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H.B. 165 Enrolled

                 

REVISOR'S STATUTE

                 
2003 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Marda Dillree

                  J. Morgan Philpot
                  Eli H. Anderson
                  Chad E. Bennion
                  Judy Ann Buffmire
                  Don E. BushDavid Clark
Margaret Dayton
Ben C. Ferry
Neal B. Hendrickson
David L. HogueTy McCartney
Jack A. Seitz
David Ure
Bradley A. Winn                   This act modifies parts of the Utah Code to make technical corrections including
                  wording, cross references, and numbering changes.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      10-1-203, as last amended by Chapter 172, Laws of Utah 2000
                      11-17-3, as last amended by Chapter 30, Laws of Utah 1992
                      11-27-2, as last amended by Chapter 12, Laws of Utah 2001
                      13-28-3, as enacted by Chapter 196, Laws of Utah 1995
                      13-34-105, as enacted by Chapter 222, Laws of Utah 2002
                      13-35-103, as enacted by Chapter 234, Laws of Utah 2002
                      13-35-202, as enacted by Chapter 234, Laws of Utah 2002
                      13-35-203, as enacted by Chapter 234, Laws of Utah 2002
                      13-35-204, as enacted by Chapter 234, Laws of Utah 2002
                      16-6a-102, as last amended by Chapter 197, Laws of Utah 2002
                      16-6a-1002, as enacted by Chapter 300, Laws of Utah 2000
                      17-27-106, as enacted by Chapter 169, Laws of Utah 1999
                      17-52-401, as last amended by Chapter 241, Laws of Utah 2001
                      17A-1-301, as last amended by Chapter 1, Laws of Utah 2000
                      17A-1-403, as last amended by Chapter 106, Laws of Utah 1999
                      17A-2-405, as last amended by Chapter 284, Laws of Utah 2002
                      17A-2-1304, as last amended by Chapter 243, Laws of Utah 2002


                      17A-3-606, as last amended by Chapter 8, Laws of Utah 2002, Fifth Special Session
                      19-2-104, as last amended by Chapter 177, Laws of Utah 1998
                      20A-3-105.5, as enacted by Chapter 177, Laws of Utah 2002
                      20A-5-403, as last amended by Chapter 167, Laws of Utah 2002
                      26A-1-110, as last amended by Chapter 249, Laws of Utah 2002
                      31A-1-301, as last amended by Chapters 71 and 308, Laws of Utah 2002
                      31A-5-101, as last amended by Chapter 197, Laws of Utah 2002
                      31A-9-101, as last amended by Chapter 300, Laws of Utah 2000
                      31A-21-105, as last amended by Chapter 114, Laws of Utah 2000
                      31A-22-617, as last amended by Chapter 308, Laws of Utah 2002
                      34A-2-301, as renumbered and amended by Chapter 375, Laws of Utah 1997
                      49-15-102, as renumbered and amended by Chapter 250, Laws of Utah 2002
                      49-21-102, as renumbered and amended by Chapter 250, Laws of Utah 2002
                      53-1-106, as last amended by Chapter 219, Laws of Utah 2002
                      53-3-218, as last amended by Chapter 200, Laws of Utah 2002
                      53-3-402, as last amended by Chapter 270, Laws of Utah 1998
                      53-3-805, as last amended by Chapter 117, Laws of Utah 2001
                      53-8-213, as last amended by Chapter 21, Laws of Utah 1999
                      53A-1a-601, as last amended by Chapter 198, Laws of Utah 2002
                      54-15-106, as enacted by Chapter 6, Laws of Utah 2002
                      58-13-4, as last amended by Chapter 248 and renumbered and amended by Chapter 253,
                  Laws of Utah 1996
                      58-31b-202, as last amended by Chapter 290, Laws of Utah 2002
                      58-37-2, as last amended by Chapter 64, Laws of Utah 1997
                      58-57-2, as last amended by Chapter 297, Laws of Utah 1993
                      58-59-501, as last amended by Chapter 261, Laws of Utah 2002
                      58-60-507, as enacted by Chapter 184, Laws of Utah 1996
                      58-60-509, as enacted by Chapter 248, Laws of Utah 1997

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                      58-61-602, as enacted by Chapter 32, Laws of Utah 1994
                      58-71-102, as last amended by Chapter 10, Laws of Utah 1997
                      58-71-302, as enacted by Chapter 282, Laws of Utah 1996
                      58-76-502, as enacted by Chapter 218, Laws of Utah 2002
                      59-1-206, as last amended by Chapters 79 and 176, Laws of Utah 2002
                      59-14-408, as enacted by Chapter 175, Laws of Utah 2002
                      62A-3-301, as repealed and reenacted by Chapter 108, Laws of Utah 2002
                      62A-11-304.4, as last amended by Chapter 59, Laws of Utah 2002
                      63-2-304, as last amended by Chapters 78, 86, 108, 283 and 286, Laws of Utah 2002
                      63-55-236, as last amended by Chapter 5, Laws of Utah 2002, Fifth Special Session
                      63-55b-120, as last amended by Chapter 136, Laws of Utah 2002
                      63-55b-123, as enacted by Chapter 22, Laws of Utah 2001
                      63-55b-134, as last amended by Chapter 200, Laws of Utah 2001
                      63-55b-153, as last amended by Chapters 49, 219 and 301, Laws of Utah 2002
                      63-55b-172, as enacted by Chapter 222, Laws of Utah 2001
                      70A-2-403, as enacted by Chapter 154, Laws of Utah 1965
                      70A-11-105, as enacted by Chapter 272, Laws of Utah 1977
                      70A-11-106, as enacted by Chapter 272, Laws of Utah 1977
                      72-1-303, as last amended by Chapter 41, Laws of Utah 2001
                      72-3-104, as last amended by Chapter 324, Laws of Utah 2000
                      73-10-2, as last amended by Chapter 176, Laws of Utah 2002
                      75-2-1001, as repealed and reenacted by Chapter 39, Laws of Utah 1998
                      78-3a-306, as last amended by Chapter 265, Laws of Utah 2002
                      78-11-6, as last amended by Chapter 240, Laws of Utah 1996
                      78-11-7, as last amended by Chapter 240, Laws of Utah 1996
                      78-27-37, as last amended by Chapter 95, Laws of Utah 1999
                      78-27-43, as last amended by Chapter 95, Laws of Utah 1999
                      78-36-10.5, as last amended by Chapter 118, Laws of Utah 1998

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                  REPEALS:
                      9-1-701, as enacted by Chapter 66, Laws of Utah 1993
                      58-60-505, as enacted by Chapter 184, Laws of Utah 1996
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 10-1-203 is amended to read:
                       10-1-203. License fees and taxes -- Application information to be transmitted to the
                  county auditor.
                      (1) For the purpose of this section, "business" means any enterprise carried on for the
                  purpose of gain or economic profit, except that the acts of employees rendering services to
                  employers are not included in this definition.
                      (2) Except as provided in Subsections (3) through (5), the governing body of a
                  municipality may license for the purpose of regulation and revenue any business within the limits
                  of the municipality and may regulate that business by ordinance.
                      (3) (a) The governing body of a municipality may raise revenue by levying and collecting
                  a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales and Use Tax
                  Act, except a municipality may not levy or collect a franchise tax or fee as defined in Subsection
                  10-1-303 (7) on an energy supplier other than the municipal energy sales and use tax provided in
                  Part 3, Municipal Energy Sales and Use Tax Act.
                      (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
                  in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
                      (ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January 1,
                  1997, or a future franchise shall remain in full force and effect.
                      (c) A municipality that collects a contractual franchise fee pursuant to a franchise
                  agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on July
                  1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
                      (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
                  defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain a
                  provision that:

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                      (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
                  otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
                      (B) imposes the contractual franchise fee on or after the day on which Part 3, Municipal
                  Energy Sales and Use Tax is:
                      (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305 is
                  reduced; and
                      (II) is not superseded by a law imposing a substantially equivalent tax.
                      (ii) A municipality may not charge a contractual franchise fee under the provisions
                  permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
                  fee or a tax on all energy suppliers.
                      (4) Subject to [the provisions of] Title 11, Chapter 26, Local Taxation of Utilities
                  Limitation, a municipality may impose upon, charge, or collect from a public utility engaged in
                  the business of supplying telephone service or other person or entity engaged in the business of
                  supplying telephone service any tax, license, fee, license fee, license tax, or similar charge, or any
                  combination of any of these, based upon the gross revenues of the utility, person, or entity
                  derived from sales or use or both sales and use of the telephone service within the municipality.
                      (5) (a) The governing body of a municipality may by ordinance raise revenue by levying
                  and collecting a license fee or tax on:
                      (i) a parking service business in an amount that is less than or equal to:
                      (A) $1 per vehicle that parks at the parking service business; or
                      (B) 2% of the gross receipts of the parking service business;
                      (ii) a public assembly facility in an amount that is less than or equal to $1 per ticket
                  purchased from the public assembly facility; and
                      (iii) subject to the limitations of Subsections (5)(c) and (d), a business that causes
                  disproportionate costs of municipal services or for which the municipality provides an enhanced
                  level of municipal services in an amount that is reasonably related to the costs of the municipal
                  services provided by the municipality.
                      (b) For purposes of this Subsection (5):

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                      (i) "Municipal services" include:
                      (A) public utilities; or
                      (B) services for:
                      (I) police;
                      (II) fire;
                      (III) storm water runoff;
                      (IV) traffic control;
                      (V) parking;
                      (VI) transportation;
                      (VII) beautification; or
                      (VIII) snow removal.
                      (ii) "Parking service business" means a business:
                      (A) that primarily provides off-street parking services for a public facility that is wholly
                  or partially funded by public moneys;
                      (B) that provides parking for one or more vehicles; and
                      (C) that charges a fee for parking.
                      (iii) "Public assembly facility" means a business operating an assembly facility that:
                      (A) is wholly or partially funded by public moneys; and
                      (B) requires a person attending an event at the assembly facility to purchase a ticket.
                      (c) Before the governing body of a municipality imposes a license fee or tax on a
                  business that causes disproportionate costs of municipal services under Subsection (5)(a)(iii), the
                  governing body of the municipality shall adopt an ordinance defining for purposes of the tax
                  under Subsection (5)(a)(iii) what constitutes disproportionate costs and what amounts are
                  reasonably related to the costs of the municipal services provided by the municipality.
                      (d) Before the governing body of a municipality imposes a license fee or tax on a
                  business for which it provides an enhanced level of municipal services under Subsection
                  (5)(a)(iii), the governing body of the municipality shall adopt an ordinance defining for purposes
                  of the tax under Subsection (5)(a)(iii) what constitutes the basic level of municipal services in the

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                  municipality and what amounts are reasonably related to the costs of providing an enhanced level
                  of municipal services in the municipality.
                      (6) All license fees and taxes shall be uniform in respect to the class upon which they are
                  imposed.
                      (7) The governing body shall transmit the information from each approved business
                  license application to the county assessor within 60 days following the approval of the
                  application.
                      (8) If challenged in court, an ordinance enacted by a municipality before January 1, 1994,
                  imposing a business license fee or tax on rental dwellings under this section shall be upheld
                  unless the business license fee or tax is found to impose an unreasonable burden on the fee or tax
                  payer.
                      Section 2. Section 11-17-3 is amended to read:
                       11-17-3. Powers of municipalities, counties, and state universities.
                      (1) Each municipality, county, and state university may:
                      (a) finance or acquire, whether by construction, purchase, devise, gift, exchange, or lease,
                  or any one or more of those methods, and construct, reconstruct, improve, maintain, equip, and
                  furnish or fund one or more projects, which shall be located within this state, and which shall be
                  located within, or partially within, the municipality or county or within the county within which a
                  state university is located, unless an agreement under the Interlocal Cooperation Act has been
                  entered into as authorized by Subsection (5), except that if a governing body finds, by resolution,
                  that the effects of international trade practices have been or will be adverse to Utah
                  manufacturers of industrial products and, therefore, it is desirable to finance a project in order to
                  maintain or enlarge domestic or foreign markets for Utah industrial products, a project may
                  consist of the financing on behalf of a user of the costs of acquiring industrial products
                  manufactured in, and which are to be exported from, the state of Utah;
                      (b) finance for, sell, lease, contract the management of, or otherwise dispose of to, any
                  person, firm, partnership, or corporation, either public or private, including without limitation
                  any person, firm, partnership, or corporation engaged in business for a profit, any or all of its

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                  projects upon the terms and conditions as the governing body deems advisable and which do not
                  conflict with this chapter;
                      (c) issue revenue bonds for the purpose of defraying the cost of financing, acquiring,
                  constructing, reconstructing, improving, maintaining, equipping, furnishing, or funding any
                  project and secure the payment of the bonds as provided in this chapter, which revenue bonds
                  may be issued in one or more series or issues where deemed advisable, and each series or issue
                  may contain different maturity dates, interest rates, priorities on securities available for
                  guaranteeing payment of them, and other differing terms and conditions deemed necessary and
                  not in conflict with this chapter;
                      (d) (i) grant options to renew any lease with respect to any project and to buy any project
                  at a price the governing body deems desirable; and
                      (ii) sell and convey any real or personal property acquired under Subsection (1)(a) at
                  public or private sale, and make an order respecting the sale deemed conducive to the best
                  interests of the municipality, county, or state university, the sale or conveyance to be subject to
                  the terms of any lease but to be free and clear of any other encumbrance;
                      (e) establish, acquire, develop, maintain, and operate industrial parks; and
                      (f) offer to the holders of its bonds issued pursuant to this chapter the right, where its
                  governing body deems it appropriate, to convert the bonds or some portion of the bond obligation
                  into an equity position in some or all of the assets developed with the proceeds of the bond
                  offering.
                      (2) An economic development or new venture investment fund shall be considered to be
                  located in the municipality or county where its headquarters is located or where any office of it is
                  located, as long as it is headquartered within the state. It need not make all of its investments
                  within the state of Utah or such county or municipality, so long as it locates within the state of
                  Utah or such county or municipality its headquarters where its actual investment decisions and
                  management functions occur and agrees to, and does, limit the aggregate amount of its
                  investments in companies located outside the state of Utah to an amount which in the aggregate
                  does not exceed the aggregate amount of investments made by institutions and funds located

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                  outside the state of Utah in companies headquartered in Utah which the locally managed fund has
                  sponsored or in which it has invested and which it has brought to the attention of investors
                  outside the state of Utah. For purposes of enabling an offering of bonds to fund such a fund, a
                  certification of an executive managerial officer of the manager of said fund of the intention to
                  comply with this provision may be relied upon. Each fund shall at least annually certify to the
                  governmental offeror of such bonds its compliance with this provision.
                      (3) Before any municipality, county, or state university issues revenue bonds under this
                  chapter for the purpose of defraying the cost of acquiring, constructing, reconstructing,
                  improving, maintaining, equipping, or furnishing any industrial park project, the governing body
                  of the state university, county, or municipality shall adopt and establish a plan of development
                  for the tracts of land to constitute the industrial park and shall, by resolution, find that the project
                  for the establishment of the industrial park is well conceived and has a reasonable prospect of
                  success, that the project will tend to provide proper economic development of the municipality or
                  county and will encourage industry to locate within or near the municipality or county or, in the
                  case of state universities, will further, through industrial research and development, the
                  instructional progress of the state university. There may be included as a part of any plan of
                  development for any industrial park zoning regulations, restrictions on usage of sites within the
                  boundaries of the industrial park, minimum size of sites, parking and loading regulations, and
                  methods for the providing and furnishing of police and fire protection and for the furnishing of
                  other municipal or county services which are deemed necessary in order to provide for the
                  maintenance of the public health and safety. If any water or sewerage facilities are to be acquired
                  as part of the development of the land for an industrial park under this chapter, water and
                  sewerage facilities may be acquired as part of the issue of bonds issued under this chapter,
                  through the issuance of bonds payable from water and sewer charges in the manner as is now or
                  as may hereafter be provided by law, in combination with an issue of refunding bonds, in
                  combination with an issue of bonds upon the consent of the holders of outstanding bonds issued
                  for the same purpose, in combination with bonds issued for the purposes of financing water and
                  sewer facilities which will not be a part of an industrial park, or in any combination of the

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                  foregoing. Any municipality, county, or state university establishing an industrial park may lease
                  any land acquired and developed as part of an industrial park to one or more lessees. The lessee
                  may sublease all or a portion of the land so leased from the municipality or county.
                  Municipalities, counties, and state universities may sell or lease land in connection with the
                  establishment, acquisition, development, maintenance, and operation of an industrial park
                  project. Any such lease or sale of land shall be undertaken only after the adoption by the
                  governing body of a resolution authorizing the lease or sale of the land for industrial park
                  purposes.
                      (4) (a) No municipality, county, or state university may operate any project referred to in
                  this section, as a business or in any other manner except as the lessor or administrator of it, nor
                  may it acquire any such project, or any part of it, by condemnation. This prohibition does not
                  apply to projects involving research conducted, administered, or managed by a state university.
                      (b) No municipality, county, or state university may, under this chapter, acquire or lease
                  projects, or issue revenue bonds for the purpose of defraying the cost of any project or part of it,
                  used for the generation, transmission, or distribution of electric energy beyond the project site, or
                  the production, transmission, or distribution of natural gas, except for any project defined in
                  Subsection 11-17-2 (8)(b) or (d).
                      (5) Each municipality, county, and state university may enter, either before or after the
                  bonds have been issued, into interlocal agreements under Title 11, Chapter 13, Interlocal
                  Cooperation Act, with one or more municipalities, counties, state universities, or special service
                  districts created pursuant to Title 17A, Chapter 2, Part 13, Utah Special Service District Act, in
                  order to accomplish economies of scale or other cost savings and any other additional purposes to
                  be specified in the interlocal agreement, for the issuance of bonds under this chapter on behalf of
                  all of the signatories to the interlocal agreement by one of the municipalities, counties, or state
                  universities which is a signatory to the interlocal agreement for the financing or acquisition of
                  projects qualifying as a project under Subsection 11-17-2 (8). For all purposes of Section
                  [ 11-13-7 ] 11-13-207 the signatory to the interlocal agreement designated as the issuer of the
                  bonds constitutes the administrator of the interlocal agreement.

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                      (6) Subsection (4) to the contrary notwithstanding, the governing body of any state
                  university owning or desiring to own facilities or administer projects described in Subsection
                  11-17-2 (8) may:
                      (a) become a signatory to the interlocal agreement provided for in Subsection (5);
                      (b) enter into a separate security agreement with the issuer of the bonds, as provided in
                  Section 11-17-5 for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
                  owned by the state university;
                      (c) enter into agreements to secure the obligations of the state university under a security
                  agreement entered into under Subsection (6)(b), or to provide liquidity for such obligations
                  including, without limitation, letter of credit agreements with banking institutions for letters of
                  credit or for standby letters of credit, reimbursement agreements with financial institutions, line
                  of credit agreements, standby bond purchase agreements, and to provide for payment of fees,
                  charges, and other amounts coming due under the agreements entered into under the authority
                  contained in this Subsection (6)(c);
                      (d) provide in security agreements entered into under Subsection (6)(b) and in
                  agreements entered into under Subsection (6)(c) that the obligations of the state university under
                  an agreement shall be special obligations payable solely from the revenues derived from the
                  operation or management of the project, owned by the state university and from net profits from
                  proprietary activities and any other revenues pledged other than appropriations by the Utah
                  Legislature, and the governing body of the state university shall pledge all or any part of such
                  revenues to the payment of its obligations under an agreement; and
                      (e) in order to secure the prompt payment of the obligations of the state university under
                  a security agreement entered into under Subsection (6)(b) or an agreement entered into under
                  Subsection (6)(c) and the proper application of the revenues pledged to them, covenant and
                  provide appropriate provisions in an agreement to the extent permitted and provided for under
                  Section 53B-21-102 .
                      (7) Subsection (4) to the contrary notwithstanding, the governing body of any
                  municipality, county, or special service district owning, desiring to own, or administering

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                  projects or facilities described in Subsection 11-17-2 (8) may:
                      (a) become a signatory to the interlocal agreement provided for in Subsection (5);
                      (b) enter into a separate security agreement with the issuer of the bonds, as provided in
                  Section 11-17-5 , for the financing or acquisition of a project under Subsection 11-17-2 (8) to be
                  owned by the municipality, county, or special service district, as the case may be, except that no
                  municipality, county, or special service district may mortgage the facilities so financed or
                  acquired;
                      (c) enter into agreements to secure the obligations of the municipality, county, or special
                  service district, as the case may be, under a security agreement entered into under Subsection
                  (7)(b), or to provide liquidity for such obligations including, without limitation, letter of credit
                  agreements with banking institutions for letters of credit or for standby letters of credit,
                  reimbursement agreements with financial institutions, line of credit agreements, standby bond
                  purchase agreements, and to provide for payment of fees, charges, and other amounts coming due
                  under the agreements entered into under the authority contained in this Subsection (7)(c);
                      (d) provide in security agreements entered into under Subsection (7)(b) and in
                  agreements entered into under Subsection (7)(c) that the obligations of the municipality, county,
                  or special service district, as the case may be, under an agreement shall be special obligations
                  payable solely from the revenues derived from the operation or management of the project,
                  owned by the municipality, county, or special service district, as the case may be, and the
                  governing body of the municipality, county, or special service district, as the case may be, shall
                  pledge all or any part of such revenues to the payment of its obligations under an agreement; and
                      (e) in order to secure the prompt payment of obligations under a security agreement
                  entered into under Subsection (7)(b) or an agreement entered into under Subsection (7)(c) and the
                  proper application of the revenues pledged to them, covenant and provide appropriate provisions
                  in an agreement to the extent permitted and provided for with respect to revenue obligations
                  under Section 11-14-17 .
                      (8) In connection with the issuance of bonds under this chapter, a municipality, county,
                  or state university:

