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Second Substitute H.B. 100

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 3, 2010 at 2:49 PM by lerror. -->

Representative Kraig Powell proposes the following substitute bill:


             1     
HEBER VALLEY HISTORIC RAILROAD

             2     
AUTHORITY

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kraig Powell

             6     
Senate Sponsor: Kevin T. Van Tassell

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill re-enacts the Heber Valley Historic Railroad Authority.
             11      Highlighted Provisions:
             12          This bill:
             13          .    creates an independent state entity and its membership;
             14          .    creates an executive director;
             15          .    requires disclosure of interests;
             16          .    creates the authority and powers of the railroad authority;
             17          .    provides for obligations of the authority;
             18          .    creates a duty to maintain the rails;
             19          .    provides for sunset review of the authority; and
             20          .    makes technical cross-reference changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill provides an effective date and retrospective operation for the provisions
             25      related to sales and use tax exemptions.


             26      Utah Code Sections Affected:
             27      AMENDS:
             28          59-12-104, as last amended by Laws of Utah 2009, Chapters 31, 203, 212, and 385
             29          63E-1-102, as last amended by Laws of Utah 2009, Chapter 378
             30          63I-1-209, as renumbered and amended by Laws of Utah 2008, Chapter 382
             31          63I-4-102, as last amended by Laws of Utah 2009, Chapter 294
             32          63J-7-102, as enacted by Laws of Utah 2008, Chapter 195
             33      ENACTS:
             34          9-3-501, Utah Code Annotated 1953
             35          9-3-502, Utah Code Annotated 1953
             36          9-3-503, Utah Code Annotated 1953
             37          9-3-504, Utah Code Annotated 1953
             38          9-3-505, Utah Code Annotated 1953
             39          9-3-506, Utah Code Annotated 1953
             40          9-3-507, Utah Code Annotated 1953
             41          9-3-508, Utah Code Annotated 1953
             42          9-3-509, Utah Code Annotated 1953
             43          9-3-510, Utah Code Annotated 1953
             44          9-3-511, Utah Code Annotated 1953
             45     
             46      Be it enacted by the Legislature of the state of Utah:
             47          Section 1. Section 9-3-501 is enacted to read:
             48     
Part 5. Heber Valley Historic Railroad Authority

             49          9-3-501. Title.
             50          This part is known as the "Heber Valley Historic Railroad Authority."
             51          Section 2. Section 9-3-502 is enacted to read:
             52          9-3-502. Creation -- Members -- Chair -- Powers -- Quorum -- Per diem and
             53      expenses.
             54          (1) There is created an independent state agency and a body politic and corporate
             55      known as the "Heber Valley Historic Railroad Authority."
             56          (2) The authority shall be composed of eight members as follows:


             57          (a) one member of the county legislative body of Wasatch County;
             58          (b) the mayor of Heber City;
             59          (c) the mayor of Midway;
             60          (d) the executive director of the Department of Transportation or the executive
             61      director's designee;
             62          (e) H. [ one member from the Board of Parks and Recreation, appointed by the Board of
             63      Parks and Recreation
] the executive director of Parks and Recreation, or the executive director's

             63a      designee .H ;
             64          (f) three public members appointed by the governor with the consent of the Senate,
             65      being private citizens of the state, as follows:
             66          (i) two people representing the tourism industry, one each from Wasatch and Utah
             67      counties; and
             68          (ii) one person representing the public at large.
             69          (3) All members shall be residents of the state.
             70          (4) (a) Except as required by Subsection (4)(b), the three public members shall be
             71      appointed for four-year terms beginning July 1, 2010.
             72          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             73      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             74      authority members are staggered so that approximately half of the authority is appointed every
             75      two years.
             76          (5) Any of the three public members may be removed from office by the governor or
             77      for cause by an affirmative vote of any four members of the authority.
             78          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             79      appointed for the unexpired term by the governor with consent of the Senate for the unexpired
             80      term.
             81          (7) Each public member shall hold office for the term of appointment and until a
             82      successor has been appointed and qualified.
             83          (8) Any public member is eligible for reappointment, but may not serve more than two
             84      full consecutive terms.
             85          (9) The governor shall appoint the chair of the authority from among its members.
             86          (10) The members shall elect from among their number a vice chair and other officers
             87      they may determine.


             88          (11) The powers of the authority shall be vested in its members.
             89          (12) Four members constitute a quorum for transaction of authority business. An
             90      affirmative vote of at least four members is necessary for any action to be taken by the
             91      authority.
             92          (13) (a) (i) Members who are not government employees shall receive no
             93      compensation or benefits for their services, but may receive per diem and expenses incurred in
             94      the performance of the member's official duties at the rates established by the Division of
             95      Finance under Sections 63A-3-106 and 63A-3-107 .
             96          (ii) Members may decline to receive per diem and expenses for their service.
             97          (b) (i) State government officer and employee members who do not receive salary, per
             98      diem, or expenses from their agency for their service may receive per diem and expenses
             99      incurred in the performance of their official duties from the authority at the rates established by
             100      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             101          (ii) State government officer and employee members may decline to receive per diem
             102      and expenses for their service.
             103          (c) (i) Local government members who do not receive salary, per diem, or expenses
             104      from the entity that they represent for their service may receive per diem and expenses incurred
             105      in the performance of their official duties at the rates established by the Division of Finance
             106      under Sections 63A-3-106 and 63A-3-107 .
             107          (ii) Local government members may decline to receive per diem and expenses for their
             108      service.
             109          Section 3. Section 9-3-503 is enacted to read:
             110          9-3-503. Executive director -- Powers and duties.
             111          (1) The members shall appoint an executive director who shall be an employee of the
             112      authority, but who may not be a member of the authority, and who shall serve at the pleasure of
             113      the members and receive compensation as set by the members and approved by the governor.
             114          (2) The executive director shall:
             115          (a) administer, manage, and direct the affairs and activities of the authority in
             116      accordance with the policies, control, and direction of the members;
             117          (b) approve all accounts for allowable expenses of the authority or of any of its
             118      employees and expenses incidental to the operation of the authority;


