and self sufficiency.
(6) "Birthing center" means a freestanding facility, receiving maternal clients and providing
care during pregnancy, delivery, and immediately after delivery.
(7) "Committee" means the Health Facility Committee created in Section 26-1-7 .
(8) "Consumer" means any person not primarily engaged in the provision of health care to
individuals or in the administration of facilities or institutions in which such care is provided and who
does not hold a fiduciary position, or have a fiduciary interest in any entity involved in the provision
of health care, and does not receive, either directly or through his spouse, more than 1/10 of his gross
income from any entity or activity relating to health care.
(9) "End stage renal disease facility" means a facility which furnishes staff-assisted kidney

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dialysis services, self-dialysis services, or home-dialysis services on an outpatient basis.
(10) "Freestanding" means existing independently or physically separated from another health
care facility by fire walls and doors and administrated by separate staff with separate records.
(11) "General acute hospital" means a facility which provides diagnostic, therapeutic, and
rehabilitative services to both inpatients and outpatients by or under the supervision of physicians.
(12) "Governmental unit" means the state, or any county, municipality, or other political
subdivision or any department, division, board, or agency of the state, a county, municipality, or other
political subdivision.
(13) (a) "Health care facility" means general acute hospitals, specialty hospitals, home health
agencies, hospices, nursing care facilities, residential-assisted living facilities, birthing centers,
ambulatory surgical facilities, small health care facilities, abortion clinics, facilities owned or operated
by health maintenance organizations, end stage renal disease facilities, and any other health care
facility which the committee designates by rule.
(b) "Health care facility" does not include the offices of private physicians or dentists,
whether for individual or group practice.
(14) "Health maintenance organization" means an organization, organized under the laws of
any state which:
(a) is a qualified health maintenance organization under 42 U.S.C. Sec. 300e-9; or
(b) (i) provides or otherwise makes available to enrolled participants at least the following
basic health care services: usual physician services, hospitalization, laboratory, x-ray, emergency, and
preventive services and out-of-area coverage;
(ii) is compensated, except for copayments, for the provision of the basic health services
listed in Subsection (14)(b)(i) to enrolled participants by a payment which is paid on a periodic basis
without regard to the date the health services are provided and which is fixed without regard to the
frequency, extent, or kind of health services actually provided; and
(iii) provides physicians' services primarily directly through physicians who are either
employees or partners of such organizations, or through arrangements with individual physicians or
one or more groups of physicians organized on a group practice or individual practice basis.

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(15) (a) "Home health agency" means an agency, organization, or facility or a subdivision of
an agency, organization, or facility which employs two or more direct care staff persons who provide
licensed nursing services, therapeutic services of physical therapy, speech therapy, occupational
therapy, medical social services, or home health aide services on a visiting basis.
(b) "Home health agency" does not mean an individual who provides services under the
authority of a private license.
(16) "Hospice" means a program of care for the terminally ill and their families which occurs
in a home or in a health care facility and which provides medical, palliative, psychological, spiritual,
and supportive care and treatment.
(17) "Nursing care facility" means a health care facility, other than a general acute or specialty
hospital, constructed, licensed, and operated to provide patient living accommodations, 24-hour staff
availability, and at least two of the following patient services:
(a) a selection of patient care services, under the direction and supervision of a registered
nurse, ranging from continuous medical, skilled nursing, psychological, or other professional therapies
to intermittent health-related or paraprofessional personal care services;
(b) a structured, supportive social living environment based on a professionally designed and
supervised treatment plan, oriented to the individual's habilitation or rehabilitation needs; or
(c) a supervised living environment that provides support, training, or assistance with
individual activities of daily living.
(18) "Person" means any individual, firm, partnership, corporation, company, association, or
joint stock association, and the legal successor thereof.
(19) "Resident" means a person 21 years of age or older who:
(a) as a result of physical or mental limitations or age requires or requests services provided
in an assisted living facility; and
(b) does not require intensive medical or nursing services as provided in a hospital or nursing
care facility.
(20) "Small health care facility" means a four to sixteen bed facility that provides licensed
health care programs and services to residents who generally do not need continuous nursing care or

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supervision.
(21) "Specialty hospital" means a facility which provides specialized diagnostic, therapeutic,
or rehabilitative services in the recognized specialty or specialties for which the hospital is licensed.
(22) "Substantial compliance" means in a department survey of a licensee, the department
determines there is an absence of deficiencies which would harm the physical health, mental health,
safety, or welfare of patients or residents of a licensee.
Section 47. Section 26-40-102 is amended to read:
26-40-102. Definitions.
As used in this chapter:
(1) "Assessment" means the hospital provider assessment established in Section 26-40-111 .
(2) "Child" means a person who is under 19 years of age.
(3) "Eligible child" means a child who qualifies for enrollment in the program as provided in
Section 26-40-105 .
(4) "Enrollee" means any child enrolled in the program.
(5) "Freestanding ambulatory surgical facility" means an urban or rural nonhospital-based or
nonhospital-affiliated licensed facility, as defined in Section 26-21-2 , as an ambulatory surgical
facility, with an organized professional staff that provides surgical services to patients who do not
require an inpatient bed.
(6) (a) "Hospital" means any general acute hospital, as defined in Section 26-21-2 , operating
in this state.
(b) "Hospital" does not include:
(i) a residential care or treatment facility, as defined in Subsections 62A-2-101 [(16)] (14),
[(17)] (15), and [(19)] (18);
(ii) the Utah State Hospital;
(iii) any rural hospital that operates outside of a metropolitan statistical area, a metropolitan
area, or an urbanized area as designated by the U.S. Bureau of Census; or
(iv) any specialty hospital operating in this state, as defined in Section 26-21-2 , that is
engaged exclusively in rendering psychiatric or other mental health treatment.

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(7) "Hospital-based ambulatory surgical facility" means an urban or rural on-hospital campus
or hospital-affiliated licensed facility with an organized professional staff that provides surgical
services to patients who do not require an inpatient bed.
(8) "Plan" means the department's plan submitted to the United States Department of Health
and Human Services pursuant to 42 U.S.C. Sec. 1397ff.
(9) "Program" means the Utah Children's Health Insurance Program created by this chapter.
Section 48. Section 26-44-101 is amended to read:
26-44-101. Title.
[The] This chapter is known as the "Tobacco Manufacturers Responsibility Act."
Section 49. Section 26-44-202 is amended to read:
26-44-202. Definitions.
As used in this part:
(1) "Adjusted for inflation" means increased in accordance with the formula for inflation
adjustment set forth in Exhibit C to the Master Settlement Agreement.
(2) "Affiliate" means a person who directly or indirectly owns or controls, is owned or
controlled by, or is under common ownership or control with, another person. Solely for purposes
of this definition, the terms "owns," "is owned" and "ownership" mean ownership of an equity
interest, or the equivalent thereof, of 10% or more, and the term "person" means an individual,
partnership, committee, association, corporation or any other organization or group of persons.
(3) "Allocable share" means Allocable Share as that term is defined in the Master Settlement
Agreement.
(4) "Cigarette" means any product that contains nicotine, is intended to be burned or heated
under ordinary conditions of use, and consists of or contains (a) any roll of tobacco wrapped in paper
or in any substance not containing tobacco; or (b) tobacco, in any form, that is functional in the
product, which, because of its appearance, the type of tobacco used in the filler, or its packaging and
labeling, is likely to be offered to, or purchased by, consumers as a cigarette; or (c) any roll of
tobacco wrapped in any substance containing tobacco which, because of its appearance, the type of
tobacco used in the filler, or its packaging and labeling, is likely to be offered to, or purchased by,

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consumers as a cigarette described in clause (a) of this definition. The term "cigarette" includes
"roll-your-own[,]" (i.e., any tobacco which, because of its appearance, type, packaging, or labeling
is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making
cigarettes). For purposes of this definition of "cigarette," 0.09 ounces of "roll-your-own" tobacco
shall constitute one individual "cigarette."
(5) "Master Settlement Agreement" means the settlement agreement (and related documents)
entered into on November 23, 1998, by the State and leading United States tobacco product
manufacturers.
(6) "Qualified escrow fund" means an escrow arrangement with a federally or State chartered
financial institution having no affiliation with any tobacco product manufacturer and having assets of
at least $1,000,000,000 where such arrangement requires that such financial institution hold the
escrowed funds' principal for the benefit of releasing parties and prohibits the tobacco product
manufacturer placing the funds into escrow from using, accessing, or directing the use of the funds'
principal except as consistent with Subsection 26-44-203 (2).
(7) "Released claims" means Released Claims as that term is defined in the Master Settlement
Agreement.
(8) "Releasing parties" means Releasing Parties as that term is defined in the Master
Settlement Agreement.
(9) (a) "Tobacco product manufacturer" means an entity that after the date of enactment of
this Act directly (and not exclusively through any affiliate):
(i) manufactures cigarettes anywhere that such manufacturer intends to be sold in the United
States, including cigarettes intended to be sold in the United States through an importer (except
where such importer is an original participating manufacturer (as that term is defined in the Master
Settlement Agreement) that will be responsible for the payments under the Master Settlement
Agreement with respect to such cigarettes as a result of the provisions of Subsection II(mm) of the
Master Settlement Agreement and that pays the taxes specified in Subsection II(z) of the Master
Settlement Agreement, and provided that the manufacturer of such cigarettes does not market or
advertise such cigarettes in the United States);

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(ii) is the first purchaser anywhere for resale in the United States of cigarettes manufactured
anywhere that the manufacturer does not intend to be sold in the United States; or
(iii) becomes a successor of an entity described in Subsection (9)(a)(i) or (ii).
(b) "Tobacco product manufacturer" shall not include an affiliate of a tobacco product
manufacturer unless such affiliate itself falls within any Subsection (9)(a)(i) through (iii).
(10) "Units sold" means the number of individual cigarettes sold in the State by the applicable
tobacco product manufacturer (whether directly or through a distributor, retailer or similar
intermediary or intermediaries) during the year in question, as measured by excise taxes collected by
the State on packs (or "roll-your-own" tobacco containers) bearing the excise tax stamp of the State.
The State Tax Commission shall promulgate such regulations as are necessary to ascertain the amount
of State excise tax paid on the cigarettes of such tobacco product manufacturer for each year.
Section 50. Section 30-1-9 is amended to read:
30-1-9. Marriage by minors -- Consent of parent or guardian -- Juvenile court
authorization.
(1) For purposes of this section, "minor" means a male or female under 18 years of age.
(2) (a) If at the time of applying for a license the applicant is a minor, and not before married,
a license may not be issued without the signed consent of the minor's father, mother, or guardian
given in person to the clerk; however:
(i) if the parents of the minor are divorced, consent shall be given by the parent having legal
custody of the minor as evidenced by an oath of affirmation to the clerk;
(ii) if the parents of the minor are divorced and have been awarded joint custody of the minor,
consent shall be given by the parent having physical custody of the minor the majority of the time as
evidenced by an oath of affirmation to the clerk; or
(iii) if the minor is not in the custody of a parent, the legal guardian shall provide the consent
and provide proof of guardianship by court order as well as an oath of affirmation.
(b) If the male or female is 15 years of age, the minor and [their] the parent or guardian of the
minor shall obtain a written authorization to marry from:
(i) a judge of the court exercising juvenile jurisdiction in the county where either party to the

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marriage resides; or
(ii) a court commissioner as permitted by rule of the Judicial Council.
(3) (a) Before issuing written authorization for a minor to marry, the judge or court
commissioner shall determine:
(i) that the minor is entering into the marriage voluntarily; and
(ii) the marriage is in the best interests of the minor under the circumstances.
(b) The judge or court commissioner shall require that both parties to the marriage complete
premarital counseling. This requirement may be waived if premarital counseling is not reasonably
available.
(c) The judge or court commissioner may require:
(i) that the person continue to attend school, unless excused under Section 53A-11-102 ; and
(ii) any other conditions that the court deems reasonable under the circumstances.
(4) The determination required in Subsection (3) shall be made on the record. Any inquiry
conducted by the judge or commissioner may be conducted in chambers.
Section 51. Section 30-3-38 is amended to read:
30-3-38. Pilot Program for Expedited Visitation Enforcement.
(1) There is established an Expedited Visitation Enforcement Pilot Program in the third
judicial district to be administered by the Administrative Office of the Courts from July 1, 1996, to
July 1, 2000.
(2) As used in this section:
(a) "Mediator" means a person who:
(i) is qualified to mediate visitation disputes under criteria established by the Administrative
Office of the Courts; and
(ii) agrees to follow billing guidelines established by the Administrative Office of the Courts
and this section.
(b) "Services to facilitate visitation" or "services" means services designed to assist families
in resolving visitation problems through:
(i) counseling;

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(ii) supervised visitation;
(iii) neutral drop-off and pick-up;
(iv) educational classes; and
(v) other related activities.
(3) (a) Under this pilot program, if a parent files a motion in the third district court alleging
that court-ordered visitation rights are being violated, the clerk of the court, after assigning the case
to a judge, shall refer the case to the administrator of this pilot program for assignment to a mediator.
(b) Upon receipt of a case, the mediator shall:
(i) meet with the parents to address visitation issues within 15 days of the motion being filed;
(ii) assess the situation;
(iii) facilitate an agreement on visitation between the parents; and
(iv) determine whether a referral to a service provider under Subsection (3)(c) is warranted.
(c) While a case is in mediation, a mediator may refer the parents to a service provider
designated by the Department of Human Services for services to facilitate visitation if:
(i) the services may be of significant benefit to the parents; or
(ii) (A) a mediated agreement between the parents is unlikely; and
(B) the services may facilitate an agreement.
(d) At anytime during mediation, a mediator shall terminate mediation and transfer the case
to the administrator of the pilot program for referral to the judge to whom the case was assigned
under Subsection (2) if:
(i) a written agreement between the parents is reached; or
(ii) the parents are unable to reach an agreement through mediation; and
(A) the parents have received services to facilitate visitation;
(B) both parents object to receiving services to facilitate visitation; or
(C) the parents are unlikely to benefit from receiving services to facilitate visitation.
(e) Upon receiving a case from the administrator of the pilot program, a judge may:
(i) review the agreement of the parents and, if acceptable, sign it as an order;
(ii) order the parents to receive services to facilitate visitation;

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(iii) proceed with the case; or
(iv) take other appropriate action.
(4) (a) If a parent makes a particularized allegation of physical or sexual abuse of a child who
is the subject of a visitation order against the other parent or a member of the other parent's
household to a mediator or service provider, the mediator or service provider shall immediately report
that information to:
(i) the judge assigned to the case who may immediately issue orders and take other
appropriate action to resolve the allegation and protect the child; and
(ii) the Division of Child and Family Services within the Department of Human Services in
the manner required by Title 62A, Chapter 4a, Part 4, Child Abuse or Neglect Reporting
Requirements.
(b) If an allegation under Subsection (4)(a) is made against a parent with visitation rights or
a member of that parent's household, visitation by that parent shall be supervised until:
(i) the allegation has been resolved; or
(ii) a court orders otherwise.
(c) Notwithstanding an allegation under Subsection (4)(a), a mediator may continue to
mediate visitation problems and a service provider may continue to provide services to facilitate
visitation unless otherwise ordered by a court.
(5) (a) The Department of Human Services may contract with one or more entities in
accordance with Title 63, Chapter 56, Utah Procurement Code, to provide:
(i) services to facilitate visitation;
(ii) case management services; and
(iii) administrative services.
(b) An entity who contracts with the Department of Human Services under Subsection (5)(a)
shall:
(i) be qualified to provide one or more of the services listed in Subsection (5)(a); and
(ii) agree to follow billing guidelines established by the Department of Human Services and
this section.

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(6) (a) Except as provided in Subsection (6)(b), the cost of mediation and the cost of services
to facilitate visitation shall be:
(i) reduced to a sum certain;
(ii) divided equally between the parents; and
(iii) charged against each parent taking into account the ability of that parent to pay under
billing guidelines adopted in accordance with this section.
(b) (i) A judge may order a parent to pay an amount in excess of that provided for in
Subsection (6)(a) if the parent:
(A) failed to participate in good faith in mediation or services to facilitate visitation; or
(B) made an unfounded assertion or claim of physical or sexual abuse of a child.
(c) (i) The cost of mediation and services to facilitate visitation may be charged to parents
at periodic intervals.
(ii) Mediation and services to facilitate visitation may only be terminated on the ground of
nonpayment if both parents are delinquent.
(7) If a parent fails to cooperate in good faith in mediation or services to facilitate visitation,
a court may order, in subsequent proceedings, a temporary change in custody or visitation.
(8) (a) The Judicial Council may make rules to implement and administer the provisions of
this pilot program related to mediation.
(b) The Department of Human Services may make rules to implement and administer the
provisions of this pilot program related to services to facilitate visitation.
(9) (a) The Administrative Office of the Courts shall adopt outcome measures to evaluate the
effectiveness of the mediation component of this pilot program. Progress reports shall be provided
to the Judiciary Interim Committee by August 1998 and as requested thereafter by the committee.
At least once during this pilot program, the Administrative Office of the Courts shall present to the
committee the results of a survey that measures the effectiveness of the program in terms of increased
compliance with visitation orders and the responses of interested persons.
(b) The Department of Human Services shall adopt outcome measures to evaluate the
effectiveness of the services component of this pilot program. Progress reports shall be provided to

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the Judiciary Interim Committee by August 1998 and as requested thereafter by the committee.
(c) The Administrative Office of the Courts and the Department of Human Services may
adopt joint outcome measures and file joint reports to satisfy the requirements of Subsections [8]
(8)(a) and (b).
(10) (a) The Department of Human Services shall apply for federal funds designated for
visitation, if such funds are available.
(b) This pilot program shall be funded through funds received under Subsection (10)(a), the
Children's Legal Defense Account as established in Section 63-63a-8 , or other available funding.
Without funding, the pilot program may not proceed.
Section 52. Section 31A-5-103 is amended to read:
31A-5-103. Orders imposing and relaxing restrictions.
(1) The commissioner may by order subject an individual corporation not otherwise subject
to some or all of the restrictions of Subsections 31A-5-304 [(5)](4), 31A-5-305 (1)(a),
31A-5-305 (2)(a)(i) and (ii), and 31A-5-410 (1)(b) if he finds after a hearing that the individual
corporation's financial condition, management, and other circumstances require additional regulation
for the protection of the interests of insureds or the public. The commissioner shall detail in writing
the grounds for his order.
(2) The commissioner may by order free a new corporation from any or all of the restrictions
generally applicable to new corporations under the provisions listed in Subsection (1), if he is satisfied
that the corporation's financial condition, management, and other circumstances give assurance that
the interests of insureds and the public will not be endangered by doing so.
Section 53. Section 31A-16-103 is amended to read:
31A-16-103. Acquisition of control of or merger with domestic insurer -- Required
filings -- Content of statement -- Alternative filing materials -- Criminal background
information -- Approval by commissioner -- Dissenting shareholders -- Violations --
Jurisdiction, consent to service of process.
(1) (a) A person may not take the actions described in Subsections (1)(b) or (c) unless, at the
time any offer, request, or invitation is made or any such agreement is entered into, or prior to the

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acquisition of securities if no offer or agreement is involved:
(i) the person files with the commissioner a statement containing the information required by
this section;
(ii) the person provides a copy of the statement described in Subsection (1)(a)(i) to the
insurer; and
(iii) the commissioner approves the offer, request, invitation, agreement or acquisition.
(b) Unless the person complies with Subsection (1)(a), a person other than the issuer may not
make a tender offer for, a request or invitation for tenders of, or enter into any agreement to exchange
securities, or seek to acquire or acquire in the open market or otherwise, any voting security of a
domestic insurer if after the acquisition, the person would directly, indirectly, by conversion, or by
exercise of any right to acquire be in control of the insurer.
(c) Unless the person complies with Subsection (1)(a), a person may not enter into an
agreement to merge with or otherwise to acquire control of a domestic insurer or any person
controlling a domestic insurer.
(d) (i) For purposes of this section a domestic insurer includes any person controlling a
domestic insurer unless the person as determined by the commissioner is either directly or through
its affiliates primarily engaged in business other than the business of insurance.
(ii) The controlling person described in Subsection (1)(d)(i) shall file with the commissioner
a preacquisition notification containing the information required in Subsection (2) 30 calendar days
before the proposed effective date of the acquisition.
(iii) For the purposes of this section, "person" does not include any securities broker holding
less than 20% of the voting securities of an insurance company or of any person that controls an
insurance company in the usual and customary brokers function.
(iv) This section applies to all domestic insurers and other entities licensed under Chapters
5, 7, 8, 9, and 11.
(e) (i) An agreement for acquisition of control or merger as contemplated by this Subsection
(1) is not valid or enforceable unless the agreement:
(A) is in writing; and

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(B) includes a provision that the agreement is subject to the approval of the commissioner
upon the filing of any applicable statement required under this chapter.
(ii) A written agreement for acquisition or control that includes the provision described in
Subsection (1)(e)(i) satisfies the requirements of this Subsection (1).
(2) The statement to be filed with the commissioner under Subsection (1) shall be made under
oath or affirmation and shall contain the following information:
(a) the name and address of the "acquiring party," which means each person by whom or on
whose behalf the merger or other acquisition of control referred to in Subsection (1) is to be effected;
and
(i) if the person is an individual:
(A) the person's principal occupation;
(B) a listing of all offices and positions held by the person during the past five years; and
(C) any conviction of crimes other than minor traffic violations during the past ten years; and
(ii) if the person is not an individual:
(A) a report of the nature of its business operations during the past five years or for any lesser
period as the person and any of its predecessors has been in existence;
(B) an informative description of the business intended to be done by the person and the
person's subsidiaries;
(C) a list of all individuals who are or who have been selected to become directors or
executive officers of the person, or individuals who perform, or who will perform functions
appropriate to such positions; and
(D) for each individual described in Subsection (2)(a)(ii)(C), the information required by
Subsection (2)(a)(i)(A) for each individual;
(b) (i) the source, nature, and amount of the consideration used or to be used in effecting the
merger or acquisition of control;
(ii) a description of any transaction in which funds were or are to be obtained for that purpose
of effecting the merger or acquisition of control, including any pledge of the insurer's stock or the
stock of any of its subsidiaries or controlling affiliates; and

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(iii) the identity of persons furnishing the consideration;
(c) fully audited financial information, or other financial information considered acceptable
by the commissioner, of the earnings and financial condition of each acquiring party for the preceding
five fiscal years of each acquiring party, or for any lesser period the acquiring party and any of its
predecessors shall have been in existence, and similar unaudited information prepared within the 90
days prior to the filing of the statement;
(d) any plans or proposals which each acquiring party may have to:
(i) liquidate the insurer;
(ii) sell its assets;
(iii) merge or consolidate the insurer with any person; or
(iv) make any other material change in the insurer's business, corporate structure, or
management;
(e) (i) the number of shares of any security referred to in Subsection (1) that each acquiring
party proposes to acquire;
(ii) the terms of the offer, request, invitation, agreement, or acquisition referred to in
Subsection (1); and
(iii) a statement as to the method by which the fairness of the proposal was arrived at;
(f) the amount of each class of any security referred to in Subsection (1) that:
(i) is beneficially owned; or
(ii) concerning which there is a right to acquire beneficial ownership by each acquiring party;
(g) a full description of any contract, arrangement, or understanding with respect to any
security referred to in Subsection (1) in which any acquiring party is involved, including:
(i) the transfer of any of the securities;
(ii) joint ventures;
(iii) loan or option arrangements;
(iv) puts or calls;
(v) guarantees of loans;
(vi) guarantees against loss or guarantees of profits;

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(vii) division of losses or profits; or
(viii) the giving or withholding of proxies;
(h) a description of the purchase by any acquiring party of any security referred to in
Subsection (1) during the 12 calendar months preceding the filing of the statement including:
(i) the dates of purchase;
(ii) the names of the purchasers; and
(iii) the consideration paid or agreed to be paid for the purchase;
(i) a description of any recommendations to purchase by any acquiring party any security
referred to in Subsection (1) made during the 12 calendar months preceding the filing of the statement
or any recommendations made by anyone based upon interviews or at the suggestion of the acquiring
party;
(j) (i) copies of all tender offers for, requests for, or invitations for tenders of, exchange offers
for, and agreements to acquire or exchange any securities referred to in Subsection (1); and
(ii) if distributed, copies of additional soliciting material relating to the transactions described
in Subsection (2)(j)(i);
(k) (i) the term of any agreement, contract, or understanding made with, or proposed to be
made with, any broker-dealer as to solicitation of securities referred to in Subsection (1) for tender;
and
(ii) the amount of any fees, commissions, or other compensation to be paid to broker-dealers
with regard to any agreement, contract, or understanding described in Subsection (2)(k)(i); and
(l) any additional information the commissioner requires by rule, which the commissioner
determines to be:
(i) necessary or appropriate for the protection of policyholders of the insurer; or
(ii) in the public interest.
(3) The department may request:
(a) (i) criminal background information maintained pursuant to Title 53, Chapter 10, Part 2,
from the Bureau of Criminal Identification; and
(ii) complete Federal Bureau of Investigation criminal background checks through the

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national criminal history system.
(b) Information obtained by the department from the review of criminal history records
received under Subsection (3)(a) shall be used by the department for the purpose of:
(i) verifying the information in Subsection (2)(a)(i);
(ii) determining the integrity of persons who would control the operation of an insurer; and
(iii) preventing persons who violate 18 U.S.C. Sections 1033 and 1034 from engaging in the
business of insurance in the state.
(c) If the department requests the criminal background information, the department shall:
(i) pay to the Department of Public Safety the costs incurred by the Department of Public
Safety in providing the department criminal background information under Subsection (3)(a)(i);
(ii) pay to the Federal Bureau of Investigation the costs incurred by the Federal Bureau of
Investigation in providing the department criminal background information under Subsection
(3)(a)(ii); and
(iii) charge the person required to file the statement referred to in Subsection (1) a fee equal
to the aggregate of Subsections (3)(c)(i) and (ii).
(4) (a) If the source of the consideration under Subsection (2)(b)(i) is a loan made in the
lender's ordinary course of business, the identity of the lender shall remain confidential, if the person
filing the statement so requests.
(b) Under Subsection (2)(e), the commissioner may require a statement of the adjusted book
value assigned by the acquiring party to each security in arriving at the terms of the offer, with
"adjusted book value" meaning each security's proportional interest in the capital and surplus of the
insurer with adjustments that reflect:
(i) [reflect] market conditions;
(ii) business in force; and
(iii) other intangible assets or liabilities of the insurer.
(c) The description required by Subsection (2)(g) shall identify the persons with whom the
contracts, arrangements, or understandings have been entered into.
(5) (a) If the person required to file the statement referred to in Subsection (1) is a

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partnership, limited partnership, syndicate, or other group, the commissioner may require that all the
information called for by Subsections (2), (3), or (4) shall be given with respect to each:
(i) partner of the partnership or limited partnership;
(ii) member of the syndicate or group; and
(iii) person who controls the partner or member.
(b) If any partner, member, or person referred to in Subsection (5)(a) is a corporation, or if
the person required to file the statement referred to in Subsection (1) is a corporation, the
commissioner may require that the information called for by Subsection (2) shall be given with respect
to:
(i) the corporation;
(ii) each officer and director of the corporation; and
(iii) each person who is directly or indirectly the beneficial owner of more than 10% of the
outstanding voting securities of the corporation.
(6) If any material change occurs in the facts set forth in the statement filed with the
commissioner and sent to the insurer pursuant to Subsection (2), an amendment setting forth the
change, together with copies of all documents and other material relevant to the change, shall be filed
with the commissioner and sent to the insurer within two business days after the filing person learns
of such change.
(7) If any offer, request, invitation, agreement, or acquisition referred to in Subsection (1)
is proposed to be made by means of a registration statement under the Securities Act of 1933, or
under circumstances requiring the disclosure of similar information under the Securities Exchange Act
of 1934, or under a state law requiring similar registration or disclosure, a person required to file the
statement referred to in Subsection (1) may use copies of any registration or disclosure documents
in furnishing the information called for by the statement.
(8) (a) The commissioner shall approve any merger or other acquisition of control referred
to in Subsection (1) unless, after a public hearing on the merger or acquisition, the commissioner finds
that:
(i) after the change of control, the domestic insurer referred to in Subsection (1) would not

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be able to satisfy the requirements for the issuance of a license to write the line or lines of insurance
for which it is presently licensed;
(ii) the effect of the merger or other acquisition of control would substantially lessen
competition in insurance in this state or tend to create a monopoly in insurance;
(iii) the financial condition of any acquiring party might:
(A) jeopardize the financial stability of the insurer; or
(B) prejudice the interest of:
(I) its policyholders; or
(II) any remaining securityholders who are unaffiliated with the acquiring party;
(iv) the terms of the offer, request, invitation, agreement, or acquisition referred to in
Subsection (1) are unfair and unreasonable to the securityholders of the insurer;
(v) the plans or proposals which the acquiring party has to liquidate the insurer, sell its assets,
or consolidate or merge it with any person, or to make any other material change in its business or
corporate structure or management, are:
(A) unfair and unreasonable to policyholders of the insurer; and
(B) not in the public interest; or
(vi) the competence, experience, and integrity of those persons who would control the
operation of the insurer are such that it would not be in the interest of the policyholders of the insurer
and the public to permit the merger or other acquisition of control.
(b) For purposes of Subsection (8)(a)(iv), the offering price for each security may not be
considered unfair if the adjusted book values under Subsection (2)(e):
(i) are disclosed to the securityholders; and
(ii) determined by the commissioner to be reasonable.
(9) (a) The public hearing referred to in Subsection (8) shall be held within 30 days after the
statement required by Subsection (1) is filed.
(b) (i) At least 20 days notice of the hearing shall be given by the commissioner to the person
filing the statement.
(ii) Affected parties may waive the notice required by this Subsection (9)(b).