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                      (a) may provide for the repurchase of bonds tendered by their owners and may enter into
                  an agreement to provide liquidity for such repurchases, including a letter of credit agreement, line
                  of credit agreement, standby bond purchase agreement, or other type of liquidity agreement;
                      (b) may enter into remarketing, indexing, tender agent, or other agreements incident to
                  the financing of the project or the performance of the issuer's obligations relative to the bonds;
                  and
                      (c) may provide for payment of fees, charges, and other amounts coming due under the
                  agreements entered into pursuant to authority contained in Subsection (6).
                      Section 3. Section 11-27-2 is amended to read:
                       11-27-2. Definitions.
                      As used in this chapter:
                      (1) "Advance refunding bonds" means refunding bonds issued for the purpose of
                  refunding outstanding bonds in advance of their maturity.
                      (2) "Assessments" 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.
                      (3) "Bond" means any revenue bond, general obligation bond, tax increment bond,
                  special improvement bond, or refunding bond.
                      (4) "General obligation bond" means any bond, note, warrant, certificate of indebtedness,
                  or other obligation of a public body payable in whole or in part from revenues derived from ad
                  valorem taxes and that constitutes an indebtedness within the meaning of any applicable
                  constitutional or statutory debt limitation.
                      (5) "Governing body" means the council, commission, county legislative body, board of
                  directors, board of trustees, board of education, board of regents, or other legislative body of a
                  public body designated in this chapter that is vested with the legislative powers of the public
                  body, and, with respect to the state, the State Bonding Commission created by Section
                  63B-1-201 .
                      (6) "Government obligations" means:
                      (a) direct obligations of the United States of America, or other securities, the principal of

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                  and interest on which are unconditionally guaranteed by the United States of America; or
                      (b) obligations of any state, territory, or possession of the United States, or of any of the
                  political subdivisions of any state, territory, or possession of the United States, or of the District
                  of Columbia described in Section 103(a), Internal Revenue Code of 1986.
                      (7) "Issuer" means the public body issuing any bond or bonds.
                      (8) "Public body" means the state or any agency, authority, instrumentality, or institution
                  of the state, or any municipal or quasi-municipal corporation, political subdivision, agency,
                  school district, special district, or other governmental entity now or hereafter existing under the
                  laws of the state.
                      (9) "Refunding bonds" means bonds issued under the authority of this chapter for the
                  purpose of refunding outstanding bonds.
                      (10) "Resolution" means a resolution of the governing body of a public body taking
                  formal action under this chapter.
                      (11) "Revenue bond" means any bond, note, warrant, certificate of indebtedness, or other
                  obligation for the payment of money issued by a public body or any predecessor of any public
                  body and that is payable from designated revenues not derived from ad valorem taxes or from a
                  special fund composed of revenues not derived from ad valorem taxes, but excluding all of the
                  following:
                      (a) any obligation constituting an indebtedness within the meaning of any applicable
                  constitutional or statutory debt limitation;
                      (b) any obligation issued in anticipation of the collection of taxes, where the entire issue
                  matures not later than one year from the date of the issue; and
                      (c) any special improvement bond.
                      (12) "Special improvement bond" means any bond, note, warrant, certificate of
                  indebtedness, or other obligation of a public body or any predecessor of any public body that is
                  payable from assessments levied on [benefited] benefitted property and from any special
                  improvement guaranty fund.
                      (13) "Special improvement guaranty fund" means any special improvement guaranty

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                  fund established under Title 10, Chapter 6, Uniform Fiscal Procedures Act for Utah Cities; Title
                  17A, Chapter 3, Part 2, County Improvement Districts[,] Act; or any predecessor or similar
                  statute.
                      (14) "Tax increment bond" means any bond, note, warrant, certificate of indebtedness, or
                  other obligation of a public body issued under authority of Title 17A, Chapter 2, Part 16, Great
                  Salt Lake Development Authority [Act], or any similar statutes, including Title [17A] 17B,
                  Chapter [2, Part 12, Utah Neighborhood Development] 4, Redevelopment Agencies Act.
                      Section 4. Section 13-28-3 is amended to read:
                       13-28-3. Notice requirement.
                      If a solicitor represents to an individual that he has been selected or may be eligible to
                  receive a prize, the solicitor may not request, and the solicitor or sponsor may not accept, a
                  payment from the individual in any form before the individual receives a written prize notice that
                  contains all of the information required under Subsection 13-28-4 (1) presented in the [matter]
                  manner required under Subsections 13-28-4 (2) through (6).
                      Section 5. Section 13-34-105 is amended to read:
                       13-34-105. Exempted institutions.
                      (1) This chapter does not apply to the following institutions:
                      (a) a Utah institution directly supported, to a substantial degree, with funds provided by
                  the state, a local school district, or other Utah governmental subdivision;
                      (b) an institution which offers instruction exclusively at or below the 12th grade level;
                      (c) a lawful enterprise which offers only professional review programs, such as C.P.A.
                  and bar examination review and preparation courses;
                      (d) a Utah private, postsecondary educational institution that is owned, controlled,
                  operated, or maintained by a bona fide church or religious denomination, which is exempted
                  from property taxation under the laws of this state;
                      (e) a Utah school or institution which is accredited by a regional or national accrediting
                  agency recognized by the United States Department of Education. An institution, branch,
                  extension, or facility operating within the state which is affiliated with an institution operating in

- 15 -


                  another state must be separately approved by the affiliate's regional or national accrediting
                  agency to qualify for this exemption;
                      (f) a business organization, trade or professional association, fraternal society, or labor
                  union that sponsors or conducts courses of instruction or study predominantly for bona fide
                  employees or members and does not, in advertising, describe itself as a school[. For]; for
                  purposes of this Subsection (1)(f), a business organization, trade or professional association,
                  fraternal society, or labor union that hires a majority of the persons who successfully complete its
                  course of instruction or study with a reasonable degree of proficiency and apply for employment
                  with that same entity is considered to be conducting the course predominantly for bona fide
                  employees or members;
                      (g) an institution that exclusively offers general education courses or instruction solely
                  remedial, avocational, nonvocational, or recreational in nature, which does not advertise
                  occupation objectives or grant educational credentials;
                      (h) an institution which offers only workshops or seminars lasting no longer than three
                  calendar days and for which academic credit is not awarded; and
                      (i) an institution which offers programs in barbering, cosmetology, real estate, insurance,
                  or flying that are regulated and approved by a state or federal governmental agency.
                      (2) (a) If available evidence suggests that an exempt institution under this section is not
                  in compliance with the standards of registration under this chapter and applicable division rules,
                  the division shall contact the institution and, if appropriate, the state or federal government
                  agency to request corrective action.
                      (b) Subsection (2)(a) does not apply to an institution exempted under Subsection (1)(e).
                      Section 6. Section 13-35-103 is amended to read:
                       13-35-103. Utah Powersport Vehicle Franchise Advisory Board -- Creation --
                  Appointment of members -- Alternate members -- Chair -- Quorum -- Conflict of interest.
                      (1) There is created within the department the Utah Powersport Vehicle Franchise
                  Advisory Board that consists of:
                      (a) the executive director or the executive director's designee; and

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                      (b) six members appointed by the executive director, with the concurrence of the
                  governor, as follows:
                      (i) three new powersport vehicle franchisees from among the three congressional districts
                  of the state as the districts were constituted on January 1, 1996, no more than one of whom shall
                  be located in the same congressional district; and
                      (ii) three members representing powersport vehicle franchisors registered by the
                  department pursuant to Section 13-35-105 , or three members of the general public, none of
                  whom shall be related to any franchisee, or any combination of these representatives under this
                  Subsection (1)(b)(ii).
                      (2) The executive director shall also appoint, with the concurrence of the governor, six
                  alternate members, with one alternate from each of the designations set forth in Subsections
                  (1)(b)(i) and (1)(b)(ii), who shall take the place of a regular advisory board member from the
                  same designation at a meeting of the advisory board where that regular advisory board member is
                  absent or otherwise disqualified from participating in the advisory board meeting.
                      (3) (a) Members of the advisory board shall be appointed for a term of four years.
                      (b) The executive director may adjust the term of members who were appointed to the
                  advisory board prior to July 1, 2002, by extending the unexpired term of a member for up to two
                  additional years in order to insure that approximately half of the members are appointed every
                  two years.
                      (c) In the event of a vacancy on the advisory board, the executive director with the
                  concurrence of the governor, shall appoint an individual to complete the unexpired term of the
                  member whose office is vacant.
                      (d) A member may not be appointed to more than two consecutive terms.
                      (4) (a) The executive director or the executive director's designee shall be the chair of the
                  advisory board.
                      (b) The department shall keep a record of all hearings, proceedings, transactions,
                  communications, and recommendations of the advisory board.
                      (5) (a) Four or more members of the advisory board constitute a quorum for the

- 17 -


                  transaction of business.
                      (b) The action of a majority of the members of the advisory board is considered the
                  action of the advisory board.
                      (6) (a) A member of the advisory board may not participate as a board member in a
                  proceeding or hearing:
                      (i) involving the member's business or employer; or
                      (ii) when a member, a member's business, family, or employer has a pecuniary interest in
                  the outcome or other conflict of interest concerning an issue before the advisory board.
                      (b) If a member of the advisory board is disqualified under Subsection (6)(a), the
                  executive director shall select the appropriate alternate member to act on the issue before the
                  advisory board as provided in Subsection [(1)(c)] (2).
                      (7) Except for the executive director or the executive director's designee, an individual
                  may not be appointed or serve on the advisory board while holding any other elective or
                  appointive state or federal office.
                      (8) (a) (i) A member of the advisory board who is not a government employee shall
                  receive no compensation or benefits for the member's 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) A member may decline to receive per diem and expenses for the member's services.
                      (b) (i) A state government officer or employee member who does not receive salary, per
                  diem, or expenses from the member's agency for the member's service 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) A state government officer or employee member may decline to receive per diem and
                  expenses for the member's service.
                      (9) The department shall provide necessary staff support to the advisory board.
                      Section 7. Section 13-35-202 is amended to read:
                       13-35-202. Sale or transfer of ownership.

- 18 -


                      (1) (a) The franchisor shall give effect to the change in a franchise agreement as a result
                  of an event listed in Subsection (1)(b):
                      (i) subject to Subsection 13-35-305 (2)(b); and
                      (ii) unless exempted under Subsection (2).
                      (b) The franchisor shall give effect to the change in a franchise agreement pursuant to
                  Subsection (1)(a) for the:
                      (i) sale of a dealership;
                      (ii) contract for sale of a dealership;
                      (iii) transfer of ownership of a franchisee's dealership by sale, transfer of the business, or
                  by stock transfer; or
                      (iv) change in the executive management of the franchisee's dealership.
                      (2) A franchisor is exempted from the requirements of Subsection (1) if:
                      (a) the transferee is denied, or would be denied, a new powersport vehicle franchisee's
                  registration pursuant to Section 13-35-105 ; or
                      (b) the proposed sale or transfer of the business or change of executive management will
                  be substantially detrimental to the distribution of the franchisor's new powersport vehicles or to
                  competition in the relevant market area, provided that the franchisor has given written notice to
                  the franchisee within 60 days following receipt by the franchisor of the following:
                      (i) a copy of the proposed contract of sale or transfer executed by the franchisee and the
                  proposed transferee;
                      (ii) a completed copy of the franchisor's written application for approval of the change in
                  ownership or executive management, if any, including the information customarily required by
                  the franchisor; and
                      (iii) (A) a written description of the business experience of the executive management of
                  the transferee in the case of a proposed sale or transfer of the franchisee's business; or
                      (B) a written description of the business experience of the person involved in the
                  proposed change of the franchisee's executive management in the case of a proposed change of
                  executive management.

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                      (3) For purposes of this section, the refusal by the franchisor to accept a proposed
                  transferee who is of good moral character and who otherwise meets the written, reasonable, and
                  uniformly applied standards or qualifications, if any, of the franchisor relating to the business
                  experience of executive management and financial capacity to operate and maintain the
                  dealership required by the franchisor of its franchisees is presumed to be unreasonable and
                  undertaken without good cause.
                      (4) (a) If after receipt of the written notice from the franchisor described in Subsection
                  (1) the franchisee objects to the franchisor's refusal to accept the proposed sale or transfer of the
                  business or change of executive management, the franchisee may file an application for a hearing
                  before the board up to 60 days from the date of receipt of the notice.
                      (b) After a hearing, the board shall determine, and enter an order providing that:
                      (i) the proposed transferee or change in executive management shall be approved or may
                  not be approved for specified reasons; or
                      (ii) a proposed transferee or change in executive management is approved if specific
                  conditions are timely satisfied.
                      (c) (i) The franchisee shall have the burden of proof with respect to all issues raised by
                  the franchisee's application for a hearing as provided in this section.
                      (ii) During the pendency of the hearing, the franchise agreement shall continue in effect
                  in accordance with its terms.
                      (d) The board shall expedite, upon written request, any determination sought under this
                  section.
                      Section 8. Section 13-35-203 is amended to read:
                       13-35-203. Succession to franchise.
                      (1) (a) A successor, including a family member of a deceased or incapacitated franchisee,
                  who is designated by the franchisee may succeed the franchisee in the ownership and operation
                  of the dealership under the existing franchise agreement if:
                      (i) the designated successor gives the franchisor written notice of an intent to succeed to
                  the rights of the deceased or incapacitated franchisee in the franchise agreement within 180 days

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                  after the franchisee's death or incapacity;
                      (ii) the designated successor agrees to be bound by all of the terms and conditions of the
                  franchise agreement; and
                      (iii) the designated successor meets the criteria generally applied by the franchisor in
                  qualifying franchisees.
                      (b) A franchisor may refuse to honor the existing franchise agreement with the
                  designated successor only for good cause.
                      (2) (a) The franchisor may request in writing from a designated successor the personal
                  and financial data that is reasonably necessary to determine whether the existing franchise
                  agreement should be honored.
                      (b) The designated successor shall supply the personal and financial data promptly upon
                  the request.
                      (3) (a) If a franchisor believes that good cause exists for refusing to honor the requested
                  succession, the franchisor shall serve upon the designated successor notice of its refusal to
                  approve the succession, within 60 days after the later of:
                      (i) receipt of the notice of the designated successor's intent to succeed the franchisee in
                  the ownership and operation of the dealership; or
                      (ii) the receipt of the requested personal and financial data.
                      (b) Failure to serve the notice pursuant to Subsection (3)(a) is considered approval of the
                  designated successor and the franchise agreement is considered amended to reflect the approval
                  of the succession the day following the last day the franchisor can serve notice under Subsection
                  (3)(a).
                      (4) The notice of the franchisor provided in Subsection (3) shall state the specific
                  grounds for the refusal to approve the succession and that discontinuance of the franchise
                  agreement shall take effect not less than 180 days after the date the notice of refusal is served
                  unless the proposed successor files an application for hearing under Subsection (6).
                      (5) (a) This section does not prevent a franchisee from designating a person as the
                  successor by written instrument filed with the franchisor.

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                      (b) If a franchisee files an instrument under Subsection (5)(a), the instrument governs the
                  succession rights to the management and operation of the dealership subject to the designated
                  successor satisfying the franchisor's qualification requirements as described in this section.
                      (6) (a) If a franchisor serves a notice of refusal to a designated successor pursuant to
                  Subsection (3), the designated successor may, within the 180-day period provided in Subsection
                  (4), file with the board an application for a hearing to determine whether or not good cause exists
                  for the refusal.
                      (b) If application for a hearing is timely filed, the franchisor shall continue to honor the
                  franchise agreement until after:
                      (i) the requested hearing has been concluded;
                      (ii) a decision is rendered by the board; and
                      (iii) the applicable appeal period has expired following a decision by the board.
                      Section 9. Section 13-35-204 is amended to read:
                       13-35-204. Franchisor's obligations related to service -- Franchisor audits -- Time
                  limits.
                      (1) Each franchisor shall specify in writing to each of its franchisees licensed as a new
                  powersport vehicle dealer in this state:
                      (a) the franchisee's obligations for new powersport vehicle preparation, delivery, and
                  warranty service on its products;
                      (b) the schedule of compensation to be paid to the franchisee for parts, work, and service;
                  and
                      (c) the time allowance for the performance of work and service.
                      (2) (a) The schedule of compensation described in Subsection (1) shall include
                  reasonable compensation for diagnostic work, as well as repair service, parts, and labor.
                      (b) Time allowances described in Subsection (1) for the diagnosis and performance of
                  warranty work and service shall be reasonable and adequate for the work to be performed.
                      (3) (a) In the determination of what constitutes reasonable compensation under this
                  section, the principal factor to be considered is the prevailing wage rates being paid by

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                  franchisees in the relevant market area in which the franchisee is doing business.
                      (b) Compensation of the franchisee for warranty service work may not be less than the
                  amount charged by the franchisee for like parts and service to retail or fleet customers, if the
                  amounts are reasonable. For purposes of this Subsection (3)(b), the term "cost" shall be that
                  same price paid by a franchisee to a franchisor or supplier for the part when the part is purchased
                  for a nonwarranty repair.
                      (4) A franchisor may not fail to:
                      (a) perform any warranty obligation;
                      (b) include in written notices of franchisor's recalls to new powersport vehicle owners
                  and franchisees the expected date by which necessary parts and equipment will be available to
                  franchisees for the correction of the defects; or
                      (c) compensate any of the franchisees for repairs effected by the recall.
                      (5) If a franchisor disallows a franchisee's claim for a defective part, alleging that the part
                  is not defective, the franchisor at its option shall:
                      (a) return the part to the franchisee at the franchisor's expense; or
                      (b) pay the franchisee the cost of the part.
                      (6) (a) A claim made by a franchisee pursuant to this section for labor and parts shall be
                  paid within 30 days after its approval.
                      (b) (i) A claim shall be either approved or disapproved by the franchisor within 30 days
                  after receipt of the claim on a form generally used by the franchisor and containing the generally
                  required information.
                      (ii) Any claim not specifically disapproved of in writing within 30 days after the receipt
                  of the form is considered to be approved, and payment shall be made within 30 days.
                      (7) Warranty service audits of franchisee records may be conducted by the franchisor on
                  a reasonable basis.
                      (8) A franchisee's claim for warranty compensation may not be denied except for good
                  cause such as performance of nonwarranty repairs, lack of material documentation, fraud, or
                  misrepresentation.

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                      (9) (a) Any charge backs for warranty parts or service compensation and service
                  incentives shall only be enforceable for the 12-month period immediately following the date the
                  payment for warranty reimbursement was made by the franchisor.
                      (b) Except as provided in Subsection (9)(c), all charge backs levied by a franchisor for
                  sales compensation or sales incentives arising out of the sale or lease of a powersport vehicle
                  sold by a franchisee shall be compensable only if written notice of the charge back is received by
                  the franchisee within 24 months immediately following the date when payment for the sales
                  compensation was made by the franchisor.
                      (c) The time limitations of this Subsection (9) do not preclude charge backs for any
                  fraudulent claim that was previously paid.
                      Section 10. Section 16-6a-102 is amended to read:
                       16-6a-102. Definitions.
                      As used in this chapter:
                      (1) (a) "Address" means a location where mail can be delivered by the United States
                  Postal Service.
                      (b) "Address" includes:
                      (i) a post office box number;
                      (ii) a rural free delivery route number; and
                      (iii) a street name and number.
                      (2) "Affiliate" means a person that directly or indirectly through one or more
                  intermediaries controls, or is controlled by, or is under common control with, the person
                  specified.
                      [(4)] (3) "Articles of incorporation" include:
                      (a) amended articles of incorporation;
                      (b) restated articles of incorporation;
                      (c) articles of merger; and
                      (d) a document of a similar import to the documents described in Subsections [(4)] (3)(a)
                  through (c).