             119          (c) attend the meetings of the authority;
             120          (d) keep a record of the proceedings of the authority;
             121          (e) maintain and be custodian of all books, documents, and papers filed with the
             122      authority; and
             123          (f) perform other duties as directed by the members in carrying out the purposes of this
             124      part.
             125          Section 4. Section 9-3-504 is enacted to read:
             126          9-3-504. Member or employee -- Disclosure of interest.
             127          Any member or employee of the authority who has, will have, or later acquires an
             128      interest, direct or indirect, in any transaction with the authority shall immediately disclose the
             129      nature and extent of that interest in writing to the authority as soon as the member or employee
             130      has knowledge of the actual or prospective interest. This disclosure shall be entered upon the
             131      minutes of the authority. Upon this disclosure that member or employee may participate in any
             132      action by the authority authorizing the transaction.
             133          Section 5. Section 9-3-505 is enacted to read:
             134          9-3-505. Officer or employee -- No forfeiture of office or employment.
             135          Notwithstanding the provisions of any other law, no officer or employee of this state
             136      shall be considered to have forfeited or shall forfeit an officer's or employee's office or
             137      employment by reason of acceptance of membership on the authority or service on it.
             138          Section 6. Section 9-3-506 is enacted to read:
             139          9-3-506. Authority -- Powers.
             140          (1) The authority shall operate and maintain a scenic and historic railroad in and
             141      around the Heber Valley.
             142          (2) The authority has perpetual succession as a body politic and corporate and may:
             143          (a) adopt, amend, and repeal rules, policies, and procedures for the regulation of its
             144      affairs and the conduct of its business;
             145          (b) sue and be sued in its own name;
             146          (c) maintain an office at any place or places within this state it may designate;
             147          (d) adopt, amend, and repeal bylaws and rules, not inconsistent with this part, to carry
             148      into effect the powers and purposes of the authority and the conduct of its business;
             149          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;


             150          (f) employ experts and other professionals it considers necessary;
             151          (g) employ and retain independent legal counsel;
             152          (h) make and execute contracts and all other instruments necessary or convenient for
             153      the performance of its duties and the exercise of its duties under this part to operate and
             154      maintain a scenic railroad in and around the Heber Valley;
             155          (i) procure insurance for liability and against any loss in connection with its property
             156      and other assets in amounts and from insurers it considers desirable;
             157          (j) receive appropriation from the Legislature and receive other public moneys and
             158      accept aid or contributions from any source of money, property, labor, or other things of value
             159      to be held, used, and applied to carry out the purposes of this part subject to the conditions
             160      upon which the grants and contributions are made, including, but not limited to, gifts or grants
             161      from any department, agency, or instrumentality of the United States or of this state for any
             162      purpose consistent with this part;
             163          (k) enter into agreements with any department, agency, or instrumentality of the United
             164      States or this state for the purpose of providing for the operation and maintenance of a scenic
             165      railway in and around the Heber Valley; and
             166          (l) do any act necessary or convenient to the exercise of the powers granted by this part.
             167          (3) All monies received by the authority under Subsection (2)(j) and from any other
             168      source shall be for the exclusive use of the authority to operate, maintain, improve, and provide
             169      for a scenic and historic railway in and around the Heber Valley. The monies received by the
             170      authority may not be used for any other purpose or by any other entity.
             171          Section 7. Section 9-3-507 is enacted to read:
             172          9-3-507. Notes, bonds, other obligation -- Not debt liability -- Expenses payable
             173      from funds provided -- Agency without authority to incur liability on behalf of state.
             174          (1) An obligation or liability of the authority does not constitute a debt or liability of
             175      this state or of any of its political subdivisions nor does any obligation or liability constitute the
             176      loaning of credit of the state or of any of its political subdivisions nor may any obligation or
             177      liability of the authority be payable from funds other than those of the authority. All
             178      obligations of the authority shall contain a statement to the effect that the authority is obligated
             179      to pay them solely from the revenues or other funds of the authority and that this state or its
             180      political subdivisions are not obligated to pay them and that neither the faith and credit nor the