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(iii) Not less than seven days notice of the public hearing shall be given by the person filing
the statement to:
(A) the insurer; and
(B) any person designated by the commissioner.
(c) The commissioner shall make a determination within 30 days after the conclusion of the
hearing.
(d) At the hearing, the person filing the statement, the insurer, any person to whom notice
of hearing was sent, and any other person whose interest may be affected by the hearing may:
(i) present evidence;
(ii) examine and cross-examine witnesses; and
(iii) offer oral and written arguments.
(e) (i) A person or insurer described in Subsection (9)(d) may conduct discovery proceedings
in the same manner as is presently allowed in the district courts of this state.
(ii) All discovery proceedings shall be concluded not later than three days before the
commencement of the public hearing.
(10) At the acquiring person's expense and consent, the commissioner may retain any
attorneys, actuaries, accountants, and other experts not otherwise a part of the commissioner's staff,
which are reasonably necessary to assist the commissioner in reviewing the proposed acquisition of
control.
(11) (a) (i) If a domestic insurer proposes to merge into another insurer, any securityholder
electing to exercise a right of dissent may file with the insurer a written request for payment of the
adjusted book value given in the statement required by Subsection (1) and approved under Subsection
(8), in return for the surrender of the security holder's securities.
(ii) The request described in Subsection (11)(a)(i) shall be filed not later than ten days after
the day of the securityholders' meeting where the corporate action is approved.
(b) The dissenting securityholder is entitled to and the insurer is required to pay to the
dissenting securityholder the specified value within 60 days of receipt of the dissenting security
holder's security.

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(c) Persons electing under this Subsection (11) to receive cash for their securities waive the
dissenting shareholder and appraisal rights otherwise applicable under Title 16, Chapter 10a, Part 13,
Dissenters' Rights.
(d) (i) This Subsection (11) provides an elective procedure for dissenting securityholders to
resolve their objections to the plan of merger.
(ii) This section does not restrict the rights of dissenting securityholders under Title 16,
Chapter 10a, Utah Revised Business Corporation Act, unless this election is made under this
Subsection (11).
(12) (a) All statements, amendments, or other material filed under Subsection (1), and all
notices of public hearings held under Subsection (8), shall be mailed by the insurer to its
securityholders within five business days after the insurer has received the statements, amendments,
other material, or notices.
(b) Mailing expenses shall be paid by the person making the filing. As security for the
payment of these expenses, that person shall file with the commissioner an acceptable bond or other
deposit in an amount determined by the commissioner.
(13) This section does not apply to any offer, request, invitation, agreement, or acquisition
that the commissioner by order exempts from the requirements of this section as:
(a) not having been made or entered into for the purpose of, and not having the effect of,
changing or influencing the control of a domestic insurer; or
(b) as otherwise not comprehended within the purposes of this section.
(14) The following are violations of this section:
(a) the failure to file any statement, amendment, or other material required to be filed
pursuant to Subsections (1), (2), and (5); or
(b) the effectuation, or any attempt to effectuate, an acquisition of control of or merger with
a domestic insurer unless the commissioner has given the commissioner's approval to the acquisition
or merger.
(15) (a) The courts of this state are vested with jurisdiction over:
(i) a person who:

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(A) files a statement with the commissioner under this section; and
(B) is not resident, domiciled, or authorized to do business in this state; and
(ii) overall actions involving persons described in Subsection (15)(a)(i) arising out of a
violation of this section.
(b) A person described in Subsection (15)(a) is considered to have performed acts equivalent
to and constituting an appointment of the commissioner by that person, to be that person's lawful
attorney upon whom may be served all lawful process in any action, suit, or proceeding arising out
of a violation of this section.
(c) A copy of a lawful process described in Subsection (15)(b) shall be:
(i) served on the commissioner; and
(ii) transmitted by registered or certified mail by the commissioner to the person at that
person's last-known address.
Section 54. Section 31A-22-302 is amended to read:
31A-22-302. Required components of motor vehicle insurance policies -- Exceptions.
(1) Every policy of insurance or combination of policies purchased to satisfy the owner's or
operator's security requirement of Section 41-12a-301 shall include:
(a) motor vehicle liability coverage under Sections 31A-22-303 and 31A-22-304 ;
(b) uninsured motorist coverage under Section 31A-22-305 , unless affirmatively waived
under Subsection 31A-22-305 (4); and
(c) underinsured motorist coverage under Section 31A-22-305 , unless affirmatively waived
under Subsection 31A-22-305 [(8)] (9)(c).
(2) Every policy of insurance or combination of policies, purchased to satisfy the owner's or
operator's security requirement of Section 41-12a-301 , except for motorcycles, trailers, and
semitrailers, shall also include personal injury protection under Sections 31A-22-306 through
31A-22-309 .
(3) First party medical coverages may be offered or included in policies issued to motorcycle,
trailer, and semitrailer owners or operators. Owners and operators of motorcycles, trailers, and
semitrailers are not covered by personal injury protection coverages in connection with injuries

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incurred while operating any of these vehicles.
Section 55. Section 31A-22-604 is amended to read:
31A-22-604. Reimbursement by insurers of Medicaid benefits.
(1) As used in this section, "Medicaid" means the program under [42 U.S.C. 1396a or
Section 1902,] Title XIX of the federal Social Security Act.
(2) Any disability insurer, including a group disability insurance plan, as defined in Section
607(1), Federal Employee Retirement Income Security Act of 1974, or health maintenance
organization as defined in Section 31A-8-101 , is prohibited from considering the availability or
eligibility for medical assistance in this or any other state under Medicaid, when considering eligibility
for coverage or making payments under its plan for eligible enrollees, subscribers, policyholders, or
certificate holders.
(3) To the extent that payment for covered expenses has been made under the state Medicaid
program for health care items or services furnished to an individual in any case when a third party has
a legal liability to make payments, the state is considered to have acquired the rights of the individual
to payment by any other party for those health care items or services.
(4) Title 26, Chapter 19, Medical Benefits Recovery Act, applies to reimbursement of
insurers of Medicaid benefits.
Section 56. Section 31A-23-102 is amended to read:
31A-23-102. Definitions.
As used in this chapter:
(1) Except as provided in Subsection (2):
(a) "Escrow" is a license category that allows a person to conduct escrows, settlements, or
closings on behalf of a title insurance agency or a title insurer.
(b) "Limited license" means a license that is issued for a specific product of insurance and
limits an individual or agency to transact only for those products.
(c) "Search" is a license category that allows a person to issue title insurance commitments
or policies on behalf of a title insurer.
(d) "Title marketing representative" means a person who:

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(i) represents a title insurer in soliciting, requesting, or negotiating the placing of:
(A) title insurance; or
(B) escrow, settlement, or closing services; and
(ii) does not have a search or escrow license.
(2) The following persons are not acting as agents, brokers, title marketing representatives,
or consultants when acting in the following capacities:
(a) any regular salaried officer, employee, or other representative of an insurer or licensee
under this chapter who devotes substantially all of the officer's, employee's, or representative's
working time to activities other than those described in Subsection (1) and Subsections 31A-1-301
(51), (52), and (54) including the clerical employees of persons required to be licensed under this
chapter;
(b) a regular salaried officer or employee of a person seeking to purchase insurance, who
receives no compensation that is directly dependent upon the amount of insurance coverage
purchased;
(c) a person who gives incidental advice in the normal course of a business or professional
activity, other than insurance consulting, if neither that person nor that person's employer receives
direct or indirect compensation on account of any insurance transaction that results from that advice;
(d) a person who, without special compensation, performs incidental services for another at
the other's request, without providing advice or technical or professional services of a kind normally
provided by an agent, broker, or consultant;
(e) (i) a holder of a group insurance policy, or any other person involved in mass marketing,
but only:
(A) with respect to administrative activities in connection with that type of policy, including
the collection of premiums; and
(B) if the person receives no compensation for the activities described in Subsection (2)(e)(i)
beyond reasonable expenses including a fair payment for the use of capital; and
(f) a person who gives advice or assistance without direct or indirect compensation or any
expectation of direct or indirect compensation.

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(3) "Actuary" means a person who is a member in good standing of the American Academy
of Actuaries.
(4) "Agency" means a person other than an individual, and includes a sole proprietorship by
which a natural person does business under an assumed name.
(5) "Broker" means an insurance broker or any other person, firm, association, or corporation
that for any compensation, commission, or other thing of value acts or aids in any manner in
soliciting, negotiating, or procuring the making of any insurance contract on behalf of an insured
other than itself.
(6) "Bail bond agent" means any individual:
(a) appointed by an authorized bail bond surety insurer or appointed by a licensed bail bond
surety company to execute or countersign undertakings of bail in connection with judicial
proceedings; and
(b) who receives or is promised money or other things of value for this service.
(7) "Captive insurer" means:
(a) an insurance company owned by another organization whose exclusive purpose is to
insure risks of the parent organization and affiliated companies; or
(b) in the case of groups and associations, an insurance organization owned by the insureds
whose exclusive purpose is to insure risks of member organizations, group members, and their
affiliates.
(8) "Controlled insurer" means a licensed insurer that is either directly or indirectly controlled
by a broker.
(9) "Controlling broker" means a broker who either directly or indirectly controls an insurer.
(10) "Controlling person" means any person, firm, association, or corporation that directly
or indirectly has the power to direct or cause to be directed, the management, control, or activities
of a reinsurance intermediary.
(11) "Insurer" is as defined in [Subsection] Section 31A-1-301 [(48)], except the following
persons or similar persons are not insurers for purposes of Part 6 [of this chapter], Broker Controlled
Insurers:

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(a) all risk retention groups as defined in:
(i) the Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499;
(ii) the Risk Retention Act, 15 U.S.C. Sec. 3901 et seq.; and
(iii) Title 31A, Chapter 15, Part II, Risk Retention Groups Act;
(b) all residual market pools and joint underwriting authorities or associations; and
(c) all captive insurers.
(12) (a) "Managing general agent" means any person, firm, association, or corporation that:
(i) manages all or part of the insurance business of an insurer, including the management of
a separate division, department, or underwriting office;
(ii) acts as an agent for the insurer whether it is known as a managing general agent, manager,
or other similar term;
(iii) with or without the authority, either separately or together with affiliates, directly or
indirectly produces and underwrites an amount of gross direct written premium equal to, or more than
5% of, the policyholder surplus as reported in the last annual statement of the insurer in any one
quarter or year; and
(iv) either adjusts or pays claims in excess of an amount determined by the commissioner, or
that negotiates reinsurance on behalf of the insurer.
(b) Notwithstanding Subsection (12)(a), the following persons may not be considered as
managing general agent for the purposes of this chapter:
(i) an employee of the insurer;
(ii) a U.S. manager of the United States branch of an alien insurer;
(iii) an underwriting manager that, pursuant to contract:
(A) manages all the insurance operations of the insurer;
(B) is under common control with the insurer;
(C) is subject to Title 31A, Chapter 16, Insurance Holding Companies; and
(D) is not compensated based on the volume of premiums written; and
(iv) the attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurer
or inter-insurance exchange under powers of attorney.

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(13) "Producer" is a person who arranges for insurance coverages between insureds and
insurers.
(14) "Qualified U.S. financial institution" means an institution that:
(a) is organized or, in the case of a U.S. office of a foreign banking organization licensed,
under the laws of the United States or any state;
(b) is regulated, supervised, and examined by U.S. federal or state authorities having
regulatory authority over banks and trust companies; and
(c) has been determined by either the commissioner, or the Securities Valuation Office of the
National Association of Insurance Commissioners, to meet the standards of financial condition and
standing that are considered necessary and appropriate to regulate the quality of financial institutions
whose letters of credit will be acceptable to the commissioner.
(15) "Reinsurance intermediary" means a reinsurance intermediary-broker or a reinsurance
intermediary-manager as these terms are defined in Subsections (16) and (17).
(16) "Reinsurance intermediary-broker" means a person other than an officer or employee
of the ceding insurer, firm, association, or corporation who solicits, negotiates, or places reinsurance
cessions or retrocessions on behalf of a ceding insurer without the authority or power to bind
reinsurance on behalf of the insurer.
(17) (a) "Reinsurance intermediary-manager" means a person, firm, association, or
corporation who:
(i) has authority to bind or who manages all or part of the assumed reinsurance business of
a reinsurer, including the management of a separate division, department, or underwriting office; and
(ii) acts as an agent for the reinsurer whether the person, firm, association, or corporation
is known as a reinsurance intermediary-manager, manager, or other similar term.
(b) Notwithstanding Subsection (17)(a), the following persons may not be considered
reinsurance intermediary-managers for the purpose of this chapter with respect to the reinsurer:
(i) an employee of the reinsurer;
(ii) a U.S. manager of the United States branch of an alien reinsurer;
(iii) an underwriting manager that, pursuant to contract:

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(A) manages all the reinsurance operations of the reinsurer;
(B) is under common control with the reinsurer;
(C) is subject to Title 31A, Chapter 16, Insurance Holding Companies; and
(D) is not compensated based on the volume of premiums written; and
(iv) the manager of a group, association, pool, or organization of insurers that:
(A) engage in joint underwriting or joint reinsurance; and
(B) are subject to examination by the insurance commissioner of the state in which the
manager's principal business office is located.
(18) "Reinsurer" means any person, firm, association, or corporation duly licensed in this
state as an insurer with the authority to assume reinsurance.
(19) "Surplus lines broker" means a person licensed under Subsection 31A-23-204 (5) to
place insurance with unauthorized insurers in accordance with Section 31A-15-103 .
(20) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
Section 57. Section 31A-23-503 is amended to read:
31A-23-503. Duties of insurers.
(1) The insurer shall have on file an independent financial examination, in a form acceptable
to the commissioner, of each managing general agent with which it has done business.
(2) If a managing general agent establishes loss reserves, the insurer shall annually obtain the
opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and
outstanding on business produced by the managing general agent. This is in addition to any other
required loss reserve certification.
(3) The insurer shall at least semiannually conduct an on-site review of the underwriting and
claims processing operations of the managing general agent.
(4) Binding authority for all reinsurance contracts or participation in insurance or reinsurance
syndicates shall rest with an officer of the insurer, who may not be affiliated with the managing
general agent.
(5) Within 30 days after entering into or terminating a contract with a managing general
agent, the insurer shall provide written notification of the appointment or termination to the

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commissioner. A notice of appointment of a managing general agent shall include:
(a) a statement of duties that the applicant is expected to perform on behalf of the insurer;
(b) the lines of insurance for which the applicant is to be authorized to act; and
(c) any other information the commissioner may request.
(6) An insurer shall review its books and records each quarter to determine if any producer,
as defined by Subsection 31A-23-102 [(12)](13), has become a managing general agent as defined in
Subsection 31A-23-102 [(11)](12). If the insurer determines that a producer has become a managing
general agent, the insurer shall promptly notify the producer and the commissioner of the
determination. The insurer and producer shall fully comply with the provisions of this chapter within
30 days.
(7) An insurer may not appoint officers, directors, employees, subproducers, or controlling
shareholders of its managing general agents to its board of directors. This Subsection (7) does not
apply to relationships governed by Title 31A, Chapter 16, Insurance Holding Companies, or Chapter
23, Part 6, Broker Controlled Insurers, if it applies.
Section 58. Section 31A-23-601 is amended to read:
31A-23-601. Applicability.
This part applies to licensed insurers, as defined in Subsection 31A-23-102 [(10)](11), which
are either domiciled in this state or domiciled in a state that does not have a substantially similar law.
All provisions of Title 31A, Chapter 16, Insurance Holding Companies, to the extent they are not
superseded by this part, continue to apply to all parties within holding company systems subject to
this part.
Section 59. Section 31A-25-205 is amended to read:
31A-25-205. Financial responsibility.
(1) Every person licensed under this chapter shall, while licensed and for one year after that
date, maintain an insurance policy or surety bond, issued by an authorized insurer, in an amount
specified under Subsection (2), on a policy or contract form which is acceptable under Subsection
(3).
(2) (a) Insurance policies or surety bonds satisfying the requirement of Subsection (1) shall

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be in a face amount equal to at least 10% of the total funds handled by the administrator. However,
no policy or bond under this subsection may be in a face amount of less than $5,000 nor more than
$500,000.
(b) In fixing the policy or bond face amount under Subsection (2)(a), the total funds handled
is the greater of the premiums received or claims paid through the administrator during the previous
calendar year, or, if no funds were handled during the preceding year, the total funds reasonably
anticipated to be handled by the administrator during the current calendar year.
(c) This section does not prohibit any person dealing with the administrator from requiring,
by contract, insurance coverage in amounts greater than required under this section.
(3) Insurance policies or surety bonds issued to satisfy Subsection (1) shall be on forms
approved by the commissioner. The policies or bonds shall require the insurer to pay, up to the policy
or bond face amount, any judgment obtained by participants in or beneficiaries of plans administered
by the insured licensee which arise from the negligence or culpable acts of the licensee or any
employee or agent of the licensee in connection with the activities described under the first paragraph
of [Section 31A-25-101 ] Subsection 31A-1-301 (90). The commissioner may require that policies
or bonds issued to satisfy the requirements of this section require the insurer to give the commissioner
20 day prior notice of policy cancellation.
(4) The commissioner shall establish annual reporting requirements and forms to monitor
compliance with this section.
(5) This section may not be construed as limiting any cause of action an insured would
otherwise have against the insurer.
Section 60. Section 32A-1-105 is amended to read:
32A-1-105. Definitions.
As used in this title:
(1) "Airport lounge" means a place of business licensed to sell alcoholic beverages, at retail,
for consumption on its premises located at an international airport with a United States Customs
office on its premises.
(2) "Alcoholic beverages" means "beer" and "liquor" as the terms are defined in this section.

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(3) (a) "Alcoholic products" means all products that contain at least 63/100 of 1% of alcohol
by volume or at least ½ of 1% by weight, and are obtained by fermentation, infusion, decoction,
brewing, distillation, or any other process that uses any liquid or combinations of liquids, whether
drinkable or not, to create alcohol in an amount greater than the amount prescribed in this Subsection
(3)(a).
(b) "Alcoholic products" does not include common extracts, vinegars, ciders, essences,
tinctures, food preparations, or over-the-counter drugs and medicines that otherwise come within this
definition.
(4) "Beer" means all products that contain 63/100 of 1% of alcohol by volume or ½ of 1%
of alcohol by weight, but not more than 4% of alcohol by volume or 3.2% by weight, and are
obtained by fermentation, infusion, or decoction of any malted grain. Beer may or may not contain
hops or other vegetable products. Beer includes products referred to as malt liquor, malted
beverages, or malt coolers.
(5) (a) "Beer retailer" means any business establishment engaged, primarily or incidentally,
in the retail sale or distribution of beer to public patrons, whether for consumption on or off the
establishment's premises, and that is licensed to sell beer by the commission, by a local authority, or
both.
(b) (i) "On-premise beer retailer" means any beer retailer engaged, primarily or incidentally,
in the sale or distribution of beer to public patrons for consumption on the beer retailer's premises.
(ii) "On-premise beer retailer" includes taverns.
(c) (i) "Tavern" means any business establishment engaged primarily in the retail sale or
distribution of beer to public patrons for consumption on the establishment's premises, and that is
licensed to sell beer under Chapter 10, Part 2, On-Premise Beer Retailer Licenses.
(ii) "Tavern" includes a beer bar, parlor, lounge, cabaret, and night club where the revenue
from the sale of beer exceeds the revenue of the sale of food, although food need not be sold in the
establishment.
(6) "Billboard" means any light device, painting, drawing, poster, sign, signboard, scoreboard,
or other similar public display used to advertise, but does not include:

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(a) displays on beer delivery vehicles if the displays do not overtly promote the consumption
of alcoholic beverages;
(b) displays in taverns and private clubs, if the displays are not visible to persons off-premises;
(c) point-of-sale displays, other than light devices, in retail establishments that sell beer for
off-premise consumption, if the displays are not visible to persons off-premises;
(d) private business signs on the premises of any business engaged primarily in the
distribution of beer;
(e) newspapers, magazines, circulars, programs, or other similar printed materials, if the
materials are not directed primarily to minors;
(f) menu boards in retail establishments that sell beer for on-premise consumption if the menu
boards also contain food items;
(g) handles on alcoholic beverage dispensing equipment that identify brands of products being
dispensed; and
(h) displays at the site of a temporary special event for which a single event liquor permit has
been obtained from the commission or a temporary special event beer permit has been obtained from
a local authority to inform attendees of the location where alcoholic beverages are being dispensed.
(7) "Brewer" means any person engaged in manufacturing beer, malt liquor, or malted
beverages.
(8) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by a bus
company to a group of persons pursuant to a common purpose, under a single contract, and at a fixed
charge in accordance with the bus company's tariff, for the purpose of giving the group of persons
the exclusive use of the bus and a driver to travel together to a specified destination or destinations.
(9) "Church" means a building:
(a) set apart primarily for the purpose of worship;
(b) in which religious services are held;
(c) with which clergy is associated;
(d) the main body of which is kept for that use and not put to any other use inconsistent with
its primary purpose; and

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(e) which is tax exempt under the laws of this state.
(10) "Club" and "private club" means any nonprofit corporation operating as a social club,
recreational, fraternal, or athletic association, or kindred association organized primarily for the
benefit of its stockholders or members.
(11) "Commission" means the Alcoholic Beverage Control Commission.
(12) "Cork-finished wine" means a container of wine stopped by a cork and finished by foil,
lead, or other substance by the manufacturer.
[(13) "Council" means the Citizen's Council on Alcoholic Beverage Control.]
[(14)] (13) "Department" means the Department of Alcoholic Beverage Control.
[(15)] (14) "Distressed merchandise" means any alcoholic beverage in the possession of the
department that is saleable, but for some reason is unappealing to the public.
[(16)] (15) "General food store" means any business establishment primarily engaged in
selling food and grocery supplies to public patrons for off-premise consumption.
[(17)] (16) "Governing body" means the board of not fewer than five shareholders or voting
members of a private club who have been elected and authorized to control or conduct the business
and affairs of that club.
[(18)] (17) "Guest" means a person accompanied by an active member or visitor of a club
who enjoys only those privileges derived from the host for the duration of the visit to the club.
[(19)] (18) "Heavy beer" means all products that contain more than 4% alcohol by volume
obtained by fermentation, infusion, or decoction of any malted grain. "Heavy beer" is considered
"liquor" for the purposes of this title.
[(20)] (19) "Identification card" means the card issued by the commissioner of the
Department of Public Safety under Title 53, Chapter 3, Part 8, Identification Card Act.
[(21)] (20) "Interdicted person" means a person to whom the sale, gift, or provision of an
alcoholic beverage is prohibited by law or court order.
[(22)] (21) "Licensee" means any person issued a license by the commission to sell,
manufacture, store, or allow consumption of alcoholic beverages on premises owned or controlled
by the person.