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                      [(3)] (4) "Assumed corporate name" means the name assumed for use in this state:
                      (a) by a:
                      (i) foreign corporation pursuant to Section 16-10a-1506 ; or
                      (ii) a foreign nonprofit corporation pursuant to Section 16-6a-1506 ; and
                      (b) because the corporate name of the foreign corporation described in Subsection [(3)]
                  (4)(a) is not available for use in this state.
                      (5) (a) Except as provided in Subsection (5)(b), "board of directors" means the body
                  authorized to manage the affairs of the domestic or foreign nonprofit corporation.
                      (b) Notwithstanding Subsection (5)(a), a person may not be considered a member of the
                  board of directors because of powers delegated to that person pursuant to Subsection
                  16-6a-801 (2).
                      (6) (a) "Bylaws" means the one or more codes of rules, other than the articles of
                  incorporation, adopted pursuant to this chapter for the regulation or management of the affairs of
                  the domestic or foreign nonprofit corporation irrespective of the name or names by which the
                  codes of rules are designated.
                      (b) "Bylaws" includes:
                      (i) amended bylaws; and
                      (ii) restated bylaws.
                      (7) (a) "Cash" or "money" means:
                      (i) legal tender;
                      (ii) a negotiable instrument; or
                      (iii) other cash equivalent readily convertible into legal tender.
                      (b) "Cash" and "money" are used interchangeably in this chapter.
                      (8) (a) "Class" refers to a group of memberships that have the same rights with respect to
                  voting, dissolution, redemption, transfer, or other characteristics.
                      (b) For purposes of Subsection (8)(a), rights are considered the same if they are
                  determined by a formula applied uniformly to a group of memberships.
                      (9) (a) "Conspicuous" means so written that a reasonable person against whom the

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                  writing is to operate should have noticed the writing.
                      (b) "Conspicuous" includes printing or typing in:
                      (i) italics;
                      (ii) boldface;
                      (iii) contrasting color;
                      (iv) capitals; or
                      (v) underlining.
                      (10) "Control" or a "controlling interest" means the direct or indirect possession of the
                  power to direct or cause the direction of the management and policies of an entity by:
                      (a) the ownership of voting shares;
                      (b) contract; or
                      (c) means other than those specified in Subsection (10)(a) or (b).
                      (11) Subject to Section 16-6a-207 , "cooperative nonprofit corporation" or "cooperative"
                  means a nonprofit corporation organized or existing under this chapter.
                      (12) "Corporate name" means:
                      (a) the name of a domestic corporation as stated in the domestic corporation's articles of
                  incorporation;
                      (b) the name of a domestic nonprofit corporation as stated in the domestic nonprofit
                  corporation's articles of incorporation;
                      (c) the name of a foreign corporation as stated in the foreign corporation's:
                      (i) articles of incorporation; or
                      (ii) document of similar import to articles of incorporation; or
                      (d) the name of a foreign nonprofit corporation as stated in the foreign nonprofit
                  corporation's:
                      (i) articles of incorporation; or
                      (ii) document of similar import to articles of incorporation.
                      (13) "Corporation" or "domestic corporation" means a corporation for profit, which is not
                  a foreign corporation, incorporated under or subject to Chapter 10a, Utah Revised Business

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                  Corporation Act.
                      (14) "Delegate" means any person elected or appointed to vote in a representative
                  assembly:
                      (a) for the election of a director; or
                      (b) on matters other than the election of a director.
                      (15) "Deliver" includes delivery by mail and any other means of transmission authorized
                  by Section 16-6a-103 , except that delivery to the division means actual receipt by the division.
                      (16) "Director" means a member of the board of directors.
                      (17) (a) "Distribution" means the payment of a dividend or any part of the income or
                  profit of a nonprofit corporation to the nonprofit corporation's:
                      (i) members;
                      (ii) directors; or
                      (iii) officers.
                      (b) "Distribution" does not include fair-value payments for:
                      (i) goods sold; or
                      (ii) services received.
                      (18) "Division" means the Division of Corporations and Commercial Code.
                      (19) "Effective date," when referring to a document filed by the division, means the time
                  and date determined in accordance with Section 16-6a-108 .
                      (20) "Effective date of notice" means the date notice is effective as provided in Section
                  16-6a-103 .
                      (21) (a) "Employee" includes an officer of a nonprofit corporation.
                      (b) (i) Except as provided in Subsection (21)(b)(ii), "employee" does not include a
                  director of a nonprofit corporation.
                      (ii) Notwithstanding Subsection (21)(b)(i), a director may accept duties that make that
                  director an employee of a nonprofit corporation.
                      (22) "Executive director" means the executive director of the Department of Commerce.
                      (23) "Entity" includes:

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                      (a) a domestic or foreign corporation;
                      (b) a domestic or foreign nonprofit corporation;
                      (c) a limited liability company;
                      (d) a profit or nonprofit unincorporated association;
                      (e) a business trust;
                      (f) an estate;
                      (g) a partnership;
                      (h) a trust;
                      (i) two or more persons having a joint or common economic interest;
                      (j) a state;
                      (k) the United States; or
                      (l) a foreign government.
                      (24) "Foreign corporation" means a corporation for profit incorporated under a law other
                  than the laws of this state.
                      (25) "Foreign nonprofit corporation" means an entity:
                      (a) incorporated under a law other than the laws of this state; and
                      (b) that would be a nonprofit corporation if formed under the laws of this state.
                      (26) "Governmental subdivision" means:
                      (a) a county;
                      (b) a city;
                      (c) a town; or
                      (d) any other type of governmental subdivision authorized by the laws of this state.
                      (27) "Individual" means:
                      (a) a natural person;
                      (b) the estate of an incompetent individual; or
                      (c) the estate of a deceased individual.
                      (28) "Internal Revenue Code" means the federal "Internal Revenue Code of 1986," as
                  amended from time to time, or to corresponding provisions of subsequent internal revenue laws

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                  of the United States of America.
                      (29) (a) "Mail," "mailed," or "mailing" means deposit, deposited, or depositing in the
                  United States mail, properly addressed, first-class postage prepaid.
                      (b) "Mail," "mailed," or "mailing" includes registered or certified mail for which the
                  proper fee has been paid.
                      (30) (a) "Member" means one or more persons identified or otherwise appointed as a
                  member of a domestic or foreign nonprofit corporation as provided:
                      (i) in the articles of incorporation;
                      (ii) in the bylaws;
                      (iii) by a resolution of the board of directors; or
                      (iv) by a resolution of the members of the nonprofit corporation.
                      (b) "Member" includes "voting member."
                      (31) "Membership" refers to the rights and obligations of a member or members.
                      (32) "Nonprofit corporation" or "domestic nonprofit corporation" means an entity, which
                  is not a foreign nonprofit corporation, incorporated under or subject to the provisions of this
                  chapter.
                      (33) "Notice" is as provided in Section 16-6a-103 .
                      (34) "Party related to a director" means:
                      (a) the spouse of the director;
                      (b) a child of the director;
                      (c) a grandchild of the director;
                      (d) a sibling of the director;
                      (e) a parent of the director;
                      (f) the spouse of an individual described in Subsections (34)(b) through (e);
                      (g) an individual having the same home as the director;
                      (h) a trust or estate of which the director or any other individual specified in this
                  Subsection (34) is a substantial beneficiary; or
                      (i) any of the following of which the director is a fiduciary:

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                      (i) a trust;
                      (ii) an estate;
                      (iii) an incompetent;
                      (iv) a conservatee; or
                      (v) a minor.
                      (35) "Person" means an:
                      (a) individual; or
                      (b) entity.
                      (36) "Principal office" means:
                      (a) the office, in or out of this state, designated by a domestic or foreign nonprofit
                  corporation as its principal office in the most recent document on file with the division providing
                  that information, including:
                      (i) an annual report;
                      (ii) an application for a certificate of authority; or
                      (iii) a notice of change of principal office; or
                      (b) if no principal office can be determined, a domestic or foreign nonprofit corporation's
                  registered office.
                      (37) "Proceeding" includes:
                      (a) a civil suit;
                      (b) arbitration;
                      (c) mediation;
                      (d) a criminal action;
                      (e) an administrative action; or
                      (f) an investigatory action.
                      (38) "Receive," when used in reference to receipt of a writing or other document by a
                  domestic or foreign nonprofit corporation, means the writing or other document is actually
                  received:
                      (a) by the domestic or foreign nonprofit corporation at:

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                      (i) its registered office in this state; or
                      (ii) its principal office;
                      (b) by the secretary of the domestic or foreign nonprofit corporation, wherever the
                  secretary is found; or
                      (c) by any other person authorized by the bylaws or the board of directors to receive the
                  writing or other document, wherever that person is found.
                      (39) (a) "Record date" means the date established under Part 6, Members or 7, Member
                  Meetings and Voting on which a nonprofit corporation determines the identity of the nonprofit
                  corporation's members.
                      (b) The determination described in Subsection (39)(a) shall be made as of the close of
                  business on the record date unless another time for doing so is specified when the record date is
                  fixed.
                      (40) "Registered agent" means the registered agent of:
                      (a) a domestic nonprofit corporation required to be maintained pursuant to Subsection
                  16-6a-501 (1)(b); or
                      (b) a foreign nonprofit corporation required to be maintained pursuant to Subsection
                  16-6a-1508 (1)(b).
                      (41) "Registered office" means the office within this state designated by a domestic or
                  foreign nonprofit corporation as its registered office in the most recent document on file with the
                  division providing that information, including:
                      (a) articles of incorporation;
                      (b) an application for a certificate of authority; or
                      (c) a notice of change of registered office.
                      (42) "Secretary" means the corporate officer to whom the bylaws or the board of
                  directors has delegated responsibility under Subsection 16-6a-818 (3) for:
                      (a) the preparation and maintenance of:
                      (i) minutes of the meetings of:
                      (A) the board of directors; or

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                      (B) the members; and
                      (ii) the other records and information required to be kept by the nonprofit corporation
                  pursuant to Section 16-6a-1601 ; and
                      (b) authenticating records of the nonprofit corporation.
                      (43) "State," when referring to a part of the United States, includes:
                      (a) a state;
                      (b) a commonwealth;
                      (c) the District of Columbia;
                      (d) an agency or governmental and political subdivision of a state, commonwealth, or
                  District of Columbia;
                      (e) territory or insular possession of the United States; or
                      (f) an agency or governmental and political subdivision of a territory or insular
                  possession of the United States.
                      (44) "Street address" means:
                      (a) (i) street name and number;
                      (ii) city or town; and
                      (iii) United States post office zip code designation; or
                      (b) if, by reason of rural location or otherwise, a street name, number, city, or town does
                  not exist, an appropriate description other than that described in Subsection (44)(a) fixing as
                  nearly as possible the actual physical location but only if the information includes:
                      (i) the rural free delivery route;
                      (ii) the county; and
                      (iii) the United States post office zip code designation.
                      (45) "United States" includes any district, authority, office, bureau, commission,
                  department, and any other agency of the United States of America.
                      (46) "Vote" includes authorization by:
                      (a) written ballot; and
                      (b) written consent.

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                      (47) (a) "Voting group" means all the members of one or more classes of members or
                  directors that, under this chapter, the articles of incorporation, or the bylaws, are entitled to vote
                  and be counted together collectively on a matter.
                      (b) All members or directors entitled by this chapter, the articles of incorporation, or the
                  bylaws to vote generally on a matter are for that purpose a single voting group.
                      (48) (a) "Voting member" means a person entitled to vote for all matters required or
                  permitted under this chapter to be submitted to a vote of the members, except as otherwise
                  provided in the articles of incorporation or bylaws.
                      (b) A person is not a voting member solely because of:
                      (i) a right the person has as a delegate;
                      (ii) a right the person has to designate a director; or
                      (iii) a right the person has as a director.
                      Section 11. Section 16-6a-1002 is amended to read:
                       16-6a-1002. Amendment of articles of incorporation by board of directors or
                  incorporators.
                      (1) Unless otherwise provided in the articles of incorporation, the board of directors may
                  adopt, without member approval, one or more amendments to the articles of incorporation to:
                      (a) delete the names and addresses of the initial directors;
                      (b) delete the name and address of the initial registered agent or registered office, if a
                  statement of change is on file with the division;
                      (c) change the corporate name by:
                      (i) substituting the word "corporation," "incorporated," "company," "limited," or an
                  abbreviation of any such word for a similar word or abbreviation in the name; or
                      (ii) adding, deleting, or changing a geographical attribution; or
                      (d) make any other change expressly permitted by this chapter to be made without
                  member action.
                      (2) The board of directors may adopt, without member action, one or more amendments
                  to the articles of incorporation to change the corporate name, if necessary, in connection with the

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                  reinstatement of a nonprofit corporation pursuant to Section 16-6a-1412 .
                      (3) (a) Subject to any approval required pursuant to Section [ 16-6a-1012 ] 16-6a-1013 , if
                  a nonprofit corporation has no members, no members entitled to vote on amendments, or no
                  members yet admitted to membership, one or more amendments to the nonprofit corporation's
                  articles of incorporation may be adopted by:
                      (i) its incorporators until directors have been chosen; or
                      (ii) its directors after the directors have been chosen.
                      (b) A nonprofit corporation described in Subsection (3)(a) shall provide notice of any
                  meeting at which an amendment is to be voted upon.
                      (c) The notice required by Subsection (3)(b) shall:
                      (i) be in accordance with Section 16-6a-814 ;
                      (ii) state that the purpose, or one of the purposes, of the meeting is to consider a proposed
                  amendment to the articles of incorporation; and
                      (iii) (A) contain or be accompanied by a copy or summary of the amendment; or
                      (B) state the general nature of the amendment.
                      (d) An amendment described in Subsection (3)(a) shall be approved:
                      (i) by a majority of the incorporators, until directors have been chosen; or
                      (ii) after directors are chosen by a majority of the directors in office at the time the
                  amendment is adopted.
                      Section 12. Section 17-27-106 is amended to read:
                       17-27-106. Limit on plan check fees.
                      (1) A county may not impose or collect a fee for reviewing or approving the plans for a
                  commercial or residential building that exceeds the [lessor] lesser of:
                      (a) the actual cost of performing the plan review; and
                      (b) 65% of the amount the county charges for a building permit fee for that building.
                      (2) (a) For purposes of this Subsection (2):
                      (i) "Identical plans" means building plans submitted to a county that:
                      (A) are substantially identical to building plans that were previously submitted to and

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                  reviewed and approved by the county; and
                      (B) describe a building that is:
                      (I) located on land zoned the same as the land on which the building described in the
                  previously approved plans is located; and
                      (II) subject to the same geological and meteorological conditions and the same law as the
                  building described in the previously approved plans.
                      (ii) "Nominal fee" means a fee that reasonably reimburses a county only for time spent
                  and expenses incurred in:
                      (A) verifying that building plans are identical plans; and
                      (B) reviewing and approving those minor aspects of identical plans that differ from the
                  previously reviewed and approved building plans referred to in Subsection (2)(a)(i).
                      (b) Subject to Subsection (1), a county may impose and collect only a nominal fee for
                  reviewing and approving identical plans.
                      Section 13. Section 17-52-401 is amended to read:
                       17-52-401. Contents of proposed optional plan.
                      (1) Each optional plan proposed under this chapter:
                      (a) shall propose the adoption of one of the forms of county government listed in
                  Subsection 17-52-402 (1)(a);
                      (b) shall contain detailed provisions relating to the transition from the existing form of
                  county government to the form proposed in the optional plan, including provisions relating to
                  the:
                      (i) election or appointment of officers specified in the optional plan for the new form of
                  county government;
                      (ii) retention, elimination, or combining of existing offices and, if an office is eliminated,
                  the division or department of county government responsible for performing the duties of the
                  eliminated office;
                      (iii) continuity of existing ordinances and regulations;
                      (iv) continuation of pending legislative, administrative, or judicial proceedings;

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                      (v) making of interim and temporary appointments; and
                      (vi) preparation, approval, and adjustment of necessary budget appropriations;
                      (c) shall specify the date it is to become effective if adopted, which shall not be earlier
                  than the first day of January next following the election of officers under the new plan; and
                      (d) notwithstanding any other provision of this title and except with respect to an
                  optional plan that proposes the adoption of the county commission or expanded county
                  commission form of government, with respect to the county budget:
                      (i) may provide that the county auditor's role is to be the budget officer, to project county
                  revenues, and to prepare a tentative budget to present to the county executive; and
                      (ii) shall provide that the county executive's role is to prepare and present a proposed
                  budget to the county legislative body, and the county legislative body's role is to adopt a final
                  budget.
                      (2) Subject to Subsection (3), an optional plan may include provisions that are
                  considered necessary or advisable to the effective operation of the proposed optional plan.
                      (3) An optional plan may not include any provision that is inconsistent with or prohibited
                  by the Utah Constitution or any statute.
                      (4) Each optional plan proposing to change the form of government to a form under
                  Section [ 17-52-503 ,] 17-52-504 [,] or 17-52-505 [, or 17-52-506 ] shall:
                      (a) provide for the same executive and legislative officers as are specified in the
                  applicable section for the form of government being proposed by the optional plan;
                      (b) provide for the election of the county council;
                      (c) specify the number of county council members, which shall be an odd number from
                  three to nine;
                      (d) specify whether the members of the county council are to be elected from districts, at
                  large, or by a combination of at large and by district;
                      (e) specify county council members' qualifications and terms and whether the terms are
                  to be staggered;
                      (f) contain procedures for filling vacancies on the county council, consistent with the

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                  provisions of Section 20A-1-508 ; and
                      (g) state the initial compensation, if any, of county council members and procedures for
                  prescribing and changing compensation.
                      (5) Each optional plan proposing to change the form of government to the county
                  commission form under Section 17-52-501 or the expanded county commission form under
                  Section 17-52-502 shall specify:
                      (a) (i) for the county commission form of government, that the county commission shall
                  have three members; or
                      (ii) for the expanded county commission form of government, whether the county
                  commission shall have five or seven members;
                      (b) the terms of office for county commission members and whether the terms are to be
                  staggered;
                      (c) whether members of the county commission are to be elected from districts, at large,
                  or by a combination of at large and from districts; and
                      (d) if any members of the county commission are to be elected from districts, the district
                  residency requirements for those commission members.
                      Section 14. Section 17A-1-301 is amended to read:
                       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)] (4) metropolitan water districts established under authority of [Title 17A,] Chapter

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                  2, Part 8, Metropolitan Water District Act;
                      [(6)] (5) any dependent special district established under the authority of [Title 17A,]
                  Chapter 3, Dependent Special Districts; and
                      [(7)] (6) a hazardous waste facilities authority established under authority of Chapter 2,
                  Part 17, Hazardous Waste Facilities Management Act.
                      Section 15. Section 17A-1-403 is amended to read:
                       17A-1-403. Applicability to special districts -- Exceptions.
                      This part applies to all special districts under Subsection 17A-1-404 (19) except the
                  following districts which are specifically excluded from this part:
                      (1) redevelopment agencies created under [Chapter 2, Part 12] Title 17B, Chapter 4;
                      (2) public transit districts created under Chapter 2, Part 10;
                      (3) health departments created under Title 26A, Chapter 1; and
                      (4) entities created under Title 11, Chapter 13, Interlocal Cooperation Act, unless the
                  entity is also a mental health district created under Chapter 3, Part 6, Local Mental Health
                  Authorities.
                      Section 16. Section 17A-2-405 is amended to read:
                       17A-2-405. Area in county service area -- Overlapping of areas.
                      (1) (a) The boundaries of a county service area may include:
                      (i) all or part of any unincorporated area of one county; and
                      (ii) territory located within a municipality.
                      (b) Notwithstanding Subsection (1)(a)[(i)], the addition of any territory to a county
                  service area under this part shall, on and after June 1, 2001 and as provided in Subsection
                  17A-2-101.3 (1)(a)(i), be governed by Title 17B, Chapter 2, Part 5, Annexation.
                      (2) County service areas may overlap if the service area which overlaps is entirely within
                  the boundaries of the service area which it overlaps.
                      (3) (a) Except as provided in Subsection (3)(b), not more than two service areas may
                  occupy the same area in the county.
                      (b) Notwithstanding Subsection (3)(a), three service areas may occupy the same area in

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                  the county if one of the overlapping service areas is countywide.
                      (4) No overlapping service areas may perform the same services.
                      (5) All parts of a county service area need not be contiguous.
                      Section 17. Section 17A-2-1304 is amended to read:
                       17A-2-1304. Establishing special service districts -- Improvement districts within
                  special service districts.
                      (1) (a) A county or a municipality may establish a special service district for the purpose
                  of providing within the area of the special service district any of the following services or any
                  combination of them:
                      (i) water;
                      (ii) sewerage;
                      (iii) drainage;
                      (iv) flood control;
                      (v) garbage;
                      (vi) health care;
                      (vii) transportation;
                      (viii) recreation;
                      (ix) fire protection;
                      (x) in a county of the first class, providing, operating, and maintaining jail facilities for
                  the confinement of municipal, state, and other detainees and prisoners;
                      (xi) street lighting;
                      (xii) consolidated 911 and emergency dispatch; and
                      (xiii) animal shelter and control.
                      (b) Snow removal services may be provided in special service districts established under
                  this section to more effectively carry out the purposes of those special service districts.
                      (c) These services may be provided through facilities or systems acquired or constructed
                  for that purpose through construction, purchase, lease, contract, gift, or condemnation or any
                  combination of the above.