             181      taxing power of this state or any of its political subdivisions is pledged to the payment of them.
             182          (2) All expenses incurred in carrying out this part shall be payable solely from funds of
             183      the authority provided under this part, and nothing in this part may be construed to authorize
             184      the authority to incur indebtedness or liability on behalf of or payable by this state or any of its
             185      political subdivisions.
             186          Section 8. Section 9-3-508 is enacted to read:
             187          9-3-508. Relation to certain acts.
             188          (1) The authority is exempt from:
             189          (a) Title 51, Chapter 5, Funds Consolidation Act;
             190          (b) Title 63A, Utah Administrative Services Code;
             191          (c) Title 63G, Chapter 6, Utah Procurement Code;
             192          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             193          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             194          (2) The authority shall be subject to audit by the state auditor pursuant to Title 67,
             195      Chapter 3, Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             196          Section 9. Section 9-3-509 is enacted to read:
             197          9-3-509. Duty to maintain rails.
             198          The authority shall maintain the rails, bed, right-of-way, and related property upon
             199      which the authority's train shall operate in compliance with state and federal statutes, rules, and
             200      regulations.
             201          Section 10. Section 9-3-510 is enacted to read:
             202          9-3-510. Lease of rails from Department of Transportation and Division of Parks
             203      and Recreation.
             204          The Department of Transportation and the Division of Parks and Recreation shall
             205      jointly lease the rails, bed, right-of-way, and related property for not more than $1 per year to
             206      the authority.
             207          Section 11. Section 9-3-511 is enacted to read:
             208          9-3-511. Sales tax exemption.
             209          The authority and its operators are exempt from sales and use tax imposed under Title
             210      59, Chapter 12, Sales and Use Tax Act, for their purchases and sales related to the operation
             211      and maintenance of a scenic and historic railroad in and around the Heber Valley.


             212          Section 12. Section 59-12-104 is amended to read:
             213           59-12-104. Exemptions.
             214          The following sales and uses are exempt from the taxes imposed by this chapter:
             215          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             216      under Chapter 13, Motor and Special Fuel Tax Act;
             217          (2) sales to the state, its institutions, and its political subdivisions; however, this
             218      exemption does not apply to sales of:
             219          (a) construction materials except:
             220          (i) construction materials purchased by or on behalf of institutions of the public
             221      education system as defined in Utah Constitution Article X, Section 2, provided the
             222      construction materials are clearly identified and segregated and installed or converted to real
             223      property which is owned by institutions of the public education system; and
             224          (ii) construction materials purchased by the state, its institutions, or its political
             225      subdivisions which are installed or converted to real property by employees of the state, its
             226      institutions, or its political subdivisions; or
             227          (b) tangible personal property in connection with the construction, operation,
             228      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             229      providing additional project capacity, as defined in Section 11-13-103 ;
             230          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             231          (i) the proceeds of each sale do not exceed $1; and
             232          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             233      the cost of the item described in Subsection (3)(b) as goods consumed; and
             234          (b) Subsection (3)(a) applies to:
             235          (i) food and food ingredients; or
             236          (ii) prepared food;
             237          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             238          (i) alcoholic beverages;
             239          (ii) food and food ingredients; or
             240          (iii) prepared food;
             241          (b) sales of tangible personal property or a product transferred electronically:
             242          (i) to a passenger;


             243          (ii) by a commercial airline carrier; and
             244          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             245          (c) services related to Subsection (4)(a) or (b);
             246          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             247      and equipment:
             248          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             249      North American Industry Classification System of the federal Executive Office of the
             250      President, Office of Management and Budget; and
             251          (II) for:
             252          (Aa) installation in an aircraft, including services relating to the installation of parts or
             253      equipment in the aircraft;
             254          (Bb) renovation of an aircraft; or
             255          (Cc) repair of an aircraft; or
             256          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             257      commerce; or
             258          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             259      aircraft operated by a common carrier in interstate or foreign commerce; and
             260          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             261      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             262      refund:
             263          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             264          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             265          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             266      the sale prior to filing for the refund;
             267          (iv) for sales and use taxes paid under this chapter on the sale;
             268          (v) in accordance with Section 59-1-1410 ; and
             269          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             270      the person files for the refund on or before September 30, 2011;
             271          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             272      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             273      exhibitor, distributor, or commercial television or radio broadcaster;


             274          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             275      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             276      washing of tangible personal property;
             277          (b) if a seller that sells at the same business location assisted cleaning or washing of
             278      tangible personal property and cleaning or washing of tangible personal property that is not
             279      assisted cleaning or washing of tangible personal property, the exemption described in
             280      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             281      or washing of the tangible personal property; and
             282          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             283      Utah Administrative Rulemaking Act, the commission may make rules:
             284          (i) governing the circumstances under which sales are at the same business location;
             285      and
             286          (ii) establishing the procedures and requirements for a seller to separately account for
             287      sales of assisted cleaning or washing of tangible personal property;
             288          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             289      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             290      fulfilled;
             291          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             292      this state if the vehicle is:
             293          (a) not registered in this state; and
             294          (b) (i) not used in this state; or
             295          (ii) used in this state:
             296          (A) if the vehicle is not used to conduct business, for a time period that does not
             297      exceed the longer of:
             298          (I) 30 days in any calendar year; or
             299          (II) the time period necessary to transport the vehicle to the borders of this state; or
             300          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             301      the vehicle to the borders of this state;
             302          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             303          (i) the item is intended for human use; and
             304          (ii) (A) a prescription was issued for the item; or


             305          (B) the item was purchased by a hospital or other medical facility; and
             306          (b) (i) Subsection (10)(a) applies to:
             307          (A) a drug;
             308          (B) a syringe; or
             309          (C) a stoma supply; and
             310          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             311      commission may by rule define the terms:
             312          (A) "syringe"; or
             313          (B) "stoma supply";
             314          (11) sales or use of property, materials, or services used in the construction of or
             315      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             316          (12) (a) sales of an item described in Subsection (12)(c) served by:
             317          (i) the following if the item described in Subsection (12)(c) is not available to the
             318      general public:
             319          (A) a church; or
             320          (B) a charitable institution;
             321          (ii) an institution of higher education if:
             322          (A) the item described in Subsection (12)(c) is not available to the general public; or
             323          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             324      offered by the institution of higher education; or
             325          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             326          (i) a medical facility; or
             327          (ii) a nursing facility; and
             328          (c) Subsections (12)(a) and (b) apply to:
             329          (i) food and food ingredients;
             330          (ii) prepared food; or
             331          (iii) alcoholic beverages;
             332          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             333      or a product transferred electronically by a person:
             334          (i) regardless of the number of transactions involving the sale of that tangible personal
             335      property or product transferred electronically by that person; and