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[(23)] (22) "Limousine" means any motor vehicle licensed by the state or a local authority,
other than a bus or taxicab:
(a) in which the driver and passengers are separated by a partition, glass, or other barrier; and
(b) that is provided by a company to an individual or individuals at a fixed charge in
accordance with the company's tariff for the purpose of giving the individual or individuals the
exclusive use of the limousine and a driver to travel to a specified destination or destinations.
[(24)] (23) (a) "Liquor" means alcohol, or any alcoholic, spiritous, vinous, fermented, malt,
or other liquid, or combination of liquids, a part of which is spiritous, vinous, or fermented, and all
other drinks, or drinkable liquids that contain more than ½ of 1% of alcohol by volume and is suitable
to use for beverage purposes.
(b) "Liquor" does not include any beverage defined as a beer, malt liquor, or malted beverage
that has an alcohol content of less than 4% alcohol by volume.
[(25)] (24) "Local authority" means:
(a) the county legislative body of the county if the premises are located in an unincorporated
area of a county; or
(b) the governing body of the city or town if the premises are located in an incorporated city
or town.
[(26)] (25) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment,
or otherwise make an alcoholic product for personal use or for sale or distribution to others.
[(27)] (26) "Member" means a person who, after paying regular dues, has full privileges of
a club under this title.
[(28)] (27) "Minor" means any person under the age of 21 years.
[(29)] (28) "Outlet" means a location other than a state store or package agency where
alcoholic beverages are sold pursuant to a license issued by the commission.
[(30)] (29) "Package" means any container, bottle, vessel, or other receptacle containing
liquor.
[(31)] (30) "Package agency" means a retail liquor location operated under a contractual
agreement with the department, by a person other than the state, who is authorized by the commission

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to sell package liquor for consumption off the premises of the agency.
[(32)] (31) "Package agent" means any person permitted by the commission to operate a
package agency pursuant to a contractual agreement with the department to sell liquor from premises
that the package agent shall provide and maintain.
[(33)] (32) "Permittee" means any person issued a permit by the commission to perform acts
or exercise privileges as specifically granted in the permit.
[(34)] (33) "Person" means any individual, partnership, firm, corporation, association,
business trust, or other form of business enterprise, including a receiver or trustee, and the plural as
well as the singular number, unless the intent to give a more limited meaning is disclosed by the
context.
[(35)] (34) "Policy" means a statement of principles established by the commission to guide
the administration of this title and the management of the affairs of the department.
[(36)] (35) "Premises" means any building, enclosure, room, or equipment used in connection
with the sale, storage, service, manufacture, distribution, or consumption of alcoholic products, unless
otherwise defined in this title or in the rules adopted by the commission.
[(37)] (36) "Prescription" means a writing in legal form, signed by a physician or dentist and
given to a patient for obtaining an alcoholic beverage for medicinal purposes only.
[(38)] (37) (a) "Privately hosted event" or "private social function" means a specific social,
business, or recreational event for which an entire room, area, or hall has been leased or rented, in
advance by an identified group, and the event or function is limited in attendance to people who have
been specifically designated and their guests.
(b) "Privately hosted event" and "private social function" does not include events or functions
to which the general public is invited, whether for an admission fee or not.
[(39)] (38) (a) "Public building" means any building or permanent structure owned or leased
by the state, a county, or local government entity that is used for:
(i) public education;
(ii) transacting public business; or
(iii) regularly conducting government activities.

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(b) "Public building" does not mean or refer to any building owned by the state or a county
or local government entity when the building is used by anyone, in whole or in part, for proprietary
functions.
[(40)] (39) "Representative" means an individual who is compensated by salary, commission,
or any other means for representing and selling the alcoholic beverage products of a manufacturer,
supplier, or importer of liquor, wine, or heavy beer.
[(41)] (40) "Residence" means the person's principal place of abode within Utah.
[(42)] (41) "Restaurant" means any business establishment:
(a) where a variety of foods is prepared and complete meals are served to the general public;
(b) located on a premises having adequate culinary fixtures for food preparation and dining
accommodations; and
(c) that is engaged primarily in serving meals to the general public.
[(43)] (42) "Retailer" means any person engaged in the sale or distribution of alcoholic
beverages to the consumer.
[(44)] (43) (a) "Rule" means a general statement adopted by the commission to guide the
activities of those regulated or employed by the department, to implement or interpret this title, or
to describe the organization, procedure, or practice requirements of the department in order to carry
out the intent of the law and ensure its uniform application. This definition includes any amendment
or repeal of a prior rule.
(b) "Rule" does not include a rule concerning only the internal management of the department
that does not affect private rights or procedures available to the public, including intradepartmental
memoranda.
[(45)] (44) (a) "Sample" includes:
(i) department samples;
(ii) industry representative samples; and
(iii) department trade show samples.
(b) "Department sample" means liquor, wine, and heavy beer that has been placed in the
possession of the department for testing, analysis, and sampling.

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(c) "Department trade show sample" means liquor, wine, and heavy beer that has been placed
in the possession of the department for use in a trade show conducted by the department.
(d) "Industry representative sample" means liquor, wine, and heavy beer that has been placed
in the possession of the department for testing, analysis, and sampling by local industry
representatives on the premises of the department to educate themselves of the quality and
characteristics of the product.
(e) "Retail licensee wine tasting" means cork-finished wine checked out under the procedures
provided in Section 32A-12-603 :
(i) to a local industry representative holding a license described in Section 32A-8-501 ;
(ii) to conduct the tasting of cork-finished wines to a retail licensee licensed to sell wine at
retail for consumption on its premises; and
(iii) for the purpose of disseminating information and educating the retail licensees described
in Subsection [(45)] (44)(e)(ii) as to the quality and characteristics of the cork-finished wines.
[(46)] (45) (a) "School" means any building used primarily for the general education of
minors.
(b) "School" does not include nursery schools, infant day care centers, or trade or technical
schools.
[(47)] (46) "Sell," "sale," and "to sell" means any transaction, exchange, or barter whereby,
for any consideration, an alcoholic beverage is either directly or indirectly transferred, solicited,
ordered, delivered for value, or by any means or under any pretext is promised or obtained, whether
done by a person as a principal, proprietor, or as an agent, servant, or employee, unless otherwise
defined in this title or the rules made by the commission.
[(48)] (47) "Small brewer" means a brewer who manufactures less than 60,000 barrels of beer
and heavy beer per year.
[(49)] (48) (a) "State label" means the official label designated by the commission affixed to
all liquor containers sold in the state.
(b) "State label" includes the department identification mark and inventory control number.
[(50)] (49) (a) "State store" means a facility for the sale of package liquor located on

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premises owned or leased by the state and operated by state employees.
(b) "State store" does not apply to any licensee, permittee, or to package agencies.
[(51)] (50) "Supplier" means any person selling alcoholic beverages to the department.
[(52)] (51) "Temporary domicile" means the principal place of abode within Utah of a person
who does not have a present intention to continue residency within Utah permanently or indefinitely.
[(53)] (52) "Unsaleable liquor merchandise" means merchandise that is unsaleable because
it is unlabeled, leaky, damaged, difficult to open, partly filled, or is in a container having faded labels
or defective caps or corks, or in which the contents are cloudy, spoiled, or chemically determined to
be impure, or that contains sediment, or any foreign substance, or is otherwise considered by the
department as unfit for sale.
[(54)] (53) "Visitor" means a person holding limited privileges in a club by virtue of a visitor
card purchased from the club and authorized by a sponsoring member of the club.
[(55)] (54) "Warehouser" means any person, other than a licensed manufacturer, engaged in
the importation for sale, storage, or distribution of liquor regardless of amount.
[(56)] (55) "Wholesaler" means any person engaged in the importation for sale, or in the sale
of beer in wholesale or jobbing quantities to retailers, other than a small brewer selling beer
manufactured by that brewer.
[(57)] (56) (a) "Wine" means any alcoholic beverage obtained by the fermentation of the
natural sugar content of fruits, plants, honey, or milk, or any other like substance, whether or not
other ingredients are added.
(b) "Wine" is considered "liquor" for purposes of this title.
Section 61. Section 32A-1-113 is amended to read:
32A-1-113. Department expenditures and revenues -- Liquor Control Fund -- Exempt
from Division of Finance -- Annual audits.
(1) (a) All money received by the department in the administration of this title, except as
otherwise provided, together with all property acquired, administered, possessed, or received by the
department, is the property of the state. Money received in the administration of this title shall be
paid to the department and transferred into the state treasury to the credit of the Liquor Control

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Fund.
(b) All expenses, debts, and liabilities incurred by the department in connection with the
administration of this title shall be paid from the Liquor Control Fund.
(c) The fiscal officers of the department shall transfer annually from the Liquor Control Fund
to the General Fund a sum equal to the amount of net profit earned from the sale of liquor since the
preceding transfer of funds. The transfer shall be made within 90 days of the end of the department's
fiscal year on June 30.
(2) (a) Deposits made by the department shall be made to banks designated as state
depositories and reported to the state treasurer at the end of each day.
(b) Any member of the commission and any employee of the department is not personally
liable for any loss caused by the default or failure of depositories.
(c) All funds deposited in any bank or trust company are entitled to the same priority of
payment as other public funds of the state.
(3) All expenditures necessary for the administration of this title, including the payment of
all salaries, premiums, if any, on bonds of the commissioners, the director, and the department staff
in all cases where bonds are required, and all other expenditures incurred in establishing, operating,
and maintaining state stores and package agencies and in the administration of this title, shall be paid
by warrants drawn on the state treasurer paid out of the Liquor Control Fund.
(4) If the cash balance of the Liquor Control Fund is not adequate to cover the warrants
drawn against it by the state treasurer, the cash resources of the General Fund may be utilized to the
extent necessary. However, at no time may the fund equity of the Liquor Control Fund fall below
zero.
(5) When any check issued in payment of any fees or costs authorized or required by this title
is returned to the department as dishonored, the department may assess a service charge in an amount
set by commission rule against the person on whose behalf the check was tendered.
(6) The laws that govern the Division of Finance and prescribe the general powers and duties
of the Division of Finance are not applicable to the Department of Alcoholic Beverage Control in the
purchase and sale of alcoholic products.

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(7) The accounts of the department shall be audited annually by the state auditor or by any
other person, firm, or corporation the state auditor appoints. The audit report shall be made to the
state auditor, and copies submitted to members of the Legislature [and the council] not later than
January 1 following the close of the fiscal year for which the report is made.
Section 62. Section 32A-1-117 is amended to read:
32A-1-117. Department may sue and be sued.
The department may be sued and may institute or defend proceedings in any court of law or
otherwise in the name of the Department of Alcoholic Beverage Control as though the department
were incorporated under that name or title. Proceedings may not be taken against the commission
or in the names of the members of the commission[, or against the council or in the names of the
members of the council].
Section 63. Section 32A-1-118 is amended to read:
32A-1-118. Liability insurance -- Governmental immunity.
(1) The department shall maintain insurance against loss on each motor vehicle operated by
it on any public highway. Each motor vehicle shall be covered for:
(a) any liability imposed by law upon the department for damages from bodily injuries
suffered by any person or persons by reason of the ownership, maintenance, or use of the motor
vehicle; and
(b) any liability or loss from damage to or destruction of property of any description,
including liability of the department for the resultant loss of use of the property, which results from
accident due to the ownership, maintenance, or use of the motor vehicle.
(2) The department is liable to respond in damages in all cases if a private corporation under
the same circumstances would be liable.
(3) The provisions of Title 63, Chapter 30, Governmental Immunity Act, apply in all actions
commenced against the department in any action for damages sustained as a result of department
ownership, maintenance, or use of motor vehicles under Subsections (1) and (2). Immunity from suit
against [the council or] the commission or any member of the [council or] commission, is in all
respects retained in any such action.

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Section 64. Section 32A-1-121 is amended to read:
32A-1-121. Reports.
(1) The department shall report to the governor on the administration of this title, as the
governor may require, and shall submit an annual report to the governor not later than November 30,
for the fiscal year ending June 30 of the year in which the report is made. The report shall contain:
(a) a statement of the nature and amount of the business transacted by the department during
the year;
(b) a statement of the department's assets and liabilities including a profit and loss account,
and other accounts and matters necessary to show the results of operations of the department for the
year;
(c) general information and remarks on the application of this title in the state; and
(d) any other information requested by the governor.
(2) Copies of the report shall be submitted to the Legislature [and the council].
Section 65. Section 32A-1-504 is amended to read:
32A-1-504. Operational restrictions.
(1) Department trade shows may not be open to the general public, and may be attended only
by industry members, retailers, personnel of any trade association, authorized representatives of the
commission, the department, [the council,] and any law enforcement officer. Authorized
representatives of the commission[, the council,] and any law enforcement officer shall have
unrestricted right of access, ingress, and egress to and from all premises of a department trade show.
(2) No person under the age of 21 years may attend a department trade show.
(3) No bottle or container of liquor, wine, or heavy beer may be used in a department trade
show unless it has been processed, labeled, and delivered to the show by the department in
accordance with Section 32A-12-602 , and has affixed to it a department label clearly identifying it
as a "department trade show sample".
(4) No department trade show sample may be removed from the premises of the trade show
except by the department in accordance with Section 32A-12-602 .
(5) No department trade show sample may be stored, used, served, or consumed in any place

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other than the premises of the department trade show.
(6) No department trade show sample may be served or otherwise furnished to any:
(a) minor;
(b) person actually, apparently, or obviously drunk;
(c) known habitual drunkard; or
(d) known interdicted person.
(7) No attendees of the department trade show may bring any alcoholic beverage product
onto the premises of the department trade show.
(8) A violation of this section is a class B misdemeanor.
Section 66. Section 32A-3-102 is amended to read:
32A-3-102. Application requirements.
(1) A person seeking to operate a package agency as a package agent under this chapter shall
file a written application with the department in a form prescribed by the department.
(2) The application shall be accompanied by:
(a) a nonrefundable application fee of $100;
(b) written consent of the local authority;
(c) evidence of proximity to any public or private school, church, public library, public
playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of Subsections
32A-3-101 (3), (4), and (5), the application shall be processed in accordance with those subsections;
(d) a bond as specified by Section 32A-3-105 ;
(e) a floor plan of the premises, including a description and highlighting of that part of the
premises in which the applicant proposes that the package agency be established;
(f) evidence that the package agency is carrying public liability insurance in an amount and
form satisfactory to the department;
(g) a signed consent form stating that the package agent will permit any authorized
representative of the commission, department, [council,] or any law enforcement officer to have
unrestricted right to enter the package agency;
(h) in the case of a corporate applicant, proper verification evidencing that the person or

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persons signing the package agency application are authorized to so act on the corporation's behalf;
and
(i) any other information as the commission or department may direct.
Section 67. Section 32A-4-102 is amended to read:
32A-4-102. Application and renewal requirements.
(1) A person seeking a restaurant liquor license under this chapter shall file a written
application with the department, in a form prescribed by the department. It shall be accompanied by:
(a) a nonrefundable $300 application fee;
(b) an initial license fee of $300, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) evidence of proximity to any public or private school, church, public library, public
playground, or park, and if the proximity is within the 600 foot or 200 foot limitation of Subsections
32A-4-101 (4), (5), and (6), the application shall be processed in accordance with those subsections;
(f) a bond as specified by Section 32A-4-105 ;
(g) a floor plan of the restaurant, including consumption areas and the area where the
applicant proposes to keep, store, and sell liquor;
(h) evidence that the restaurant is carrying public liability insurance in an amount and form
satisfactory to the department;
(i) evidence that the restaurant is carrying dramshop insurance coverage of at least $100,000
per occurrence and $300,000 in the aggregate;
(j) a signed consent form stating that the restaurant will permit any authorized representative
of the commission, department, [council,] or any law enforcement officer unrestricted right to enter
the restaurant;
(k) in the case of a corporate applicant, proper verification evidencing that the person or
persons signing the restaurant application are authorized to so act on the corporation's behalf; and
(l) any other information the commission or department may require.
(2) All restaurant liquor licenses expire on October 31 of each year. Persons desiring to

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renew their restaurant liquor license shall submit a renewal fee of $300 and a completed renewal
application to the department no later than September 30. Failure to meet the renewal requirements
shall result in an automatic forfeiture of the license effective on the date the existing license expires.
Renewal applications shall be in a form as prescribed by the department.
(3) If any restaurant liquor licensee does not immediately notify the department of any change
in ownership of the restaurant, or in the case of a Utah corporate owner of any change in the
corporate officers or directors, the commission may suspend or revoke that license.
Section 68. Section 32A-4-106 is amended to read:
32A-4-106. Operational restrictions.
Each person granted a restaurant liquor license and the employees and management personnel
of the restaurant shall comply with the following conditions and requirements. Failure to comply may
result in a suspension or revocation of the license or other disciplinary action taken against individual
employees or management personnel.
(1) (a) Liquor may not be purchased by a restaurant liquor licensee except from state stores
or package agencies.
(b) Liquor purchased may be transported by the licensee from the place of purchase to the
licensed premises.
(c) Payment for liquor shall be made in accordance with rules established by the commission.
(2) A restaurant liquor licensee may not sell or provide any primary liquor except in one ounce
quantities dispensed through a calibrated metered dispensing system approved by the department in
accordance with commission rules adopted under this title, except that:
(a) liquor need not be dispensed through a calibrated metered dispensing system if used as
a secondary flavoring ingredient in a beverage subject to the following restrictions:
(i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
primary liquor;
(ii) the secondary ingredient is not the only liquor in the beverage;
(iii) the licensee shall designate a location where flavorings are stored on the floor plan
provided to the department; and

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(iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
(b) liquor need not be dispensed through a calibrated metered dispensing system if used as
a flavoring on desserts and in the preparation of flaming food dishes, drinks, and desserts;
(c) wine may be served by the glass in quantities not exceeding five ounces per glass; and
(d) heavy beer may be served in original containers not exceeding one liter.
(3) (a) Restaurants licensed to sell liquor may sell beer in any size container not exceeding
two liters, and on draft for on-premise consumption without obtaining a separate on-premise beer
retailer license from the commission.
(b) Restaurants licensed under this chapter that sell beer pursuant to Subsection (3)(a) shall
comply with all appropriate operational restrictions under Chapter 10, Beer Retailer Licenses, that
apply to on-premise beer retailers except when those restrictions are inconsistent with or less
restrictive than the operational restrictions under this chapter.
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
Licenses, required by Subsection (3)(b) may result in a suspension or revocation of the restaurant's:
(i) state liquor license; and
(ii) alcoholic beverage license issued by the local authority.
(4) Wine may be served in accordance with commission rule in containers not exceeding 750
ml.
(5) (a) Liquor may not be stored or sold in any place other than as designated in the licensee's
application, unless the licensee first applies for and receives approval from the department for a
change of location within the restaurant.
(b) A patron may only make alcoholic beverage purchases in the restaurant from a server
designated and trained by the licensee.
(c) Any alcoholic beverage may only be consumed at the patron's table.
(d) Liquor may not be stored where it is visible to patrons of the restaurant.
(6) (a) Alcoholic beverages may not be dispensed directly to a patron from the storage area.
(b) Alcoholic beverages shall be delivered by a server to the patron.
(7) The liquor storage area shall remain locked at all times other than those hours and days

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when liquor sales are authorized by law.
(8) (a) Liquor may not be sold or offered for sale at a restaurant during the following days
or hours:
(i) on the day of any regular general election, regular primary election, or statewide special
election until after the polls are closed;
(ii) on the day of any municipal, special district, or school election, but only:
(A) within the boundaries of the municipality, special district, or school district; and
(B) if closure is required by local ordinance; and
(iii) on any other day after 12 midnight and before 12 noon.
(b) The hours of beer sales are those specified in Chapter 10, Beer Retailer Licenses, for
on-premise beer licensees.
(9) Alcoholic beverages may not be sold except in connection with an order for food
prepared, sold, and served at the restaurant.
(10) Alcoholic beverages may not be sold, delivered, or furnished to any:
(a) minor;
(b) person actually, apparently, or obviously drunk;
(c) known habitual drunkard; or
(d) known interdicted person.
(11) (a) Liquor may not be sold except at prices fixed by the commission.
(b) Mixed drinks and wine may not be sold at discount prices on any date or at any time.
(12) Each restaurant patron may have only one alcoholic beverage at a time before the patron
on the patron's table.
(13) No more than one ounce of primary liquor may be served to a patron at a time, except:
(a) wine as provided in Subsection (2)(c); and
(b) heavy beer as provided in Subsection (2)(d).
(14) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
of the licensee, for patrons of the restaurant.
(15) Alcoholic beverages purchased in a restaurant may not be served or consumed at any

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location where they are stored or dispensed.
(16) (a) A wine service may be performed and a service charge assessed by the restaurant as
authorized by commission rule for wine purchased at the restaurant or carried in by a patron.
(b) If wine is carried in by a patron, the patron shall deliver the wine to a server or other
representative of the licensee upon entering the licensee premises.
(17) (a) A person may not bring onto the premises of a restaurant liquor licensee any alcoholic
beverage for on-premise consumption, except a person may bring, subject to the discretion of the
licensee, cork-finished wine onto the premises of any restaurant liquor licensee and consume wine
pursuant to Subsection (16).
(b) A restaurant, whether licensed under this title or unlicensed, or its officers, managers,
employees, or agents may not allow:
(i) a person to bring onto the restaurant premises any alcoholic beverage for on-premise
consumption; or
(ii) consumption of any such alcoholic beverage on its premises, except cork-finished wine
under Subsection (17)(a).
(c) If a restaurant licensee, or any of its officers, managers, employees, or agents violates this
Subsection (17):
(i) the commission may immediately suspend or revoke the restaurant's liquor license and the
restaurant licensee is subject to possible criminal prosecution under Chapter 12, Criminal Offenses;
and
(ii) the local authority may immediately suspend or revoke the restaurant's:
(A) local liquor license;
(B) local consent under Subsection 32A-4-102 (1); or
(C) local business license.
(18) Alcoholic beverages purchased from the restaurant may not be removed from the
restaurant premises.
(19) (a) Minors may not be employed by a restaurant licensee to sell or dispense alcoholic
beverages.

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(b) Notwithstanding Subsection (19)(a), a minor may be employed to enter the sale at a cash
register or other sales recording device.
(20) An employee of a restaurant liquor licensee, while on duty, may not:
(a) consume an alcoholic beverage; or
(b) be under the influence of alcoholic beverages.
(21) (a) Advertising or other reference to the sale of liquor and wine is not allowed on a food
menu except that a statement of availability of a liquor and wine menu on request, the content and
form of which is approved by the department, may be attached to or carried on a food menu. The
context of both food and liquor and wine menus may not in any manner attempt to promote or
increase the sale of alcoholic beverages.
(b) A server, employee, or agent of a licensee may not draw attention to the availability of
alcoholic beverages for sale, unless a patron or guest first inquires about it.
(c) Any set-up charge, service charge, chilling fee, or any other charge or fee made in
connection with the sale, service, or consumption of liquor may be stated in food or alcoholic
beverage menus.
(22) Each restaurant liquor licensee shall display in a prominent place in the restaurant:
(a) the liquor license that is issued by the department;
(b) a list of the types and brand names of liquor being served through its calibrated metered
dispensing system; and
(c) a sign in large letters stating: "Warning: The consumption of alcoholic beverages
purchased in this establishment may be hazardous to your health and the safety of others."
(23) The following acts or conduct in a restaurant licensed under this chapter are considered
contrary to the public welfare and morals, and are prohibited upon the premises:
(a) employing or using any person in the sale or service of alcoholic beverages while the
person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks, vulva,
or genitals;
(b) employing or using the services of any person to mingle with the patrons while the person

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is unclothed or in attire, costume, or clothing described in Subsection (23)(a);
(c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
anus, or genitals of any other person;
(d) permitting any employee or person to wear or use any device or covering, exposed to
view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
(e) permitting any person to use artificial devices or inanimate objects to depict any of the
prohibited activities described in this Subsection (23);
(f) permitting any person to remain in or upon the premises who exposes to public view any
portion of that person's genitals or anus; or
(g) showing films, still pictures, electronic reproductions, or other visual reproductions
depicting:
(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
copulation, flagellation, or any sexual acts prohibited by Utah law;
(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or genitals;
(iii) scenes wherein artificial devices or inanimate objects are used to depict, or drawings are
used to portray, any of the prohibited activities described in this Subsection (23); or
(iv) scenes wherein a person displays the vulva or the anus or the genitals.
(24) Nothing in Subsection (23) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (23).
(25) (a) Although live entertainment is permitted on the premises of a restaurant liquor
licensee, a licensee may not allow any person to perform or simulate sexual acts prohibited by Utah
law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, the
touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of the
pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage or at a designated
area approved by the commission.
(b) Nothing in Subsection (25)(a) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (25)(a).
(26) A restaurant liquor licensee may not engage in or permit any form of gambling, or have

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any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11, Gambling, on
the premises of the restaurant liquor licensee.
(27) (a) Each restaurant liquor licensee shall maintain an expense ledger or record showing
in detail:
(i) quarterly expenditures made separately for:
(A) malt or brewed beverages;
(B) set-ups;
(C) liquor;
(D) food; and
(E) all other items required by the department; and
(ii) sales made separately for:
(A) malt or brewed beverages;
(B) set-ups;
(C) food; and
(D) all other items required by the department.
(b) The record required by Subsection (27)(a) shall be kept:
(i) in a form approved by the department; and
(ii) current for each three-month period.
(c) Each expenditure shall be supported by:
(i) delivery tickets;
(ii) invoices;
(iii) receipted bills;
(iv) canceled checks;
(v) petty cash vouchers; or
(vi) other sustaining data or memoranda.
(28) (a) Each restaurant liquor licensee shall maintain accounting and other records and
documents as the department may require.
(b) Any restaurant or person acting for the restaurant, who knowingly forges, falsifies, alters,

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cancels, destroys, conceals, or removes the entries in any of the books of account or other documents
of the restaurant required to be made, maintained, or preserved by this title or the rules of the
commission for the purpose of deceiving the commission[, council,] or the department, or any of their
officials or employees, is subject to the immediate suspension or revocation of the restaurant's liquor
license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(29) (a) A restaurant liquor licensee may not close or cease operation for a period longer than
240 hours, unless:
(i) the restaurant liquor license notifies the department in writing at least seven days before
the closing; and
(ii) the closure or cessation of operation is first approved by the department.
(b) Notwithstanding Subsection (29)(a), in the case of emergency closure, immediate notice
of closure shall be made to the department by telephone.
(c) The department may authorize a closure or cessation of operation for a period not to
exceed 60 days. The department may extend the initial period an additional 30 days upon written
request of the restaurant licensee and upon a showing of good cause. A closure or cessation of
operation may not exceed a total of 90 days without commission approval.
(d) Any notice shall include:
(i) the dates of closure or cessation of operation;
(ii) the reason for the closure or cessation of operation; and
(iii) the date on which the licensee will reopen or resume operation.
(e) Failure of the licensee to provide notice and to obtain department authorization prior to
closure or cessation of operation shall result in an automatic forfeiture of:
(i) the license; and
(ii) the unused portion of the license fee for the remainder of the license year effective
immediately.
(f) Failure of the licensee to reopen or resume operation by the approved date shall result in
an automatic forfeiture of:
(i) the license; and

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(ii) the unused portion of the license fee for the remainder of the license year.
(30) Each restaurant liquor licensee shall maintain at least 70% of its total restaurant business
from the sale of food, which does not include mix for alcoholic beverages or service charges.
(31) A person may not transfer a restaurant liquor license from one location to another,
without prior written approval of the commission.
(32) (a) A person, having been granted a restaurant liquor license may not sell, exchange,
barter, give, or attempt in any way to dispose of the license whether for monetary gain or not.
(b) A restaurant liquor license has no monetary value for the purpose of any type of
disposition.
(33) Each server of alcoholic beverages in a licensee's establishment shall keep a written
beverage tab for each table or group that orders or consumes alcoholic beverages on the premises.
The beverage tab shall list the type and amount of alcoholic beverages ordered or consumed.
(34) A person's willingness to serve alcoholic beverages may not be made a condition of
employment as a server with a restaurant that has a restaurant liquor license.
Section 69. Section 32A-4-202 is amended to read:
32A-4-202. Application and renewal requirements.
(1) A person seeking an airport lounge liquor license under this part shall file a written
application with the department, in a form prescribed by the department, accompanied by:
(a) a nonrefundable $1,000 application fee;
(b) an initial license fee of $1,000, which is refundable if a license is not granted;
(c) written consent of the local and airport authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified by Section 32A-4-205 ;
(f) a floor plan of the airport lounge, including consumption areas and the area where the
applicant proposes to keep, store, and sell liquor;
(g) a copy of the sign proposed to be used by the licensee on its premises to inform the public
that alcoholic beverages are sold and consumed there;
(h) evidence that the airport lounge is carrying public liability insurance in an amount and

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form satisfactory to the department;
(i) evidence that the airport lounge is carrying dramshop insurance coverage of at least
$100,000 per occurrence and $300,000 in the aggregate;
(j) a signed consent form stating that the airport lounge will permit any authorized
representative of the commission, department, [council,] or any law enforcement officer unrestricted
right to enter the airport lounge;
(k) in the case of a corporate applicant, proper verification evidencing that the person or
persons signing the airport lounge application are authorized to so act on the corporation's behalf;
and
(l) any other information the commission or department may require.
(2) All airport lounge liquor licenses expire on October 31 of each year. Persons desiring to
renew their airport lounge liquor license shall submit a renewal fee of $1,000 and a completed
renewal application to the department no later than September 30. Failure to meet the renewal
requirements shall result in an automatic forfeiture of the license, effective on the date the existing
license expires. Renewal applications shall be in a form as prescribed by the department.
(3) If any airport liquor licensee does not immediately notify the department of any change
in ownership of the licensee, or in the case of a Utah corporate owner of any change in the corporate
officers or directors, the commission may suspend or revoke that license.
Section 70. Section 32A-4-206 is amended to read:
32A-4-206. Operational restrictions.
Each person granted an airport lounge liquor license and the employees and management
personnel of the airport lounge shall comply with the following conditions and requirements. Failure
to comply may result in a suspension or revocation of the license or other disciplinary action taken
against individual employees or management personnel.
(1) Liquor may not be purchased by an airport lounge liquor licensee except from state stores
or package agencies. Liquor purchased may be transported by the licensee from the place of purchase
to the licensed premises. Payment for liquor shall be made in accordance with the rules established
by the commission.