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                      (d) Special service districts may contract with a franchised, certificated public utility for
                  the construction and operation of an electrical service distribution system within the special
                  service district.
                      (2) (a) The area within any special service district may include all or any part of the
                  county or municipality that established it except that:
                      (i) a special service district may not include the area of any other special service district
                  established by the same county or municipality that is now providing the same service proposed
                  to be supplied by the new special service district;
                      (ii) a special service district established by a county may contain all or a part of any
                  municipality or of an existing improvement district that provides the same service proposed to be
                  provided by the special service district, but only with the consent of the governing authority as
                  provided in a resolution or ordinance adopted by the governing authority; and
                      (iii) a special service district may not include any area not directly [benefited] benefitted
                  by the services provided under this section without the consent of the [nonbenefited]
                  nonbenefitted landowner.
                      (b) All parts of a special service district need not be contiguous.
                      (3) (a) As provided in Section 17A-2-1315 , the governing authority of any special service
                  district created under this part may create one or more improvement districts within the
                  boundaries of the special service district by following the procedures in, and meeting the
                  requirements of, Chapter 3, Part 2, County Improvement District Act, or Part 3, Utah Municipal
                  Improvement District Act.
                      (b) The intent to create an improvement district need not be present at the time a special
                  service district is organized.
                      (c) Any improvement district created within the boundaries of a special service district
                  may only be organized to undertake projects or improvements for which the special service
                  district creating that improvement district was organized.
                      (d) The special service district shall meet all procedural requirements for creating an
                  improvement district at the time the improvement district is created, as provided in Section

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                  17A-2-1315 and in Chapter 3, Part 2, County Improvement District Act, or Part 3, Utah
                  Municipal Improvement District Act.
                      (e) In determining whether or not a project or improvement undertaken by an
                  improvement district is within the scope of the purposes for which the special service district
                  creating that improvement district was organized, any project or improvement reasonably related
                  to the purposes for which the special service district creating that improvement district was
                  organized is considered to be within the scope of those purposes.
                      (4) The creation of a special service district to provide jail services as provided in
                  Subsection (1)(a)(x) does not affect the ability of a municipality under Section 10-8-58 to
                  provide, operate, and maintain facilities for the temporary incarceration, not to exceed 72 hours,
                  of persons charged with the violation of a municipal ordinance.
                      Section 18. Section 17A-3-606 is amended to read:
                       17A-3-606. Contracts for mental health services provided by local mental health
                  authorities.
                      Where a local mental health authority has established a plan to provide services
                  authorized by this part, and those services meet standards fixed by rules of the board, the local
                  mental health authority may enter into a contract with the Division of Substance Abuse and
                  Mental Health for mental health services to be furnished by that local mental health authority for
                  an agreed compensation to be paid by the division.
                      Section 19. Section 19-2-104 is amended to read:
                       19-2-104. Powers of board.
                      (1) The board may make rules in accordance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act:
                      (a) regarding the control, abatement, and prevention of air pollution from all sources and
                  the establishment of the maximum quantity of air contaminants that may be emitted by any air
                  contaminant source;
                      (b) establishing air quality standards;
                      (c) requiring persons engaged in operations which result in air pollution to:

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                      (i) install, maintain, and use emission monitoring devices, as the board finds necessary;
                      (ii) file periodic reports containing information relating to the rate, period of emission,
                  and composition of the air contaminant; and
                      (iii) provide access to records relating to emissions which cause or contribute to air
                  pollution;
                      (d) implementing 15 U.S.C.A. 2601 et seq. Toxic Substances Control Act, Subchapter II
                  - Asbestos Hazard Emergency Response, and reviewing and approving asbestos management
                  plans submitted by local education agencies under that act;
                      (e) establishing a requirement for a diesel emission opacity inspection and maintenance
                  program for diesel-powered motor vehicles;
                      (f) implementing an operating permit program as required by and in conformity with
                  Titles IV and V of the federal Clean Air Act Amendments of 1990;
                      (g) establishing requirements for county emissions inspection and maintenance programs
                  after obtaining agreement from the counties that would be affected by the requirements;
                      (h) with the approval of the governor, implementing in air quality nonattainment areas
                  employer-based trip reduction programs applicable to businesses having more than 100
                  employees at a single location and applicable to federal, state, and local governments to the
                  extent necessary to attain and maintain ambient air quality standards consistent with the state
                  implementation plan and federal requirements under the standards set forth in Subsection (2);
                  and
                      (i) implementing lead-based paint remediation training, certification, and performance
                  requirements in accordance with 15 U.S.C.A. 2601 et seq., Toxic Substances Control Act,
                  Subchapter IV -- Lead Exposure Reduction, [Section] Sections 402 and [404] 406.
                      (2) When implementing Subsection (1)(h) the board shall take into consideration:
                      (a) the impact of the business on overall air quality; and
                      (b) the need of the business to use automobiles in order to carry out its business
                  purposes.
                      (3) The board may:

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                      (a) hold hearings relating to any aspect of or matter in the administration of this chapter
                  and compel the attendance of witnesses and the production of documents and other evidence,
                  administer oaths and take testimony, and receive evidence as necessary;
                      (b) issue orders necessary to enforce the provisions of this chapter, enforce the orders by
                  appropriate administrative and judicial proceedings, and institute judicial proceedings to secure
                  compliance with this chapter;
                      (c) settle or compromise any civil action initiated to compel compliance with this chapter
                  and the rules made under this chapter;
                      (d) secure necessary scientific, technical, administrative, and operational services,
                  including laboratory facilities, by contract or otherwise;
                      (e) prepare and develop a comprehensive plan or plans for the prevention, abatement,
                  and control of air pollution in this state;
                      (f) encourage voluntary cooperation by persons and affected groups to achieve the
                  purposes of this chapter;
                      (g) encourage local units of government to handle air pollution within their respective
                  jurisdictions on a cooperative basis and provide technical and consultative assistance to them;
                      (h) encourage and conduct studies, investigations, and research relating to air
                  contamination and air pollution and their causes, effects, prevention, abatement, and control;
                      (i) determine by means of field studies and sampling the degree of air contamination and
                  air pollution in all parts of the state;
                      (j) monitor the effects of the emission of air contaminants from motor vehicles on the
                  quality of the outdoor atmosphere in all parts of this state and take appropriate action with
                  respect to them;
                      (k) collect and disseminate information and conduct educational and training programs
                  relating to air contamination and air pollution;
                      (l) advise, consult, contract, and cooperate with other agencies of the state, local
                  governments, industries, other states, interstate or interlocal agencies, the federal government,
                  and with interested persons or groups;

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                      (m) consult, upon request, with any person proposing to construct, install, or otherwise
                  acquire an air contaminant source in the state concerning the efficacy of any proposed control
                  device, or system for this source, or the air pollution problem which may be related to the source,
                  device, or system, but a consultation does not relieve any person from compliance with this
                  chapter, the rules adopted under it, or any other provision of law;
                      (n) accept, receive, and administer grants or other funds or gifts from public and private
                  agencies, including the federal government, for the purpose of carrying out any of the functions
                  of this chapter;
                      (o) require the owner and operator of each new source which directly emits or has the
                  potential to emit 100 tons per year or more of any air contaminant or the owner or operator of
                  each existing source which by modification will increase emissions or have the potential of
                  increasing emissions by 100 tons per year or more of any air contaminant, to pay a fee sufficient
                  to cover the reasonable costs of:
                      (i) reviewing and acting upon the notice required under Section 19-2-108 ; and
                      (ii) implementing and enforcing requirements placed on the sources by any approval
                  order issued pursuant to notice, not including any court costs associated with any enforcement
                  action;
                      (p) assess and collect noncompliance penalties as required in Section 120 of the federal
                  Clean Air Act, 42 U.S.C. Sec. 7420;
                      (q) meet the requirements of federal air pollution laws;
                      (r) establish work practice, certification, and clearance air sampling requirements for
                  persons who:
                      (i) contract for hire to conduct demolition, renovation, salvage, encapsulation work
                  involving friable asbestos-containing materials, or asbestos inspections; or
                      (ii) conduct work described in Subsection (3)(r)(i) in areas to which the general public
                  has unrestrained access or in school buildings that are subject to the federal Asbestos Hazard
                  Emergency Response Act of 1986;
                      (iii) conduct asbestos inspections in facilities subject to 15 U.S.C.A. 2601 et seq., Toxic

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                  Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response; or
                      (iv) conduct lead paint inspections in facilities subject to 15 U.S.C.A. 2601 et seq., Toxic
                  Substances Control Act, Subchapter IV -- Lead Exposure Reduction;
                      (s) establish certification requirements for persons required under 15 U.S.C.A. 2601 et
                  seq., Toxic Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response, to be
                  accredited as inspectors, management planners, abatement project designers, asbestos abatement
                  contractors and supervisors, or asbestos abatement workers;
                      (t) establish certification requirements for asbestos project monitors, which shall provide
                  for experience-based certification of persons who, prior to establishment of the certification
                  requirements, had received relevant asbestos training, as defined by rule, and had acquired at
                  least 1,000 hours of experience as project monitors;
                      (u) establish certification procedures and requirements for certification of the conversion
                  of a motor vehicle to a clean-fuel vehicle, certifying the vehicle is eligible for the tax credit
                  granted in Section 59-7-605 or 59-10-127 ;
                      (v) establish a program to certify private sector air quality permitting professionals
                  (AQPP), as described in Section 19-2-109.5 ; and
                      (w) establish certification requirements for persons required under 15 U.S.C.A. 2601 et
                  seq., Toxic Control Act, Subchapter IV -- Lead Exposure Reduction, to be accredited as
                  inspectors, risk assessors, supervisors, project designers, or abatement workers.
                      (4) Any rules adopted under this chapter shall be consistent with provisions of federal
                  laws, if any, relating to control of motor vehicles or motor vehicle emissions.
                      (5) Nothing in this chapter authorizes the board to require installation of or payment for
                  any monitoring equipment by the owner or operator of a source if the owner or operator has
                  installed or is operating monitoring equipment that is equivalent to equipment which the board
                  would require under this section.
                      Section 20. Section 20A-3-105.5 is amended to read:
                       20A-3-105.5. Manner of voting -- Provisional ballot.
                      (1) As used in this section:

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                      (a) "Proof of identity" means some form of photo identification, such as a driver license
                  or identification card, that establishes a person's identity.
                      (b) "Proof of residence" means some official document or form, such as a driver license
                  or utility bill that establishes a person's residence.
                      (2) The election judges shall follow the procedures and requirements of this section
                  when:
                      (a) the person's right to vote is challenged as provided in Section 20A-3-202 ; or
                      (b) the person's name is not found on the official register.
                      (3) When faced with one of the circumstances outlined in Subsection (2), the election
                  judge shall:
                      (a) request that the person provide proof of identity and proof of residency; and
                      (b) review the proof of identity and proof of residency provided by the person.
                      (4) If the election judge is satisfied that the person has established [their] the person's
                  identity and [their] residence in the voting precinct:
                      (a) the election judge in charge of the official register shall:
                      (i) record in the official register the type of source documents that established the
                  person's proof of identity and proof of residency;
                      (ii) write the provisional ballot envelope number opposite the name of the voter in the
                  official register; and
                      (iii) direct the voter to sign his name in the election column in the official register;
                      (b) another judge shall list the ballot number and voter's name in the pollbook; and
                      (c) the election judge having charge of the ballots shall:
                      (i) endorse his initials on the stub;
                      (ii) check the name of the voter on the pollbook list with the number of the stub;
                      (iii) give the voter a ballot and a provisional ballot envelope; and
                      (iv) allow the voter to enter the voting booth.
                      (5) Whenever the election officer is required to furnish more than one kind of official
                  ballot to a voting precinct, the election judges of that voting precinct shall give the registered

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                  voter the kind of ballot that the voter is qualified to vote.
                      Section 21. Section 20A-5-403 is amended to read:
                       20A-5-403. Polling places -- Booths -- Ballot boxes -- Inspections -- Provisions --
                  Arrangements.
                      (1) Each election officer shall:
                      (a) designate polling places for each voting precinct in the jurisdiction; and
                      (b) obtain the approval of the county or municipal legislative body or special district
                  governing board for those polling places.
                      (2) (a) For each polling place, the election officer shall provide:
                      (i) an American flag;
                      (ii) a sufficient number of voting booths or compartments;
                      (iii) the voting devices, voting booths, ballots, ballot boxes, ballot labels, ballot cards,
                  write-in ballots, and any other records and supplies necessary to enable a voter to vote; and
                      (iv) the constitutional amendment cards and voter information pamphlets required by
                  Part 1.
                      (b) Each election officer shall ensure that:
                      (i) each voting booth is at least three feet square, contains a shelf that is at least one foot
                  wide extending across one side of the booth at a convenient height for writing, and is arranged so
                  that the voter can prepare his ballot screened from observation;
                      (ii) there is at least one voting booth for every 100 voters who voted at the last similar
                  election in the voting precinct; and
                      (iii) there is at least one voting booth that is configured to accommodate persons with
                  disabilities.
                      (c) Each county clerk shall provide a ballot box for each polling place that is large
                  enough to properly receive and hold the ballots to be cast.
                      (3) (a) As of May 15, 2003, all polling places shall be physically inspected by each
                  county clerk to ensure access by [people] a person with [disabilities] a disability.
                      (b) Any issues concerning inaccessibility to polling places by [people] a person with a

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                  disability discovered during the inspections referred to in Subsection (3)(a) or reported to the
                  county clerk on or after May 15, 2002 shall be:
                      (i) forwarded to the Office of the Lieutenant Governor; and
                      (ii) within six months of the time of the complaint, the issue of inaccessibility shall be
                  either:
                      (A) remedied at the particular location by the county clerk;
                      (B) the county clerk shall designate an alternative accessible location for the particular
                  precinct; or
                      (C) if no practical solution can be identified, file with the Office of the Lieutenant
                  Governor a written explanation identifying the reasons compliance cannot reasonably be met.
                      (4) The municipality in which the election is held shall pay the cost of conducting each
                  municipal election, including the cost of printing and supplies.
                      (5) The county clerk shall make detailed entries of all proceedings had under this chapter.
                      Section 22. Section 26A-1-110 is amended to read:
                       26A-1-110. Local health officer -- Powers and duties -- Vacancy.
                      (1) The board shall appoint a local health officer and determine the officer's
                  compensation:
                      (a) subject to ratification by the county executive of the county or counties in the local
                  health department; and
                      (b) as provided by:
                      (i) ordinance adopted by a county creating a county health department; or
                      (ii) the interlocal agreement pursuant to which a multicounty health department is
                  created.
                      (2) The local health officer shall:
                      (a) have the qualifications of training and experience for that office equivalent to those
                  approved by the department for local health officers;
                      (b) be the administrative and executive officer of the local health department and devote
                  full time to the duties of the office;

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                      (c) if provisions have been made with the department, act as the local registrar of vital
                  statistics within the local health department's boundaries without additional compensation or
                  payment of fees provided by law;
                      (d) (i) prior to the beginning of each fiscal year, prepare an annual budget approved by
                  the board and present it:
                      (A) to the county legislative body if the local health department is a county health
                  department; or
                      (B) to the entity designated in the interlocal agreement creating the local health
                  department if the local health department is a multicounty health department; and
                      (ii) obtain final approval of the annual budget from the governing bodies designated in
                  Subsection (2)(d)(i)(A) or (B) after the governing body either:
                      (A) reviews and approves the budget; or
                      (B) amends and approves the budget; and
                      (e) prepare an annual report and provide it to the department and all counties in the local
                  health department.
                      (3) The report under Subsection (2)(e) shall contain a copy of the independent financial
                  audit required under Section 26A-1-115 , a description of the population served by the local
                  health department, and other information as requested by the board or the county or counties
                  creating the local health department.
                      (4) In the absence or disability of the local health officer, or if there is a vacancy in that
                  office, the board shall appoint an acting health officer for a temporary period not to exceed one
                  year. The appointment shall be ratified by the county executive of the county or counties in the
                  local health department.
                      Section 23. Section 31A-1-301 is amended to read:
                       31A-1-301. Definitions.
                      As used in this title, unless otherwise specified:
                      (1) (a) "Accident and health insurance" means insurance to provide protection against
                  economic losses resulting from:

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                      (i) a medical condition including:
                      (A) medical care expenses; or
                      (B) the risk of disability;
                      (ii) accident; or
                      (iii) sickness.
                      (b) "Accident and health insurance":
                      (i) includes a contract with disability contingencies including:
                      (A) an income replacement contract;
                      (B) a health care contract;
                      (C) an expense reimbursement contract;
                      (D) a credit accident and health contract;
                      (E) a continuing care contract; and
                      (F) long-term care contracts; and
                      (ii) may provide:
                      (A) hospital coverage;
                      (B) surgical coverage;
                      (C) medical coverage; or
                      (D) loss of income coverage.
                      (c) "Accident and health insurance" does not include workers' compensation insurance.
                      (2) "Administrator" is defined in Subsection (121).
                      (3) "Adult" means a natural person who has attained the age of at least 18 years.
                      (4) "Affiliate" means any person who controls, is controlled by, or is under common
                  control with, another person. A corporation is an affiliate of another corporation, regardless of
                  ownership, if substantially the same group of natural persons manages the corporations.
                      (5) "Alien insurer" means an insurer domiciled outside the United States.
                      (6) "Amendment" means an endorsement to an insurance policy or certificate.
                      (7) "Annuity" means an agreement to make periodical payments for a period certain or
                  over the lifetime of one or more natural persons if the making or continuance of all or some of

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                  the series of the payments, or the amount of the payment, is dependent upon the continuance of
                  human life.
                      (8) "Application" means a document:
                      (a) completed by an applicant to provide information about the risk to be insured; and
                      (b) that contains information that is used by the insurer to:
                      (i) evaluate risk; and
                      (ii) decide whether to:
                      (A) insure the risk under:
                      (I) the coverages as originally offered; or
                      (II) a modification of the coverage as originally offered; or
                      (B) decline to insure the risk.
                      (9) "Articles" or "articles of incorporation" means the original articles, special laws,
                  charters, amendments, restated articles, articles of merger or consolidation, trust instruments, and
                  other constitutive documents for trusts and other entities that are not corporations, and
                  amendments to any of these.
                      (10) "Bail bond insurance" means a guarantee that a person will attend court when
                  required, or will obey the orders or judgment of the court, as a condition to the release of that
                  person from confinement.
                      (11) "Binder" is defined in Section 31A-21-102 .
                      (12) "Board," "board of trustees," or "board of directors" means the group of persons
                  with responsibility over, or management of, a corporation, however designated.
                      (13) "Business of insurance" is defined in Subsection [(68)] (67).
                      (14) "Business plan" means the information required to be supplied to the commissioner
                  under Subsections 31A-5-204 (2)(i) and (j), including the information required when these
                  subsections are applicable by reference under:
                      (a) Section 31A-7-201 ;
                      (b) Section 31A-8-205 ; or
                      (c) Subsection 31A-9-205 (2).

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                      (15) "Bylaws" means the rules adopted for the regulation or management of a
                  corporation's affairs, however designated and includes comparable rules for trusts and other
                  entities that are not corporations.
                      (16) "Casualty insurance" means liability insurance as defined in Subsection (75).
                      (17) "Certificate" means evidence of insurance given to:
                      (a) an insured under a group insurance policy; or
                      (b) a third party.
                      (18) "Certificate of authority" is included within the term "license."
                      (19) "Claim," unless the context otherwise requires, means a request or demand on an
                  insurer for payment of benefits according to the terms of an insurance policy.
                      (20) "Claims-made coverage" means an insurance contract or provision limiting coverage
                  under a policy insuring against legal liability to claims that are first made against the insured
                  while the policy is in force.
                      (21) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
                  commissioner.
                      (b) When appropriate, the terms listed in Subsection (21)(a) apply to the equivalent
                  supervisory official of another jurisdiction.
                      (22) (a) "Continuing care insurance" means insurance that:
                      (i) provides board and lodging;
                      (ii) provides one or more of the following services:
                      (A) personal services;
                      (B) nursing services;
                      (C) medical services; or
                      (D) other health-related services; and
                      (iii) provides the coverage described in Subsection (22)(a)(i) under an agreement
                  effective:
                      (A) for the life of the insured; or
                      (B) for a period in excess of one year.

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                      (b) Insurance is continuing care insurance regardless of whether or not the board and
                  lodging are provided at the same location as the services described in Subsection (22)(a)(ii).
                      (23) (a) "Control," "controlling," "controlled," or "under common control" means the
                  direct or indirect possession of the power to direct or cause the direction of the management and
                  policies of a person. This control may be:
                      (i) by contract;
                      (ii) by common management;
                      (iii) through the ownership of voting securities; or
                      (iv) by a means other than those described in Subsections (23)(a)(i) through (iii).
                      (b) There is no presumption that an individual holding an official position with another
                  person controls that person solely by reason of the position.
                      (c) A person having a contract or arrangement giving control is considered to have
                  control despite the illegality or invalidity of the contract or arrangement.
                      (d) There is a rebuttable presumption of control in a person who directly or indirectly
                  owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the voting
                  securities of another person.
                      (24) (a) "Corporation" means insurance corporation, except when referring to:
                      (i) a corporation doing business as an insurance broker, consultant, or adjuster under:
                      (A) Chapter 23, Insurance Marketing - Licensing Agents, Brokers, Consultants, and
                  Reinsurance Intermediaries; and
                      (B) Chapter 26, Insurance Adjusters; or
                      (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
                  Holding Companies.
                      (b) "Stock corporation" means stock insurance corporation.
                      (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
                      (25) "Credit accident and health insurance" means insurance on a debtor to provide
                  indemnity for payments coming due on a specific loan or other credit transaction while the debtor
                  is disabled.

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                      (26) "Credit insurance" means surety insurance under which mortgagees and other
                  creditors are indemnified against losses caused by the default of debtors.
                      (27) "Credit life insurance" means insurance on the life of a debtor in connection with a
                  loan or other credit transaction.
                      (28) "Creditor" means a person, including an insured, having any claim, whether:
                      (a) matured;
                      (b) unmatured;
                      (c) liquidated;
                      (d) unliquidated;
                      (e) secured;
                      (f) unsecured;
                      (g) absolute;
                      (h) fixed; or
                      (i) contingent.
                      (29) (a) "Customer service representative" means a person that provides insurance
                  services and insurance product information:
                      (i) for its agent, broker, or consultant employer; and
                      (ii) to its employer's customer, client, or organization.
                      (b) A customer service representative may only operate within the scope of authority of
                  its agent, broker, or consultant employer.
                      (30) "Deadline" means the final date or time:
                      (a) imposed by:
                      (i) statute;
                      (ii) rule; or
                      (iii) order; and
                      (b) by which a required filing or payment must be received by the department.
                      (31) "Deemer clause" means a provision under this title under which upon the occurrence
                  of a condition precedent, the commissioner is deemed to have taken a specific action. If the

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                  statute so provides, the condition precedent may be the commissioner's failure to take a specific
                  action.
                      (32) "Degree of relationship" means the number of steps between two persons
                  determined by counting the generations separating one person from a common ancestor and then
                  counting the generations to the other person.
                      (33) "Department" means the Insurance Department.
                      (34) "Director" means a member of the board of directors of a corporation.
                      (35) "Disability" means a physiological or psychological condition that partially or totally
                  limits an individual's ability to:
                      (a) perform the duties of:
                      (i) that individual's occupation; or
                      (ii) any occupation for which the individual is reasonably suited by education, training,
                  or experience; or
                      (b) perform two or more of the following basic activities of daily living:
                      (i) eating;
                      (ii) toileting;
                      (iii) transferring;
                      (iv) bathing; or
                      (v) dressing.
                      (36) "Domestic insurer" means an insurer organized under the laws of this state.
                      (37) "Domiciliary state" means the state in which an insurer:
                      (a) is incorporated;
                      (b) is organized; or
                      (c) in the case of an alien insurer, enters into the United States.
                      (38) (a) "Eligible employee" means:
                      (i) an employee who:
                      (A) works on a full-time basis; and
                      (B) has a normal work week of 30 or more hours; or

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                      (ii) a person described in Subsection (38)(b).
                      (b) "Eligible employee" includes, if the individual is included under a health benefit plan
                  of a small employer:
                      (i) a sole proprietor;
                      (ii) a partner in a partnership; or
                      (iii) an independent contractor.
                      (c) "Eligible employee" does not include, unless eligible under Subsection (38)(b):
                      (i) an individual who works on a temporary or substitute basis for a small employer;
                      (ii) an employer's spouse; or
                      (iii) a dependent of an employer.
                      (39) "Employee" means any individual employed by an employer.
                      (40) "Employee benefits" means one or more benefits or services provided to:
                      (a) employees; or
                      (b) dependents of employees.
                      (41) (a) "Employee welfare fund" means a fund:
                      (i) established or maintained, whether directly or through trustees, by:
                      (A) one or more employers;
                      (B) one or more labor organizations; or
                      (C) a combination of employers and labor organizations; and
                      (ii) that provides employee benefits paid or contracted to be paid, other than income from
                  investments of the fund, by or on behalf of an employer doing business in this state or for the
                  benefit of any person employed in this state.
                      (b) "Employee welfare fund" includes a plan funded or subsidized by user fees or tax
                  revenues.
                      (42) "Endorsement" means a written agreement attached to a policy or certificate to
                  modify one or more of the provisions of the policy or certificate.
                      (43) "Excludes" is not exhaustive and does not mean that other things are not also
                  excluded. The items listed are representative examples for use in interpretation of this title.