             336          (ii) not regularly engaged in the business of selling that type of tangible personal
             337      property or product transferred electronically;
             338          (b) this Subsection (13) does not apply if:
             339          (i) the sale is one of a series of sales of a character to indicate that the person is
             340      regularly engaged in the business of selling that type of tangible personal property or product
             341      transferred electronically;
             342          (ii) the person holds that person out as regularly engaged in the business of selling that
             343      type of tangible personal property or product transferred electronically;
             344          (iii) the person sells an item of tangible personal property or product transferred
             345      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             346          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             347      this state in which case the tax is based upon:
             348          (A) the bill of sale or other written evidence of value of the vehicle or vessel being
             349      sold; or
             350          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             351      value of the vehicle or vessel being sold at the time of the sale as determined by the
             352      commission; and
             353          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             354      commission shall make rules establishing the circumstances under which:
             355          (i) a person is regularly engaged in the business of selling a type of tangible personal
             356      property or product transferred electronically;
             357          (ii) a sale of tangible personal property or a product transferred electronically is one of
             358      a series of sales of a character to indicate that a person is regularly engaged in the business of
             359      selling that type of tangible personal property or product transferred electronically; or
             360          (iii) a person holds that person out as regularly engaged in the business of selling a type
             361      of tangible personal property or product transferred electronically;
             362          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             363      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             364      facility, for the following:
             365          (i) machinery and equipment that:
             366          (A) are used:


             367          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             368      recycler described in Subsection 59-12-102 (52)(b):
             369          (Aa) in the manufacturing process;
             370          (Bb) to manufacture an item sold as tangible personal property; and
             371          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             372      (14)(a)(i)(A)(I) in the state; or
             373          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             374      59-12-102 (52)(b):
             375          (Aa) to process an item sold as tangible personal property; and
             376          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             377      (14)(a)(i)(A)(II) in the state; and
             378          (B) have an economic life of three or more years; and
             379          (ii) normal operating repair or replacement parts that:
             380          (A) have an economic life of three or more years; and
             381          (B) are used:
             382          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             383      recycler described in Subsection 59-12-102 (52)(b):
             384          (Aa) in the manufacturing process; and
             385          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             386      state; or
             387          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             388      59-12-102 (52)(b):
             389          (Aa) to process an item sold as tangible personal property; and
             390          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             391      state;
             392          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             393      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             394      for the following:
             395          (i) machinery and equipment that:
             396          (A) are used:
             397          (I) in the manufacturing process;


             398          (II) to manufacture an item sold as tangible personal property; and
             399          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             400      (14)(b) in the state; and
             401          (B) have an economic life of three or more years; and
             402          (ii) normal operating repair or replacement parts that:
             403          (A) are used:
             404          (I) in the manufacturing process; and
             405          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             406          (B) have an economic life of three or more years;
             407          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             408      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             409      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             410      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,
             411      of the 2002 North American Industry Classification System of the federal Executive Office of
             412      the President, Office of Management and Budget:
             413          (i) machinery and equipment that:
             414          (A) are used:
             415          (I) (Aa) in the production process, other than the production of real property; or
             416          (Bb) in research and development; and
             417          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             418      in the state; and
             419          (B) have an economic life of three or more years; and
             420          (ii) normal operating repair or replacement parts that:
             421          (A) have an economic life of three or more years; and
             422          (B) are used in:
             423          (I) (Aa) the production process, except for the production of real property; and
             424          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             425          (II) (Aa) research and development; and
             426          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             427          (d) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             428      Utah Administrative Rulemaking Act, the commission:


             429          (i) shall by rule define the term "establishment"; and
             430          (ii) may by rule define what constitutes:
             431          (A) processing an item sold as tangible personal property;
             432          (B) the production process, except for the production of real property; or
             433          (C) research and development; and
             434          (e) on or before October 1, 2011, and every five years after October 1, 2011, the
             435      commission shall:
             436          (i) review the exemptions described in this Subsection (14) and make
             437      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             438      exemptions should be continued, modified, or repealed; and
             439          (ii) include in its report:
             440          (A) an estimate of the cost of the exemptions;
             441          (B) the purpose and effectiveness of the exemptions; and
             442          (C) the benefits of the exemptions to the state;
             443          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             444          (i) tooling;
             445          (ii) special tooling;
             446          (iii) support equipment;
             447          (iv) special test equipment; or
             448          (v) parts used in the repairs or renovations of tooling or equipment described in
             449      Subsections (15)(a)(i) through (iv); and
             450          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             451          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             452      performance of any aerospace or electronics industry contract with the United States
             453      government or any subcontract under that contract; and
             454          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             455      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             456      by:
             457          (A) a government identification tag placed on the tooling, equipment, or parts; or
             458          (B) listing on a government-approved property record if placing a government
             459      identification tag on the tooling, equipment, or parts is impractical;