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(2) An airport lounge liquor licensee may not sell or provide any primary liquor except in one
ounce quantities dispensed through a calibrated metered dispensing system approved by the
department in accordance with commission rules adopted under this title, except that:
(a) liquor need not be dispensed through a calibrated metered dispensing system if used as
a secondary flavoring ingredient in a beverage subject to the following restrictions:
(i) the secondary ingredient may be dispensed only in conjunction with the purchase of a
primary liquor;
(ii) the secondary ingredient is not the only liquor in the beverage;
(iii) the licensee shall designate a location where flavorings are stored on the floor plan
provided to the department; and
(iv) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
(b) wine may be served by the glass in quantities not exceeding five ounces per glass; and
(c) heavy beer may be served in original containers not exceeding one liter.
(3) (a) Airport lounges may sell beer in any size container not exceeding two liters, and on
draft without obtaining a separate on-premise beer retailer license from the commission.
(b) Airport lounges that sell beer pursuant to Subsection (3)(a) shall comply with all
appropriate operational restrictions under Chapter 10 that apply to on-premise beer retailers except
when those restrictions are inconsistent with or less restrictive than the operational restrictions under
this chapter that apply to airport lounges.
(c) Failure to comply with the operational restrictions under Chapter 10, Beer Retailer
Licenses, as set forth in Subsection (3)(b) may result in a suspension or revocation of the airport
lounge's state liquor license and its alcoholic beverage license issued by the local authority.
(4) Wine may be served in accordance with commission rule in containers not exceeding 750
ml.
(5) (a) Liquor may not be stored or sold in any place other than as designated in the licensee's
application, unless the licensee first applies for and receives approval from the department for a
change of location within the airport lounge.
(b) A patron or guest may only make purchases in the airport lounge from a server designated

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and trained by the licensee.
(c) Alcoholic beverages may not be stored where they are visible to persons outside the
airport lounge.
(6) The liquor storage area shall remain locked at all times other than those hours and days
when liquor sales are authorized by law.
(7) Alcoholic beverages may not be sold or offered for sale at an airport lounge during the
following days or hours:
(a) on the day of any regular general election, regular primary election, or statewide special
election until after the polls are closed; and
(b) on any other day after 12 midnight and before 8 a.m.
(8) Alcoholic beverages may not be sold, delivered, or furnished to any:
(a) minor;
(b) person actually, apparently, or obviously drunk;
(c) known habitual drunkard; or
(d) known interdicted person.
(9) Liquor may not be sold except at prices fixed by the commission. Mixed drinks and wine
may not be sold at discount prices on any day or at any time.
(10) An airport lounge patron or guest may have only one alcoholic beverage at a time before
him.
(11) No more than one ounce of primary liquor may be served to a patron or guest at a time,
except wine as provided in Subsection (2)(b) and heavy beer as provided in Subsection (2)(c).
(12) Alcoholic beverages may not be purchased by the licensee, or any employee or agent
of the licensee, for patrons or guests of the airport lounge.
(13) (a) Beginning January 1, 1991, a person may not bring onto the premises of an airport
lounge licensee any alcoholic beverage for on-premise consumption.
(b) Beginning January 1, 1991, an airport lounge or its officers, managers, employees, or
agents may not allow a person to bring onto the airport lounge premises any alcoholic beverage for
on-premise consumption or allow consumption of any such alcoholic beverage on its premises.

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(c) Beginning January 1, 1991, if any airport lounge liquor licensee or any of its officers,
managers, employees, or agents violates Subsection (13):
(i) the commission may immediately suspend or revoke the airport lounge's liquor license and
the airport lounge liquor licensee is subject to criminal prosecution under Chapter 12, Criminal
Offenses; and
(ii) the local authority may immediately suspend or revoke the airport lounge's local liquor
license, local consent under Subsection 32A-4-202 (1), or local business license.
(14) Alcoholic beverages purchased from the airport lounge may not be removed from the
airport lounge premises.
(15) Minors may not be employed by an airport lounge licensee to sell or dispense alcoholic
beverages.
(16) An employee of a licensee, while on duty, may not consume an alcoholic beverage or
be under the influence of alcoholic beverages.
(17) Each airport lounge liquor licensee shall display in a prominent place in the airport
lounge:
(a) the liquor license that is issued by the department;
(b) a list of the types and brand names of liquor being served through its calibrated metered
dispensing system; and
(c) a sign in large letters stating: "Warning: The consumption of alcoholic beverages
purchased in this establishment may be hazardous to your health and the safety of others."
(18) (a) Each airport lounge liquor licensee shall maintain an expense ledger or record
showing in detail:
(i) quarterly expenditures made separately for malt or brewed beverages, liquor, and all other
items required by the department; and
(ii) sales made separately for malt or brewed beverages, food, and all other items required
by the department.
(b) This record shall be kept in a form approved by the department and shall be kept current
for each three-month period. Each expenditure shall be supported by delivery tickets, invoices,

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receipted bills, canceled checks, petty cash vouchers, or other sustaining data or memoranda.
(19) Each airport lounge liquor licensee shall maintain accounting and other records and
documents as the department may require. Any airport lounge or person acting for the airport
lounge, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in
any of the books of account or other documents of the airport lounge required to be made,
maintained, or preserved by this title or the rules of the commission for the purpose of deceiving the
commission[, council,] or the department, or any of their officials or employees, is subject to the
immediate suspension or revocation of the airport lounge's liquor license and possible criminal
prosecution under Chapter 12, Criminal Offenses.
(20) There shall be no transfer of an airport lounge liquor license from one location to
another, without prior written approval of the commission.
(21) (a) A person, having been granted an airport lounge liquor license, may not sell,
exchange, barter, give, or attempt in any way to dispose of the license whether for monetary gain or
not.
(b) An airport lounge liquor license has no monetary value for the purpose of any type of
disposition.
(22) Each server of alcoholic beverages in a licensee's establishment shall keep a written
beverage tab for each table or group that orders or consumes alcoholic beverages on the premises.
The beverage tab shall list the type and amount of alcoholic beverages ordered or consumed.
(23) An airport lounge liquor licensee's premises may not be leased for private functions.
(24) An airport lounge liquor licensee may not engage in or permit any form of gambling, or
have any video gaming device, as defined and proscribed by Title 76, Chapter 10, Part 11, Gambling,
on the premises of the airport lounge liquor licensee.
Section 71. Section 32A-5-102 is amended to read:
32A-5-102. Application and renewal requirements.
(1) A person seeking a private club liquor license under this chapter shall file a written
application with the department, in the name of an officer or director of a corporation, in a form
prescribed by the department. It shall be accompanied by:

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(a) a nonrefundable $1,000 application fee;
(b) an initial license fee of $750, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) evidence that the applicant is a corporation or association organized under the Utah
Nonprofit Corporation and Cooperative Association Act, and is in good standing;
(f) evidence of proximity to any public or private school, church, public library, public
playground, or park, and if the proximity is within the 600 foot or 200 foot limitations of Subsections
32A-5-101 (5), (6), and (7), the application shall be processed in accordance with those subsections;
(g) evidence that the applicant operates a club where a variety of food is prepared and served
in connection with dining accommodations;
(h) a bond as specified by Section 32A-5-106 ;
(i) a floor plan of the club premises, including consumption areas and the area where the
applicant proposes to keep and store liquor;
(j) evidence that the club is carrying public liability insurance in an amount and form
satisfactory to the department;
(k) evidence that the club is carrying dramshop insurance coverage of at least $100,000 per
occurrence and $300,000 in the aggregate;
(l) a copy of the club's articles, bylaws, house rules, and any amendments to those documents,
which shall be kept on file with the department at all times;
(m) a signed consent form stating that the club and its management will permit any authorized
representative of the commission, department, [council,] or any law enforcement officer unrestricted
right to enter the club premises;
(n) a signed consent form authorizing the department to obtain Internal Revenue Service tax
information on the club;
(o) a signed consent form authorizing the department to obtain state and county real and
personal property tax information on the club;
(p) profit and loss statements for the previous fiscal year and pro forma statements for one

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year if the applicant has not previously operated; and
(q) any other information, documents, and evidence the department may require by rule or
policy to allow complete evaluation of the application.
(2) (a) Each application shall be signed and verified by oath or affirmation by an executive
officer or any person specifically authorized by the corporation or association to sign the application,
to which shall be attached written evidence of said authority.
(b) The applicant may attach to the application a verified copy of a letter of exemption from
federal tax, issued by the United States Treasury Department, Internal Revenue Service, which the
commission may consider as evidence of the applicant's nonprofit status. The commission may also
consider the fact that the licensee has lost its tax exemption from federal tax as evidence that the
licensee has ceased to operate as a nonprofit corporation.
(3) (a) The commission may refuse to issue a license if it determines that any provisions of
the club's articles, bylaws, house rules, or amendments to any of those documents are not reasonable
and consistent with the declared nature and purpose of the applicant and the purposes of this chapter.
(b) Club bylaws shall include provisions respecting the following:
(i) standards of eligibility for members;
(ii) limitation of members, consistent with the nature and purpose of the corporation or
association;
(iii) the period for which dues are paid, and the date upon which the period expires;
(iv) provisions for dropping members for the nonpayment of dues or other cause; and
(v) provisions for guests or visitors, if any, and for the issuance and use of visitor cards.
(4) All private club liquor licenses expire on June 30 of each year. Persons desiring to renew
their private club liquor license shall submit a renewal fee of $750 and a completed renewal
application to the department no later than May 31. Failure to meet the renewal requirements shall
result in an automatic forfeiture of the license effective on the date the existing license expires.
Renewal applications shall be in a form as prescribed by the department.
Section 72. Section 32A-5-107 is amended to read:
32A-5-107. Operational restrictions.

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Each corporation or association granted a private club liquor license and its employees,
officers, managing agent, and members shall comply with the following conditions and requirements.
Failure to comply may result in a suspension or revocation of the license or other disciplinary action
taken against individual employees or management personnel.
(1) Each private club shall hold regular meetings as required by its articles or bylaws and
conduct its business through regularly elected officers. Within ten days following the election of any
officer, the department shall be notified in writing of the officer's name, address, and office to which
the officer has been elected, and the term of that office.
(2) Each private club may admit members only on written application signed by the applicant,
following investigation and approval of the governing body. Admissions shall be recorded in the
official minutes of a regular meeting of the governing body and the application, whether approved
or disapproved, shall be filed as a part of the official records of the licensee. An applicant may not
be accorded the privileges of a member until a quorum of the governing body has formally voted upon
and approved the applicant as a member. An applicant may not be admitted to membership until
seven days after the application is submitted.
(3) Each private club shall maintain a current and complete membership record showing the
date of application of each proposed member, the member's address, the date of admission following
application, and the date initiation fees and dues were assessed and paid. The record shall also show
the serial number of the membership card issued to each member. A current record shall also be kept
indicating when members were dropped or resigned.
(4) Each private club shall establish in the club bylaws initial fees and monthly dues, as
established by commission rules, which are collected from all members.
(5) Each private club may allow guests or visitors to use the premises only when previously
authorized by a member. A member is responsible for all services extended to guests and visitors.
If the guest or visitor is a member of the same fraternal organization as the private club liquor
licensee, no previous authorization is required.
(6) Each private club shall limit the issuance of visitor cards for a period not to exceed two
weeks and assess and collect a fee from each visitor of not less than $5 for each two-week period the

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visitor card is issued. One dollar of every visitor card fee shall be remitted quarterly to the
department for the administration of this title. A current record of the issuance of each card shall be
maintained and shall contain the name of the member sponsoring the visitor.
(7) A private club may not sell alcoholic beverages to any person other than a member, guest,
or visitor who holds a valid visitor card issued under Subsection (6).
(8) A person who is under 21 years of age may not be a member, officer, director, or trustee
of a private club.
(9) An employee of a club, while on duty, may not consume an alcoholic beverage, be under
the influence of alcoholic beverages, sponsor a person for visitor privileges, or act as a host for a
guest.
(10) A visitor to a club may not host more than five guests at one time.
(11) Each private club shall maintain an expense ledger or record showing in detail all
expenditures separated by payments for malt or brewed beverages, liquor, food, detailed payroll,
entertainment, rent, utilities, supplies, and all other expenditures. This record shall be kept in a form
approved by the department and balanced each month. Each expenditure shall be supported by
delivery tickets, invoices, receipted bills, canceled checks, petty cash vouchers, or other sustaining
data or memoranda. All invoices and receipted bills for the current calendar or fiscal year
documenting purchases made by officers of the club for the benefit of the club shall also be
maintained.
(12) Each private club shall maintain a bank account that shows all income and expenditures
as a control on the income and disbursements records. This account shall be balanced each month
under the direction of the treasurer or other officer of the licensee.
(13) Each private club shall maintain a minute book that is posted currently by the secretary.
This record shall contain the minutes of all regular and special meetings of the governing body and
all committee meetings held to conduct club business. Membership lists shall also be maintained.
(14) Each private club shall maintain current copies of the club's articles of incorporation,
current bylaws, and current house rules. Changes in the bylaws are not effective unless submitted to
the department within ten days after adoption, and become effective 15 days after received by the

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department unless rejected by the department before the expiration of the 15-day period.
(15) Each private club shall maintain accounting and other records and documents as the
department may require.
(16) Any club or person acting for the club, who knowingly forges, falsifies, alters, cancels,
destroys, conceals, or removes the entries in any of the books of account or other documents of the
club required to be made, maintained, or preserved by this title or the rules of the commission for the
purpose of deceiving the commission[, council,] or the department, or any of their officials or
employees, is subject to the immediate suspension or revocation of the club's license and possible
criminal prosecution under Chapter 12, Criminal Offenses.
(17) Each private club shall maintain and keep all the records required by this section and all
other books, records, receipts, and disbursements maintained or utilized by the licensee, as the
department requires, for a minimum period of three years. All records, books, receipts, and
disbursements are subject to inspection by authorized representatives of the commission[,] and the
department[, and council]. The club shall allow the department, through its auditors or examiners,
to audit all records of the club at times the department considers advisable. The department shall
audit the records of the licensee at least once annually.
(18) Each private club shall make available to the department, upon request, verified copies
of any returns filed with the United States Treasury Department, Internal Revenue Service, under the
federal Internal Revenue Code. Failure to provide any returns and supporting documents upon
reasonable request by the department or, alternatively, to provide evidence of an extension granted
by the Internal Revenue Service, constitutes sufficient grounds for the commission to suspend or
revoke a license. Any return or copy of a return so filed with the department is confidential and may
not be used in any manner not directly connected with the enforcement of this title, nor may it be
disclosed to any person or any department or agency of government, whether federal, state, or local.
(19) Each private club shall own or lease premises suitable for its activities in its own name.
A copy of the lease shall be filed with the department.
(20) Each private club shall operate the club under the supervision of a manager or house
committee, appointed by the governing body of the club.

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(21) A private club may not maintain facilities in any manner that barricades or conceals the
club operation. Any member of the commission, authorized department personnel, [member of the
council,] or any peace officer shall, upon presentation of credentials, be admitted immediately to the
club and permitted without hindrance or delay to inspect completely the entire club premises and all
books and records of the licensee, at any time during which the same are open for the transaction of
business to its members.
(22) A private club may not pay any person or entity any fee, salary, rent, or other payment
of any kind in excess of the fair market value for the service rendered, goods furnished, or facilities
or equipment rented. It is the intention of this subsection to insure that no officer, managing agent,
employee, or other person derives a principal economic benefit from the operation of a club.
(23) A private club may not engage in any public solicitation or public advertising calculated
to increase its membership.
(24) Each private club shall comply with the following operational restrictions:
(a) The liquor storage and sales area shall remain locked at all times when it is not open for
business.
(b) Liquor may not be purchased by a private club liquor licensee except from state stores
or package agencies. Liquor so purchased may be transported by the licensee from the place of
purchase to the licensed premises. Payment for liquor shall be made in accordance with rules
established by the commission.
(c) Beginning July 1, 1991, a private club liquor licensee may not sell or provide any primary
liquor except in one ounce quantities dispensed through a calibrated metered dispensing system
approved by the department in accordance with commission rules adopted under this title, except
that:
(i) liquor need not be dispensed through a calibrated metered dispensing system if used as a
secondary flavoring ingredient in a beverage subject to the following restrictions:
(A) the beverage shall contain liquor from a lawfully purchased container;
(B) the secondary ingredient is not the only liquor in the beverage;
(C) the licensee shall designate a location where flavorings are stored on the floor plan

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provided to the department; and
(D) all flavoring containers shall be plainly and conspicuously labeled "flavorings";
(ii) liquor need not be dispensed through a calibrated metered dispensing system if used as
a flavoring on desserts and in the preparation of flaming food dishes, drinks, and desserts;
(iii) wine may be served by the glass in quantities not exceeding five ounces per glass; and
(iv) heavy beer may be served in standard containers not exceeding one liter.
(d) (i) Private clubs licensed to sell liquor may sell beer in any size container not exceeding
two liters, and on draft without obtaining a separate on-premise beer retailer license from the
commission.
(ii) Private clubs licensed under this chapter that sell beer pursuant to Subsection (24)(d)(i)
shall comply with all appropriate operational restrictions under Title 32A, Chapter 10, Beer Retailer
Licenses, that apply to on-premise beer retailers except when those restrictions are inconsistent with
or less restrictive than the operational restrictions under this chapter.
(iii) Failure to comply with the operational restrictions under Title 32A, Chapter 10, Beer
Retailer Licenses, as set forth in Subsection (24)(d)(ii) may result in a suspension or revocation of
the private club's state liquor license and its alcoholic beverage license issued by the local authority.
(e) Wine may be served in accordance with commission rule in containers not exceeding 750
ml.
(f) A private club may not charge for the service or supply of glasses, ice, or mixers unless
the charges are fixed in the house rules of the club and a copy of the rules is kept on the club premises
and available at all times for examination by the members, guests, and visitors to the club.
(g) Minors may not be employed by any club to sell, dispense, or handle any alcoholic
beverage.
(h) An officer, director, managing agent, employee, and any other person employed by or
acting for or in behalf of any licensee, may not sell, deliver, or furnish, or cause or permit to be sold,
delivered, or furnished any liquor to any:
(i) minor;
(ii) person actually, apparently, or obviously drunk;

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(iii) known habitual drunkard; or
(iv) known interdicted person.
(i) (i) Liquor may not be sold or offered for sale at any private club during the following days
or hours:
(A) on the day of any regular general election, regular primary election, or statewide special
election until after the polls are closed;
(B) on the day of any municipal, special district, or school election, but only within the
boundaries of the municipality, special district, or school district, and only if closure is required by
local ordinance; and
(C) on Sunday and any state or federal legal holiday after 12 midnight and before 12 noon.
(ii) The hours of beer sales are those specified in Chapter 10 for on-premise beer licensees.
(j) On all other days the liquor storage and sales area in the club shall be closed from 1 a.m.
until 10 a.m.
(k) Liquor may not be sold except at prices fixed by the commission. Mixed drinks and wine
may not be sold at discount prices on any date or at any time.
(l) Beginning July 1, 1991, no more than one ounce of primary liquor may be served to a
member, guest, or visitor at a time, except wine as provided in Subsection (24)(c)(iii) and heavy beer
as provided in Subsection (24)(c)(iv).
(m) (i) Beginning January 1, 1991, a person may not bring onto the premises of a private club
liquor licensee any alcoholic beverage for on-premise consumption, except a person may bring,
subject to the discretion of the licensee, cork-finished wine onto the premises of any private club
liquor licensee and consume wine pursuant to Subsection (24)(n).
(ii) Beginning January 1, 1991, a private club or its officers, managers, employees, or agents
may not allow a person to bring onto the private club premises any alcoholic beverage for on-premise
consumption, except cork-finished wine under Subsection (24)(m)(i).
(iii) Beginning January 1, 1991, if any private club licensee or any of its officers, managers,
employees, or agents violates this Subsection (24):
(A) the commission may immediately suspend or revoke the private club's liquor license and

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the private club licensee is subject to criminal prosecution under Chapter 12, Criminal Offenses; and
(B) the local authority may immediately suspend or revoke the private club's local liquor
license, local consent under Subsection 32A-5-102 (1), or local business license.
(n) A wine service may be performed and a service charge assessed by the private club as
authorized by commission rule for wine purchased at the private club or carried in by a member,
guest, or visitor. If wine is carried in by a member, guest, or visitor, the member, guest, or visitor
shall deliver the wine to a server or other representative of the licensee upon entering the licensee
premises.
(o) A member, guest, or visitor to a club may not carry from a club premises an open
container used primarily for drinking purposes containing any alcoholic beverage.
(p) Each private club liquor licensee shall display in a prominent place in the private club:
(i) the private club liquor license that is issued by the department;
(ii) a list of the types and brand names of liquor being served through its calibrated metered
dispensing system; and
(iii) a sign in large letters stating: "Warning: The consumption of alcoholic beverages
purchased in this establishment may be hazardous to your health and the safety of others."
(q) The following acts or conduct in a private club licensed under this chapter are considered
contrary to the public welfare and morals, and are prohibited upon the premises:
(i) employing or using any person in the sale or service of alcoholic beverages while the
person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks, vulva,
or genitals;
(ii) employing or using the services of any person to mingle with the patrons while the person
is unclothed or in attire, costume, or clothing described in Subsection (24)(q)(i);
(iii) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,
anus, or genitals of any other person;
(iv) permitting any employee or person to wear or use any device or covering, exposed to
view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;

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(v) permitting any person to use artificial devices or inanimate objects to depict any of the
prohibited activities described in this Subsection (24);
(vi) permitting any person to remain in or upon the premises who exposes to public view any
portion of his or her genitals or anus; or
(vii) showing films, still pictures, electronic reproductions, or other visual reproductions
depicting:
(A) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
copulation, flagellation, or any sexual acts prohibited by Utah law;
(B) any person being touched, caressed, or fondled on the breast, buttocks, anus, or genitals;
(C) scenes wherein artificial devices or inanimate objects are used to depict, or drawings are
used to portray, any of the prohibited activities described in this Subsection (24); or
(D) scenes wherein a person displays the vulva or the anus or the genitals.
(r) Nothing in Subsection (24)(q) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (24)(q).
(s) (i) Although live entertainment is permitted on the premises of a club liquor licensee, a
licensee may not allow any person to perform or simulate sexual acts prohibited by Utah law,
including sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or the
touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the displaying of the
pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage or at a designated
area approved by the commission.
(ii) Nothing in Subsection (24)(s)(i) precludes a local authority from being more restrictive
of acts or conduct of the type prohibited in Subsection (24)(s)(i).
(25) A private club may not engage in or permit any form of gambling, or have any video
gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11, Gambling, on the premises
of the private club.
(26) (a) A private club may not close or cease operation for a period longer than 240 hours,
unless written notice is given to the department at least seven days before the closing, and the closure
or cessation of operation is first approved by the department.