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                      (44) "Expense reimbursement insurance" means insurance:
                      (a) written to provide payments for expenses relating to hospital confinements resulting
                  from illness or injury; and
                      (b) written:
                      (i) as a daily limit for a specific number of days in a hospital; and
                      (ii) to have a one or two day waiting period following a hospitalization.
                      (45) "Fidelity insurance" means insurance guaranteeing the fidelity of persons holding
                  positions of public or private trust.
                      (46) (a) "Filed" means that a filing is:
                      (i) submitted to the department in accordance with any applicable statute, rule, or filing
                  order;
                      (ii) received by the department within the time period provided in the applicable statute,
                  rule, or filing order; and
                      (iii) accompanied with the applicable one or more filing fees required by:
                      (A) Section 31A-3-103 ; or
                      (B) rule.
                      (b) "Filed" does not include a filing that is rejected by the department because it is not
                  submitted in accordance with Subsection (46)(a).
                      (47) "Filing," when used as a noun, means an item required to be filed with the
                  department including:
                      (a) a policy;
                      (b) a rate;
                      (c) a form;
                      (d) a document;
                      (e) a plan;
                      (f) a manual;
                      (g) an application;
                      (h) a report;

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                      (i) a certificate;
                      (j) an endorsement;
                      (k) an actuarial certification;
                      (l) a licensee annual statement;
                      (m) a licensee renewal application; or
                      (n) an advertisement.
                      (48) "First party insurance" means an insurance policy or contract in which the insurer
                  agrees to pay claims submitted to it by the insured for the insured's losses.
                      (49) "Foreign insurer" means an insurer domiciled outside of this state, including an alien
                  insurer.
                      (50) (a) "Form" means one of the following prepared for general use:
                      (i) a policy;
                      (ii) a certificate;
                      (iii) an application; or
                      (iv) an outline of coverage.
                      (b) "Form" does not include a document specially prepared for use in an individual case.
                      (51) "Franchise insurance" means individual insurance policies provided through a mass
                  marketing arrangement involving a defined class of persons related in some way other than
                  through the purchase of insurance.
                      (52) "Group health plan" means an employee welfare benefit plan to the extent that the
                  plan provides medical care:
                      (a) (i) to employees; or
                      (ii) to a dependent of an employee; and
                      (b) (i) directly;
                      (ii) through insurance reimbursement; or
                      (iii) through any other method.
                      (53) "Health benefit plan" means a policy or certificate for health care insurance, except
                  that health benefit plan does not include coverage:

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                      (a) solely for:
                      (i) accident;
                      (ii) dental;
                      (iii) vision;
                      (iv) Medicare supplement;
                      (v) long-term care; or
                      (vi) income replacement; or
                      (b) that is:
                      (i) offered and marketed as supplemental health insurance;
                      (ii) not offered or marketed as a substitute for:
                      (A) hospital or medical expense insurance; or
                      (B) major medical expense insurance; and
                      (iii) solely for:
                      (A) a specified disease;
                      (B) hospital confinement indemnity; or
                      (C) limited benefit plan.
                      (54) "Health care" means any of the following intended for use in the diagnosis,
                  treatment, mitigation, or prevention of a human ailment or impairment:
                      (a) professional services;
                      (b) personal services;
                      (c) facilities;
                      (d) equipment;
                      (e) devices;
                      (f) supplies; or
                      (g) medicine.
                      (55) (a) "Health care insurance" or "health insurance" means insurance providing:
                      (i) health care benefits; or
                      (ii) payment of incurred health care expenses.

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                      (b) "Health care insurance" or "health insurance" does not include accident and health
                  insurance providing benefits for:
                      (i) replacement of income;
                      (ii) short-term accident;
                      (iii) fixed indemnity;
                      (iv) credit accident and health;
                      (v) supplements to liability;
                      (vi) workers' compensation;
                      (vii) automobile medical payment;
                      (viii) no-fault automobile;
                      (ix) equivalent self-insurance; or
                      (x) any type of accident and health insurance coverage that is a part of or attached to
                  another type of policy.
                      (56) "Income replacement insurance" or "disability income insurance" means insurance
                  written to provide payments to replace income lost from accident or sickness.
                      (57) "Indemnity" means the payment of an amount to offset all or part of an insured loss.
                      (58) "Independent adjuster" means an insurance adjuster required to be licensed under
                  Section 31A-26-201 who engages in insurance adjusting as a representative of insurers.
                      (59) "Independently procured insurance" means insurance procured under Section
                  31A-15-104 .
                      (60) "Individual" means a natural person.
                      (61) "Inland marine insurance" includes insurance covering:
                      (a) property in transit on or over land;
                      (b) property in transit over water by means other than boat or ship;
                      (c) bailee liability;
                      (d) fixed transportation property such as bridges, electric transmission systems, radio and
                  television transmission towers and tunnels; and
                      (e) personal and commercial property floaters.

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                      (62) "Insolvency" means that:
                      (a) an insurer is unable to pay its debts or meet its obligations as they mature;
                      (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
                  RBC under Subsection 31A-17-601 (8)(c); or
                      (c) an insurer is determined to be hazardous under this title.
                      (63) (a) "Insurance" means:
                      (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
                  persons to one or more other persons; or
                      (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a group
                  of persons that includes the person seeking to distribute that person's risk.
                      (b) "Insurance" includes:
                      (i) risk distributing arrangements providing for compensation or replacement for
                  damages or loss through the provision of services or benefits in kind;
                      (ii) contracts of guaranty or suretyship entered into by the guarantor or surety as a
                  business and not as merely incidental to a business transaction; and
                      (iii) plans in which the risk does not rest upon the person who makes the arrangements,
                  but with a class of persons who have agreed to share it.
                      (64) "Insurance adjuster" means a person who directs the investigation, negotiation, or
                  settlement of a claim under an insurance policy other than life insurance or an annuity, on behalf
                  of an insurer, policyholder, or a claimant under an insurance policy.
                      [(66)] (65) Except as provided in Subsection 31A-23-201.5 (1), "insurance agent" or
                  "agent" means a person who represents insurers in soliciting, negotiating, or placing insurance.
                      [(67)] (66) Except as provided in Subsection 31A-23-201.5 (1), "insurance broker" or
                  "broker" means a person who:
                      (a) acts in procuring insurance on behalf of an applicant for insurance or an insured; and
                      (b) does not act on behalf of the insurer except by collecting premiums or performing
                  other ministerial acts.
                      [(68)] (67) "Insurance business" or "business of insurance" includes:

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                      (a) providing health care insurance, as defined in Subsection (55), by organizations that
                  are or should be licensed under this title;
                      (b) providing benefits to employees in the event of contingencies not within the control
                  of the employees, in which the employees are entitled to the benefits as a right, which benefits
                  may be provided either:
                      (i) by single employers or by multiple employer groups; or
                      (ii) through trusts, associations, or other entities;
                      (c) providing annuities, including those issued in return for gifts, except those provided
                  by persons specified in Subsections 31A-22-1305 (2) and (3);
                      (d) providing the characteristic services of motor clubs as outlined in Subsection (82);
                      (e) providing other persons with insurance as defined in Subsection (63);
                      (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor, or
                  surety, any contract or policy of title insurance;
                      (g) transacting or proposing to transact any phase of title insurance, including
                  solicitation, negotiation preliminary to execution, execution of a contract of title insurance,
                  insuring, and transacting matters subsequent to the execution of the contract and arising out of it,
                  including reinsurance; and
                      (h) doing, or proposing to do, any business in substance equivalent to Subsections [(68)]
                  (67)(a) through (g) in a manner designed to evade the provisions of this title.
                      [(69)] (68) Except as provided in Subsection 31A-23-201.5 (1), "insurance consultant" or
                  "consultant" means a person who:
                      (a) advises other persons about insurance needs and coverages;
                      (b) is compensated by the person advised on a basis not directly related to the insurance
                  placed; and
                      (c) is not compensated directly or indirectly by an insurer, agent, or broker for advice
                  given.
                      [(70)] (69) "Insurance holding company system" means a group of two or more affiliated
                  persons, at least one of whom is an insurer.

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                      [(71)] (70) (a) "Insured" means a person to whom or for whose benefit an insurer makes
                  a promise in an insurance policy and includes:
                      (i) policyholders;
                      (ii) subscribers;
                      (iii) members; and
                      (iv) beneficiaries.
                      (b) The definition in Subsection [(71)] (70)(a):
                      (i) applies only to this title; and
                      (ii) does not define the meaning of this word as used in insurance policies or certificates.
                      [(72)] (71) (a) (i) "Insurer" means any person doing an insurance business as a principal
                  including:
                      (A) fraternal benefit societies;
                      (B) issuers of gift annuities other than those specified in Subsections 31A-22-1305 (2)
                  and (3);
                      (C) motor clubs;
                      (D) employee welfare plans; and
                      (E) any person purporting or intending to do an insurance business as a principal on that
                  person's own account.
                      (ii) "Insurer" does not include a governmental entity, as defined in Section 63-30-2 , to
                  the extent it is engaged in the activities described in Section 31A-12-107 .
                      (b) "Admitted insurer" is defined in Subsection (125)(b).
                      (c) "Alien insurer" is defined in Subsection (5).
                      (d) "Authorized insurer" is defined in Subsection (125)(b).
                      (e) "Domestic insurer" is defined in Subsection (36).
                      (f) "Foreign insurer" is defined in Subsection (49).
                      (g) "Nonadmitted insurer" is defined in Subsection (125)(a).
                      (h) "Unauthorized insurer" is defined in Subsection (125)(a).
                      [(65)] (72) "Interinsurance exchange" is defined in Subsection (109).

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                      (73) "Large employer," in connection with a health benefit plan, means an employer who,
                  with respect to a calendar year and to a plan year:
                      (a) employed an average of at least 51 eligible employees on each business day during
                  the preceding calendar year; and
                      (b) employs at least two employees on the first day of the plan year.
                      (74) (a) Except for a retainer contract or legal assistance described in Section 31A-1-103 ,
                  "legal expense insurance" means insurance written to indemnify or pay for specified legal
                  expenses.
                      (b) "Legal expense insurance" includes arrangements that create reasonable expectations
                  of enforceable rights.
                      (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
                  legal services incidental to other insurance coverages.
                      (75) (a) "Liability insurance" means insurance against liability:
                      (i) for death, injury, or disability of any human being, or for damage to property,
                  exclusive of the coverages under:
                      (A) Subsection (79) for medical malpractice insurance;
                      (B) Subsection (102) for professional liability insurance; and
                      (C) Subsection (128) for workers' compensation insurance;
                      (ii) for medical, hospital, surgical, and funeral benefits to persons other than the insured
                  who are injured, irrespective of legal liability of the insured, when issued with or supplemental to
                  insurance against legal liability for the death, injury, or disability of human beings, exclusive of
                  the coverages under:
                      (A) Subsection (79) for medical malpractice insurance;
                      (B) Subsection (102) for professional liability insurance; and
                      (C) Subsection (128) for workers' compensation insurance;
                      (iii) for loss or damage to property resulting from accidents to or explosions of boilers,
                  pipes, pressure containers, machinery, or apparatus;
                      (iv) for loss or damage to any property caused by the breakage or leakage of sprinklers,

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                  water pipes and containers, or by water entering through leaks or openings in buildings; or
                      (v) for other loss or damage properly the subject of insurance not within any other kind
                  or kinds of insurance as defined in this chapter, if such insurance is not contrary to law or public
                  policy.
                      (b) "Liability insurance" includes:
                      (i) vehicle liability insurance as defined in Subsection (126);
                      (ii) residential dwelling liability insurance as defined in Subsection (111); and
                      (iii) making inspection of, and issuing certificates of inspection upon, elevators, boilers,
                  machinery, and apparatus of any kind when done in connection with insurance on them.
                      (76) (a) "License" means the authorization issued by the insurance commissioner under
                  this title to engage in some activity that is part of or related to the insurance business.
                      (b) "License" includes certificates of authority issued to insurers.
                      (77) (a) "Life insurance" means insurance on human lives and insurances pertaining to or
                  connected with human life.
                      (b) The business of life insurance includes:
                      (i) granting death benefits;
                      (ii) granting annuity benefits;
                      (iii) granting endowment benefits;
                      (iv) granting additional benefits in the event of death by accident;
                      (v) granting additional benefits to safeguard the policy against lapse in the event of
                  disability; and
                      (vi) providing optional methods of settlement of proceeds.
                      (78) (a) "Long-term care insurance" means an insurance policy or rider advertised,
                  marketed, offered, or designated to provide coverage:
                      (i) in a setting other than an acute care unit of a hospital;
                      (ii) for not less than 12 consecutive months for each covered person on the basis of:
                      (A) expenses incurred;
                      (B) indemnity;

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                      (C) prepayment; or
                      (D) another method;
                      (iii) for one or more necessary or medically necessary services that are:
                      (A) diagnostic;
                      (B) preventative;
                      (C) therapeutic;
                      (D) rehabilitative;
                      (E) maintenance; or
                      (F) personal care; and
                      (iv) that may be issued by:
                      (A) an insurer;
                      (B) a fraternal benefit society;
                      (C) (I) a nonprofit health hospital; and
                      (II) a medical service corporation;
                      (D) a prepaid health plan;
                      (E) a health maintenance organization; or
                      (F) an entity similar to the entities described in Subsections (78)(a)(iv)(A) through (E) to
                  the extent that the entity is otherwise authorized to issue life or health care insurance.
                      (b) "Long-term care insurance" includes:
                      (i) any of the following that provide directly or supplement long-term care insurance:
                      (A) a group or individual annuity or rider; or
                      (B) a life insurance policy or rider;
                      (ii) a policy or rider that provides for payment of benefits based on:
                      (A) cognitive impairment; or
                      (B) functional capacity; or
                      (iii) a qualified long-term care insurance contract.
                      (c) "Long-term care insurance" does not include:
                      (i) a policy that is offered primarily to provide basic Medicare supplement coverage;

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                      (ii) basic hospital expense coverage;
                      (iii) basic medical/surgical expense coverage;
                      (iv) hospital confinement indemnity coverage;
                      (v) major medical expense coverage;
                      (vi) income replacement or related asset-protection coverage;
                      (vii) accident only coverage;
                      (viii) coverage for a specified:
                      (A) disease; or
                      (B) accident;
                      (ix) limited benefit health coverage; or
                      (x) a life insurance policy that accelerates the death benefit to provide the option of a
                  lump sum payment:
                      (A) if the following are not conditioned on the receipt of long-term care:
                      (I) benefits; or
                      (II) eligibility; and
                      (B) the coverage is for one or more the following qualifying events:
                      (I) terminal illness;
                      (II) medical conditions requiring extraordinary medical intervention; or
                      (III) permanent institutional confinement.
                      (79) "Medical malpractice insurance" means insurance against legal liability incident to
                  the practice and provision of medical services other than the practice and provision of dental
                  services.
                      (80) "Member" means a person having membership rights in an insurance corporation.
                      (81) "Minimum capital" or "minimum required capital" means the capital that must be
                  constantly maintained by a stock insurance corporation as required by statute.
                      (82) "Motor club" means a person:
                      (a) licensed under:
                      (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;

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                      (ii) Chapter 11, Motor Clubs; or
                      (iii) Chapter 14, Foreign Insurers; and
                      (b) that promises for an advance consideration to provide for a stated period of time:
                      (i) legal services under Subsection 31A-11-102 (1)(b);
                      (ii) bail services under Subsection 31A-11-102 (1)(c); or
                      (iii) trip reimbursement, towing services, emergency road services, stolen automobile
                  services, a combination of these services, or any other services given in Subsections
                  31A-11-102 (1)(b) through (f).
                      (83) "Mutual" means mutual insurance corporation.
                      (84) "Network plan" means health care insurance:
                      (a) that is issued by an insurer; and
                      (b) under which the financing and delivery of medical care is provided, in whole or in
                  part, through a defined set of providers under contract with the insurer, including the financing
                  and delivery of items paid for as medical care.
                      (85) "Nonparticipating" means a plan of insurance under which the insured is not entitled
                  to receive dividends representing shares of the surplus of the insurer.
                      (86) "Ocean marine insurance" means insurance against loss of or damage to:
                      (a) ships or hulls of ships;
                      (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, moneys,
                  securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia interests,
                  or other cargoes in or awaiting transit over the oceans or inland waterways;
                      (c) earnings such as freight, passage money, commissions, or profits derived from
                  transporting goods or people upon or across the oceans or inland waterways; or
                      (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
                  owners of other vessels, owners of fixed objects, customs or other authorities, or other persons in
                  connection with maritime activity.
                      (87) "Order" means an order of the commissioner.
                      (88) "Outline of coverage" means a summary that explains an accident and health

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                  insurance policy.
                      (89) "Participating" means a plan of insurance under which the insured is entitled to
                  receive dividends representing shares of the surplus of the insurer.
                      (90) "Participation," as used in a health benefit plan, means a requirement relating to the
                  minimum percentage of eligible employees that must be enrolled in relation to the total number
                  of eligible employees of an employer reduced by each eligible employee who voluntarily declines
                  coverage under the plan because the employee has other health care insurance coverage.
                      (91) "Person" includes an individual, partnership, corporation, incorporated or
                  unincorporated association, joint stock company, trust, reciprocal, syndicate, or any similar entity
                  or combination of entities acting in concert.
                      (92) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
                      (93) "Plan year" means:
                      (a) the year that is designated as the plan year in:
                      (i) the plan document of a group health plan; or
                      (ii) a summary plan description of a group health plan;
                      (b) if the plan document or summary plan description does not designate a plan year or
                  there is no plan document or summary plan description:
                      (i) the year used to determine deductibles or limits;
                      (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis; or
                      (iii) the employer's taxable year if:
                      (A) the plan does not impose deductibles or limits on a yearly basis; and
                      (B) (I) the plan is not insured; or
                      (II) the insurance policy is not renewed on an annual basis; or
                      (c) in a case not described in Subsection (93)(a) or (b), the calendar year.
                      (94) (a) (i) "Policy" means any document, including attached endorsements and riders,
                  purporting to be an enforceable contract, which memorializes in writing some or all of the terms
                  of an insurance contract.
                      (ii) "Policy" includes a service contract issued by:

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                      (A) a motor club under Chapter 11, Motor Clubs;
                      (B) a service contract provided under Chapter 6a, Service Contracts; and
                      (C) a corporation licensed under:
                      (I) Chapter 7, Nonprofit Health Service Insurance Corporations; or
                      (II) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
                      (iii) "Policy" does not include:
                      (A) a certificate under a group insurance contract; or
                      (B) a document that does not purport to have legal effect.
                      (b) (i) "Group insurance policy" means a policy covering a group of persons that is issued
                  to a policyholder on behalf of the group, for the benefit of group members who are selected under
                  procedures defined in the policy or in agreements which are collateral to the policy.
                      (ii) A group insurance policy may include members of the policyholder's family or
                  dependents.
                      (c) "Blanket insurance policy" means a group policy covering classes of persons without
                  individual underwriting, where the persons insured are determined by definition of the class with
                  or without designating the persons covered.
                      (95) "Policyholder" means the person who controls a policy, binder, or oral contract by
                  ownership, premium payment, or otherwise.
                      (96) "Policy illustration" means a presentation or depiction that includes nonguaranteed
                  elements of a policy of life insurance over a period of years.
                      (97) "Policy summary" means a synopsis describing the elements of a life insurance
                  policy.
                      (98) "Preexisting condition," in connection with a health benefit plan, means:
                      (a) a condition for which medical advice, diagnosis, care, or treatment was recommended
                  or received during the six months immediately preceding the earlier of:
                      (i) the enrollment date; or
                      (ii) the effective date of coverage; or
                      (b) for an individual insurance policy, a pregnancy existing on the effective date of