             460          (16) sales of newspapers or newspaper subscriptions;
             461          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             462      product transferred electronically traded in as full or part payment of the purchase price, except
             463      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             464      trade-ins are limited to other vehicles only, and the tax is based upon:
             465          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             466      vehicle being traded in; or
             467          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             468      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             469      commission; and
             470          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             471      following items of tangible personal property or products transferred electronically traded in as
             472      full or part payment of the purchase price:
             473          (i) money;
             474          (ii) electricity;
             475          (iii) water;
             476          (iv) gas; or
             477          (v) steam;
             478          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property
             479      or a product transferred electronically used or consumed primarily and directly in farming
             480      operations, regardless of whether the tangible personal property or product transferred
             481      electronically:
             482          (A) becomes part of real estate; or
             483          (B) is installed by a:
             484          (I) farmer;
             485          (II) contractor; or
             486          (III) subcontractor; or
             487          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             488      product transferred electronically if the tangible personal property or product transferred
             489      electronically is exempt under Subsection (18)(a)(i); and
             490          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are


             491      subject to the taxes imposed by this chapter:
             492          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             493      incidental to farming:
             494          (I) machinery;
             495          (II) equipment;
             496          (III) materials; or
             497          (IV) supplies; and
             498          (B) tangible personal property that is considered to be used in a manner that is
             499      incidental to farming includes:
             500          (I) hand tools; or
             501          (II) maintenance and janitorial equipment and supplies;
             502          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             503      transferred electronically if the tangible personal property or product transferred electronically
             504      is used in an activity other than farming; and
             505          (B) tangible personal property or a product transferred electronically that is considered
             506      to be used in an activity other than farming includes:
             507          (I) office equipment and supplies; or
             508          (II) equipment and supplies used in:
             509          (Aa) the sale or distribution of farm products;
             510          (Bb) research; or
             511          (Cc) transportation; or
             512          (iii) a vehicle required to be registered by the laws of this state during the period
             513      ending two years after the date of the vehicle's purchase;
             514          (19) sales of hay;
             515          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             516      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             517      garden, farm, or other agricultural produce is sold by:
             518          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             519      agricultural produce;
             520          (b) an employee of the producer described in Subsection (20)(a); or
             521          (c) a member of the immediate family of the producer described in Subsection (20)(a);


             522          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             523      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             524          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             525      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             526      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             527      manufacturer, processor, wholesaler, or retailer;
             528          (23) a product stored in the state for resale;
             529          (24) (a) purchases of a product if:
             530          (i) the product is:
             531          (A) purchased outside of this state;
             532          (B) brought into this state:
             533          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             534          (II) by a nonresident person who is not living or working in this state at the time of the
             535      purchase;
             536          (C) used for the personal use or enjoyment of the nonresident person described in
             537      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             538          (D) not used in conducting business in this state; and
             539          (ii) for:
             540          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of
             541      the product for a purpose for which the product is designed occurs outside of this state;
             542          (B) a boat, the boat is registered outside of this state; or
             543          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             544      outside of this state;
             545          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             546          (i) a lease or rental of a product; or
             547          (ii) a sale of a vehicle exempt under Subsection (33); and
             548          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             549      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             550      following:
             551          (i) conducting business in this state if that phrase has the same meaning in this
             552      Subsection (24) as in Subsection (63);


             553          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             554      as in Subsection (63); or
             555          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             556      this Subsection (24) as in Subsection (63);
             557          (25) a product purchased for resale in this state, in the regular course of business, either
             558      in its original form or as an ingredient or component part of a manufactured or compounded
             559      product;
             560          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             561      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             562      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             563      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             564      Act;
             565          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             566      person for use in compounding a service taxable under the subsections;
             567          (28) purchases made in accordance with the special supplemental nutrition program for
             568      women, infants, and children established in 42 U.S.C. Sec. 1786;
             569          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             570      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             571      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification
             572      Manual of the federal Executive Office of the President, Office of Management and Budget;
             573          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             574      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             575          (a) not registered in this state; and
             576          (b) (i) not used in this state; or
             577          (ii) used in this state:
             578          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             579      time period that does not exceed the longer of:
             580          (I) 30 days in any calendar year; or
             581          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             582      the borders of this state; or
             583          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time


             584      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             585      state;
             586          (31) sales of aircraft manufactured in Utah;
             587          (32) amounts paid for the purchase of telecommunications service for purposes of
             588      providing telecommunications service;
             589          (33) sales, leases, or uses of the following:
             590          (a) a vehicle by an authorized carrier; or
             591          (b) tangible personal property that is installed on a vehicle:
             592          (i) sold or leased to or used by an authorized carrier; and
             593          (ii) before the vehicle is placed in service for the first time;
             594          (34) (a) 45% of the sales price of any new manufactured home; and
             595          (b) 100% of the sales price of any used manufactured home;
             596          (35) sales relating to schools and fundraising sales;
             597          (36) sales or rentals of durable medical equipment if:
             598          (a) a person presents a prescription for the durable medical equipment; and
             599          (b) the durable medical equipment is used for home use only;
             600          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             601      Section 72-11-102 ; and
             602          (b) the commission shall by rule determine the method for calculating sales exempt
             603      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             604          (38) sales to a ski resort of:
             605          (a) snowmaking equipment;
             606          (b) ski slope grooming equipment;
             607          (c) passenger ropeways as defined in Section 72-11-102 ; or
             608          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             609      described in Subsections (38)(a) through (c);
             610          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             611          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             612      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             613      59-12-102 ;
             614          (b) if a seller that sells or rents at the same business location the right to use or operate