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(b) In the case of emergency closure, immediate notice of closure shall be made to the
department by telephone.
(c) The department may authorize a closure or cessation of operation for a period not to
exceed 60 days. The department may extend the initial period an additional 30 days upon written
request of the private club and upon a showing of good cause. A closure or cessation of operation
may not exceed a total of 90 days without commission approval.
(d) Any notice shall include the dates of closure or cessation of operation, the reason for the
closure or cessation of operation, and the date on which the licensee will reopen or resume operation.
(e) Failure of the licensee to provide notice and to obtain department authorization prior to
closure or cessation of operation shall result in an automatic forfeiture of the license and the forfeiture
of the unused portion of the license fee for the remainder of the license year effective immediately.
(f) Failure of the licensee to reopen or resume operation by the approved date shall result in
an automatic forfeiture of the license and the forfeiture of the unused portion of the club's license fee
for the remainder of the license year.
(27) Each private club shall conduct its affairs so that it is not operated for a pecuniary profit.
(28) A private club may not transfer a private club liquor license from one location to
another, without prior written approval of the commission.
(29) A person, having been granted a private club liquor license, may not sell, exchange,
barter, give, or attempt in any way to dispose of the license, whether for monetary gain or not. A
private club liquor license has no monetary value for the purpose of any type of disposition.
Section 73. Section 32A-7-102 is amended to read:
32A-7-102. Application requirements.
(1) A qualified applicant for a single event permit shall file a written application with the
department in a form as the department shall prescribe.
(2) The application shall be accompanied by:
(a) a single event permit fee of $100, which is refundable if a permit is not granted and shall
be returned to the applicant with the application;
(b) written consent of the local authority;

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(c) a bond as specified by Section 32A-7-105 ;
(d) the times, dates, location, nature, and purpose of the event;
(e) a description or floor plan designating:
(i) the area in which the applicant proposes that liquor be stored;
(ii) the site from which the applicant proposes that liquor be sold or served; and
(iii) the area in which the applicant proposes that liquor be allowed to be consumed;
(f) a statement of the purpose of the association, corporation, church, or political
organization, or its local lodge, chapter, or other local unit;
(g) a signed consent form stating that authorized representatives of the commission,
department, [council,] or any law enforcement officers will have unrestricted right to enter the
premises during the event;
(h) proper verification evidencing that the person signing the application is authorized to act
on behalf of the association, corporation, church, or political organization; and
(i) any other information as the commission or department may direct.
Section 74. Section 32A-8-102 is amended to read:
32A-8-102. Application and renewal requirements.
(1) Each person seeking an alcoholic beverage manufacturing license of any kind under this
chapter shall file a written application with the department, in a form prescribed by the department.
It shall be accompanied by:
(a) a nonrefundable application fee of $100;
(b) an initial license fee of $1,000 unless otherwise provided in this chapter, which is
refundable if a license is not granted;
(c) a statement of the purpose for which the applicant has applied for the alcoholic beverage
manufacturing license;
(d) written consent of the local authority;
(e) a bond as specified by Section 32A-8-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and form
satisfactory to the department;

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(g) evidence that the applicant is authorized by the United States to manufacture alcoholic
beverages;
(h) a signed consent form stating that the licensee will permit any authorized representative
of the commission, department, [council,] or any law enforcement officer to have unrestricted right
to enter the premises; and
(i) any other documents and evidence the department may require by rule or policy to allow
complete evaluation of the application.
(2) Each application shall be signed and verified by oath or affirmation by an executive officer
or any person specifically authorized by the corporation or association to sign the application, to
which shall be attached written evidence of said authority.
(3) All alcoholic beverage manufacturing licenses expire on December 31 of each year.
Persons desiring to renew their license shall submit a renewal fee of $1,000 and a completed renewal
application to the department no later than November 30 of the year the license expires. Failure to
meet the renewal requirements results in an automatic forfeiture of the license effective on the date
the existing license expires. Renewal applications shall be in a form prescribed by the department.
(4) If any manufacturing licensee does not immediately notify the department of any change
in ownership of the licensee, or in the case of a Utah corporate owner of any change in the corporate
officers or directors, the commission may suspend or revoke that license.
Section 75. Section 32A-8-106 is amended to read:
32A-8-106. Operational restrictions.
(1) Each person granted an alcoholic beverage manufacturing license and the employees and
management of the licensee shall abide by the following conditions and requirements, and any special
conditions and restrictions otherwise provided in this chapter. Failure to comply may result in a
suspension or revocation of the license or other disciplinary action taken against individual employees
or management personnel:
(a) A licensee may not sell any liquor within the state except to the department and to military
installations.
(b) Each license issued under this chapter shall be conspicuously displayed on the licensed

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premises.
(c) A licensee may not advertise its product in violation of this title or any other federal or
state law, except that nothing in this title prohibits the advertising or solicitation of orders for
industrial alcohol from holders of special permits.
(d) Each alcoholic beverage manufacturing licensee shall maintain accounting and other
records and documents as the department may require. Any manufacturing licensee or person acting
for the manufacturing licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals,
or removes the entries in any of the books of account or other documents of the licensee required to
be made, maintained, or preserved by this title or the rules of the commission for the purpose of
deceiving the commission, [council,] or the department, or any of their officials or employees, is
subject to the immediate suspension or revocation of the manufacturing license and criminal
prosecution under Chapter 12, Criminal Offenses.
(e) There shall be no transfer of an alcoholic beverage manufacturing license from one
location to another, without prior written approval of the commission.
(f) Each licensee shall from time to time, on request of the department, furnish for analytical
purposes samples of the alcoholic products that it has for sale or that it has in the course of
manufacture for sale in this state.
(2) Nothing in this chapter prevents any manufacturer of, or dealer in, patent or proprietary
medicines containing alcohol from selling the medicines in the original and unbroken package if the
medicine contains sufficient medication to prevent its use as an alcoholic beverage. Each
manufacturer or dealer who keeps patent or proprietary medicines for sale shall, upon request by the
department, provide a sufficient sample of the medicine to enable the department to have the medicine
analyzed.
(3) (a) Nothing in this chapter prevents any person from manufacturing vinegar or preserved
nonintoxicating cider for use or sale, or the manufacture or sale for lawful purposes of any food
preparation, or any United States Pharmacopoeia or national formulary preparation in conformity
with the Utah pharmacy laws, if the preparation conforms to standards established by the state
departments of agriculture and health, and contains no more alcohol than is absolutely necessary to

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preserve or extract the medicinal, flavoring, or perfumed properties of the treated substances.
(b) Nothing in this chapter prevents the manufacture or sale of wood or denatured alcohol
under rules established by the department and in compliance with the formulas and rules established
by the United States.
Section 76. Section 32A-8-502 is amended to read:
32A-8-502. Application and renewal requirements.
(1) An individual resident, partnership, or corporation seeking a local industry representative
license under this chapter shall file a written application with the department, in a form prescribed by
the department. It shall be accompanied by:
(a) a nonrefundable $100 application fee;
(b) an initial license fee of $50, which is refundable if a license is not granted;
(c) verification that the applicant is a resident of Utah, or a Utah partnership or corporation;
(d) an affidavit stating the name and address of all manufacturers, suppliers, and importers
the applicant will represent;
(e) a signed consent form stating that the local industry representative will permit any
authorized representative of the commission, department, [council,] or any law enforcement officer
the right to enter, during normal business hours, the specific premises where the representative
conducts business;
(f) in the case of a partnership or corporate applicant, proper verification evidencing that the
person or persons signing the application are authorized to so act on the partnership's or corporation's
behalf; and
(g) any other information the commission or department may require.
(2) All local industry representative licenses expire on January 1 of each year. Licensees
desiring to renew their license shall submit a renewal fee of $50 and a completed renewal application
to the department no later than November 30. Failure to meet the renewal requirements shall result
in an automatic forfeiture of the license effective on the date the existing license expires. Renewal
applications shall be in a form as prescribed by the department, but shall require the licensee to file
an affidavit stating the name and address of all manufacturers, suppliers, and importers the licensee

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currently represents.
(3) A licensed local industry representative may represent more than one manufacturer,
supplier, or importer without paying additional license fees.
Section 77. Section 32A-8-505 is amended to read:
32A-8-505. Operational restrictions.
(1) (a) A local industry representative licensee, employee or agent of the licensee, or
employee or agent of a manufacturer, supplier, or importer who is conducting business in the state,
shall abide by the conditions and requirements set forth in this section.
(b) If any person listed in Subsection (1)(a) knowingly violates or fails to comply with the
conditions and requirements set forth in this section, such violation or failure to comply may result
in a suspension or revocation of the license or other disciplinary action taken against individual
employees or agents of the licensee, and the commission may order the removal of the manufacturer's,
supplier's, or importer's products from the department's sales list and a suspension of the department's
purchase of those products for a period determined by the commission if the manufacturer, supplier,
or importer directly committed the violation, or solicited, requested, commanded, encouraged, or
intentionally aided another to engage in the violation.
(2) A local industry representative licensee, employee or agent of the licensee, or employee
or agent of a manufacturer, supplier, or importer who is conducting business in the state:
(a) may assist the department in ordering, shipping, and delivering merchandise, new product
notification, listing and delisting information, price quotations, product sales analysis, shelf
management, and educational seminars, and may, for the purpose of acquiring new listings, solicit
orders from the department and submit to the department price lists and samples of their products,
but only to the extent authorized by Chapter 12, Criminal Offenses;
(b) may not sell any liquor, wine, or heavy beer within the state except to the department and
military installations;
(c) may not ship or transport, or cause to be shipped or transported, into this state or from
one place to another within this state any liquor, wine, or heavy beer;
(d) may not sell or furnish, except as provided in Section 32A-12-603 for retail licensee wine

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tasting, any liquor, wine, or heavy beer to any person within this state other than to the department
and military installations;
(e) except as otherwise provided, may not advertise products it represents in violation of this
title or any other federal or state law;
(f) shall comply with all trade practices provided in Chapter 12, Criminal Offenses; and
(g) may only provide samples of their products for tasting and sampling purposes: (i) as
provided in Section 32A-12-603 ;
(ii) by the department; or
(iii) by retail licensees or permittees at a department trade show.
(3) (a) A local industry representative licensee shall maintain on file with the department a
current accounts list of the names and addresses of all manufacturers, suppliers, and importers the
licensee represents.
(b) The licensee shall notify the department in writing of any changes to the accounts listed
within 14 days from the date the licensee either acquired or lost the account of a particular
manufacturer, supplier, or importer.
(4) A local industry representative licensee shall maintain accounting and other records and
documents as the department may require for at least three years.
(5) Any local industry representative licensee or person acting for the licensee, who
knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the
books of account or other documents of the licensee required to be made, maintained, or preserved
by this title or the rules of the commission for the purpose of deceiving the commission[, council,]
or the department, or any of their officials or employees, is subject to the immediate suspension or
revocation of the industry representative's license and possible criminal prosecution under Chapter
12, Criminal Offenses.
(6) A local industry representative licensee may, for the purpose of becoming educated as
to the quality and characteristics of a liquor, wine, or heavy beer product which the licensee
represents, taste and analyze industry representative samples under the following conditions:
(a) The licensee may not receive more than two industry representative samples of a

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particular type, vintage, and production lot of a particular branded product within a consecutive
120-day period.
(b) (i) Each sample of liquor may not exceed 1 liter.
(ii) Each sample of wine or heavy beer may not exceed 1.5 liters unless that exact product
is only commercially packaged in a larger size, not to exceed 5 liters.
(c) Each industry representative sample may only be of a product not presently listed on the
department's sales list.
(d) Industry representative samples shall be shipped prepaid by the manufacturer, supplier,
or importer by common carrier and not via United States mail directly to the department's central
administrative warehouse office. These samples may not be shipped to any other location within the
state.
(e) Industry representative samples shall be accompanied by a letter from the manufacturer,
supplier, or importer:
(i) clearly identifying the product as an "industry representative sample"; and
(ii) clearly stating:
(A) the FOB case price of the product; and
(B) the name of the local industry representative for who it is intended.
(f) The department shall assess a reasonable handling, labeling, and storage fee for each
industry representative sample received.
(g) The department shall affix to each bottle or container a label clearly identifying the
product as an "industry representative sample".
(h) The department shall:
(i) account for and record each industry representative sample received;
(ii) account for the sample's disposition; and
(iii) maintain a record of the sample and its disposition for a two-year period.
(i) Industry representative samples may not leave the premises of the department's central
administrative warehouse office.
(j) Licensed industry representatives and their employees and agents may, at regularly

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scheduled days and times established by the department, taste and analyze industry representative
samples on the premises of the department's central administrative warehouse office.
(k) Any unused contents of an opened product remaining after the product has been sampled
shall be destroyed by the department under controlled and audited conditions established by the
department.
(l) Industry representative samples that are not tasted within 30 days of receipt by the
department shall be disposed of at the discretion of the department in one of the following ways:
(i) contents destroyed under controlled and audited conditions established by the department;
or
(ii) added to the inventory of the department for sale to the public.
(7) A local industry representative licensee may conduct retail licensee wine tasting as
provided in Section 32A-12-603 .
(8) A local representative licensee may not sell, exchange, barter, give, or attempt in any way
to dispose of the license whether for monetary gain or not. A local industry representative license
has no monetary value for the purpose of any type of disposition.
Section 78. Section 32A-9-102 is amended to read:
32A-9-102. Application and renewal requirements.
(1) A person seeking a warehousing license under this chapter shall file a written application
with the department, in a form prescribed by the department. It shall be accompanied by:
(a) a nonrefundable $100 application fee;
(b) an initial license fee of $250, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified by Section 32A-9-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and form
satisfactory to the department;
(g) a floor plan of the applicant's warehouse, including the area in which the applicant
proposes that liquor be stored;

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(h) a signed consent form stating that the licensee will permit any authorized representative
of the commission, department, [council,] or any law enforcement officer unrestricted right to enter
the warehouse premises; and
(i) any other documents and evidence the department may require by rule or policy to allow
complete evaluation of the application.
(2) Each application shall be signed and verified by oath or affirmation by an executive officer
or any person specifically authorized by the corporation to sign the application, to which shall be
attached written evidence of said authority.
(3) All warehousing licenses expire on December 31 of each year. Persons desiring to renew
their license shall submit a renewal fee of $250 and a completed renewal application to the department
no later than November 30 of the year the license expires. Failure to meet the renewal requirements
results in an automatic forfeiture of the license effective on the date the existing license expires.
Renewal applications shall be in a form prescribed by the department.
(4) If any licensee does not immediately notify the department of any change in ownership
of the licensee, or in the case of a Utah corporate owner of any change in the corporate officers or
directors, the commission may suspend or revoke that license.
Section 79. Section 32A-9-106 is amended to read:
32A-9-106. Operational restrictions.
Each person granted a warehousing license and the employees and management of the licensee
shall abide by the following conditions and requirements. Failure to comply may result in a
suspension or revocation of the license, or other disciplinary action taken against individual employees
or management personnel:
(1) All liquor warehoused in this state and sold to out-of-state consignees, shall be
transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor
Carrier Safety Act.
(2) All liquor warehoused in this state and sold to the department shall be transported by
motor carriers approved by the department.
(3) All liquor transported to or from the licensee's premises shall be carried in sealed

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conveyances that are made available for inspection by the department while en route within the state.
(4) A licensee may not ship, convey, distribute, or remove liquor from any warehouse in less
than full case lots.
(5) A licensee may not ship, convey, distribute, or remove any liquor from a warehouse to
any consignee outside the state that is not licensed as a liquor wholesaler or retailer by the state in
which the consignee is domiciled.
(6) A licensee may not receive, warehouse, ship, distribute, or convey any liquor that the
commission has not authorized the licensee to handle through its warehouse.
(7) Each licensee shall maintain accounting and other records and documents as the
department may require. Any licensee or person acting for the licensee, who knowingly forges,
falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
other documents of the licensee required to be made, maintained, or preserved by this title or the rules
of the commission for the purpose of deceiving the commission[, council,] or the department, or any
of their officials or employees, is subject to the immediate suspension or revocation of the license and
possible criminal prosecution under Chapter 12, Criminal Offenses.
(8) There shall be no transfer of a liquor warehousing license from one location to another,
without prior written approval of the commission.
Section 80. Section 32A-10-202 is amended to read:
32A-10-202. Application and renewal requirements.
(1) A person seeking an on-premise beer retailer license under this chapter shall file a written
application with the department, in a form prescribed by the department. It shall be accompanied by:
(a) a nonrefundable $300 application fee;
(b) an initial license fee of $100, which is refundable if a license is not granted;
(c) written consent of the local authority or a license to sell beer at retail for on-premise
consumption granted by the local authority under Section 32A-10-101 ;
(d) a copy of the applicant's current business license;
(e) for applications made on or after July 1, 1991, evidence of proximity to any public or
private school, church, public library, public playground, or park, and if the proximity is within the

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600 foot or 200 foot limitation of Subsections 32A-10-201 (3), (4), and (5), the application shall be
processed in accordance with those subsections;
(f) a bond as specified by Section 32A-10-205 ;
(g) a floor plan of the premises, including consumption areas and the area where the applicant
proposes to keep, store, and sell beer;
(h) evidence that the on-premise beer retailer licensee is carrying public liability insurance in
an amount and form satisfactory to the department;
(i) for those licensees that sell more than $5,000 of beer annually, evidence that the
on-premise beer retailer licensee is carrying dramshop insurance coverage of at least $100,000 per
occurrence and $300,000 in the aggregate;
(j) a signed consent form stating that the on-premise beer retailer licensee will permit any
authorized representative of the commission, department, [council,] or any peace officer unrestricted
right to enter the licensee premises;
(k) in the case of a corporate applicant, proper verification evidencing that the person or
persons signing the on-premise beer retailer licensee application are authorized to so act on the
corporation's behalf; and
(l) any other information the department may require.
(2) All on-premise beer retailer licenses expire on the last day of February of each year,
except that all on-premise beer retailer licenses obtained before the last day of February 1991 expire
on the last day of February 1992. Persons desiring to renew their on-premise beer retailer license
shall submit a renewal fee of $100 and a completed renewal application to the department no later
than January 31. Failure to meet the renewal requirements shall result in an automatic forfeiture of
the license, effective on the date the existing license expires. Renewal applications shall be in a form
as prescribed by the department.
(3) If any beer retailer licensee does not immediately notify the department of any change in
ownership of the beer retailer, or in the case of a Utah corporate owner of any change in the officers
or directors, the commission may suspend or revoke that license.
(4) If the applicant is a county, municipality, or other political subdivision, it need not meet

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the requirements of Subsections (1)(a), (b), (c), (d), and (f).
(5) Only one state on-premise beer retailer license is required for each building or resort
facility owned or leased by the same applicant. Separate licenses are not required for each retail beer
dispensing outlet located in the same building or on the same resort premises owned or operated by
the same applicant.
Section 81. Section 32A-10-206 is amended to read:
32A-10-206. Operational restrictions.
Each person granted an on-premise beer retailer license and the employees and management
personnel of the on-premise beer retailer licensee shall comply with the following conditions and
requirements. Failure to comply may result in a suspension or revocation of the license or other
disciplinary action taken against individual employees or management personnel.
(1) On-premise beer retailer licensees may sell beer in open containers, in any size not
exceeding two liters, and on draft.
(2) Liquor may not be stored or sold on the premises of any on-premise beer retailer licensee.
(3) A patron or guest may only make purchases in the on-premise beer retailer licensee from
a server designated and trained by the licensee.
(4) (a) Beer may not be sold or offered for sale at any on-premise beer retailer licensee after
1 a.m. and before 10 a.m.
(b) Beer may not be sold, delivered, or furnished to any:
(i) minor;
(ii) person actually, apparently, or obviously drunk;
(iii) known habitual drunkard; or
(iv) known interdicted person.
(5) Beer sold in sealed containers by the on-premise beer retailer licensee may be removed
from the on-premise beer retailer premises.
(6) (a) Beginning January 1, 1991, a person may not bring onto the premises of an
on-premise beer retailer licensee any alcoholic beverage for on-premise consumption.
(b) Beginning January 1, 1991, an on-premise beer retailer licensee or its officers, managers,

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employees, or agents may not allow a person to bring onto the on-premise beer retailer licensee
premises any alcoholic beverage for on-premise consumption or allow consumption of any such
alcoholic beverage on its premises.
(c) Beginning January 1, 1991, if any on-premise beer retailer licensee or any of its officers,
managers, employees, or agents violates this Subsection (6):
(i) the commission may immediately suspend or revoke the on-premise beer retailer license
and the on-premise beer retailer licensee is subject to possible criminal prosecution under Chapter 12;
and
(ii) the local authority may immediately suspend or revoke the business license of the
on-premise beer retailer licensee.
(7) Minors may not be employed by or be on the premises of an on-premise beer retailer
licensee to sell or dispense beer. Minors may not be employed by or be on the premises of any tavern.
(8) An employee of a licensee, while on duty, may not consume an alcoholic beverage or be
under the influence of alcoholic beverages.
(9) Each on-premise beer retailer licensee shall display in a prominent place in the on-premise
beer retailer licensee:
(a) the on-premise beer retailer license that is issued by the department; and
(b) a sign in large letters stating: "Warning: The consumption of alcoholic beverages
purchased in this establishment may be hazardous to your health and the safety of others."
(10) The following acts or conduct in an on-premise beer retailer outlet licensed under this
part are considered contrary to the public welfare and morals, and are prohibited upon the premises:
(a) employing or using any person in the sale or service of alcoholic beverages while the
person is unclothed or in attire, costume, or clothing that exposes to view any portion of the female
breast below the top of the areola or any portion of the pubic hair, anus, cleft of the buttocks, vulva,
or genitals;
(b) employing or using the services of any person to mingle with the patrons while the person
is unclothed or in attire, costume, or clothing as described in Subsection (10)(a);
(c) encouraging or permitting any person to touch, caress, or fondle the breasts, buttocks,

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anus, or genitals of any other person;
(d) permitting any employee or person to wear or use any device or covering, exposed to
view, that simulates the breast, genitals, anus, pubic hair, or any portion of these;
(e) permitting any person to use artificial devices or inanimate objects to depict any of the
prohibited activities described in this section;
(f) permitting any person to remain in or upon the premises who exposes to public view any
portion of his or her genitals or anus; or
(g) showing films, still pictures, electronic reproductions, or other visual reproductions
depicting:
(i) acts or simulated acts of sexual intercourse, masturbation, sodomy, bestiality, oral
copulation, flagellation, or any sexual acts that are prohibited by Utah law;
(ii) any person being touched, caressed, or fondled on the breast, buttocks, anus, or genitals;
(iii) scenes wherein artificial devices or inanimate objects are employed to depict, or drawings
are employed to portray, any of the prohibited activities described in this section; or
(iv) scenes wherein a person displays the vulva or the anus or the genitals.
(11) Nothing in Subsection (10) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (10).
(12) An on-premise beer retailer licensee may not engage in or permit any form of gambling,
or have any video gaming device, as defined and proscribed in Title 76, Chapter 10, Part 11,
Gambling, on the premises of the on-premise beer retailer licensee.
(13) (a) Although live entertainment is permitted on the premises of an on-premise beer
retailer licensee, a licensee may not permit any person to perform or simulate sexual acts prohibited
by Utah law, including sexual intercourse, masturbation, sodomy, bestiality, oral copulation,
flagellation, the touching, caressing, or fondling of the breast, buttocks, anus, or genitals, or the
displaying of the pubic hair, anus, vulva, or genitals. Entertainers shall perform only upon a stage or
at a designated area approved by the commission.
(b) Nothing in Subsection (13)(a) precludes a local authority from being more restrictive of
acts or conduct of the type prohibited in Subsection (13)(a).

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(14) Each on-premise beer retailer licensee shall maintain accounting and other records and
documents as the department may require. Any on-premise beer retailer licensee or person acting for
the on-premise beer retailer licensee, who knowingly forges, falsifies, alters, cancels, destroys,
conceals, or removes the entries in any of the books of account or other documents of the on-premise
beer retailer licensee required to be made, maintained, or preserved by this title or the rules of the
commission for the purpose of deceiving the commission[, council,] or the department, or any of their
officials or employees, is subject to the immediate suspension or revocation of the on-premise beer
retailer license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(15) There shall be no transfer of an on-premise beer retailer license from one location to
another, without prior written approval of the commission.
(16) (a) A person having been granted an on-premise beer retailer license may not sell,
exchange, barter, give, or attempt in any way to dispose of the license whether for monetary gain or
not.
(b) An on-premise beer retailer license has no monetary value for the purpose of any type of
disposition.
Section 82. Section 32A-11-102 is amended to read:
32A-11-102. Application and renewal requirements.
(1) A person seeking a beer wholesaling license under this chapter shall file a written
application with the department, in a form prescribed by the department. It shall be accompanied by:
(a) a nonrefundable $100 application fee;
(b) an initial license fee of $300, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified in Section 32A-11-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and form
satisfactory to the department;
(g) a signed consent form stating that the licensee will permit any authorized representative
of the commission, department, [council,] or any peace officer unrestricted right to enter the licensed

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premises;
(h) a statement of the brands of beer the applicant is authorized to sell and distribute;
(i) a statement of all geographical areas in which the applicant is authorized to sell and
distribute beer; and
(j) any other documents and evidence as the department may direct.
(2) Each application shall be signed and verified by oath or affirmation by an executive officer
or any person specifically authorized by the corporation to sign the application, to which shall be
attached written evidence of said authority.
(3) (a) All beer wholesaling licenses expire on December 31 of each year. Persons desiring
to renew their beer wholesaling license shall submit a renewal fee of $300 and a completed renewal
application to the department no later than November 30 of the year the license expires. Failure to
meet the renewal requirements results in an automatic forfeiture of the license effective on the date
the existing license expires. Renewal applications shall be in a form prescribed by the department.
(b) The annual renewal fee prescribed in this Subsection (3) is independent of any like license
fee which may be assessed by the local authority of the city or county in which the wholesaler's
warehouse is located. Any local fees may not exceed $300. Payment of local fees shall be made
directly to the local authority assessing them.
(4) If any licensee does not immediately notify the department of any change in ownership
of the licensee, or in the case of a Utah corporate owner of any change in the corporate officers or
directors, the commission may suspend or revoke that license.
Section 83. Section 32A-11-106 is amended to read:
32A-11-106. Operational restrictions.
(1) Any person who is granted a beer wholesaling license, and the employees and
management personnel of the licensee, shall abide by the following conditions and requirements:
(a) A licensee may not wholesale any beer manufactured within the state by a brewer who
is not licensed by the commission as a manufacturing licensee.
(b) A licensee may not wholesale any beer manufactured out of state by a brewer who has
not obtained a certificate of approval from the department.