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                  coverage.
                      (99) (a) "Premium" means the monetary consideration for an insurance policy, and
                  includes assessments, membership fees, required contributions, or monetary consideration,
                  however designated.
                      (b) Consideration paid to third party administrators for their services is not "premium,"
                  though amounts paid by third party administrators to insurers for insurance on the risks
                  administered by the third party administrators are "premium."
                      (100) "Principal officers" of a corporation means the officers designated under
                  Subsection 31A-5-203 (3).
                      (101) "Proceedings" includes actions and special statutory proceedings.
                      (102) "Professional liability insurance" means insurance against legal liability incident to
                  the practice of a profession and provision of any professional services.
                      (103) "Property insurance" means insurance against loss or damage to real or personal
                  property of every kind and any interest in that property, from all hazards or causes, and against
                  loss consequential upon the loss or damage including vehicle comprehensive and vehicle
                  physical damage coverages, but excluding inland marine insurance and ocean marine insurance
                  as defined under Subsections (61) and (86).
                      (104) "Qualified long-term care insurance contract" or "federally tax qualified long-term
                  care insurance contract" means:
                      (a) an individual or group insurance contract that meets the requirements of Section
                  7702B(b), Internal Revenue Code; or
                      (b) the portion of a life insurance contract that provides long-term care insurance:
                      (i) (A) by rider; or
                      (B) as a part of the contract; and
                      (ii) that satisfies the requirements of Section 7702B(b) and (e), Internal Revenue Code.
                      (105) (a) "Rate" means:
                      (i) the cost of a given unit of insurance; or
                      (ii) for property-casualty insurance, that cost of insurance per exposure unit either

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                  expressed as:
                      (A) a single number; or
                      (B) a pure premium rate, adjusted before any application of individual risk variations
                  based on loss or expense considerations to account for the treatment of:
                      (I) expenses;
                      (II) profit; and
                      (III) individual insurer variation in loss experience.
                      (b) "Rate" does not include a minimum premium.
                      (106) (a) Except as provided in Subsection (106)(b), "rate service organization" means
                  any person who assists insurers in rate making or filing by:
                      (i) collecting, compiling, and furnishing loss or expense statistics;
                      (ii) recommending, making, or filing rates or supplementary rate information; or
                      (iii) advising about rate questions, except as an attorney giving legal advice.
                      (b) "Rate service organization" does not mean:
                      (i) an employee of an insurer;
                      (ii) a single insurer or group of insurers under common control;
                      (iii) a joint underwriting group; or
                      (iv) a natural person serving as an actuarial or legal consultant.
                      (107) "Rating manual" means any of the following used to determine initial and renewal
                  policy premiums:
                      (a) a manual of rates;
                      (b) classifications;
                      (c) rate-related underwriting rules; and
                      (d) rating formulas that describe steps, policies, and procedures for determining initial
                  and renewal policy premiums.
                      (108) "Received by the department" means:
                      (a) except as provided in Subsection (108)(b), the date delivered to and stamped received
                  by the department, whether delivered:

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                      (i) in person;
                      (ii) by a delivery service; or
                      (iii) electronically; and
                      (b) if an item with a department imposed deadline is delivered to the department by a
                  delivery service, the delivery service's postmark date or pick-up date unless otherwise stated in:
                      (i) statute;
                      (ii) rule; or
                      (iii) a specific filing order.
                      (109) "Reciprocal" or "interinsurance exchange" means any unincorporated association
                  of persons:
                      (a) operating through an attorney-in-fact common to all of them; and
                      (b) exchanging insurance contracts with one another that provide insurance coverage on
                  each other.
                      (110) "Reinsurance" means an insurance transaction where an insurer, for consideration,
                  transfers any portion of the risk it has assumed to another insurer. In referring to reinsurance
                  transactions, this title sometimes refers to:
                      (a) the insurer transferring the risk as the "ceding insurer"; and
                      (b) the insurer assuming the risk as the:
                      (i) "assuming insurer"; or
                      (ii) "assuming reinsurer."
                      (111) "Residential dwelling liability insurance" means insurance against liability
                  resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is a
                  detached single family residence or multifamily residence up to four units.
                      (112) "Retrocession" means reinsurance with another insurer of a liability assumed under
                  a reinsurance contract. A reinsurer "retrocedes" when it reinsures with another insurer part of a
                  liability assumed under a reinsurance contract.
                      (113) "Rider" means an endorsement to:
                      (a) an insurance policy; or

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                      (b) an insurance certificate.
                      (114) (a) "Security" means any:
                      (i) note;
                      (ii) stock;
                      (iii) bond;
                      (iv) debenture;
                      (v) evidence of indebtedness;
                      (vi) certificate of interest or participation in any profit-sharing agreement;
                      (vii) collateral-trust certificate;
                      (viii) preorganization certificate or subscription;
                      (ix) transferable share;
                      (x) investment contract;
                      (xi) voting trust certificate;
                      (xii) certificate of deposit for a security;
                      (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
                  payments out of production under such a title or lease;
                      (xiv) commodity contract or commodity option;
                      (xv) any certificate of interest or participation in, temporary or interim certificate for,
                  receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed in
                  Subsections (114)(a)(i) through (xiv); or
                      (xvi) any other interest or instrument commonly known as a security.
                      (b) "Security" does not include:
                      (i) any insurance or endowment policy or annuity contract under which an insurance
                  company promises to pay money in a specific lump sum or periodically for life or some other
                  specified period; or
                      (ii) a burial certificate or burial contract.
                      (115) "Self-insurance" means any arrangement under which a person provides for
                  spreading its own risks by a systematic plan.

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                      (a) Except as provided in this Subsection (115), self-insurance does not include an
                  arrangement under which a number of persons spread their risks among themselves.
                      (b) Self-insurance does include an arrangement by which a governmental entity, as
                  defined in Section 63-30-2 , undertakes to indemnify its employees for liability arising out of the
                  employees' employment.
                      (c) Self-insurance does include an arrangement by which a person with a managed
                  program of self-insurance and risk management undertakes to indemnify its affiliates,
                  subsidiaries, directors, officers, or employees for liability or risk which is related to the
                  relationship or employment.
                      (d) Self-insurance does not include any arrangement with independent contractors.
                      (116) "Short-term care insurance" means any insurance policy or rider advertised,
                  marketed, offered, or designed to provide coverage that is similar to long-term care insurance but
                  that provides coverage for less than 12 consecutive months for each covered person.
                      (117) "Small employer," in connection with a health benefit plan, means an employer
                  who, with respect to a calendar year and to a plan year:
                      (a) employed an average of at least two employees but not more than 50 eligible
                  employees on each business day during the preceding calendar year; and
                      (b) employs at least two employees on the first day of the plan year.
                      (118) (a) "Subsidiary" of a person means an affiliate controlled by that person either
                  directly or indirectly through one or more affiliates or intermediaries.
                      (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
                  shares are owned by that person either alone or with its affiliates, except for the minimum
                  number of shares the law of the subsidiary's domicile requires to be owned by directors or others.
                      (119) Subject to Subsection (63)(b), "surety insurance" includes:
                      (a) a guarantee against loss or damage resulting from failure of principals to pay or
                  perform their obligations to a creditor or other obligee;
                      (b) bail bond insurance; and
                      (c) fidelity insurance.

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                      (120) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
                  liabilities.
                      (b) (i) "Permanent surplus" means the surplus of a mutual insurer that has been
                  designated by the insurer as permanent.
                      (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
                  that mutuals doing business in this state maintain specified minimum levels of permanent
                  surplus.
                      (iii) Except for assessable mutuals, the minimum permanent surplus requirement is
                  essentially the same as the minimum required capital requirement that applies to stock insurers.
                      (c) "Excess surplus" means:
                      (i) for life or accident and health insurers, health organizations, and property and casualty
                  insurers as defined in Section 31A-17-601 , the lesser of:
                      (A) that amount of an insurer's or health organization's total adjusted capital, as defined
                  in Subsection (123), that exceeds the product of:
                      (I) 2.5; and
                      (II) the sum of the insurer's or health organization's minimum capital or permanent
                  surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
                      (B) that amount of an insurer's or health organization's total adjusted capital, as defined
                  in Subsection (123), that exceeds the product of:
                      (I) 3.0; and
                      (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
                      (ii) for monoline mortgage guaranty insurers, financial guaranty insurers, and title
                  insurers, that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
                      (A) 1.5; and
                      (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
                      (121) "Third party administrator" or "administrator" means any person who collects
                  charges or premiums from, or who, for consideration, adjusts or settles claims of residents of the
                  state in connection with insurance coverage, annuities, or service insurance coverage, except:

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                      (a) a union on behalf of its members;
                      (b) a person administering any:
                      (i) pension plan subject to the federal Employee Retirement Income Security Act of
                  1974;
                      (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
                      (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
                      (c) an employer on behalf of the employer's employees or the employees of one or more
                  of the subsidiary or affiliated corporations of the employer;
                      (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance for
                  which the insurer holds a license in this state; or
                      (e) a person licensed or exempt from licensing under Chapter 23 or 26 whose activities
                  are limited to those authorized under the license the person holds or for which the person is
                  exempt.
                      (122) "Title insurance" means the insuring, guaranteeing, or indemnifying of owners of
                  real or personal property or the holders of liens or encumbrances on that property, or others
                  interested in the property against loss or damage suffered by reason of liens or encumbrances
                  upon, defects in, or the unmarketability of the title to the property, or invalidity or
                  unenforceability of any liens or encumbrances on the property.
                      (123) "Total adjusted capital" means the sum of an insurer's or health organization's
                  statutory capital and surplus as determined in accordance with:
                      (a) the statutory accounting applicable to the annual financial statements required to be
                  filed under Section 31A-4-113 ; and
                      (b) any other items provided by the RBC instructions, as RBC instructions is defined in
                  Section 31A-17-601 .
                      (124) (a) "Trustee" means "director" when referring to the board of directors of a
                  corporation.
                      (b) "Trustee," when used in reference to an employee welfare fund, means an individual,
                  firm, association, organization, joint stock company, or corporation, whether acting individually

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                  or jointly and whether designated by that name or any other, that is charged with or has the
                  overall management of an employee welfare fund.
                      (125) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer" means
                  an insurer:
                      (i) not holding a valid certificate of authority to do an insurance business in this state; or
                      (ii) transacting business not authorized by a valid certificate.
                      (b) "Admitted insurer" or "authorized insurer" means an insurer:
                      (i) holding a valid certificate of authority to do an insurance business in this state; and
                      (ii) transacting business as authorized by a valid certificate.
                      (126) "Vehicle liability insurance" means insurance against liability resulting from or
                  incident to ownership, maintenance, or use of any land vehicle or aircraft, exclusive of vehicle
                  comprehensive and vehicle physical damage coverages under Subsection (103).
                      (127) "Voting security" means a security with voting rights, and includes any security
                  convertible into a security with a voting right associated with it.
                      (128) "Workers' compensation insurance" means:
                      (a) insurance for indemnification of employers against liability for compensation based
                  on:
                      (i) compensable accidental injuries; and
                      (ii) occupational disease disability;
                      (b) employer's liability insurance incidental to workers' compensation insurance and
                  written in connection with it; and
                      (c) insurance assuring to the persons entitled to workers' compensation benefits the
                  compensation provided by law.
                      Section 24. Section 31A-5-101 is amended to read:
                       31A-5-101. Definitions.
                      In this chapter, unless the context requires otherwise:
                      (1) The definitions applicable to the Utah Revised Business Corporation Act in
                  Subsections 16-10a-102 (2), (23), and (24) apply to stock corporations.

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                      (2) The definitions applicable to nonprofit corporations in Subsections 16-6a-102 [(4)](3),
                  (6), and (30) apply to mutuals.
                      (3) "Promoter securities" are securities issued by a stock insurer to the incorporators,
                  directors, officers, or their families or nominees at any time prior to, and up to one year
                  following, the issuance of a certificate of authority to the stock insurer.
                      Section 25. Section 31A-9-101 is amended to read:
                       31A-9-101. Definitions.
                      (1) As used in this chapter:
                      (a) "Fraternal" or "fraternal benefit society" means a corporation organized or operating
                  under this chapter that:
                      (i) has no capital stock;
                      (ii) exists solely for:
                      (A) the benefit of its members and their beneficiaries; and
                      (B) any lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
                  patriotic, or religious purpose for the benefit of its members or the public, carried on through
                  voluntary activity of its members in their local lodges or through institutional programs of the
                  fraternal or its local lodges;
                      (iii) has a lodge system;
                      (iv) has a representative form of government; and
                      (v) provides insurance benefits authorized under this chapter.
                      (b) "Laws of a fraternal" include its articles of incorporation and bylaws, however
                  designated.
                      (c) "Lodge system" means one in which:
                      (i) there is a supreme governing body;
                      (ii) subordinate to the supreme governing body are local lodges, however designated,
                  into which natural persons are admitted as members in accordance with the laws of the fraternal;
                      (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
                  least monthly; and

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                      (iv) the local lodges regularly engage in programs involving member participation to
                  implement the purposes of Subsection (1)(a)(ii).
                      (d) "Representative form of government" means the fraternal complies with Section
                  31A-9-403 .
                      (2) In any provisions of law made applicable to fraternals by this chapter, the technical
                  terms used in those provisions are applicable to fraternals despite the use of other parallel terms
                  by fraternals.
                      (3) The definitions provided in Subsections 16-6a-102 [(4)](3), (6), and (30), and Section
                  31A-1-301 apply to fraternals.
                      Section 26. Section 31A-21-105 is amended to read:
                       31A-21-105. Representations, warranties, and conditions.
                      (1) (a) No statement, representation, or warranty made by any person representing the
                  insurer in the negotiation for an individual or franchise insurance contract affects the insurer's
                  obligations under the policy unless it is stated in the policy or in a written application signed by
                  the applicant. No person, except the applicant or another by his written consent, may alter the
                  application, except for administrative purposes in a way which is clearly not ascribable to the
                  applicant.
                      (b) No statement, representation, or warranty made by or on behalf of a particular
                  certificate holder under a group policy affects the insurer's obligations under the certificate unless
                  it is stated in the certificate or in a written document signed by the certificate holder, and a copy
                  of it is supplied to the certificate holder.
                      (c) The policyholder, his assignee, the loss payee or mortgagee or lienholder under
                  property insurance, and any person whose life or health is insured under a policy may request, in
                  writing, from the company a copy of the application, if he did not receive the policy or a copy of
                  it, or if the policy has been reinstated or renewed without the attachment of a copy of the original
                  application. If the insurer does not deliver or mail a copy as requested within 30 days after
                  receipt of the request by the insurer or its agent, or in the case of a group policy certificate holder,
                  does not inform that person within the same period how he may inspect the policy or a copy of it

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                  and application or enrollment card or a copy of it during normal business hours at a place
                  reasonably convenient to the certificate holder, nothing in the application or enrollment card
                  affects the insurer's obligations under the policy to the person making the request. Each person
                  whose life or health is insured under a group policy has the same right to request a copy of any
                  document under Subsection (1)(b).
                      (2) Except as provided in Subsection (5), no misrepresentation or breach of an
                  affirmative warranty affects the insurer's obligations under the policy unless:
                      (a) the insurer relies on it and it is either material or is made with intent to deceive; or
                      (b) the fact misrepresented or falsely warranted contributes to the loss.
                      (3) No failure of a condition prior to the loss and no breach of a promissory warranty
                  affects the insurer's obligations under the policy unless it exists at the time of the loss and either
                  increases the risk at the time of the loss or contributes to the loss. This Subsection (3) does not
                  apply to failure to tender payment of premium.
                      (4) Nondisclosure of information not requested by the insurer is not a defense to an
                  action against the insurer. Failure to correct within a reasonable time any representation that
                  becomes incorrect because of changes in circumstances is misrepresentation, not nondisclosure.
                      (5) If after issuance of a policy the insurer acquires knowledge of sufficient facts to
                  constitute a general defense to all claims under the policy, the defense is only available if the
                  insurer notifies the insured within 60 days after acquiring the knowledge of its intention to
                  defend against a claim if one should arise, or within 120 days if the insurer considers it necessary
                  to secure additional medical information and is actively seeking the information at the end of the
                  60 days. The insurer and insured may mutually agree to a policy rider in order to continue the
                  policy in force with exceptions or modifications. For purposes of this Subsection (5), an insurer
                  has acquired knowledge only if the information alleged to give rise to the knowledge was
                  disclosed to the insurer or its agent in connection with communications or investigations
                  associated with the insurance policy under which the subject claim arises.
                      (6) (a) An insurer that offers coverage to a small employer group as required by [P.L.
                  104-91] Pub. L. No. 104-191, 110 Stat. 1979, Sec. 2711(a), may not rescind a policy or

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                  individual certificate holder based on application misrepresentation unless the insurer would not
                  have been required to issue the coverage in the absence of the misrepresentation.
                      (b) Subsection (6)(a) does not prevent an insurer from correcting rates if:
                      (i) in the absence of misrepresentation a different rate would have been required; and
                      (ii) the corrected rates are in compliance with Section 31A-30-106 .
                      (7) No trivial or transitory breach of or noncompliance with any provision of this chapter
                  is a basis for avoiding an insurance contract.
                      Section 27. Section 31A-22-617 is amended to read:
                       31A-22-617. Preferred provider contract provisions.
                      Health insurance policies may provide for insureds to receive services or reimbursement
                  under the policies in accordance with preferred health care provider contracts as follows:
                      (1) Subject to restrictions under this section, any insurer or third party administrator may
                  enter into contracts with health care providers as defined in Section 78-14-3 under which the
                  health care providers agree to supply services, at prices specified in the contracts, to persons
                  insured by an insurer.
                      (a) A health care provider contract may require the health care provider to accept the
                  specified payment as payment in full, relinquishing the right to collect additional amounts from
                  the insured person.
                      (b) The insurance contract may reward the insured for selection of preferred health care
                  providers by:
                      (i) reducing premium rates;
                      (ii) reducing deductibles;
                      (iii) coinsurance;
                      (iv) other copayments; or
                      (v) [in] any other reasonable manner.
                      (c) If the insurer is a managed care organization, as defined in Subsection
                  31A-27-311.5 (1)(f):
                      (i) the insurance contract and the health care provider contract shall provide that in the

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                  event the managed care organization becomes insolvent, the rehabilitator or liquidator may:
                      (A) require the health care provider to continue to provide health care services under the
                  contract until the earlier of:
                      (I) 90 days after the date of the filing of a petition for rehabilitation or the petition for
                  liquidation; or
                      (II) the date the term of the contract ends; and
                      (B) subject to Subsection (1)(c)(v), reduce the fees the provider is otherwise entitled to
                  receive from the managed care organization during the time period described in Subsection
                  (1)(c)(i)(A);
                      (ii) the provider is required to:
                      (A) accept the reduced payment under Subsection (1)(c)(i)(B) as payment in full; and
                      (B) relinquish the right to collect additional amounts from the insolvent managed care
                  organization's enrollee, as defined in Section 31A-27-311.5 (1)(b);
                      (iii) if the contract between the health care provider and the managed care organization
                  has not been reduced to writing, or the contract fails to contain the language required by
                  Subsection (1)(c)(i), the provider may not collect or attempt to collect from the enrollee:
                      (A) sums owed by the insolvent managed care organization; or
                      (B) the amount of the regular fee reduction authorized under Subsection (1)(c)(i)(B);
                      (iv) the following may not bill or maintain any action at law against an enrollee to collect
                  sums owed by the insolvent managed care organization or the amount of the regular fee reduction
                  authorized under Subsection (1)(c)(i)(B):
                      (A) a provider;
                      (B) an agent;
                      (C) a trustee; or
                      (D) an assignee of a person described in Subsections (1)(c)(iv)(A) through (C); and
                      (v) notwithstanding Subsection (1)(c)(i):
                      (A) a rehabilitator or liquidator may not reduce a fee by less than 75% of the provider's
                  regular fee set forth in the contract; and

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                      (B) the enrollee shall continue to pay the copayments, deductibles, and other payments
                  for services received from the provider that the enrollee was required to pay before the filing of:
                      (I) a petition for rehabilitation; or
                      (II) a petition for liquidation.
                      (2) (a) Subject to Subsections (2)(b) through (2)(f), an insurer using preferred health care
                  provider contracts shall pay for the services of health care providers not under the contract,
                  unless the illnesses or injuries treated by the health care provider are not within the scope of the
                  insurance contract. As used in this section, "class of health care providers" means all health care
                  providers licensed or licensed and certified by the state within the same professional, trade,
                  occupational, or facility licensure or licensure and certification category established pursuant to
                  Titles 26, Utah Health Code and 58, Occupations and Professions.
                      (b) When the insured receives services from a health care provider not under contract,
                  the insurer shall reimburse the insured for at least 75% of the average amount paid by the insurer
                  for comparable services of preferred health care providers who are members of the same class of
                  health care providers. The commissioner may adopt a rule dealing with the determination of
                  what constitutes 75% of the average amount paid by the insurer for comparable services of
                  preferred health care providers who are members of the same class of health care providers.
                      (c) When reimbursing for services of health care providers not under contract, the insurer
                  may make direct payment to the insured.
                      (d) Notwithstanding Subsection (2)(b), an insurer using preferred health care provider
                  contracts may impose a deductible on coverage of health care providers not under contract.
                      (e) When selecting health care providers with whom to contract under Subsection (1), an
                  insurer may not unfairly discriminate between classes of health care providers, but may
                  discriminate within a class of health care providers, subject to Subsection (7).
                      (f) For purposes of this section, unfair discrimination between classes of health care
                  providers shall include:
                      (i) refusal to contract with class members in reasonable proportion to the number of
                  insureds covered by the insurer and the expected demand for services from class members; and