             615      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             616      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             617      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             618      amusement, entertainment, or recreation for the assisted amusement devices; and
             619          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             620      Utah Administrative Rulemaking Act, the commission may make rules:
             621          (i) governing the circumstances under which sales are at the same business location;
             622      and
             623          (ii) establishing the procedures and requirements for a seller to separately account for
             624      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             625      assisted amusement devices;
             626          (41) (a) sales of photocopies by:
             627          (i) a governmental entity; or
             628          (ii) an entity within the state system of public education, including:
             629          (A) a school; or
             630          (B) the State Board of Education; or
             631          (b) sales of publications by a governmental entity;
             632          (42) amounts paid for admission to an athletic event at an institution of higher
             633      education that is subject to the provisions of Title IX of the Education Amendments of 1972,
             634      20 U.S.C. Sec. 1681 et seq.;
             635          (43) (a) sales made to or by:
             636          (i) an area agency on aging; or
             637          (ii) a senior citizen center owned by a county, city, or town; or
             638          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             639          (44) sales or leases of semiconductor fabricating, processing, research, or development
             640      materials regardless of whether the semiconductor fabricating, processing, research, or
             641      development materials:
             642          (a) actually come into contact with a semiconductor; or
             643          (b) ultimately become incorporated into real property;
             644          (45) an amount paid by or charged to a purchaser for accommodations and services
             645      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section


             646      59-12-104.2 ;
             647          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             648      sports event registration certificate in accordance with Section 41-3-306 for the event period
             649      specified on the temporary sports event registration certificate;
             650          (47) sales or uses of electricity, if the sales or uses are:
             651          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             652      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             653      source, as designated in the tariff by the Public Service Commission of Utah; and
             654          (b) for an amount of electricity that is:
             655          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             656      under the tariff described in Subsection (47)(a); and
             657          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             658      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
             659          (48) sales or rentals of mobility enhancing equipment if a person presents a
             660      prescription for the mobility enhancing equipment;
             661          (49) sales of water in a:
             662          (a) pipe;
             663          (b) conduit;
             664          (c) ditch; or
             665          (d) reservoir;
             666          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             667      foreign nation;
             668          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             669          (i) does not constitute legal tender of any nation; and
             670          (ii) has a gold, silver, or platinum content of 80% or more; and
             671          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             672          (i) ingot;
             673          (ii) bar;
             674          (iii) medallion; or
             675          (iv) decorative coin;
             676          (52) amounts paid on a sale-leaseback transaction;


             677          (53) sales of a prosthetic device:
             678          (a) for use on or in a human; and
             679          (b) (i) for which a prescription is required; or
             680          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             681          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             682      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             683      or equipment is primarily used in the production or postproduction of the following media for
             684      commercial distribution:
             685          (i) a motion picture;
             686          (ii) a television program;
             687          (iii) a movie made for television;
             688          (iv) a music video;
             689          (v) a commercial;
             690          (vi) a documentary; or
             691          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             692      commission by administrative rule made in accordance with Subsection (54)(d); or
             693          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or
             694      equipment by an establishment described in Subsection (54)(c) that is used for the production
             695      or postproduction of the following are subject to the taxes imposed by this chapter:
             696          (i) a live musical performance;
             697          (ii) a live news program; or
             698          (iii) a live sporting event;
             699          (c) the following establishments listed in the 1997 North American Industry
             700      Classification System of the federal Executive Office of the President, Office of Management
             701      and Budget, apply to Subsections (54)(a) and (b):
             702          (i) NAICS Code 512110; or
             703          (ii) NAICS Code 51219; and
             704          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             705      commission may by rule:
             706          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             707      or


             708          (ii) define:
             709          (A) "commercial distribution";
             710          (B) "live musical performance";
             711          (C) "live news program"; or
             712          (D) "live sporting event";
             713          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             714      or before June 30, 2019, of machinery or equipment that:
             715          (i) is leased or purchased for or by a facility that:
             716          (A) is a renewable energy production facility;
             717          (B) is located in the state; and
             718          (C) (I) becomes operational on or after July 1, 2004; or
             719          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             720      2004 as a result of the use of the machinery or equipment;
             721          (ii) has an economic life of five or more years; and
             722          (iii) is used to make the facility or the increase in capacity of the facility described in
             723      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             724      transmission grid including:
             725          (A) a wind turbine;
             726          (B) generating equipment;
             727          (C) a control and monitoring system;
             728          (D) a power line;
             729          (E) substation equipment;
             730          (F) lighting;
             731          (G) fencing;
             732          (H) pipes; or
             733          (I) other equipment used for locating a power line or pole; and
             734          (b) this Subsection (55) does not apply to:
             735          (i) machinery or equipment used in construction of:
             736          (A) a new renewable energy production facility; or
             737          (B) the increase in the capacity of a renewable energy production facility;
             738          (ii) contracted services required for construction and routine maintenance activities;


             739      and
             740          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             741      of the facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or
             742      acquired after:
             743          (A) the renewable energy production facility described in Subsection (55)(a)(i) is
             744      operational as described in Subsection (55)(a)(iii); or
             745          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             746      in Subsection (55)(a)(iii);
             747          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             748      or before June 30, 2019, of machinery or equipment that:
             749          (i) is leased or purchased for or by a facility that:
             750          (A) is a waste energy production facility;
             751          (B) is located in the state; and
             752          (C) (I) becomes operational on or after July 1, 2004; or
             753          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             754      2004 as a result of the use of the machinery or equipment;
             755          (ii) has an economic life of five or more years; and
             756          (iii) is used to make the facility or the increase in capacity of the facility described in
             757      Subsection (56)(a)(i) operational up to the point of interconnection with an existing
             758      transmission grid including:
             759          (A) generating equipment;
             760          (B) a control and monitoring system;
             761          (C) a power line;
             762          (D) substation equipment;
             763          (E) lighting;
             764          (F) fencing;
             765          (G) pipes; or
             766          (H) other equipment used for locating a power line or pole; and
             767          (b) this Subsection (56) does not apply to:
             768          (i) machinery or equipment used in construction of:
             769          (A) a new waste energy facility; or