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(c) A licensee may not sell or distribute beer to any person within the state except licensed
beer retailers or holders of retail beer permits or licenses issued by a local authority for temporary
special events that do not last longer than 30 days.
(d) A licensee may not sell or distribute any beer to any retailer outside of the geographic area
designated on its application, except that if a licensee is temporarily unable to supply retail dealers
within its authorized geographical area, the department may grant temporary authority to another
licensed wholesaler who distributes the same brand in another area to supply retailers.
(e) (i) Every licensee shall own, lease, or otherwise control and maintain a warehouse facility
located in this state for the receipt, storage, and further distribution of all beer sold by the licensee
to any person within the state.
(ii) A licensee may not sell beer to any person in this state, other than the department, unless
the beer has first been physically removed from the vehicle used to transport the beer from the
supplier to the licensee and delivered into the actual possession and control of the licensee in its
warehouse or other facility.
(f) Each beer wholesaling licensee shall maintain accounting and other records and documents
as the department may require. Any licensee or person acting for the licensee, who knowingly forges,
falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account or
other documents of the licensee required to be made, maintained, or preserved by this title or the rules
of the commission for the purpose of deceiving the commission[, council,] or the department, or any
of their officials or employees, is subject to the immediate suspension or revocation of the beer
wholesaling license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(g) A licensee may not assign or transfer its license unless the assignment or transfer is done
in accordance with the commission rules and after written consent has been given by the commission.
(h) A licensee may not sell or distribute any alcoholic beverage that is not clearly labeled in
a manner reasonably calculated to put the public on notice that the beverage is an alcoholic beverage.
The beverage shall bear the label "alcoholic beverage" or a manufacturer's label which in common
usage apprises the general public that the beverage contains alcohol.
(2) Failure to comply with the provisions of Subsection (1) may result in suspension or

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revocation of the beer wholesaling license or other disciplinary action taken against individual
employees or management personnel of the licensee.
Section 84. Section 32A-11a-102 is amended to read:
32A-11a-102. Definitions.
As used in this chapter:
(1) "Affected party" means a supplier or wholesaler who is a party to a distributorship
agreement that a terminating party seeks to terminate or not renew.
(2) (a) "Distributorship agreement" means any written contract, agreement, or arrangement
between a supplier and a wholesaler pursuant to which the wholesaler has the right to purchase,
resell, and distribute in a designated geographical area any brand of beer manufactured, imported, or
distributed by the supplier.
(b) A separate agreement between a supplier and a wholesaler that relates to the relationship
between the supplier and the wholesaler or the duties of either of them under a distributorship
agreement is considered to be part of the distributorship agreement for purposes of this chapter.
(c) A distributorship agreement may be for a definite or indefinite period.
(3) "Good cause" means the material failure by a supplier or a wholesaler to comply with an
essential, reasonable, and lawful requirement imposed by a distributorship agreement if the failure
occurs after the supplier or wholesaler acting in good faith provides notice of deficiency and an
opportunity to correct in accordance with Sections 32A-11a-103 and 32A-11a-104 .
(4) "Good faith" is as defined in Section 70A-2-103 .
(5) "Retailer" means a person subject to license under Chapter 10, Beer Retailer Licenses.
(6) "Sales territory" means the geographic area of distribution and sale responsibility
designated by a distributorship agreement.
(7) "Supplier," notwithstanding Section [ 32A-1-107 ] 32A-1-105 , means a brewer or other
person who sells beer to a wholesaler for resale in this state.
(8) "Terminating party" means a supplier or wholesaler who:
(a) is a party to a distributorship agreement; and
(b) seeks to terminate or not renew the distributorship agreement.

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Section 85. Section 32A-12-303 is amended to read:
32A-12-303. Tampering with records.
(1) Any official or employee of the commission[, council,] or the department who has
custody of any writing or record required to be filed or deposited with the commission[, council,] or
the department under this title, and who steals, falsifies, alters, willfully destroys, mutilates, defaces,
removes, or conceals in whole or in part that writing or record, or who knowingly permits any other
person to do so, is guilty of a third degree felony.
(2) Any person not an official or employee of the commission[, council,] or the department
who commits any of the acts specified in Subsection (1) is guilty of a class B misdemeanor.
Section 86. Section 32A-12-304 is amended to read:
32A-12-304. Making false statements.
(1) (a) Any person who makes any false material statement under oath or affirmation in any
official proceeding before the commission[, council,] or the department is guilty of a second degree
felony.
(b) As used in Subsection (1)(a), "material" statement is as defined in Section 76-8-501 .
(2) A person is guilty of a class B misdemeanor if that person knowingly:
(a) makes a false statement under oath or affirmation in any official proceeding before the
commission[, council,] or the department;
(b) makes a false statement with a purpose to mislead a public servant in performing that
servant's official functions under this title;
(c) makes a false statement and the statement is required by this title to be sworn or affirmed
before a notary or other person authorized to administer oaths;
(d) makes a false written statement on or pursuant to any application, form, affidavit, or
document required by this title;
(e) creates a false impression in a written application, form, affidavit, or document required
by this title by omitting information necessary to prevent statements in them from being misleading;
(f) makes a false written statement with intent to deceive a public servant in the performance
of that servant's official functions under this title; or

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(g) submits or invites reliance on any writing or document required under this title which he
knows to be lacking in authenticity.
(3) A person is not guilty under Subsection (2) if that person retracts the falsification before
it becomes apparent that the falsification was or would be exposed.
Section 87. Section 32A-12-305 is amended to read:
32A-12-305. Obstructing an officer making a search or an official proceeding or
investigation.
(1) A person in or having charge of any premises may not refuse or fail to admit to the
premises or obstruct the entry of any member of the commission, [council,] authorized representative
of the commission or department, or any law enforcement officer who demands entry when acting
under this title.
(2) A person is guilty of a second degree felony if, believing that an official proceeding or
investigation is pending or about to be instituted under this title, that person:
(a) alters, destroys, conceals, or removes any writing or record with a purpose to impair its
verity or availability in the proceeding or investigation; or
(b) makes, presents, or uses anything that the person knows to be false with a purpose to
deceive any commissioner, [council member,] department official or employee, law enforcement
official, or other person who may be engaged in a proceeding or investigation under this title.
Section 88. Section 32A-12-306 is amended to read:
32A-12-306. Conflicting interests.
(1) A member of the commission [or council,] or an employee of the department may not be
directly or indirectly interested or engaged in any other business or undertaking dealing in alcoholic
products, whether as owner, part owner, partner, member of syndicate, shareholder, agent, or
employee and whether for the member's own benefit or in a fiduciary capacity for some other person
or entity.
(2) A member of the commission [or council,] or an employee of the department may not
enter into or participate in any business transaction as a partner, co-owner, joint venturer, or
shareholder with any agent, representative, employee, or officer of any supplier of alcoholic products

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to the department.
(3) This section does not prevent the purchase of alcoholic products by any commission [or
council] member or employee of the department as authorized by this title.
Section 89. Section 32A-12-307 is amended to read:
32A-12-307. Interfering with suppliers.
A member of the commission [or council,] or an employee of the department may not directly
or indirectly participate in any manner, by recommendation or otherwise, in the appointment,
employment, or termination of appointment or employment of any agent, representative, employee,
or officer of any manufacturer, supplier, or importer of liquor, wine, or heavy beer to the department
except to determine qualifications for licensing under Chapter 8, Part 5, Local Industry
Representative Licenses, and to enforce compliance with this title.
Section 90. Section 32A-12-308 is amended to read:
32A-12-308. Offering or soliciting bribes or gifts.
(1) A person, association, or corporation having sold, selling, or offering any alcoholic
product for sale to the commission or department may not offer, make, tender, or in any way deliver
or transfer any bribe, gift, or share of profits to any commissioner, the department director, any
department employee, officer, or agent, [any member of the council,] or any law enforcement officer
responsible for the enforcement of this title.
(2) A commissioner, the department director, any department employee, officer, or agent,
[any member of the council,] or any law enforcement officer responsible for the enforcement of this
title may not knowingly solicit, receive, accept, take, or seek, directly or indirectly, any commission,
remuneration, gift, or loan whatsoever from any person, association, or corporation having sold,
selling, or offering any alcoholic product for sale.
(3) A violation of this section is a third degree felony.
(4) No other provision of law supersedes this section.
Section 91. Section 32A-12-310 is amended to read:
32A-12-310. Forgery.
(1) (a) Any person, with a purpose to defraud the commission[, council,] or the department

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or with knowledge that he is facilitating a fraud to be perpetrated by anyone, who forges any writing
required under this title, is guilty of forgery as provided under Section 76-6-501 .
(b) A violation of Subsection (1)(a) is a second degree felony.
(2) Any person, with intent to defraud the commission[, council,] or the department, who
knowingly possesses any writing that is a forgery as defined in Section 76-6-501 , is guilty of a third
degree felony.
Section 92. Section 32A-13-109 is amended to read:
32A-13-109. Authority to inspect.
(1) For purposes of enforcing this title and commission rules, all members of the commission,
[council,] authorized representatives of the commission or department, or any law enforcement or
peace officer shall be accorded access, ingress, and egress to and from all premises or conveyances
used in the manufacture, storage, transportation, service, or sale of any alcoholic product. They also
may open any package containing, or supposed to contain, any article manufactured, sold, or exposed
for sale, or held in possession with intent to sell in violation of this title or commission rules, and may
inspect its contents and take samples of the contents for analysis.
(2) All dealers, clerks, bookkeepers, express agents, railroad and airline officials, common
and other carriers, and their employees shall assist, when so requested by any authorized person
specified in Subsection (1), in tracing, finding, or discovering the presence of any article prohibited
by this title or commission rules to the extent assistance would not infringe upon the person's federal
and state constitutional rights.
Section 93. Section 53-10-102 is amended to read:
53-10-102. Definitions.
As used in this chapter:
(1) "Administration of criminal justice" means performance of any of the following: detection,
apprehension, detention, pretrial release, posttrial release, prosecution, adjudication, correctional
supervision, or rehabilitation of accused persons or criminal offenders.
(2) "Alcoholic beverages" has the same meaning as provided in Section 32A-1-105 .
(3) "Alcoholic products" has the same meaning as provided in Section 32A-1-105 .

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(4) "Commission" means the Alcoholic Beverage Control Commission.
(5) "Communications services" means the technology of reception, relay, and transmission
of information required by public safety agencies in the performance of their duty.
(6) "Conviction record" means criminal history information indicating a record of a criminal
charge which has led to a declaration of guilt of an offense.
[(7) "Council" means the Citizen's Council on Alcoholic Beverage Control.]
[(8)] (7) "Criminal history record information" means information on individuals consisting
of identifiable descriptions and notations of:
(a) arrests, detentions, indictments, informations, or other formal criminal charges, and any
disposition arising from any of them; and
(b) sentencing, correctional supervision, and release.
[(9)] (8) "Criminalist" means the scientific discipline directed to the recognition,
identification, individualization, and evaluation of physical evidence by application of the natural
sciences in law-science matters.
[(10)] (9) "Criminal justice agency" means courts or a government agency or subdivision of
a government agency that administers criminal justice under a statute, executive order, or local
ordinance and that allocates greater than 50% of its annual budget to the administration of criminal
justice.
[(11)] (10) "Department"means the Department of Public Safety.
[(12)] (11) "Director" means the division director appointed under Section 53-10-103 .
[(13)] (12) "Division" means the Criminal Investigations and Technical Services Division
created in Section 53-10-103 .
[(14)] (13) "Executive order" means an order of the president of the United States or the
chief executive of a state that has the force of law and that is published in a manner permitting regular
public access to it.
[(15)] (14) "Forensic" means dealing with the application of scientific knowledge relating to
criminal evidence.
[(16)] (15) "Missing child" means any person under the age of 18 years who is missing from

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his or her home environment or a temporary placement facility for any reason and whose location
cannot be determined by the person responsible for the child's care.
[(17)] (16) "Missing person" has the same meaning as provided in Section 26-2-27 .
[(18)] (17) "Pathogens" means disease-causing agents.
[(19)] (18) "Physical evidence" means something submitted to the bureau to determine the
truth of a matter using scientific methods of analysis.
[(20)] (19) "Qualifying entity" means a business, organization, or a governmental entity which
employs persons who deal with:
(a) national security interests;
(b) care, custody, or control of children;
(c) fiduciary trust over money; or
(d) health care to children or vulnerable adults.
Section 94. Section 53-10-304 is amended to read:
53-10-304. Narcotics and alcoholic beverage enforcement -- Responsibility and
jurisdiction.
The bureau shall:
(1) have specific responsibility for the enforcement of all laws of the state pertaining to
alcoholic beverages and products;
(2) have general law enforcement jurisdiction throughout the state;
(3) have concurrent law enforcement jurisdiction with all local law enforcement agencies and
their officers;
(4) cooperate and exchange information with any other state agency and with other law
enforcement agencies of government, both within and outside this state, to obtain information that
may achieve more effective results in the prevention, detection, and control of crime and apprehension
of criminals;
[(5) cooperate with the council in all matters concerning Title 32A, Alcoholic Beverage
Control Act;]
[(6)] (5) sponsor or supervise programs or projects related to prevention, detection, and

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control of violations of:
(a) Title 32A, Alcoholic Beverage Control Act;
(b) Title 58, Chapter 37, Utah Controlled Substance Act;
(c) Title 58, Chapter 37a, Utah Drug Paraphernalia Act;
(d) Title 58, Chapter 37b, Imitation Controlled Substances Act;
(e) Title 58, Chapter 37c, Utah Controlled Substance Precursor Act; and
(f) Title 58, Chapter 37d, Clandestine Drug Lab Act; and
[(7)] (6) assist the governor in an emergency or as the governor may require.
Section 95. Section 53-10-305 is amended to read:
53-10-305. Duties of bureau chief.
The bureau chief, with the consent of the commissioner, shall do the following:
(1) conduct in conjunction with the state boards of education and higher education in state
schools, colleges, and universities, an educational program concerning alcoholic products, and work
in conjunction with civic organizations, churches, local units of government, and other organizations
in the prevention of alcoholic product and drug violations;
(2) coordinate law enforcement programs throughout the state and accumulate and
disseminate information related to the prevention, detection, and control of violations of this chapter
and Title 32A, Alcoholic Beverage Control Act, as it relates to storage or consumption of alcoholic
beverages on premises maintained by social clubs, recreational, athletic, and kindred associations;
(3) make inspections and investigations as required by the commission and the Department
of Alcoholic Beverage Control;
[(4) consult and cooperate with the council;]
[(5)] (4) perform other acts as may be necessary or appropriate concerning control of the use
of alcoholic beverages and products and drugs; and
[(6)] (5) make reports and recommendations to the Legislature, the governor, the
commissioner, the commission, and the Department of Alcoholic Beverage Control[, and the council]
as may be required or requested.
Section 96. Section 53A-15-205 is amended to read:

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53A-15-205. Disability Determination Services Advisory Council -- Membership --
Duties -- Requirements for DDDS.
(1) As used in this section "council" means the Disability Determination Services Advisory
Council to the State Board for Applied Technology Education, created in Subsection (2).
(2) There is created the Disability Determination Services Advisory Council to act as an
advisory council to the State Board for Applied Technology Education regarding the Division of
Disability Determination Services (DDDS), established under Chapter 24, Part 5.
(3) The council is composed of the following members:
(a) the administrator of DDDS;
(b) a representative of the United States Department of Health and Human Services, Social
Security Administration, appointed by the board; and
(c) nine persons, appointed by the board in accordance with Subsections (5) and (6), who
represent a cross section of:
(i) persons with disabilities;
(ii) advocates for persons with disabilities;
(iii) health care providers;
(iv) representatives of allied state and local agencies; and
(v) representatives of the general public.
(4) The members appointed under Subsections (3)(a) and (3)(b) serve as nonvoting members
of the council.
(5) In appointing the members described in Subsection (3)(c), the board shall:
(a) solicit nominations from organizations and agencies that represent the interests of
members described in that subsection; and
(b) make every effort to create a balance in terms of geography, sex, race, ethnicity, and type
of both mental and physical disabilities.
(6) In making initial appointments of members described in Subsection (3)(c), the board shall
appoint three members for two-year terms, three members for four-year terms, and three members
for six-year terms. All subsequent appointments are for four years. The board shall fill any vacancy

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that occurs on the council for any reason by appointing a person for the unexpired term of the vacated
member. Council members are eligible for one reappointment and serve until their successors are
appointed.
(7) Five voting members of the council constitute a quorum. The action of a majority of a
quorum represents the action of the council.
(8) Members of the council serve without compensation but may be reimbursed for expenses
incurred in the performance of their official duties.
(9) The council shall annually elect a chairperson from among the membership described, and
shall adopt bylaws governing its activities.
(10) The council shall:
(a) advise DDDS and the Social Security Administration regarding its practices and policies
on the determination of claims for social security disability benefits;
(b) participate in the development of new internal practices and procedures of DDDS and of
the policies of the Social Security Administration regarding the evaluation of disability claims;
(c) recommend changes to practices and policies to ensure that DDDS is responsive to
disabled individuals;
(d) review the DDDS budget to ensure that it is adequate to effectively evaluate disability
claims and to meet the needs of persons with disabilities who have claims pending with DDDS; and
(e) review and recommend changes to policies and practices of allied state and federal
agencies, health care providers, and private community organizations.
(11) The council shall annually report to the board, the governor, and the Legislative
Education and Health and Human Services Interim Committees regarding its activities.
(12) To assist the council in its duties, DDDS shall provide the necessary staff assistance to
enable the council to make timely and effective recommendations. That assistance may include, but
is not limited to, developing meeting agendas and minutes, advising the chairpersons of the council
regarding relevant items for council discussion, and providing reports, documents, budgets,
memorandums, statutes, and regulations regarding the management of DDDS.
Section 97. Section 58-37c-19 is amended to read:

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58-37c-19. Possession or sale of crystal iodine.
(1) Any person licensed to engage in a regulated transaction is guilty of a class B
misdemeanor who, under circumstances not amounting to a violation of Subsection 58-37d-4 (1)(c),
offers to sell, sells, or distributes more than two ounces of crystal iodine to another person who is:
(a) not licensed as a regulated purchaser of crystal iodine;
(b) not excepted from licensure; or
(c) not excepted under Subsection (3).
(2) Any person who is not licensed to engage in regulated transactions and not excepted from
licensure is guilty of a class A misdemeanor who, under circumstances not amounting to a violation
of Subsection 58-37c-3 [(10)](12)(k) or Subsection 58-37d-4 (1)(a):
(a) possesses more than two ounces of crystal iodine; or
(b) offers to sell, sells, or distributes crystal iodine to another.
(3) Subsection (2)(a) does not apply to:
(a) a chemistry laboratory maintained by:
(i) a public or private regularly established secondary school; or
(ii) a public or private institution of higher education that is accredited by a regional or
national accrediting agency recognized by the United States Department of Education;
(b) a veterinarian licensed to practice under Title 58, Chapter 28, [Veterinarians] Veterinary
Practice Act; or
(c) a general acute hospital.
Section 98. Section 58-37c-20 is amended to read:
58-37c-20. Possession of ephedrine or pseudoephedrine -- Penalties.
(1) Any person who is not licensed to engage in regulated transactions and not excepted from
licensure who, under circumstances not amounting to a violation of Subsection 58-37c-3 [(10)](12)(k)
or Subsection 58-37d-4 (1)(a), possesses more than 12 grams of ephedrine or pseudoephedrine, their
salts, isomers, or salts of isomers, or a combination of any of these substances, is guilty of a class A
misdemeanor.
(2) (a) It is an affirmative defense to a charge under Subsection (1) that the person in

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possession of ephedrine or pseudoephedrine, or a combination of these two substances:
(i) is a physician, pharmacist, retail distributor, wholesaler, manufacturer, warehouseman, or
common carrier, or an agent of any of these persons; and
(ii) possesses the substances in the regular course of lawful business activities.
(b) (i) The defendant shall provide written notice of intent to claim an affirmative defense
under this section as soon as practicable, but not later than ten days prior to trial. The court may
waive the notice requirement in the interest of justice for good cause shown, if the prosecutor is not
unfairly prejudiced by the lack of timely notice.
(ii) The notice shall include the specifics of the asserted defense.
(iii) The defendant shall establish the affirmative defense by a preponderance of the evidence.
If the defense is established, it is a complete defense to the charges.
(3) This section does not apply to dietary supplements, herbs, or other natural products,
including concentrates or extracts, which:
(a) are not otherwise prohibited by law; and
(b) may contain naturally occurring ephedrine, ephedrine alkaloids, or pseudoephedrine, or
their salts, isomers, or salts of isomers, or a combination of these substances, that:
(i) are contained in a matrix of organic material; and
(ii) do not exceed 15% of the total weight of the natural product.
Section 99. Section 58-56-3 is amended to read:
58-56-3. Definitions.
In addition to the definitions in Section 58-1-102 , as used in this chapter:
(1) "ANSI" means American National Standards Institute, Inc.
(2) "Code(s)" means the NEC, building code, mechanical code, or plumbing code as defined
in this section and as applied in context.
(3) "Commission" means the Uniform Building Code Commission created under this chapter.
(4) "Compliance agency" means an agency of the state or any of its political subdivisions
which issue permits for construction regulated under the codes, or any other agency of the state or
its political subdivisions specifically empowered to enforce compliance with the codes.

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(5) "Factory built housing" means manufactured homes or mobile homes.
[(10)] (6) "Factory built housing set-up contractor" means an individual licensed by the
division to set up or install factory built housing on a temporary or permanent basis. The scope of
the work included under the license includes the placement and or securing of the factory built
housing on a permanent or temporary foundation, securing the units together if required, and
connection of the utilities to the factory built housing unit, but does not include site preparation,
construction of a permanent foundation, and construction of utility services to the near proximity of
the factory built housing unit. If a dealer is not licensed as a factory built housing set up contractor,
that individual must subcontract the connection services to individuals who are licensed by the
division to perform those specific functions under Title 58, Chapter 55, Utah Construction Trades
Licensing Act.
[(6)] (7) "HUD code" means the Federal Manufactured Housing Construction and Safety
Standards Act.
[(7)] (8) "Installation standard" means the standard adopted and published by the National
Conference of States on Building Codes and Standards (NCSBCS), for the installation of
manufactured homes titled "The Standard for Manufactured Home Installations," the accompanying
manufacturer's instructions for the installation of the manufactured home, or such equivalent standard
as adopted by rule.
[(8)] (9) "Local regulator" means each political subdivision of the state which is empowered
to engage in the regulation of construction, alteration, remodeling, building, repair, and other
activities subject to the codes adopted pursuant to this chapter.
[(9)] (10) "Manufactured home" means a transportable factory built housing unit constructed
on or after June 15, 1976, according to the Federal Home Construction and Safety Standards Act of
1974 (HUD Code), in one or more sections, which, in the traveling mode, is eight body feet or more
in width or 40 body feet or more in length, or when erected on site, is 400 or more square feet, and
which is built on a permanent chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities, and includes the plumbing, heating,
air-conditioning, and electrical systems. All manufactured homes constructed on or after June 15,

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1976, shall be identifiable by the manufacturer's data plate bearing the date the unit was manufactured
and a HUD label attached to the exterior of the home certifying the home was manufactured to HUD
standards.
(11) "Mobile home" means a transportable factory built housing unit built prior to June 15,
1976, in accordance with a state mobile home code which existed prior to the Federal Manufactured
Housing and Safety Standards Act (HUD Code).
(12) "Modular unit" means a structure built from sections which are manufactured in
accordance with the construction standards adopted pursuant to Section 58-56-4 and transported to
a building site, the purpose of which is for human habitation, occupancy, or use.
(13) "NEC" means the National Electrical Code.
(14) "Opinion" means a written, nonbinding, and advisory statement issued by the
commission concerning an interpretation of the meaning of the codes or the application of the codes
in a specific circumstance issued in response to a specific request by a party to the issue.
(15) "State regulator" means an agency of the state which is empowered to engage in the
regulation of construction, alteration, remodeling, building, repair, and other activities subject to the
codes adopted pursuant to this chapter.
(16) "Unlawful conduct" is as defined in Subsection 58-1-501 (1) and includes:
(a) engaging in the sale of factory built housing without being registered with the division as
a dealer, unless the sale is exempt under Section 58-56-16 ; and
(b) selling factory built housing within the state as a dealer without collecting and remitting
to the division the fee required by Section 58-56-17 .
(17) "Unprofessional conduct" is as defined in Subsection 58-1-501 (2) and includes:
(a) any nondelivery of goods or services by a registered dealer which constitutes a breach of
contract by the dealer;
(b) the failure of a registered dealer to pay a subcontractor or supplier any amounts to which
that subcontractor or supplier is legally entitled; and
(c) any other activity which is defined as unprofessional conduct by division rule in
accordance with the provisions of Title 63, Chapter 46a, Utah Administrative Rulemaking Act.