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                      (ii) refusal to cover procedures for one class of providers that are:
                      (A) commonly utilized by members of the class of health care providers for the treatment
                  of illnesses, injuries, or conditions;
                      (B) otherwise covered by the insurer; and
                      (C) within the scope of practice of the class of health care providers.
                      (3) Before the insured consents to the insurance contract, the insurer shall fully disclose
                  to the insured that it has entered into preferred health care provider contracts. The insurer shall
                  provide sufficient detail on the preferred health care provider contracts to permit the insured to
                  agree to the terms of the insurance contract. The insurer shall provide at least the following
                  information:
                      (a) a list of the health care providers under contract and if requested their business
                  locations and specialties;
                      (b) a description of the insured benefits, including any deductibles, coinsurance, or other
                  copayments;
                      (c) a description of the quality assurance program required under Subsection (4); and
                      (d) a description of the adverse benefit determination procedures required under
                  Subsection (5).
                      (4) (a) An insurer using preferred health care provider contracts shall maintain a quality
                  assurance program for assuring that the care provided by the health care providers under contract
                  meets prevailing standards in the state.
                      (b) The commissioner in consultation with the executive director of the Department of
                  Health may designate qualified persons to perform an audit of the quality assurance program.
                  The auditors shall have full access to all records of the organization and its health care providers,
                  including medical records of individual patients.
                      (c) The information contained in the medical records of individual patients shall remain
                  confidential. All information, interviews, reports, statements, memoranda, or other data
                  furnished for purposes of the audit and any findings or conclusions of the auditors are privileged.
                  The information is not subject to discovery, use, or receipt in evidence in any legal proceeding

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                  except hearings before the commissioner concerning alleged violations of this section.
                      (5) An insurer using preferred health care provider contracts shall provide a reasonable
                  procedure for resolving complaints and adverse benefit determinations initiated by the insureds
                  and health care providers.
                      (6) An insurer may not contract with a health care provider for treatment of illness or
                  injury unless the health care provider is licensed to perform that treatment.
                      (7) (a) A health care provider or insurer may not discriminate against a preferred health
                  care provider for agreeing to a contract under Subsection (1).
                      (b) Any health care provider licensed to treat any illness or injury within the scope of the
                  health care provider's practice, who is willing and able to meet the terms and conditions
                  established by the insurer for designation as a preferred health care provider, shall be able to
                  apply for and receive the designation as a preferred health care provider. Contract terms and
                  conditions may include reasonable limitations on the number of designated preferred health care
                  providers based upon substantial objective and economic grounds, or expected use of particular
                  services based upon prior provider-patient profiles.
                      (8) Upon the written request of a provider excluded from a provider contract, the
                  commissioner may hold a hearing to determine if the insurer's exclusion of the provider is based
                  on the criteria set forth in Subsection (7)(b).
                      (9) Insurers are subject to the provisions of Sections 31A-22-613.5 , 31A-22-614.5 , and
                  31A-22-618 .
                      (10) Nothing in this section is to be construed as to require an insurer to offer a certain
                  benefit or service as part of a health benefit plan.
                      (11) This section does not apply to catastrophic mental health coverage provided in
                  accordance with Section 31A-22-625 .
                      Section 28. Section 34A-2-301 is amended to read:
                       34A-2-301. Places of employment to be safe -- Willful neglect -- Penalty.
                      (1) An employer may not:
                      (a) construct, occupy, or maintain any place of employment that is not safe;

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                      (b) require or knowingly permit any employee to be in any employment or place of
                  employment that is not safe;
                      (c) fail to provide and use safety devices and safeguards;
                      (d) remove, disable, or bypass safety devices and safeguards;
                      (e) fail to obey orders of the commission;
                      (f) fail to obey rules of the commission;
                      (g) fail to adopt and use methods and processes reasonably adequate to render the
                  employment and place of employment safe; or
                      (h) fail or neglect to do every other thing reasonably necessary to protect the life, health,
                  and safety of the employer's employees.
                      (2) Compensation as provided in this chapter [3,] shall be increased 15%, except in case
                  of injury resulting in death, when injury is caused by the willful failure of an employer to comply
                  with:
                      (a) the law;
                      (b) a rule of the commission;
                      (c) any lawful order of the commission; or
                      (d) the employer's own written workplace safety program.
                      Section 29. Section 49-15-102 is amended to read:
                       49-15-102. Definitions.
                      As used in this chapter:
                      (1) (a) "Compensation" means the total amount of payments that are includable in gross
                  income received by a public safety service employee as base income for the regularly scheduled
                  work period. The participating employer shall establish the regularly scheduled work period.
                  Base income shall be determined prior to the deduction of any amounts the public safety service
                  employee authorizes to be deducted for salary deferral or other benefits authorized by federal
                  law.
                      (b) "Compensation" includes performance-based bonuses and cost-of-living adjustments.
                      (c) "Compensation" does not include:

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                      (i) overtime;
                      (ii) sick pay incentives;
                      (iii) retirement pay incentives;
                      (iv) the monetary value of remuneration paid in kind, as in a residence, use of equipment
                  or uniform, travel, or similar payments;
                      (v) a lump-sum payment or special payment covering accumulated leave; and
                      (vi) all contributions made by a participating employer under this system or under any
                  other employee benefit system or plan maintained by a participating employer for the benefit of a
                  member or participant.
                      (d) "Compensation" for purposes of this chapter may not exceed the amount allowed
                  under Internal Revenue Code Section 401(a)(17).
                      (2) "Final average salary" means the amount computed by averaging the highest three
                  years of annual compensation preceding retirement subject to Subsections (2)(a) and (b).
                      (a) Except as provided in Subsection (2)(b), the percentage increase in annual
                  compensation in any one of the years used may not exceed the previous year's compensation by
                  more than 10% plus a cost-of-living adjustment equal to the decrease in the purchasing power of
                  the dollar during the previous year, as measured by a United States Bureau of Labor Statistics
                  Consumer Price Index average as determined by the board.
                      (b) In cases where the participating employer provides acceptable documentation to the
                  office, the limitation in Subsection [(3)] (2)(a) may be exceeded if:
                      (i) the public safety service employee has transferred from another agency; or
                      (ii) the public safety service employee has been promoted to a new position.
                      (3) "Line-of-duty death" means a death resulting from external force, violence, or disease
                  occasioned by an act of duty as a public safety service employee.
                      (4) "Participating employer" means an employer which meets the participation
                  requirements of Section 49-15-201 .
                      (5) (a) "Public safety service" means at least 2,080 hours of regularly scheduled
                  compensated employment per year rendered by a member who is a:

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                      (i) law enforcement officer in accordance with Section 53-13-103 ;
                      (ii) correctional officer in accordance with Section 53-13-104 ; and
                      (iii) special function officer approved in accordance with [Section 49-4a-203 ] Sections
                  49-15-201 and [Section] 53-13-105 .
                      (b) "Public safety service" also requires that in the course of employment the employee's
                  life or personal safety is at risk.
                      (6) "Public safety service employee" means an employee of a participating employer who
                  performs public safety service under this chapter.
                      (7) "System" means the Public Safety Noncontributory Retirement System created under
                  this chapter.
                      (8) "Years of service credit" means the number of periods, each to consist of 12 full
                  months as determined by the board, whether consecutive or not, during which a public safety
                  service employee was employed by a participating employer, including time the public safety
                  service employee was absent in the service of the United States government on military duty.
                      Section 30. Section 49-21-102 is amended to read:
                       49-21-102. Definitions.
                      As used in this chapter:
                      (1) "Date of disability" means the date on which a period of continuous disability
                  commences, and may not commence on or before the last day of actual work.
                      (2) "Elimination period" means the three months at the beginning of each continuous
                  period of total disability for which no benefit will be paid and commences with the date of
                  disability.
                      (3) (a) "Eligible employee" means:
                      (i) any regular full-time employee as defined under Section 49-12-102 or 49-13-102 ,
                  public safety service employee as defined under Section 49-14-102 or 49-15-102 , or judge as
                  defined under Section 49-17-102 or 49-18-102 , whose employer provides coverage under this
                  chapter, or the governor of the state; and
                      (ii) an employee who is covered by a retirement program offered by the Teachers'

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                  Insurance and Annuity Association of America, if the employee's employer provides coverage
                  under this chapter; and
                      (b) "Eligible employee" does not include any employee that is exempt from coverage
                  under Section 49-21-201 .
                      (4) "Maximum benefit period" means the maximum period of time the monthly disability
                  income benefit will be paid under Section 49-21-403 for any continuous period of total disability.
                      (5) "Monthly disability benefit" means the monthly payments and accrual of service
                  credit under Section 49-21-401 and health insurance reimbursements paid under Section
                  [ 49-21-408 ] 49-21-407 , or any combination of them.
                      (6) "Objective medical impairment" means an impairment resulting from an injury or
                  illness which is diagnosed by a physician and which is based on accepted objective medical tests
                  or findings rather than subjective complaints.
                      (7) "Physician" means a licensed physician.
                      (8) "Regular monthly salary" means the amount certified by the participating employer as
                  the monthly salary of the eligible employee, unless there is a discrepancy between the certified
                  amount and the amount actually paid, in which case the office shall determine the regular
                  monthly salary.
                      (9) "Regular occupation" means either the primary duties performed by the eligible
                  employee for the twelve months preceding the date of disability, or a permanent assignment of
                  duty to the eligible employee.
                      (10) "Rehabilitative employment" means any occupation or employment for wage or
                  profit, for which the eligible employee is reasonably qualified to perform based on education,
                  training, or experience while unable to perform the employee's regular occupation.
                      (11) (a) "Total disability" or "totally disabled" means the complete inability, due to
                  objective medical impairment, whether physical or mental, to engage in the eligible employee's
                  regular occupation during the elimination period and the first 24 months of disability benefits.
                      (b) "Total disability" means, after the elimination period and the first 24 months of
                  disability benefits, the complete inability, based solely on physical objective medical impairment,

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                  to engage in any gainful occupation which is reasonable, considering the eligible employee's
                  education, training, and experience.
                      Section 31. Section 53-1-106 is amended to read:
                       53-1-106. Department duties -- Powers.
                      (1) In addition to the responsibilities contained in this title, the department shall:
                      (a) make rules and perform the functions specified in Title 41, Chapter 6, Traffic Rules
                  and Regulations, including:
                      (i) setting performance standards for towing companies to be used by the department, as
                  required by Section 41-6-102.5 ; and
                      (ii) advising the Department of Transportation regarding the safe design and operation of
                  school buses, as required by Section 41-6-115 ;
                      (b) make rules to establish and clarify standards pertaining to the curriculum and
                  teaching methods of a motor vehicle accident prevention course under Section 31A-19a-211 ;
                      (c) aid in enforcement efforts to combat drug trafficking [using funds appropriated under
                  Section 58-37-20 ];
                      [(d) as part of the annual budget hearings, provide the Executive Offices, Criminal
                  Justice, and Legislature Appropriations Subcommittee with a complete accounting of
                  expenditures and revenues from the funds under Section 58-37-20 ;]
                      [(e)] (d) meet with the Department of Administrative Services to formulate contracts,
                  establish priorities, and develop funding mechanisms for dispatch and telecommunications
                  operations, as required by Section 63A-6-107 ;
                      [(f)] (e) provide assistance to the Crime Victims' Reparations Board and Reparations
                  Office in conducting research or monitoring victims' programs, as required by Section
                  63-25a-405 ;
                      [(g)] (f) develop sexual assault exam protocol standards in conjunction with the Utah
                  Hospital Association;
                      [(h)] (g) engage in emergency planning activities, including preparation of policy and
                  procedure and rulemaking necessary for implementation of the federal Emergency Planning and

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                  Community Right to Know Act of 1986, as required by Section 63-5-5 ;
                      [(i)] (h) implement the provisions of Section 53-2-202 , the Emergency Management
                  Assistance Compact; and
                      [(j)] (i) (i) maintain a database of the information listed below regarding each driver
                  license or state identification card status check made by a law enforcement officer:
                      (A) the agency employing the law enforcement officer;
                      (B) the name of the law enforcement officer or the identifying number the agency has
                  assigned to the law enforcement officer;
                      (C) the race and gender of the law enforcement officer;
                      (D) the purpose of the law enforcement officer's status check, including but not limited to
                  a traffic stop or a pedestrian stop; and
                      (E) the race of the individual regarding whom the status check is made, based on the
                  information provided through the application process under Section 53-3-205 or 53-3-804 ;
                      (ii) provide access to the database created in Subsection (1)[(j)](i)(i) to the Commission
                  on Criminal and Juvenile Justice for the purpose of:
                      (A) evaluating the data;
                      (B) evaluating the effectiveness of the data collection process; and
                      (C) reporting and making recommendations to the Legislature; and
                      (iii) classify any personal identifying information of any individual, including law
                  enforcement officers, in the database as protected records under Subsection 63-2-304 (9).
                      (2) (a) The department may establish a schedule of fees as required or allowed in this
                  title for services provided by the department.
                      (b) The fees shall be established in accordance with Section 63-38-3.2 .
                      Section 32. Section 53-3-218 is amended to read:
                       53-3-218. Court to report convictions and may recommend suspension of license --
                  Severity of speeding violation defined.
                      (1) As used in this section:
                      (a) "conviction" means conviction by the court of first impression or final administrative

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                  determination in an administrative traffic proceeding; and
                      (b) "court" includes an administrative traffic proceeding [in accordance with Section
                  10-3-703.5 ].
                      (2) (a) A court having jurisdiction over offenses committed under this chapter or any
                  other law of this state, or under any municipal ordinance regulating driving motor vehicles on
                  highways or driving motorboats on the water, shall forward to the division within ten days, an
                  abstract of the court record of the conviction or plea held in abeyance of any person in the court
                  for a reportable traffic or motorboating violation of any laws or ordinances, and may recommend
                  the suspension of the license of the person convicted.
                      (b) When the division receives a court record of a conviction or plea in abeyance for a
                  motorboat violation, the division may only take action against a person's driver license if the
                  motorboat violation is for a violation of Title 41, Chapter 6, Article 5, Driving While Intoxicated
                  and Reckless Driving.
                      (3) The abstract shall be made in the form prescribed by the division and shall include:
                      (a) the name and address of the party charged;
                      (b) the number of his license certificate, if any;
                      (c) the registration number of the motor vehicle or motorboat involved;
                      (d) whether the motor vehicle was a commercial motor vehicle;
                      (e) whether the motor vehicle carried hazardous materials;
                      (f) the nature of the offense;
                      (g) the date of the hearing;
                      (h) the plea;
                      (i) the judgment or whether bail was forfeited; and
                      (j) the severity of the violation, which shall be graded by the court as "minimum,"
                  "intermediate," or "maximum" as established in accordance with Subsection 53-3-221 (4).
                      (4) When a convicted person secures a judgment of acquittal or reversal in any appellate
                  court after conviction in the court of first impression, the division shall reinstate his license
                  immediately upon receipt of a certified copy of the judgment of acquittal or reversal.

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                      Section 33. Section 53-3-402 is amended to read:
                       53-3-402. Definitions.
                      As used in this part:
                      (1) "Alcohol" means any substance containing any form of alcohol, including ethanol,
                  methanol, propanol, and isopropanol.
                      (2) "Alcohol concentration" means the number of grams of alcohol per:
                      (a) 100 milliliters of blood;
                      (b) 210 liters of breath; or
                      (c) 67 milliliters of urine.
                      (3) "Commercial driver instruction permit" or "CDIP" means a permit issued under
                  Section 53-3-408 .
                      (4) "Commercial driver license information system" or "CDLIS" means the information
                  system established under Title XII, Pub. L. 99-570, the Commercial Motor Vehicle Safety Act
                  of 1986, as a clearinghouse for information related to the licensing and identification of
                  commercial motor vehicle drivers.
                      (5) "Controlled substance" means any substance so classified under Section 102(6) of the
                  Controlled Substance Act, 21 U.S.C. 802(6), and includes all substances listed on the current
                  Schedules I through V of 21 C.F.R., Part 1308 as they may be revised from time to time.
                      (6) "Employee" means any driver of a commercial motor vehicle, including:
                      (a) full-time, regularly employed drivers;
                      (b) casual, intermittent, or occasional drivers;
                      (c) leased drivers; and
                      (d) independent, owner-operator contractors while in the course of driving a commercial
                  motor vehicle who are either directly employed by or under lease to an employer.
                      (7) "Employer" means any individual or person including the United States, a state, or a
                  political subdivision of a state, who owns or leases a commercial motor vehicle, or assigns an
                  individual to drive a commercial motor vehicle.
                      (8) "Felony" means any offense under state or federal law that is punishable by death or

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                  imprisonment for a term of more than one year.
                      (9) "Foreign jurisdiction" means any jurisdiction other than the United States or a state of
                  the United States.
                      (10) "Gross vehicle weight rating" or "GVWR" means the value specified by the
                  manufacturer as the maximum loaded weight of a single vehicle or GVWR of a combination or
                  articulated vehicle, and includes the GVWR of the power unit plus the total weight of all towed
                  units and the loads on those units.
                      (11) "Hazardous material" has the same meaning as defined under [Section 103,] 49
                  [App.] U.S.C. [1801] Sec. 5101 et seq., Hazardous Materials Transportation Act.
                      (12) "NDR" means the National Driver Register.
                      (13) "Nonresident CDL" means a commercial driver license issued by a state to an
                  individual who resides in a foreign jurisdiction.
                      (14) "Out-of-service order" means a temporary prohibition against driving a commercial
                  motor vehicle.
                      (15) "Port-of-entry agent" has the same meaning as provided in Section 72-1-102 .
                      (16) "Serious traffic violation" means a conviction of any of the following:
                      (a) speeding 15 or more miles per hour above the posted speed limit;
                      (b) reckless driving as defined by state or local law;
                      (c) improper or erratic traffic lane changes;
                      (d) following the vehicle ahead too closely;
                      (e) any other motor vehicle traffic law which arises in connection with a fatal traffic
                  accident;
                      (f) all other violations under Section 53-3-220 for which mandatory suspension or
                  revocation are required.
                      (17) "State" means a state of the United States, the District of Columbia, any province or
                  territory of Canada, or Mexico.
                      (18) "United States" means the 50 states and the District of Columbia.
                      Section 34. Section 53-3-805 is amended to read:

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                       53-3-805. Identification card -- Contents -- Specifications.
                      (1) The division shall issue an identification card that:
                      (a) provides all the information contained in the application, other than the applicant's:
                      (i) Social Security number, except as provided in Subsection (3); and
                      (ii) place of birth;
                      (b) contains a photograph of the applicant; and
                      (c) contains a facsimile of the applicant's signature.
                      (2) (a) The card shall be of an impervious material, resistant to wear, damage, and
                  alteration.
                      (b) The size, form, and color of the card is prescribed by the commissioner.
                      (3) At the applicant's request, the card may include any of the following:
                      (a) a statement that the applicant has a special medical problem or allergies to certain
                  drugs, for the purpose of medical treatment; and
                      (b) the applicant's Social Security number.
                      (4) (a) The indication of intent under Subsection 53-3-804 (2)[(i)](j) shall be
                  authenticated by the applicant in accordance with division rule.
                      (b) (i) Notwithstanding Title 63, Chapter 2, Government Records Access and
                  Management Act, the division may, upon request, release to an organ procurement organization,
                  as defined in Section 26-28-2 , the names and addresses of all persons who under Subsection
                  53-3-804 (2)[(i)](j) indicate that they intend to make an anatomical gift.
                      (ii) An organ procurement organization may use released information only to:
                      (A) obtain additional information for an anatomical gift registry; and
                      (B) inform applicants of anatomical gift options, procedures, and benefits.
                      (5) The division and its employees are not liable, as a result of false or inaccurate
                  information provided under Subsection 53-3-804 (2)[(i)](j), for direct or indirect:
                      (a) loss;
                      (b) detriment; or
                      (c) injury.

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                      Section 35. Section 53-8-213 is amended to read:
                       53-8-213. Special function officer status for certain employees -- Retirement
                  provisions.
                      (1) The commissioner may designate an employee of the Utah Highway Patrol Division
                  as a special function officer, as defined in Section 53-13-105 , for the purpose of enforcing all
                  laws relating to vehicle parts and equipment, including the provisions of this part and Title 41,
                  Chapter 6, Article 16, Equipment.
                      (2) Notwithstanding Section [ 49-4a-203 ] 49-15-201 , a special function officer designated
                  under this section may not become or be designated as a member of the Public Safety Retirement
                  Systems.
                      Section 36. Section 53A-1a-601 is amended to read:
                       53A-1a-601. Job enhancements for technology training.
                      (1) In conjunction with the Engineering and Computer Science Initiative provided for in
                  Section 53B-6-105 , there is established a Public Education Job Enhancement Program to attract,
                  train, and retain highly qualified secondary teachers in mathematics, physics, chemistry, physical
                  science, learning technology, and information technology.
                      (2) The program shall provide for the following:
                      (a) application by a school district superintendent or the principal of a secondary school
                  on behalf of a qualified teacher;
                      (b) an award of up to $20,000 or a scholarship to cover the tuition costs for a master's
                  degree, an endorsement, or graduate education in the areas identified in Subsection (1) to be
                  given to selected public school teachers on a competitive basis:
                      (i) whose applications are approved under Subsection 53A-1a-602 (4); and
                      (ii) who teach at the secondary level in the state's public education system for four years
                  in the areas identified in Subsection (1);
                      (c) (i) as to the cash awards under Subsection (2)(b), payment of the award in two
                  installments, with an initial payment of up to $10,000 at the beginning of the term and up to
                  $10,000 at the conclusion of the term;

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                      (ii) repayment of a portion of the initial payment by the teacher if the teacher fails to
                  complete two years of the four-year teaching term in the areas identified in Subsection (1) as
                  provided by rule of the State Board of Education in accordance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, unless waived for good cause by the Job Enhancement
                  Committee created in Section 53A-1a-602 ; and
                      (iii) nonpayment of the second installment if the teacher fails to complete the four-year
                  teaching term; and
                      (d) (i) as to the scholarships awarded under Subsection (2)(b), provision for the
                  providing institution to certify adequate performance in obtaining the master's degree,
                  endorsement, or graduate education in order for the teacher to maintain the scholarship; and
                      (ii) repayment by the teacher of a prorated portion of the scholarship, if the teacher fails
                  to teach in the state system of public education in the areas identified in Subsection (1) for four
                  years after obtaining the master's degree, the endorsement, or graduate education.
                      (3) An individual teaching in the public schools under a letter of authorization may
                  participate in the cash award program if:
                      (a) the individual has taught under the letter of authorization for at least one year in the
                  areas referred to in Subsection (1); and
                      (b) the application made under Subsection (2)(a) is based in large part upon the
                  individual receiving a superior evaluation as a classroom teacher.
                      (4) (a) The program may provide for the expenditure of up to $1,000,000 of available
                  monies, if at least an equal amount of matching monies become available, to provide professional
                  development training to superintendents, administrators, and principals in the effective use of
                  technology in public schools.
                      (b) An award granted under this Subsection (4) shall be made in accordance with criteria
                  developed and adopted by the Job Enhancement Committee created in Section [ 53A-1-602 ]
                  53A-1a-602 .
                      (c) An amount up to $120,000 of the $1,000,000 authorized in Subsection (4)(a) may be
                  expended, regardless of the matching monies being available.