             770          (B) the increase in the capacity of a waste energy facility;
             771          (ii) contracted services required for construction and routine maintenance activities;
             772      and
             773          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             774      described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
             775          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             776      described in Subsection (56)(a)(iii); or
             777          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             778      in Subsection (56)(a)(iii);
             779          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             780      or before June 30, 2019, of machinery or equipment that:
             781          (i) is leased or purchased for or by a facility that:
             782          (A) is located in the state;
             783          (B) produces fuel from biomass energy including:
             784          (I) methanol; or
             785          (II) ethanol; and
             786          (C) (I) becomes operational on or after July 1, 2004; or
             787          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             788      a result of the installation of the machinery or equipment;
             789          (ii) has an economic life of five or more years; and
             790          (iii) is installed on the facility described in Subsection (57)(a)(i);
             791          (b) this Subsection (57) does not apply to:
             792          (i) machinery or equipment used in construction of:
             793          (A) a new facility described in Subsection (57)(a)(i); or
             794          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             795          (ii) contracted services required for construction and routine maintenance activities;
             796      and
             797          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             798      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             799          (A) the facility described in Subsection (57)(a)(i) is operational; or
             800          (B) the increased capacity described in Subsection (57)(a)(i) is operational;


             801          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             802      product transferred electronically to a person within this state if that tangible personal property
             803      or product transferred electronically is subsequently shipped outside the state and incorporated
             804      pursuant to contract into and becomes a part of real property located outside of this state;
             805          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             806      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             807      gross receipts, or other similar transaction excise tax on the transaction against which the other
             808      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             809          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             810      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             811      refund:
             812          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             813          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             814      which the sale is made;
             815          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             816      sale prior to filing for the refund;
             817          (iv) for sales and use taxes paid under this chapter on the sale;
             818          (v) in accordance with Section 59-1-1410 ; and
             819          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             820      the person files for the refund on or before June 30, 2011;
             821          (59) purchases:
             822          (a) of one or more of the following items in printed or electronic format:
             823          (i) a list containing information that includes one or more:
             824          (A) names; or
             825          (B) addresses; or
             826          (ii) a database containing information that includes one or more:
             827          (A) names; or
             828          (B) addresses; and
             829          (b) used to send direct mail;
             830          (60) redemptions or repurchases of a product by a person if that product was:
             831          (a) delivered to a pawnbroker as part of a pawn transaction; and


             832          (b) redeemed or repurchased within the time period established in a written agreement
             833      between the person and the pawnbroker for redeeming or repurchasing the product;
             834          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             835          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             836      and
             837          (ii) has a useful economic life of one or more years; and
             838          (b) the following apply to Subsection (61)(a):
             839          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             840          (ii) telecommunications equipment, machinery, or software required for 911 service;
             841          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             842          (iv) telecommunications switching or routing equipment, machinery, or software; or
             843          (v) telecommunications transmission equipment, machinery, or software;
             844          (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             845      personal property or a product transferred electronically that are used in the research and
             846      development of coal-to-liquids, oil shale, or tar sands technology; and
             847          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             848      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             849      purchases of tangible personal property or a product transferred electronically that are used in
             850      the research and development of coal-to-liquids, oil shale, and tar sands technology;
             851          (63) (a) purchases of tangible personal property or a product transferred electronically
             852      if:
             853          (i) the tangible personal property or product transferred electronically is:
             854          (A) purchased outside of this state;
             855          (B) brought into this state at any time after the purchase described in Subsection
             856      (63)(a)(i)(A); and
             857          (C) used in conducting business in this state; and
             858          (ii) for:
             859          (A) tangible personal property or a product transferred electronically other than the
             860      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             861      for a purpose for which the property is designed occurs outside of this state; or
             862          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered


             863      outside of this state;
             864          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             865          (i) a lease or rental of tangible personal property or a product transferred electronically;
             866      or
             867          (ii) a sale of a vehicle exempt under Subsection (33); and
             868          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             869      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             870      following:
             871          (i) conducting business in this state if that phrase has the same meaning in this
             872      Subsection (63) as in Subsection (24);
             873          (ii) the first use of tangible personal property or a product transferred electronically if
             874      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             875          (iii) a purpose for which tangible personal property or a product transferred
             876      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             877      Subsection (24);
             878          (64) sales of disposable home medical equipment or supplies if:
             879          (a) a person presents a prescription for the disposable home medical equipment or
             880      supplies;
             881          (b) the disposable home medical equipment or supplies are used exclusively by the
             882      person to whom the prescription described in Subsection (64)(a) is issued; and
             883          (c) the disposable home medical equipment and supplies are listed as eligible for
             884      payment under:
             885          (i) Title XVIII, federal Social Security Act; or
             886          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             887          (65) sales:
             888          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             889      District Act; or
             890          (b) of tangible personal property to a subcontractor of a public transit district, if the
             891      tangible personal property is:
             892          (i) clearly identified; and
             893          (ii) installed or converted to real property owned by the public transit district;