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Section 100. Section 58-59-303 is amended to read:
58-59-303. Term of license -- Expiration -- Renewal.
(1) The division shall issue each license under this chapter in accordance with a one-year
renewal cycle established by rule. The division may by rule extend or shorten a renewal period by
as much as six months to stagger the renewal cycles it administers.
(2) At the time of renewal the licensee shall show satisfactory documentation in accordance
with Section [ 58-59-303 ] 58-59-306 of each of the following renewal requirements:
(a) current evidence of financial responsibility; and
(b) current evidence of financial responsibility in all self-funded insurance programs.
(3) Each license automatically expires on the expiration date shown on the license unless
renewed by the licensee in accordance with Section 58-1-308 .
Section 101. Section 58-67-102 is amended to read:
58-67-102. Definitions.
In addition to the definitions in Section 58-1-102 , as used in this chapter:
[(2)] (1) "ACGME" means the Accreditation Council for Graduate Medical Education of the
American Medical Association.
[(1)] (2) "Administrative penalty" means a monetary fine imposed by the division for acts or
omissions determined to constitute unprofessional or unlawful conduct, as a result of an adjudicative
proceeding conducted in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
(3) "Board" means the Physicians Licensing Board created in Section 58-67-201 .
(4) "Diagnose" means:
(a) to examine in any manner another person, parts of a person's body, substances, fluids, or
materials excreted, taken, or removed from a person's body, or produced by a person's body, to
determine the source, nature, kind, or extent of a disease or other physical or mental condition;
(b) to attempt to conduct an examination or determination described under Subsection (4)(a);
(c) to hold oneself out as making or to represent that one is making an examination or
determination as described in Subsection (4)(a); or
(d) to make an examination or determination as described in Subsection (4)(a) upon or from

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information supplied directly or indirectly by another person, whether or not in the presence of the
person making or attempting the diagnosis or examination.
(5) "LCME" means the Liaison Committee on Medical Education of the American Medical
Association.
(6) "Medical assistant" means an unlicensed individual working under the direct and
immediate supervision of a licensed physician and surgeon and engaged in specific tasks assigned by
the licensed physician and surgeon in accordance with the standards and ethics of the profession.
(7) "Physician" means both physicians and surgeons licensed under Section 58-67-301 , Utah
Medical Practice Act, and osteopathic physicians and surgeons licensed under Section 58-68-301 ,
Utah Osteopathic Medical Practice Act.
(8) "Practice of medicine" means:
(a) to diagnose, treat, correct, administer anesthesia, or prescribe for any human disease,
ailment, injury, infirmity, deformity, pain or other condition, physical or mental, real or imaginary, or
to attempt to do so, by any means or instrumentality, and by an individual in Utah or outside the state
upon or for any human within the state, except that conduct described in this Subsection (8)(a) that
is performed by a person legally and in accordance with a license issued under another chapter of this
title does not constitute the practice of medicine;
(b) when a person not licensed as a physician directs a licensee under this chapter to withhold
or alter the health care services that the licensee has ordered, but practice of medicine does not
include any conduct under Subsection 58-67-501 (2);
(c) to maintain an office or place of business for the purpose of doing any of the acts
described in Subsection (8)(a) whether or not for compensation; or
(d) to use, in the conduct of any occupation or profession pertaining to the diagnosis or
treatment of human diseases or conditions in any printed material, stationery, letterhead, envelopes,
signs, or advertisements, the designation "doctor," "doctor of medicine," "physician," "surgeon,"
"physician and surgeon," "Dr.," "M.D.," or any combination of these designations in any manner
which might cause a reasonable person to believe the individual using the designation is a licensed
physician and surgeon, and if the party using the designation is not a licensed physician and surgeon,

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the designation must additionally contain the description of the branch of the healing arts for which
the person has a license.
(9) "Prescription drug or device" means:
(a) a drug or device which, under federal law, is required to be labeled with either of the
following statements or their equivalent:
(i) "CAUTION: Federal law prohibits dispensing without prescription"; or
(ii) "CAUTION: Federal law restricts this drug to use by or on the order of a licensed
veterinarian"; or
(b) a drug or device that is required by any applicable federal or state law or rule to be
dispensed on prescription only or is restricted to use by practitioners only.
(10) "SPEX" means the Special Purpose Examination of the Federation of State Medical
Boards.
(11) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-67-501 .
(12) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-67-502 , and as may
be further defined by division rule.
Section 102. Section 58-68-102 is amended to read:
58-68-102. Definitions.
In addition to the definitions in Section 58-1-102 , as used in this chapter:
[(2)] (1) "ACGME" means the Accreditation Council for Graduate Medical Education of the
American Medical Association.
[(1)] (2) "Administrative penalty" means a monetary fine imposed by the division for acts or
omissions determined to constitute unprofessional or unlawful conduct, as a result of an adjudicative
proceeding conducted in accordance with Title 63, Chapter 46b, Administrative Procedures Act.
(3) "AOA" means the American Osteopathic Association.
(4) "Board" means the Osteopathic Physicians Licensing Board created in Section 58-68-201 .
(5) "Diagnose" means:
(a) to examine in any manner another person, parts of a person's body, substances, fluids, or
materials excreted, taken, or removed from a person's body, or produced by a person's body, to

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determine the source, nature, kind, or extent of a disease or other physical or mental condition;
(b) to attempt to conduct an examination or determination described under Subsection (5)(a);
(c) to hold oneself out as making or to represent that one is making an examination or
determination as described in Subsection (5)(a); or
(d) to make an examination or determination as described in Subsection (5)(a) upon or from
information supplied directly or indirectly by another person, whether or not in the presence of the
person making or attempting the diagnosis or examination.
(6) "Medical assistant" means an unlicensed individual working under the direct and
immediate supervision of a licensed osteopathic physician and surgeon and engaged in specific tasks
assigned by the licensed osteopathic physician and surgeon in accordance with the standards and
ethics of the profession.
(7) "Physician" means both physicians and surgeons licensed under Section 58-67-301 , Utah
Medical Practice Act, and osteopathic physicians and surgeons licensed under Section 58-68-301 ,
Utah Osteopathic Medical Practice Act.
(8) "Practice of osteopathic medicine" means:
(a) to diagnose, treat, correct, administer anesthesia, or prescribe for any human disease,
ailment, injury, infirmity, deformity, pain, or other condition, physical or mental, real or imaginary,
or to attempt to do so, by any means or instrumentality, which in whole or in part is based upon
emphasis of the importance of the musculoskeletal system and manipulative therapy in the
maintenance and restoration of health, by an individual in Utah or outside of the state upon or for any
human within the state, except that conduct described in this Subsection (8)(a) that is performed by
a person legally and in accordance with a license issued under another chapter of this title does not
constitute the practice of medicine;
(b) when a person not licensed as a physician directs a licensee under this chapter to withhold
or alter the health care services that the licensee has ordered, but practice of medicine does not
include any conduct under Subsection 58-68-501 (2);
(c) to maintain an office or place of business for the purpose of doing any of the acts
described in Subsection (8)(a) whether or not for compensation; or

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(d) to use, in the conduct of any occupation or profession pertaining to the diagnosis or
treatment of human diseases or conditions, in any printed material, stationery, letterhead, envelopes,
signs, or advertisements, the designation "doctor," "doctor of osteopathic medicine," "osteopathic
physician," "osteopathic surgeon," "osteopathic physician and surgeon," "Dr.," "D.O.," or any
combination of these designations in any manner which might cause a reasonable person to believe
the individual using the designation is a licensed osteopathic physician, and if the party using the
designation is not a licensed osteopathic physician, the designation must additionally contain the
description of the branch of the healing arts for which the person has a license.
(9) "Prescription drug or device" means:
(a) a drug or device which, under federal law, is required to be labeled with either of the
following statements or their equivalent:
(i) "CAUTION: Federal law prohibits dispensing without prescription"; or
(ii) "CAUTION: Federal law restricts this drug to use by or on the order of a licensed
veterinarian"; or
(b) a drug or device that is required by any applicable federal or state law or rule to be
dispensed on prescription only or is restricted to use by practitioners only.
(10) "SPEX" means the Special Purpose Examination of the Federation of State Medical
Boards.
(11) "Unlawful conduct" is as defined in Sections 58-1-501 and 58-68-501 .
(12) "Unprofessional conduct" is as defined in Sections 58-1-501 and 58-68-502 and as may
be further defined by division rule.
Section 103. Section 59-2-601 is amended to read:
59-2-601. Definitions.
As used in this part:
(1) "Manufactured home" means a transportable factory built housing unit constructed on
or after June 15, 1976, according to the Federal Home Construction and Safety Standards Act of
1974 (HUD Code), in one or more sections, which, in the traveling mode, is eight body feet or more
in width or 40 body feet or more in length, or when erected on site, is 400 or more square feet, and

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which is built on a permanent chassis and designed to be used as a dwelling with or without a
permanent foundation when connected to the required utilities, and includes the plumbing, heating,
air-conditioning, and electrical systems.
(2) "Mobile home" means a transportable factory built housing unit built prior to June 15,
1976, in accordance with a state mobile home code which existed prior to the Federal Manufactured
Housing and Safety Standards Act (HUD Code).
(3) "Permanently affixed" means anchored to, and supported by, a permanent foundation or
installed in accordance with an installation standard as defined in Subsection 58-56-3 [(7)](8).
Section 104. Section 62A-7-109 is amended to read:
62A-7-109. Youth Parole Authority -- Expenses -- Responsibilities -- Procedures.
(1) There is created within the division a Youth Parole Authority.
(2) The authority is composed of ten part-time members and five pro tempore members who
are residents of this state. No more than three pro tempore members may serve on the authority at
any one time. Throughout this section, the term "member" shall refer to both part-time and pro
tempore members of the Youth Parole Authority.
(3) (a) Except as required by Subsection (3)(b), members shall be appointed to four-year
terms by the governor with the advice and consent of the Senate.
(b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the time
of appointment or reappointment, adjust the length of terms to ensure that the terms of authority
members are staggered so that approximately half of the authority is appointed every two years.
(4) Each member shall have training or experience in social work, law, juvenile or criminal
justice, or related behavioral sciences.
(5) When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term.
(6) During the tenure of his appointment, a member may not:
(a) be an employee of the department, other than in his capacity as a member of the authority;
(b) hold any public office;
(c) hold any position in the state's juvenile justice system; or

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(d) be an employee, officer, advisor, policy board member, or subcontractor of any juvenile
justice agency or its contractor.
(7) In extraordinary circumstances or when a regular board member is absent or otherwise
unavailable, the chair may assign a pro tempore member to act in [their] the absent board member's
place.
(8) (a) Members shall receive no compensation or benefits for their services, but may receive
per diem and expenses incurred in the performance of the member's official duties at the rates
established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
(b) Members may decline to receive per diem and expenses for their service.
(9) The authority shall determine appropriate parole dates for youth offenders, based on
guidelines established by the board. The board shall review and update policy guidelines annually.
(10) Youth offenders may be paroled to their own homes, to a residential community-based
program, to a nonresidential community-based treatment program, to an approved independent living
setting, or to other appropriate residences, but shall remain on parole until parole is terminated by the
authority.
(11) The division's case management staff shall implement parole release plans and shall
supervise youth offenders while on parole.
(12) The division shall permit the authority to have reasonable access to youth offenders in
secure facilities and shall furnish all pertinent data requested by the authority in matters of parole,
revocation, and termination.
Section 105. Section 62A-12-282.1 is amended to read:
62A-12-282.1. Residential and inpatient settings -- Commitment proceeding -- Child
in physical custody of local mental health authority.
(1) A child may receive services from a local mental health authority in an inpatient or
residential setting only after a commitment proceeding, for the purpose of transferring physical
custody, has been conducted in accordance with the requirements of this section.
(2) That commitment proceeding shall be initiated by a petition for commitment, and shall
be a careful, diagnostic inquiry, conducted by a neutral and detached fact finder, pursuant to the

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procedures and requirements of this section. If the findings described in Subsection (4) exist, the
proceeding shall result in the transfer of physical custody to the appropriate local mental health
authority, and the child may be placed in an inpatient or residential setting.
(3) The neutral and detached fact finder who conducts the inquiry:
(a) shall be a designated examiner, as defined in Subsection 62A-12-202 (3); and
(b) may not profit, financially or otherwise, from the commitment or physical placement of
the child in that setting.
(4) Upon determination by the fact finder that the following circumstances clearly exist, he
may order that the child be committed to the physical custody of a local mental health authority:
(a) the child has a mental illness, as defined in Subsection 62A-12-202 (8);
(b) the child demonstrates a risk of harm to himself or others;
(c) the child is experiencing significant impairment in his ability to perform socially;
(d) the child will benefit from care and treatment by the local mental health authority; and
(e) there is no appropriate less-restrictive alternative.
(5) (a) The commitment proceeding before the neutral and detached fact finder shall be
conducted in as informal manner as possible, and in a physical setting that is not likely to have a
harmful effect on the child.
(b) The child, the child's parent or legal guardian, the person who submitted the petition for
commitment, and a representative of the appropriate local mental health authority shall all receive
informal notice of the date and time of the proceeding. Those parties shall also be afforded an
opportunity to appear and to address the petition for commitment.
(c) The neutral and detached fact finder may, in his discretion, receive the testimony of any
other person.
(d) The fact finder may allow the child to waive his right to be present at the commitment
proceeding, for good cause shown. If that right is waived, the purpose of the waiver shall be made
a matter of record at the proceeding.
(e) At the time of the commitment proceeding, the appropriate local mental health authority,
its designee, or the psychiatrist who has been in charge of the child's care prior to the commitment

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proceeding, shall provide the neutral and detached fact finder with the following information, as it
relates to the period of current admission:
(i) the petition for commitment;
(ii) the admission notes;
(iii) the child's diagnosis;
(iv) physicians' orders;
(v) progress notes;
(vi) nursing notes; and
(vii) medication records.
(f) The information described in Subsection (5)(e) shall also be provided to the child's parent
or legal guardian upon written request.
(g) (i) The neutral and detached fact finder's decision of commitment shall state the duration
of the commitment. Any commitment to the physical custody of a local mental health authority may
not exceed 180 days. Prior to expiration of the commitment, and if further commitment is sought,
a hearing shall be conducted in the same manner as the initial commitment proceeding, in accordance
with the requirements of this section.
(ii) When a decision for commitment is made, the neutral and detached fact finder shall inform
the child and his parent or legal guardian of that decision, and of the reasons for ordering commitment
at the conclusion of the hearing, and also in writing.
(iii) The neutral and detached fact finder shall state in writing the basis of his decision, with
specific reference to each of the criteria described in Subsection (4), as a matter of record.
(6) Absent the procedures and findings required by this section, a child may be temporarily
committed to the physical custody of a local mental health authority only in accordance with the
emergency procedures described in Subsection 62A-12-232 (1) or (2). A child temporarily committed
in accordance with those emergency procedures may be held for a maximum of 72 hours, excluding
Saturdays, Sundays, and legal holidays. At the expiration of that time period, the child shall be
released unless the procedures and findings required by this section have been satisfied.
(7) A local mental health authority shall have physical custody of each child committed to it

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under this section. The parent or legal guardian of a child committed to the physical custody of a
local mental health authority under this section, retains legal custody of the child, unless legal custody
has been otherwise modified by a court of competent jurisdiction. In cases when the Division of Child
and Family Services or the Division of Youth Corrections has legal custody of a child, that division
shall retain legal custody for purposes of this part.
(8) The cost of caring for and maintaining a child in the physical custody of a local mental
health authority shall be assessed to and paid by the child's parents, according to their ability to pay.
For purposes of this section, the Division of Child and Family Services or the Division of Youth
Corrections shall be financially responsible, in addition to the child's parents, if the child is in the legal
custody of either of those divisions at the time the child is committed to the physical custody of a
local mental health authority under this section, unless Medicaid regulation or contract provisions
specify otherwise. The Office of Recovery Services shall assist those divisions in collecting the costs
assessed pursuant to this section.
(9) Whenever application is made for commitment of a minor to a local mental health
authority under any provision of this section by a person other than the child's parent or guardian,
the local mental health authority or its designee shall notify the child's parent or guardian. The
parents shall be provided sufficient time to prepare and appear at any scheduled proceeding.
(10) (a) Each child committed pursuant to this section is entitled to an appeal within 30 days
after any order for commitment. The appeal may be brought on the child's own petition, or that of
his parent or legal guardian, to the juvenile court in the district where the child resides or is currently
physically located. With regard to a child in the custody of the Division of Child and Family Services
or the Division of Youth Corrections, the attorney general's office shall handle the appeal, otherwise
the appropriate county attorney's office is responsible for appeals brought pursuant to this Subsection
(10)(a).
(b) Upon receipt of the petition for appeal, the court shall appoint a designated examiner
previously unrelated to the case, to conduct an examination of the child in accordance with the
criteria described in Subsection (4), and file a written report with the court. The court shall then
conduct an appeal hearing to determine whether the findings described in Subsection (4) exist by clear

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and convincing evidence.
(c) Prior to the time of the appeal hearing, the appropriate local mental health authority, its
designee, or the mental health professional who has been in charge of the child's care prior to
commitment, shall provide the court and the designated examiner for the appeal hearing with the
following information, as it relates to the period of current admission:
(i) the original petition for commitment;
(ii) admission notes;
(iii) diagnosis;
(iv) physicians' orders;
(v) progress notes;
(vi) nursing notes; and
(vii) medication records.
(d) Both the neutral and detached fact finder and the designated examiner appointed for the
appeal hearing shall be provided with an opportunity to review the most current information described
in Subsection (10)(c) prior to the appeal hearing.
(e) The child, his parent or legal guardian, the person who submitted the original petition for
commitment, and a representative of the appropriate local mental health authority shall be notified
by the court of the date and time of the appeal hearing. Those persons shall be afforded an
opportunity to appear at the hearing. In reaching its decision, the court shall review the record and
findings of the neutral and detached fact finder, the report of the designated examiner appointed
pursuant to Subsection (10)(b), and may, in its discretion, allow or require the testimony of the
neutral and detached fact finder, the designated examiner, the child, the child's parent or legal
guardian, the person who brought the initial petition for commitment, or any other person whose
testimony the court deems relevant. The court may allow the child to waive his right to appear at the
appeal hearing, for good cause shown. If that waiver is granted, the purpose shall be made a part of
the court's record.
(11) Each local mental health authority has an affirmative duty to conduct periodic
evaluations of the mental health and treatment progress of every child committed to its physical

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custody under this section, and to release any child who has sufficiently improved so that the criteria
justifying commitment no longer exist.
(12) (a) A local mental health authority or its designee, in conjunction with the child's current
treating mental health professional may release an improved child to a less restrictive environment,
as they determine appropriate. Whenever the local mental health authority or its designee, and the
child's current treating mental health professional, determine that the conditions justifying
commitment no longer exist, the child shall be discharged and released to his parent or legal guardian.
With regard to a child who is in the physical custody of the State Hospital, the treating psychiatrist
or clinical director of the State Hospital shall be the child's current treating mental health professional.
(b) A local mental health authority or its designee, in conjunction with the child's current
treating mental health professional, is authorized to issue a written order for the immediate placement
of a child not previously released from an order of commitment into a more restrictive environment,
if the local authority or its designee and the child's current treating mental health professional has
reason to believe that the less restrictive environment in which the child has been placed is
exacerbating his mental illness, or increasing the risk of harm to himself or others.
(c) The written order described in Subsection (12)(b) shall include the reasons for placement
in a more restrictive environment and shall authorize any peace officer to take the child into physical
custody and transport him to a facility designated by the appropriate local mental health authority in
conjunction with the child's current treating mental health professional. Prior to admission to the
more restrictive environment, copies of the order shall be personally delivered to the child, his parent
or legal guardian, the administrator of the more restrictive environment, or his designee, and the
child's former treatment provider or facility.
(d) If the child has been in a less restrictive environment for more than 30 days and is
aggrieved by the change to a more restrictive environment, the child or his representative may request
a review within 30 days of the change, by a neutral and detached fact finder as described in
Subsection (3). The fact finder shall determine whether:
(i) the less restrictive environment in which the child has been placed is exacerbating his
mental illness, or increasing the risk of harm to himself or others; or

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(ii) the less restrictive environment in which the child has been placed is not exacerbating his
mental illness, or increasing the risk of harm to himself or others, in which case the fact finder shall
designate that the child remain in the less restrictive environment.
(e) Nothing in this section prevents a local mental health authority or its designee, in
conjunction with the child's current mental health professional, from discharging a child from
commitment or from placing a child in an environment that is less restrictive than that designated by
the neutral and detached fact finder.
(13) Each local mental health authority or its designee, in conjunction with the child's current
treating mental health professional shall discharge any child who, in the opinion of that local authority,
or its designee, and the child's current treating mental health professional, no longer meets the criteria
specified in Subsection (4), except as provided by Section 78-3a-121. The local authority and the
mental health professional shall assure that any further supportive services required to meet the child's
needs upon release will be provided.
(14) Even though a child has been committed to the physical custody of a local mental health
authority pursuant to this section, the child is still entitled to additional due process proceedings, in
accordance with Section 62A-12-283.1 , before any treatment which may affect a constitutionally
protected liberty or privacy interest is administered. Those treatments include, but are not limited to,
antipsychotic medication, electroshock therapy, and psychosurgery.
Section 106. Section 63-25a-501 is amended to read:
63-25a-501. Definitions.
As used in this part:
(1) "Commission" means the Commission on Criminal and Juvenile Justice.
(2) "Executive director" means the executive director of the Commission on Criminal and
Juvenile Justice.
(3) "Local criminal justice agency" means each county and municipal law enforcement
agency.
(4) "State criminal justice agency" means the Department of Public Safety, Department of
Corrections, the Division of Youth Corrections, [and] or the Administrative Office of the Courts.

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Section 107. Section 63-55-209 is amended to read:
63-55-209. Repeal dates, Title 9.
(1) Title 9, Chapter 1, Part 8, Commission on National and Community Service Act, is
repealed July 1, 2004.
[(2) Title 9, Chapter 2, Part 3, Small Business Advisory Council, is repealed July 1, 1999.]
[(3)] (2) Title 9, Chapter 2, Part 4, Enterprise Zone Act, is repealed July 1, 2008.
[(5)] (3) Section 9-2-1208 regarding waste tire recycling loans is repealed July 1, 2000.
[(6)] (4) Title 9, Chapter 2, Part 16, Recycling Market Development Zone Act, is repealed
July 1, 2000, and Sections 59-7-610 and 59-10-108.7 are repealed for tax years beginning on or after
January 1, 2001.
[(7)] (5) Title 9, Chapter 3, Part 3, Heber Valley Historic Railroad Authority, is repealed July
1, 2009.
[(8) Title 9, Chapter 4, Part 4, Disaster Relief, is repealed July 1, 1999.]
[(9)] (6) Title 9, Chapter 4, Part 9, Utah Housing Finance Agency Act, is repealed July 1,
2006.
[(4)] (7) Title 9, Chapter 13, Utah Technology and Small Business Finance Act, is repealed
July 1, 2002.
Section 108. Section 63-55-254 is amended to read:
63-55-254. Repeal dates, Title 54.
[Section 54-3-8.1 is repealed December 31, 1999.]
Section 109. Section 63-55-262 is amended to read:
63-55-262. Repeal dates, Title 62A.
[Title 62A, Chapter 3, Part 4, Reverse Mortgage Services, is repealed July 1, 1998.]
Section 110. Section 63-55-263 is amended to read:
63-55-263. Repeal dates, Titles 63, 63A, and 63C.
(1) (a) Title 63, Chapter 25a, Part 1, Commission on Criminal and Juvenile Justice, is
repealed July 1, 2002.
(b) Title 63, Chapter 25a, Part 3, Sentencing Commission, is repealed January 1, 2002.

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(2) The Crime Victims' Reparations Board, created in Section 63-25a-404 , is repealed July
1, 2007.
(3) The Resource Development Coordinating Committee, created in Section 63-28a-2 , is
repealed July 1, 2004.
(4) Title 63, Chapter 38c, State Appropriations and Tax Limitation Act, is repealed July 1,
2005.
(5) Title 63, Chapter 75, Families, Agencies, and Communities Together for Children and
Youth At Risk Act, is repealed July 1, 2001.
(6) Title 63, Chapter 88, Navajo Trust Fund, is repealed July 1, 2000.
(7) Sections 63A-4-204 and 63A-4-205 , authorizing the Risk Management Fund to provide
coverage to nonstate entities, are repealed July 1, 2001.
(8) Title 63A, Chapter 7, Utah Sports Authority Act, is repealed July 1, 2003.
(9) Title 63A, Chapter 10, State Olympic Coordination Act, is repealed July 1, 2003.
(10) The Utah Health Policy Commission, created in Title 63C, Chapter 3, is repealed July
1, 2001.
[(11) The Utah Pioneer Sesquicentennial Celebration Coordinating Council created in Section
63C-5-102 is repealed June 30, 1998.]
Section 111. Section 63-55b-163 is amended to read:
63-55b-163. Repeal dates -- Title 63, Title 63D.
[(1)] Sections 63-63b-101 and 63-63b-102 are repealed on July 1, 2002.
[(2) Section 63D-1-301.6 is repealed January 1, 1999.]
Section 112. Section 63-75-7 is amended to read:
63-75-7. Evaluation of programs -- Report to legislative interim committee.
(1) At the end of each fiscal year, a final report shall be submitted to the council summarizing
the outcome of each project under this chapter.
(2) (a) The council may conduct an independent evaluation of any or all of the projects to
assess the status of services provided and identified outcomes.
(b) The council shall prepare and deliver a report on the program to the Legislature's

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Education, Health[,] and Human Services, and Judiciary Interim Committees prior to each annual
general session.
(c) The report shall include a recommendation by the council as to whether the program
should be terminated, continued, or expanded.
Section 113. Section 63A-9-801 is amended to read:
63A-9-801. State surplus property program -- Definitions -- Administration.
(1) As used in this section:
(a) "Agency" means:
(i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
Control, Commerce, Community and Economic Development, Corrections, Workforce Services,
Health, Human Resource Management, Human Services, Insurance, Natural Resources, Public
Safety, and Transportation and the Labor Commission;
(ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime Victim
Reparations, Rehabilitation, and Treasurer;
(iii) the Public Service Commission and State Tax Commission;
(iv) the State Boards of Education, Pardons and Parole, and Regents;
(v) the Career Service Review Board [and the Citizens' Council on Alcoholic Beverage
Control];
(vi) other state agencies designated by the governor;
(vii) the legislative branch, the judicial branch, and the State Board of Regents; and
(viii) an institution of higher education, its president, and its board of trustees for purposes
of Section 63A-9-802 .
(b) "Division" means the Division of Fleet Operations.
(c) "Information technology equipment" means any equipment that is designed to
electronically manipulate, store, or transfer any form of data.
(d) "Inventory property" means property in the possession of the division that is available for
purchase by an agency or the public.
(e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .