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                      Section 37. Section 54-15-106 is amended to read:
                       54-15-106. Customer to provide equipment necessary to meet applicable code
                  requirements -- Commission may adopt additional requirements -- Testing and inspection
                  of interconnection.
                      (1) Each customer participating in a net metering program shall provide at the customer's
                  expense all equipment necessary to meet applicable local and national standards regarding
                  electrical and fire safety, power quality, and interconnection requirements established by the
                  National Electrical Code, the National Electrical Safety Code, the Institute of Electrical and
                  Electronics Engineers, and Underwriters Laboratories.
                      (2) After appropriate notice and opportunity for comment, the commission may by
                  [regulation] rule adopt additional safety, power quality, and interconnection requirements for
                  customer generation systems that the commission considers to be necessary to protect public
                  safety and system reliability.
                      (3) (a) If a customer participating in a net metering program complies with requirements
                  referred to under Subsection (1) and additional requirements established under Subsection (2), an
                  electrical corporation may not require that customer to:
                      (i) perform or pay for additional tests; or
                      (ii) purchase additional liability insurance.
                      (b) An electrical corporation may not be held directly or indirectly liable for permitting
                  or continuing to permit an interconnection of a customer generation system to the electrical
                  corporation's system or for an act or omission of a customer participating in a net metering
                  program for loss, injury, or death to a third party.
                      (4) An electrical corporation may test and inspect an interconnection at times that the
                  electrical corporation considers necessary to ensure the safety of electrical workers and to
                  preserve the integrity of the electric power grid.
                      Section 38. Section 58-13-4 is amended to read:
                       58-13-4. Liability immunity for health care providers on committees -- Evaluating
                  and approving medical care.

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                      (1) As used in this section, "health care provider" has the same meaning as in Section
                  78-14-3 .
                      (2) Health care providers serving in the following capacities and the organizations or
                  entities sponsoring these activities are immune from liability with respect to deliberations,
                  decisions, or determinations made or information furnished in good faith and without malice:
                      (a) serving on committees[;]:
                      (i) established to determine if hospitals and long-term care facilities are being used
                  properly;
                      (ii) established to evaluate and improve the quality of health care or determine whether
                  provided health care was necessary, appropriate, properly performed, or provided at a reasonable
                  cost;
                      (iii) functioning under Pub. L. No. 89-97 or as professional standards review
                  organizations under Pub. L. No. 92-603;
                      (iv) that are ethical standards review committees; or
                      (v) that are similar to committees listed in this Subsection (2) and that are established by
                  any hospital, professional association, the Utah Medical Association, or one of its component
                  medical societies to evaluate or review the diagnosis or treatment of, or the performance of
                  health or hospital services to, patients within this state;
                      (b) members of licensing boards established under Title 58, Occupations and
                  Professions, to license and regulate health care providers; and
                      (c) health care providers or other persons furnishing information to those committees, as
                  required by law, voluntarily, or upon official request.
                      (3) This section does not relieve any health care provider from liability incurred in
                  providing professional care and treatment to any patient.
                      (4) Health care providers serving on committees or providing information described in
                  this section are presumed to have acted in good faith and without malice, absent clear and
                  convincing evidence to the contrary.
                      Section 39. Section 58-31b-202 is amended to read:

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                       58-31b-202. Prescriptive Practice Peer Committee.
                      (1) (a) There is created under Subsection 58-1-203 [(6)](1)(f) the Prescriptive Practice
                  Peer Committee.
                      (b) The Prescriptive Practice Peer Committee shall:
                      (i) advise the board of nursing regarding prescriptive practice issues;
                      (ii) periodically audit and review the prescribing records of advanced practice registered
                  nurses located on the Controlled Substance Data Bank on a schedule established by rule;
                      (iii) recommend the scope of prescriptive practice authority of advanced practice
                  registered nurses consistent with this chapter and with professionally accepted therapies and
                  treatments;
                      (iv) periodically review the current consultation and referral plans prepared in
                  accordance with Subsection 58-31b-102 (16)(c)(iii) and evaluate compliance with the proposed
                  plans; and
                      (v) recommend disciplinary action.
                      (c) The composition of this committee shall be:
                      (i) two individuals who are licensed as advanced practice registered nurses who prescribe
                  within their practice and possess a controlled substance license;
                      (ii) two individuals licensed as physicians and surgeons or osteopathic physicians and
                  surgeons; and
                      (iii) one individual who is a pharmacologist.
                      (2) The division, in collaboration with the board, may create other peer committees to the
                  Board of Nursing pursuant to Subsection 58-1-203 [(6)](1)(f) to make recommendations to the
                  board regarding licensure, practice, and education issues.
                      Section 40. Section 58-37-2 is amended to read:
                       58-37-2. Definitions.
                      (1) As used in this chapter:
                      (a) "Administer" means the direct application of a controlled substance, whether by
                  injection, inhalation, ingestion, or any other means, to the body of a patient or research subject

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                  by:
                      (i) a practitioner or, in his presence, by his authorized agent; or
                      (ii) the patient or research subject at the direction and in the presence of the practitioner.
                      (b) "Agent" means an authorized person who acts on behalf of or at the direction of a
                  manufacturer, distributor, or practitioner but does not include a motor carrier, public
                  warehouseman, or employee of any of them.
                      (c) "Continuing criminal enterprise" means any individual, sole proprietorship,
                  partnership, corporation, business trust, association, or other legal entity, and any union or groups
                  of individuals associated in fact although not a legal entity, and includes illicit as well as licit
                  entities created or maintained for the purpose of engaging in conduct which constitutes the
                  commission of episodes of activity made unlawful by Title 58, Chapters 37, 37a, 37b, 37c, or
                  37d, which episodes are not isolated, but have the same or similar purposes, results, participants,
                  victims, methods of commission, or otherwise are interrelated by distinguishing characteristics.
                  Taken together, the episodes shall demonstrate continuing unlawful conduct and be related either
                  to each other or to the enterprise.
                      (d) "Control" means to add, remove, or change the placement of a drug, substance, or
                  immediate precursor under Section 58-37-3 .
                      (e) (i) "Controlled substance" means a drug or substance included in Schedules I, II, III,
                  IV, or V of Section 58-37-4 , and also includes a drug or substance included in Schedules I, II, III,
                  IV, or V of the federal Controlled Substances Act, Title II, P.L. 91-513, or any controlled
                  substance analog.
                      (ii) "Controlled substance" does not include:
                      (A) distilled spirits, wine, or malt beverages, as those terms are defined or used in Title
                  32A, regarding tobacco or food;
                      (B) any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
                  prevention of disease in man or other animals, which contains ephedrine, pseudoephedrine,
                  norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold, transferred,
                  or furnished as an over-the-counter medication without prescription; or

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                      (C) dietary supplements, vitamins, minerals, herbs, or other similar substances including
                  concentrates or extracts, which are not otherwise regulated by law, which may contain naturally
                  occurring amounts of chemical or substances listed in this chapter, or in rules adopted pursuant to
                  Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
                      (f) (i) "Controlled substance analog" means a substance the chemical structure of which
                  is substantially similar to the chemical structure of a controlled substance listed in Schedules I
                  and II of Section 58-37-4 , or in Schedules I and II of the federal Controlled Substances Act, Title
                  II, P.L. 91-513:
                      (A) which has a stimulant, depressant, or hallucinogenic effect on the central nervous
                  system substantially similar to the stimulant, depressant, or hallucinogenic effect on the central
                  nervous system of controlled substances in the schedules set forth in this subsection; or
                      (B) which, with respect to a particular individual, is represented or intended to have a
                  stimulant, depressant, or hallucinogenic effect on the central nervous system substantially similar
                  to the stimulant, depressant, or hallucinogenic effect on the central nervous system of controlled
                  substances in the schedules set forth in this subsection.
                      (ii) Controlled substance analog does not include:
                      (A) a controlled substance currently scheduled in Schedules I through V of Section
                  58-37-4 ;
                      (B) a substance for which there is an approved new drug application;
                      (C) a substance with respect to which an exemption is in effect for investigational use by
                  a particular person under Section 505 of the Food, Drug, and Cosmetic Act, 21 U.S.C. 366, to the
                  extent the conduct with respect to the substance is permitted by the exemption; or
                      (D) any substance to the extent not intended for human consumption before an
                  exemption takes effect with respect to the substance.
                      (E) Any drug intended for lawful use in the diagnosis, cure, mitigation, treatment, or
                  prevention of disease in man or other animals, which contains ephedrine, pseudoephedrine,
                  norpseudoephedrine, or phenylpropanolamine if the drug is lawfully purchased, sold, transferred,
                  or furnished as an over-the-counter medication without prescription.

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                      (F) Dietary supplements, vitamins, minerals, herbs, or other similar substances including
                  concentrates or extracts, which are not otherwise regulated by law, which may contain naturally
                  occurring amounts of chemical or substances listed in this chapter, or in rules adopted pursuant to
                  Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
                      (g) "Conviction" means a determination of guilt by verdict, whether jury or bench, or
                  plea, whether guilty or no contest, for any offense proscribed by Title 58, Chapters 37, 37a, 37b,
                  37c, or 37d, or for any offense under the laws of the United States and any other state which, if
                  committed in this state, would be an offense under Title 58, Chapters 37, 37a, 37b, 37c, or 37d.
                      (h) "Counterfeit substance" means:
                      (i) any substance or container or labeling of any substance that without authorization
                  bears the trademark, trade name, or other identifying mark, imprint, number, device, or any
                  likeness of them, of a manufacturer, distributor, or dispenser other than the person or persons
                  who in fact manufactured, distributed, or dispensed the substance which falsely purports to be a
                  controlled substance distributed by, any other manufacturer, distributor, or dispenser; or
                      (ii) any substance that is represented to be a controlled substance.
                      (i) "Deliver" or "delivery" means the actual, constructive, or attempted transfer of a
                  controlled substance or a listed chemical, whether or not an agency relationship exists.
                      (j) "Department" means the Department of Commerce.
                      (k) "Depressant or stimulant substance" means:
                      (i) a drug which contains any quantity of[: (A)] barbituric acid or any of the salts of
                  barbituric acid; [or]
                      [(B) any derivative of barbituric acid which has been designated by the Secretary of
                  Agriculture as habit-forming under Section 502 (d) of the federal Food, Drug, and Cosmetic Act,
                  21 U.S.C. 352 (d);]
                      (ii) a drug which contains any quantity of:
                      (A) amphetamine or any of its optical isomers;
                      (B) any salt of amphetamine or any salt of an optical isomer of amphetamine; or
                      (C) any substance which the Secretary of Health and Human Services or the Attorney

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                  General of the United States after investigation has found and by regulation designated
                  habit-forming because of its stimulant effect on the central nervous system; or
                      (iii) lysergic acid diethylamide; or
                      (iv) any drug which contains any quantity of a substance which the Secretary of Health
                  and Human Services or the Attorney General of the United States after investigation has found to
                  have, and by regulation designated as having, a potential for abuse because of its depressant or
                  stimulant effect on the central nervous system or its hallucinogenic effect.
                      (l) "Dispense" means the delivery of a controlled substance by a pharmacist to an
                  ultimate user pursuant to the lawful order or prescription of a practitioner, and includes
                  distributing to, leaving with, giving away, or disposing of that substance as well as the
                  packaging, labeling, or compounding necessary to prepare the substance for delivery.
                      (m) "Dispenser" means a pharmacist who dispenses a controlled substance.
                      (n) "Distribute" means to deliver other than by administering or dispensing a controlled
                  substance or a listed chemical.
                      (o) "Distributor" means a person who distributes controlled substances.
                      (p) "Drug" means:
                      (i) articles recognized in the official United States Pharmacopoeia, Official Homeopathic
                  Pharmacopoeia of the United States, or Official National Formulary, or any supplement to any of
                  them;
                      (ii) articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of
                  disease in man or other animals;
                      (iii) articles, other than food, intended to affect the structure or function of man or other
                  animals; and
                      (iv) articles intended for use as a component of any articles specified in Subsection (i),
                  (ii), or (iii); but does not include devices or their components, parts, or accessories.
                      (q) "Drug dependent person" means any individual who unlawfully and habitually uses
                  any controlled substance to endanger the public morals, health, safety, or welfare, or who is so
                  dependent upon the use of controlled substances as to have lost the power of self-control with

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                  reference to his dependency.
                      (r) "Food" means:
                      (i) any nutrient or substance of plant, mineral, or animal origin other than a drug as
                  specified in this chapter, and normally ingested by human beings; and
                      (ii) foods for special dietary uses as exist by reason of a physical, physiological,
                  pathological, or other condition including but not limited to the conditions of disease,
                  convalescence, pregnancy, lactation, allergy, hypersensitivity to food, underweight, and
                  overweight; uses for supplying a particular dietary need which exist by reason of age including
                  but not limited to the ages of infancy and childbirth, and also uses for supplementing and for
                  fortifying the ordinary or unusual diet with any vitamin, mineral, or other dietary property for use
                  of a food. Any particular use of a food is a special dietary use regardless of the nutritional
                  purposes.
                      (s) "Immediate precursor" means a substance which the Attorney General of the United
                  States has found to be, and by regulation designated as being, the principal compound used or
                  produced primarily for use in the manufacture of a controlled substance, or which is an
                  immediate chemical intermediary used or likely to be used in the manufacture of a controlled
                  substance, the control of which is necessary to prevent, curtail, or limit the manufacture of the
                  controlled substance.
                      (t) "Manufacture" means the production, preparation, propagation, compounding, or
                  processing of a controlled substance, either directly or indirectly by extraction from substances of
                  natural origin, or independently by means of chemical synthesis or by a combination of
                  extraction and chemical synthesis.
                      (u) "Manufacturer" includes any person who packages, repackages, or labels any
                  container of any controlled substance, except pharmacists who dispense or compound
                  prescription orders for delivery to the ultimate consumer.
                      (v) "Marijuana" means all species of the genus cannabis and all parts of the genus,
                  whether growing or not; the seeds of it; the resin extracted from any part of the plant; and every
                  compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin.

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                  The term does not include the mature stalks of the plant, fiber produced from the stalks, oil or
                  cake made from the seeds of the plant, any other compound, manufacture, salt, derivative,
                  mixture, or preparation of the mature stalks, except the resin extracted from them, fiber, oil or
                  cake, or the sterilized seed of the plant which is incapable of germination. Any synthetic
                  equivalents of the substances contained in the plant cannabis sativa or any other species of the
                  genus cannabis which are chemically indistinguishable and pharmacologically active are also
                  included.
                      (w) "Money" means officially issued coin and currency of the United States or any
                  foreign country.
                      (x) "Narcotic drug" means any of the following, whether produced directly or indirectly
                  by extraction from substances of vegetable origin, or independently by means of chemical
                  synthesis, or by a combination of extraction and chemical synthesis:
                      (i) opium, coca leaves, and opiates;
                      (ii) a compound, manufacture, salt, derivative, or preparation of opium, coca leaves, or
                  opiates;
                      (iii) opium poppy and poppy straw; or
                      (iv) a substance, and any compound, manufacture, salt, derivative, or preparation of the
                  substance, which is chemically identical with any of the substances referred to in Subsection (i),
                  (ii), or (iii), except narcotic drug does not include decocainized coca leaves or extracts of coca
                  leaves which do not contain cocaine or ecgonine.
                      (y) "Negotiable instrument" means documents, containing an unconditional promise to
                  pay a sum of money, which are legally transferable to another party by endorsement or delivery.
                      (z) "Opiate" means any drug or other substance having an addiction-forming or
                  addiction-sustaining liability similar to morphine or being capable of conversion into a drug
                  having addiction-forming or addiction-sustaining liability.
                      (aa) "Opium poppy" means the plant of the species papaver somniferum L., except the
                  seeds of the plant.
                      (bb) "Person" means any corporation, association, partnership, trust, other institution or

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                  entity or one or more individuals.
                      (cc) "Poppy straw" means all parts, except the seeds, of the opium poppy, after mowing.
                      (dd) "Possession" or "use" means the joint or individual ownership, control, occupancy,
                  holding, retaining, belonging, maintaining, or the application, inhalation, swallowing, injection,
                  or consumption, as distinguished from distribution, of controlled substances and includes
                  individual, joint, or group possession or use of controlled substances. For a person to be a
                  possessor or user of a controlled substance, it is not required that he be shown to have
                  individually possessed, used, or controlled the substance, but it is sufficient if it is shown that the
                  person jointly participated with one or more persons in the use, possession, or control of any
                  substances with knowledge that the activity was occurring, or the controlled substance is found in
                  a place or under circumstances indicating that the person had the ability and the intent to exercise
                  dominion and control over it.
                      (ee) "Practitioner" means a physician, dentist, veterinarian, pharmacist, scientific
                  investigator, pharmacy, hospital, or other person licensed, registered, or otherwise permitted to
                  distribute, dispense, conduct research with respect to, administer, or use in teaching or chemical
                  analysis a controlled substance in the course of professional practice or research in this state.
                      (ff) "Prescribe" means to issue a prescription orally or in writing.
                      (gg) "Prescription" means an order issued by a licensed practitioner, in the course of that
                  practitioner's professional practice, for a controlled substance, other drug, or device which it
                  dispenses or administers for use by a patient or an animal. The order may be issued by word of
                  mouth, written document, telephone, facsimile transmission, computer, or other electronic means
                  of communication as defined by rule.
                      (hh) "Production" means the manufacture, planting, cultivation, growing, or harvesting
                  of a controlled substance.
                      (ii) "Securities" means any stocks, bonds, notes, or other evidences of debt or of
                  property.
                      (jj) "State" means the state of Utah.
                      (kk) "Ultimate user" means any person who lawfully possesses a controlled substance for

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                  his own use, for the use of a member of his household, or for administration to an animal owned
                  by him or a member of his household.
                      (2) If a term used in this chapter is not defined, the definition and terms of Title 76, Utah
                  Criminal Code, shall apply.
                      Section 41. Section 58-57-2 is amended to read:
                       58-57-2. Definitions.
                      In addition to the definitions in Section 58-1-102 , as used in this chapter:
                      (1) "Board" means the Respiratory Care Licensing Board created in Section 58-57-3 .
                      (2) "Health care facility" means any facility or institution in which health care services
                  are performed or furnished and includes a hospital, clinic, or emergency care center.
                      (3) "Physician" means a person licensed to practice medicine under Title 58, Chapter [12,
                  Part 5] 67, Utah Medical Practice Act.
                      (4) "Practice of respiratory care" means the treatment, operation of equipment,
                  management, diagnostic testing, and care of any human disease, deficiency, pain, injury, or other
                  physical condition associated with the cardiopulmonary system under the qualified medical
                  direction or supervision of a physician who has training and knowledge in the diagnosis,
                  treatment, and assessment of respiratory problems. "Practice of respiratory care" includes:
                      (a) accepting and carrying out a licensed physician's written, verbal, or telephonic
                  prescription or order specifically relating to respiratory care in a hospital or other health care
                  setting and includes consultation with licensed nurses, as appropriate;
                      (b) administering respiratory care during transportation of a patient and under other
                  circumstances where an emergency requires immediate respiratory care;
                      (c) serving as a resource to other health care professionals and hospital administrators in
                  relation to the technical aspects of, and the safe and effective methods for, administering
                  respiratory care;
                      (d) functioning in situations of patient contact requiring individual judgment in
                  administering respiratory care under the general supervision of a qualified physician; and
                      (e) supervising, directing, or teaching personnel in the performance of respiratory care

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                  modalities as part of a respiratory care education program.
                      (5) "Respiratory care practitioner" means any person licensed to practice respiratory care
                  under this chapter.
                      (6) "Unprofessional conduct" as defined in Section 58-1-501 and as may be further
                  defined by rule includes:
                      (a) acting contrary to the instructions of the physician responsible for supervising the
                  licensee;
                      (b) knowingly operating any respiratory care equipment that is unsafe or not in
                  compliance with standards of condition or operation consistent with the patient's safety;
                      (c) permitting any person to operate respiratory care equipment who is not competent or
                  not allowed to operate the equipment;
                      (d) revealing to any unauthorized person confidential or privileged information about a
                  patient;
                      (e) using any controlled substance, unless the controlled substance is prescribed by a
                  physician and used in accordance with the physician's instructions; and
                      (f) making any statement that is incorrect due to negligence, willfulness, or intent to
                  provide false information or entry on any patient record or other record that is used for payment
                  of respiratory care services.
                      Section 42. Section 58-59-501 is amended to read:
                       58-59-501. Unlawful conduct.
                      Unlawful conduct includes:
                      (1) engaging in practice as a professional employer organization without a license;
                      (2) offering an employee a self-funded medical program, unless:
                      (a) the program provides its benefits under an employee benefit plan that complies with
                  29 U.S.C. Sec. [1143] 1001 et seq.; and
                      (b) the program is maintained for the sole benefit of participating coemployees;
                      (3) misrepresenting that any self-funded medical program it offers is other than
                  self-funded;

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                      (4) offering to its employees any self-funded or partially self-funded medical plan