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(f) (i) "Surplus property" means property purchased by, seized by, or donated to, an agency
that the agency wishes to dispose of.
(ii) "Surplus property" does not mean real property.
(g) "Transfer" means transfer of surplus property without cash consideration.
(2) (a) The division shall make rules establishing a state surplus property program that meets
the requirements of this chapter by following the procedures and requirements of Title 63, Chapter
46a, Utah Administrative Rulemaking Act.
(b) Those rules shall include:
(i) a requirement prohibiting the transfer of surplus property from one agency to another
agency without written approval from the division;
(ii) procedures and requirements governing division administration requirements that an
agency must follow;
(iii) requirements governing purchase priorities;
(iv) requirements governing accounting, reimbursement, and payment procedures;
(v) procedures for collecting bad debts;
(vi) requirements and procedures for disposing of firearms;
(vii) the elements of the rates or other charges assessed by the division for services and
handling;
(viii) procedures governing the timing and location of public sales of inventory property; and
(ix) procedures governing the transfer of information technology equipment by state agencies
directly to public schools.
(c) The division shall report all transfers of information technology equipment by state
agencies to public schools to the state's Information Technology Commission and to the Legislative
Interim Education Committee at the end of each fiscal year.
(3) In creating and administering the program, the division shall:
(a) when conditions, inventory, and demand permit:
(i) establish facilities to store inventory property at geographically dispersed locations
throughout the state; and

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(ii) hold public sales of property at geographically dispersed locations throughout the state;
(b) establish, after consultation with the agency requesting the sale of surplus property, the
price at which the surplus property shall be sold; and
(c) transfer proceeds arising from the sale of state surplus property to the agency requesting
the sale in accordance with the Budgetary Procedures Act, less an amount established by the division
by rule to pay the costs of administering the surplus property program.
(4) Unless specifically exempted from this chapter by explicit reference to this chapter, each
state agency shall dispose of and acquire surplus property only by participating in the division's
program.
Section 114. Section 63C-8-101 is amended to read:
63C-8-101. Definitions.
As used in this chapter:
[(2)] (1) "Accredited clinical education program" means a clinical education program for a
health care profession that is accredited by the Accreditation Council on Graduate Medical Education.
[(1)] (2) "Accredited clinical training program" means a clinical training program that is
accredited by an entity recognized within medical education circles as an accrediting body for medical
education, advanced practice nursing education, physician assistance education, or doctor of
pharmacy education.
(3) "Council" means the Medical Education Council created under Section 63C-8-103 .
(4) "Health Care Financing Administration" means the Health Care Financing Administration
within the United States Department of Health and Human Services.
(5) "Health care professionals in training" means medical students and residents, advance
practice nursing students, physician assistant students, and doctor of pharmacy students.
(6) "Program" means the Medical Education Program created under Section 63C-8-102 .
Section 115. Section 76-8-508 is amended to read:
76-8-508. Tampering with witness -- Retaliation against witness or informant --
Bribery -- Communicating a threat.
(1) A person is guilty of a third degree felony if, believing that an official proceeding or

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investigation is pending or about to be instituted, he attempts to induce or otherwise cause a person
to:
(a) testify or inform falsely;
(b) withhold any testimony, information, document, or item;
(c) elude legal process summoning him to provide evidence; or
(d) absent himself from any proceeding or investigation to which he has been summoned.
(2) A person is guilty of a third degree felony if he:
(a) commits any unlawful act in retaliation for anything done by another as a witness or
informant;
(b) solicits, accepts, or agrees to accept any benefit in consideration of his doing any of the
acts specified under Subsection (1); or
(c) communicates to a person a threat that a reasonable person would believe to be a threat
to do bodily injury to the person, because of any act performed or to be performed by the person in
his capacity as a witness or informant in an official proceeding or investigation.
Section 116. Section 76-9-704 is amended to read:
76-9-704. Abuse or desecration of a dead human body -- Penalties.
(1) For purposes of this section, "dead human body" includes any part of a human body in
any stage of decomposition, including ancient human remains.
(2) A person is guilty of abuse or desecration of a dead human body if the person
intentionally and unlawfully:
(a) fails to report the finding of a dead human body to a local law enforcement agency;
(b) disturbs, moves, removes, conceals, or destroys a dead human body or any part of it;
(c) disinters a buried or otherwise interred dead human body, without authority of a court
order;
(d) dismembers a dead human body to any extent, or damages or detaches any part or portion
of a dead human body; or
(e) commits, or attempts to commit upon any dead human body sexual penetration or
intercourse, object rape, sodomy, or object sodomy, as these acts are described in [Title 76,] Chapter

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5, Offenses Against the Person.
(3) A person does not violate this section if when that person directs or carries out
procedures regarding a dead human body, that person complies with:
[(f)] (a) Title 9, Chapter 8, Part 3, Antiquities[.];
[(c)] (b) Title 26, Chapter 4, Utah Medical Examiner Act;
[(b)] (c) Title 26, Chapter 28, Uniform Anatomical Gift Act;
[(e)] (d) Title 53B, Chapter 17, Part 3, Use of Dead Bodies for Medical Purposes; [or]
[(a)] (e) Title 58, Chapter 9, Funeral Services Licensing Act; or
[(d)] (f) Title 58, Chapter 67, Utah Medical Practice Act, which concerns licensing to
practice medicine[;].
(4) (a) Failure to report the finding of a dead human body as required under Subsection (2)(a)
is a class B misdemeanor.
(b) Abuse or desecration of a dead human body as described in Subsections (2)(b) through
(e) is a third degree felony.
Section 117. Section 76-10-105.1 is amended to read:
76-10-105.1. Requirement of direct, face-to-face sale of tobacco products.
(1) As used in this section:
(a) (i) "Cigarette" means any product which contains nicotine, is intended to be burned under
ordinary conditions of use, and consists of:
(A) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
(B) any roll of tobacco wrapped in any substance containing tobacco which, because of its
appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be offered
to, or purchased by, consumers as a cigarette described in Subsection (1)(a)(i).
(ii) "Cigarette" does not include a standard 60 carton case.
(b) "Cigarette tobacco" means any product that consists of loose tobacco that contains or
delivers nicotine and is intended for use by consumers in a cigarette. Unless otherwise stated, the
requirements pertaining to cigarettes shall also apply to cigarette tobacco.
(c) "Retailer" means any person who sells cigarettes or smokeless tobacco to individuals for

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personal consumption or who operates a facility where vending machines or self-service displays are
permitted under this section.
(d) "Self-service display" means any display of cigarettes or smokeless tobacco products to
which the public has access without the intervention of a retail employee.
(e) "Smokeless tobacco" means any product that consists of cut, ground, powdered, or leaf
tobacco that contains nicotine and that is intended to be placed in the oral cavity. "Smokeless
tobacco" does not include multi-container packs of smokeless tobacco.
(2) (a) Except as provided in Subsection (3), a retailer may sell cigarettes and smokeless
tobacco only in a direct, face-to-face exchange between the retailer and the consumer. Examples of
methods that are not permitted include vending machines and self-service displays.
(b) Subsection (2)(a) does not prohibit the use or display of locked cabinets containing
cigarettes or smokeless tobacco if the locked cabinets are only accessible to the retailer or its
employees.
(3) The following sales are permitted as exceptions to Subsection (2):
(a) mail-order sales, excluding mail-order redemption of coupons and distribution of free
samples through the mail; and
(b) vending machines, including vending machines that sell packaged, single cigarettes, and
self-service displays that are located in a separate and defined area within a facility where the retailer
ensures that no person younger than [under] 19 years of age is present, or permitted to enter, at any
time, unless accompanied by a parent or legal guardian.
(4) Any ordinance, regulation, or rule adopted by the governing body of a political
subdivision or state agency that affects the sale, placement, or display of cigarettes or smokeless
tobacco that is not essentially identical to the provisions of this section and Section 76-10-102 is
superceded.
(5) A parent or legal guardian who accompanies a person younger than 19 years of age into
an area described in Subsection (3)(b) and permits the person younger than 19 years of age to
purchase or otherwise take a cigar, cigarette, or tobacco in any form is guilty of furnishing tobacco
as provided for in Section 76-10-104 and the penalties provided for in that section.

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(6) Violation of Subsection (2) or (3) is a:
(a) class C misdemeanor on the first offense;
(b) class B misdemeanor on the second offense; and
(c) class A misdemeanor on the third and all subsequent offenses.
Section 118. Section 76-10-803 is amended to read:
76-10-803. "Public nuisance" defined.
(1) A public nuisance is a crime against the order and economy of the state and consists in
unlawfully doing any act or omitting to perform any duty, which act or omission:
(a) annoys, injures, or endangers the comfort, repose, health, or safety of three or more
persons;
(b) offends public decency;
(c) unlawfully interferes with, obstructs, or tends to obstruct, or renders dangerous for
passage, any lake, stream, canal, or basin, or any public park, square, street, or highway;
(d) is a nuisance as defined in Section 78-38-9 ; or
(e) in any way renders three or more persons insecure in life or the use of property.
(2) An act which affects three or more persons in any of the ways specified in this section is
still a nuisance regardless of the extent [of] to which the annoyance or damage inflicted on individuals
is unequal.
Section 119. Section 76-10-1305 is amended to read:
76-10-1305. Exploiting prostitution.
(1) A person is guilty of exploiting prostitution if he:
(a) procures an inmate for a house of prostitution or place in a house of prostitution for one
who would be an inmate;
(b) encourages, induces, or otherwise purposely causes another to become or remain a
prostitute;
(c) transports a person into or within this state with a purpose to promote that person's
engaging in prostitution or procuring or paying for transportation with that purpose;
(d) not being a child or legal [defendant] dependent of a prostitute, shares the proceeds of

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prostitution with a prostitute pursuant to their understanding that he is to share therein; or
(e) owns, controls, manages, supervises, or otherwise keeps, alone or in association with
another, a house of prostitution or a prostitution business.
(2) Exploiting prostitution is a felony of the third degree.
Section 120. Section 76-10-1902 is amended to read:
76-10-1902. Definitions.
As used in this part:
(1) "Bank" means each agent, agency, or office in this state of any person doing business in
any one of the following capacities:
(a) a commercial bank or trust company organized under the laws of this state or of the
United States;
(b) a private bank;
(c) a savings and loan association or a building and loan association organized under the laws
of this state or of the United States;
(d) an insured institution as defined in Section 401 of the National Housing Act;
(e) a savings bank, industrial bank, or other thrift institution;
(f) a credit union organized under the laws of this state or of the United States; or
(g) any other organization chartered under Title 7, Financial Institutions, and subject to the
supervisory authority set forth in that title.
(2) "Conducts" includes initiating, concluding, or participating in initiating or concluding a
transaction.
(3) (a) "Currency" means the coin and paper money of the United States or of any other
country that is designated as legal tender, that circulates, and is customarily used and accepted as a
medium of exchange in the country of issuance.
(b) "Currency" includes United States silver certificates, United States notes, Federal Reserve
notes, and foreign bank notes customarily used and accepted as a medium of exchange in a foreign
country.
(4) "Financial institution" means any agent, agency, branch, or office within this state of any

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person doing business, whether or not on a regular basis or as an organized business concern, in one
or more of the following capacities:
(a) a bank, except bank credit card systems;
(b) a broker or dealer in securities;
(c) a currency dealer or exchanger, including a person engaged in the business of check
cashing;
(d) an issuer, seller, or redeemer of travelers checks or money orders, except as a selling
agent exclusively who does not sell more than $150,000 of the instruments within any 30-day period;
(e) a licensed transmitter of funds or other person engaged in the business of transmitting
funds;
(f) a telegraph company;
(g) a person subject to supervision by any state or federal supervisory authority; or
(h) the United States Postal Service regarding the sale of money orders.
(5) "Financial transaction" means a transaction:
(a) involving the movement of funds by wire or other means or involving one or more
monetary instruments, which in any way or degree affects commerce; or
(b) involving the use of a financial institution that is engaged in, or its activities affect
commerce in any way or degree.
(6) The phrase "knows that the property involved represents the proceeds of some form of
unlawful activity" means that the person knows or it was represented to the person that the property
involved represents proceeds from a form of activity, although the person does not necessarily know
which form of activity, that constitutes a crime under state or federal law, regardless of whether or
not the activity is specified in Subsection [(13)] (12).
(7) "Monetary instruments" means coins or currency of the United States or of any other
country, travelers checks, personal checks, bank checks, money orders, and investment securities or
negotiable instruments in bearer form or in other form so that title passes upon delivery.
(8) "Person" means an individual, corporation, partnership, trust or estate, joint stock
company, association, syndicate, joint venture, or other unincorporated organization or group, and

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all other entities cognizable as legal personalities.
(9) "Proceeds" means property acquired or derived directly or indirectly from, produced
through, realized through, or caused by an act or omission and includes any property of any kind.
(10) "Property" means anything of value, and includes any interest in property, including any
benefit, privilege, land, or right with respect to anything of value, whether real or personal, tangible
or intangible.
(11) "Prosecuting agency" means the office of the attorney general or the office of the county
attorney, including any attorney on the staff whether acting in a civil or criminal capacity.
(12) "Specified unlawful activity" means any unlawful activity defined as an unlawful activity
in Section 76-10-1602 , except an illegal act under Title 18, Section 1961(1)(B), (C), and (D), United
States Code, and includes activity committed outside this state which, if committed within this state,
would be unlawful activity.
(13) "Transaction" means a purchase, sale, loan, pledge, gift, transfer, delivery, or other
disposition. With respect to a financial institution, "transaction" includes a deposit, withdrawal,
transfer between accounts, exchange of currency, loan, extension of credit, purchase or sale of any
stock, bond, certificate of deposit, or other monetary instrument, or any other payment, transfer, or
delivery by, through, or to a financial institution, by whatever means effected.
(14) "Transaction in currency" means a transaction involving the physical transfer of currency
from one person to another. A transaction that is a transfer of funds by means of bank check, bank
draft, wire transfer, or other written order that does not include the physical transfer of currency is
not a transaction in currency under this chapter.
Section 121. Section 77-19-11 is amended to read:
77-19-11. Who may be present -- Photographic and recording equipment.
(1) At the discretion of the executive director of the Department of Corrections or his
designee, the following persons may attend the execution:
(a) the prosecuting attorney, or his designated deputy, of the county in which the defendant
committed the offense for which he is being executed;
(b) no more than two law enforcement officials from the county in which the defendant

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committed the offense for which he is being executed;
(c) the attorney general or his designated deputy; and
(d) religious representatives, friends, or relatives designated by the defendant, not exceeding
a total of five persons.
(2) The persons enumerated in Subsection [(2)] (1) may not be required to attend, nor may
any of them attend as a matter of right.
(3) The executive director of the department or his designee shall permit the attendance at
the execution of a total of nine members of the press and broadcast news media named by the
executive director of the department in accordance with rules of the department, provided that the
selected news media members serve as a pool for other members of the news media as a condition
of attendance.
(4) (a) Photographic or recording equipment is not permitted at the execution site until the
execution is completed, the body is removed, and the site has been restored to an orderly condition.
However, the physical arrangements for the execution may not be disturbed.
(b) A violation of this subsection is a class B misdemeanor.
(5) All persons in attendance are subject to reasonable search as a condition of attendance.
(6) (a) The following persons may also attend the execution:
(i) staff as determined necessary for the execution by the executive director of the department
or his designee; and
(ii) no more than three correctional officials from other states that are preparing for
executions, but no more than two correctional officials may be from any one state, as designated by
the executive director of the department or his designee.
(b) Any person younger than 18 years of age may not attend.
(7) The department shall adopt rules governing the attendance of persons at the execution.
Section 122. Section 77-20-8.5 is amended to read:
77-20-8.5. Sureties -- Surrender of defendant -- Arrest of defendant.
(1) (a) The sureties may at any time prior to a forfeiture of their bail surrender the defendant
and obtain exoneration of their bail by filing written requests at the time of the surrender.

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(b) To effect surrender, certified duplicate copies of the undertaking shall be delivered to a
peace officer, who shall detain the defendant in his custody as upon a commitment, and shall in
writing acknowledge the surrender upon one copy of the undertaking. This certified copy of the
undertaking upon which the acknowledgment of surrender is endorsed shall be filed with the court.
The court may then, upon proper application, order the undertaking exonerated and may order a
refund of any paid premium, or part of a premium, as it finds just.
(2) For the purpose of surrendering the defendant, the sureties may arrest him at any time
before they are finally exonerated and at any place within the state.
(3) A surety acting under this section is subject to the provisions of Title 53, Chapter [10]
11, Bail Bond Recovery Act.
Section 123. Section 77-32-401 is amended to read:
77-32-401. Indigent Defense Funds Board -- Members -- Administrative support.
(1) There is created within the Division of Finance the Indigent Defense Funds Board
composed of the following nine members:
(a) two members who are current commissioners or county executives of participating
counties appointed by the board of directors of the Utah Association of Counties;
(b) one member at large appointed by the board of directors of the Utah Association of
Counties;
(c) two members who are current county attorneys of participating counties appointed by the
Utah Prosecution Council;
(d) the director of the Division of Finance or his designee;
(e) one member appointed by the Administrative Office of the Courts; and
(f) two members who are private attorneys engaged in or familiar with the criminal defense
practice appointed by the members of the board listed in Subsections (1)(a) through (e).
(2) Members shall serve four-year terms; however, one of the county commissioners, and one
of the county attorneys appointed to the initial board shall serve two-year terms and the remaining
other members of the initial board shall be appointed for four-year terms.
(3) A vacancy is created if a member appointed under:

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(a) Subsection (1)(a) no longer serves as a county commissioner or county executive; or
(b) Subsection (1)(c) no longer serves as a county attorney.
(4) When a vacancy occurs in the membership for any reason, a replacement shall be
appointed for the remaining unexpired term in the same manner as the original appointment.
(5) The board may contract for administrative support for up to $15,000 annually to be paid
proportionally from each fund.
(6) (a) (i) Members who are not government employees shall receive no compensation or
benefits for their services, but may receive per diem and expenses incurred in the performance of the
member's official duties at the rates established by the Division of Finance under Sections 63A-3-106
and 63A-3-107 .
(ii) Members may decline to receive per diem and expenses for their service.
(b) (i) State government officer and employee members who do not receive salary, per diem,
or expenses from their agency for their service may receive per diem and expenses incurred in the
performance of their official duties from the board at the rates established by the Division of Finance
under Sections 63A-3-106 and 63A-3-107 .
(ii) State government officer and employee members may decline to receive per diem and
expenses for their service.
(c) (i) Local government members who do not receive salary, per diem, or expenses from the
entity that they represent for their service may receive per diem and expenses incurred in the
performance of their official duties at the rates established by the Division of Finance under Sections
63A-3-106 and 63A-3-107 .
(ii) Local government members may decline to receive per diem and expenses for their
service.
[(6)] (7) Per diem and expenses for board members shall be paid proportionally from each
fund.
[(7)] (8) Five members shall constitute a quorum and, if a quorum is present, the action of
a majority of the members present shall constitute the action of the board.
Section 124. Section 77-37-3 is amended to read:

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77-37-3. Bill of Rights.
(1) The bill of rights for victims and witnesses is:
(a) Victims and witnesses have a right to be informed as to the level of protection from
intimidation and harm available to them, and from what sources, as they participate in criminal justice
proceedings as designated by Section 76-8-508 , regarding witness tampering, and Section 76-8-509 ,
regarding threats against a victim. Law enforcement, prosecution, and corrections personnel have
the duty to timely provide this information in a form that is useful to the victim.
(b) Victims and witnesses, including children and their guardians, have a right to be informed
and assisted as to their role in the criminal justice process. All criminal justice agencies have the duty
to provide this information and assistance.
(c) Victims and witnesses have a right to clear explanations regarding relevant legal
proceedings; these explanations shall be appropriate to the age of child victims and witnesses. All
criminal justice agencies have the duty to provide these explanations.
(d) Victims and witnesses should have a secure waiting area that does not require them to
be in close proximity to defendants or the family and friends of defendants. Agencies controlling
facilities shall, whenever possible, provide this area.
(e) Victims are entitled to restitution or reparations, including medical costs, as provided in
Title 63, Chapter [63] 25a, Criminal Justice and Substance Abuse, and Sections [ 77-27-6 ,]
62A-7-122 , [and] 76-3-201 , and 77-27-6 . State and local government agencies that serve victims
have the duty to have a functional knowledge of the procedures established by the Utah Crime
Victims' Reparations Board and to inform victims of these procedures.
(f) Victims and witnesses have a right to have any personal property returned as provided in
Sections 77-24-1 through 77-24-5 . Criminal justice agencies shall expeditiously return the property
when it is no longer needed for court law enforcement or prosecution purposes.
(g) Victims and witnesses have the right to reasonable employer intercession services,
including pursuing employer cooperation in minimizing employees' loss of pay and other benefits
resulting from their participation in the criminal justice process. Officers of the court shall provide
these services and shall consider victims' and witnesses' schedules so that activities which conflict can

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be avoided. Where conflicts cannot be avoided, the victim may request that the responsible agency
intercede with employers or other parties.
(h) Victims and witnesses, particularly children, should have a speedy disposition of the entire
criminal justice process. All involved public agencies shall establish policies and procedures to
encourage speedy disposition of criminal cases.
(i) Victims and witnesses have the right to timely notice of judicial proceedings they are to
attend and timely notice of cancellation of any proceedings. Criminal justice agencies have the duty
to provide these notifications. Defense counsel and others have the duty to provide timely notice to
prosecution of any continuances or other changes that may be required.
(j) Victims of sexual offenses have a right to be informed of their right to request voluntary
testing for themselves for HIV infection as provided in Section 76-5-503 and to request mandatory
testing of the convicted sexual offender for HIV infection as provided in Section 76-5-502 . The law
enforcement office where the sexual offense is reported shall have the responsibility to inform victims
of this right.
(2) Informational rights of the victim under this chapter are based upon the victim providing
his current address and telephone number to the criminal justice agencies involved in the case.
Section 125. Section 78-3a-905 is amended to read:
78-3a-905. Expungement of juvenile court record -- Petition -- Procedure.
(1) (a) Any person who has been adjudicated under this chapter may, after the expiration of
one year from the date of termination of the continuing jurisdiction of the juvenile court or, in case
he was committed to a secure youth corrections facility, one year from the date of his unconditional
release from the facility, petition the court for the expungement of his record in the juvenile court.
(b) (i) Upon the filing of a petition, the court shall set a date for a hearing and shall notify the
county attorney or, if within [the] a prosecution district, district attorney, and the agency with custody
of the records of the pendency of the petition and of the date of the hearing.
(ii) The county attorney or district attorney and any other person who may have relevant
information about the petitioner may testify at the hearing.
(2) (a) If the court finds upon the hearing that the petitioner has not been convicted of a

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felony or of a misdemeanor involving moral turpitude since the termination of the court's jurisdiction
or his unconditional release from a secure youth corrections facility and that no proceeding involving
a felony or misdemeanor is pending or being instituted against him, and if the court further finds that
the rehabilitation of the petitioner has been attained to the satisfaction of the court, it shall order
sealed all records in the petitioner's case in the custody of the juvenile court and any records in the
custody of any other agency or official pertaining to the petitioner's adjudicated juvenile court cases,
except fingerprint records. Fingerprint records shall be retained in the custody of the juvenile court
and any other agency or official. Copies of the order shall be sent to each agency or official named
in the order and any entity notified of the original adjudication under Subsection 78-3a-118 (1)(b).
To avoid destruction or sealing of the records in whole or in part, the agency or entity receiving the
expungement order shall only expunge all references to the petitioner's name in the records pertaining
to the adjudicated juvenile court cases. The petitioner, based on good cause, may petition the court
to expunge the records in whole or in part.
(b) Upon the entry of the order, the proceedings in the petitioner's case shall be considered
never to have occurred and the petitioner may properly reply accordingly upon any inquiry in the
matter. Inspection of the records may thereafter only be permitted by the court upon petition by the
person who is the subject of the records, and only to persons named in the petition.
Section 126. Section 78-3c-4 is amended to read:
78-3c-4. Disclosure of confidential communications.
The confidential communication between a victim and a sexual assault counselor is available
to a third person only when:
(1) the victim is a minor and the counselor believes it is in the best interest of the victim to
disclose the confidential communication to the victim's parents;
(2) the victim is a minor and the minor's parents or guardian have consented to disclosure of
the confidential communication to a third party based upon representations made by the counselor
that it is in the best interest of the minor victim to make such disclosure;
(3) the victim is not a minor, has given consent, and the counselor believes the disclosure is
necessary to accomplish the desired result of counseling; or

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(4) the counselor has an obligation under Title 62A, Chapter [4] 4a, Child and Family
Services, to report information transmitted in the confidential communication.
Section 127. Section 78-3g-102 is amended to read:
78-3g-102. Foster Care Citizen Review Board Steering Committee -- Membership --
Chair -- Compensation -- Duties.
(1) There is created within state government the Foster Care Citizen Review Board Steering
Committee composed of the following members:
(a) a member of the Board of Child and Family Services, within the Department of Human
Services, appointed by the chair of that board;
(b) the director of the division, or his designee;
(c) a juvenile court judge, appointed by the presiding officer of the Judicial Council;
(d) a juvenile court administrator, appointed by the administrator of the courts;
(e) a representative of the Utah Foster Parents Association, appointed by the president of that
organization;
(f) a representative of a statewide advocacy organization for children, appointed by the chair
of the committee;
(g) a representative of an agency or organization that provides services to children who have
been adjudicated to be under the jurisdiction of the juvenile court, appointed by the chair of the
committee;
(h) the guardian ad litem director, appointed pursuant to Section 78-3a-911 , or the director's
designee;
(i) the director or chief of the child protection unit within the Office of the Attorney General,
or his designee;
(j) one person from each region who is a member of a board, appointed by the chair of the
committee; and
(k) a private citizen, appointed by the chair of the committee.
(2) The persons described in Subsection (1) shall annually elect a chair of the committee from
among themselves.

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(3) A majority of the members of the committee constitutes a quorum. The action of the
majority of a quorum represents the action of the committee.
(4) (a) Members of the committee who are not government employees shall receive no
compensation or benefits for their services, but may receive per diem and expenses incurred in the
performance of the member's official duties at the rates established by the Division of Finance under
Sections 63A-3-106 and 63A-3-107 .
(b) State government officer and employee members who do not receive salary, per diem,
or expenses from their agency for their service may receive per diem and expenses incurred in the
performance of their official duties from the board at the rates established by the Division of Finance
under Sections 63A-3-106 and 63A-3-107 .
(c) Local government members who do not receive salary, per diem, or expenses from the
entity that they represent for their service may receive per diem and expenses incurred in the
performance of their official duties at the rates established by the Division of Finance under Sections
63A-3-106 and 63A-3-107 .
(d) Members of the committee may decline to receive per diem and expenses for their
services.
(5) The committee shall:
(a) within appropriations from the Legislature, appoint members of boards in each juvenile
court district;
(b) supervise the recruitment, training, and retention of board members;
(c) supervise and evaluate the boards;
(d) establish and approve policies for the boards; and
(e) submit a report detailing the results of the boards to the Legislative Health and Human
Services and Judiciary Interim Committees and the Board of Juvenile Court Judges, on or before
December 31 of each year.
(6) (a) The Department of Human Services shall provide fiscal management services,
including payroll and accounting services, to the committee.
(b) Within appropriations from the Legislature, the committee may hire professional and

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clerical staff as it considers necessary and appropriate.
(7) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
committee may make rules necessary for:
(a) recruitment, appointment, and training of board members;
(b) supervision and evaluation of boards; and
(c) establishment of policy for boards.
(8) The committee may receive gifts, grants, devises, and donations. If the donor designates
a specific purpose or use for the gift, grant, devise, or donation, it shall be used solely for that
purpose. Undesignated gifts, grants, devises, and donations shall be used for foster care citizen
review boards in accordance with the requirements and provisions of this chapter.
Section 128. Repealer.
This act repeals:
Section 26-8-15, Violation of chapter a misdemeanor -- Calling ambulance when not
needed a misdemeanor.
Section 78-32-12.3, Pilot program -- Purpose -- Evaluation of pilot program --
Exceptions.

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