             894          (66) sales of construction materials:
             895          (a) purchased on or after July 1, 2010;
             896          (b) purchased by, on behalf of, or for the benefit of an international airport:
             897          (i) located within a county of the first class; and
             898          (ii) that has a United States customs office on its premises; and
             899          (c) if the construction materials are:
             900          (i) clearly identified;
             901          (ii) segregated; and
             902          (iii) installed or converted to real property:
             903          (A) owned or operated by the international airport described in Subsection (66)(b); and
             904          (B) located at the international airport described in Subsection (66)(b);
             905          (67) sales of construction materials:
             906          (a) purchased on or after July 1, 2008;
             907          (b) purchased by, on behalf of, or for the benefit of a new airport:
             908          (i) located within a county of the second class; and
             909          (ii) that is owned or operated by a city in which an airline as defined in Section
             910      59-2-102 is headquartered; and
             911          (c) if the construction materials are:
             912          (i) clearly identified;
             913          (ii) segregated; and
             914          (iii) installed or converted to real property:
             915          (A) owned or operated by the new airport described in Subsection (67)(b);
             916          (B) located at the new airport described in Subsection (67)(b); and
             917          (C) as part of the construction of the new airport described in Subsection (67)(b); [and]
             918          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive
             919      engine[.]; and
             920          (69) purchases and sales described in Section 9-3-511 .
             921          Section 13. Section 63E-1-102 is amended to read:
             922           63E-1-102. Definitions.
             923          As used in this title:
             924          (1) "Authorizing statute" means the statute creating an entity as an independent entity.


             925          (2) "Committee" means the Retirement and Independent Entities Committee created in
             926      Section 63E-1-201 .
             927          (3) "Independent corporation" means a corporation incorporated in accordance with
             928      Chapter 2, Independent Corporations Act.
             929          (4) (a) "Independent entity" means an entity having a public purpose relating to the
             930      state or its citizens that is individually created by the state or is given by the state the right to
             931      exist and conduct its affairs as an:
             932          (i) independent state agency; or
             933          (ii) independent corporation.
             934          (b) "Independent entity" includes the:
             935          (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             936          (ii) Heber Valley Railroad Authority created in Title 9, Chapter 3, Part [3] 5, Heber
             937      Valley Historic Railroad Authority;
             938          (iii) Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah Science
             939      Center Authority;
             940          (iv) Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             941      Corporation Act;
             942          (v) Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State Fair
             943      Corporation Act;
             944          (vi) Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             945      Compensation Fund;
             946          (vii) Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             947      Retirement Systems Administration;
             948          (viii) School and Institutional Trust Lands Administration created in Title 53C,
             949      Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             950          (ix) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
             951      Communications Agency Network Act;
             952          (x) Utah Generated Renewable Energy Electricity Network Authority created in Title
             953      63H, Chapter 2, Utah Generated Renewable Energy Electricity Network Authority Act; and
             954          (xi) Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part 12,
             955      Utah Venture Capital Enhancement Act.


             956          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
             957          (i) the Public Service Commission of Utah created in Section 54-1-1 ;
             958          (ii) an institution within the state system of higher education;
             959          (iii) a city, county, or town;
             960          (iv) a local school district;
             961          (v) a local district under Title 17B, Limited Purpose Local Government Entities - Local
             962      Districts; or
             963          (vi) a special service district under Title 17D, Chapter 1, Special Service District Act.
             964          (5) "Independent state agency" means an entity that is created by the state, but is
             965      independent of the governor's direct supervisory control.
             966          (6) "Monies held in trust" means monies maintained for the benefit of:
             967          (a) one or more private individuals, including public employees;
             968          (b) one or more public or private entities; or
             969          (c) the owners of a quasi-public corporation.
             970          (7) "Public corporation" means an artificial person, public in ownership, individually
             971      created by the state as a body politic and corporate for the administration of a public purpose
             972      relating to the state or its citizens.
             973          (8) "Quasi-public corporation" means an artificial person, private in ownership,
             974      individually created as a corporation by the state which has accepted from the state the grant of
             975      a franchise or contract involving the performance of a public purpose relating to the state or its
             976      citizens.
             977          Section 14. Section 63I-1-209 is amended to read:
             978           63I-1-209. Repeal dates, Title 9.
             979          (1) Title 9, Chapter 1, Part 8, Commission on National and Community Service Act, is
             980      repealed July 1, 2014.
             981          (2) Title 9, Chapter 3, Part [3] 5, Heber Valley Historic Railroad Authority, is repealed
             982      July 1, [2009] 2020.
             983          (3) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act, is repealed July 1, 2016.
             984          Section 15. Section 63I-4-102 is amended to read:
             985           63I-4-102. Definitions.
             986          (1) (a) "Activity" means to provide a good or service.


             987          (b) "Activity" includes to:
             988          (i) manufacture a good or service;
             989          (ii) process a good or service;
             990          (iii) sell a good or service;
             991          (iv) offer for sale a good or service;
             992          (v) rent a good or service;
             993          (vi) lease a good or service;
             994          (vii) deliver a good or service;
             995          (viii) distribute a good or service; or
             996          (ix) advertise a good or service.
             997          (2) (a) Except as provided in Subsection (2)(b), "agency" means:
             998          (i) the state; or
             999          (ii) an entity of the state including a department, office, division, authority,
             1000      commission, or board.
             1001          (b) "Agency" does not include:
             1002          (i) the Legislature;
             1003          (ii) an entity or agency of the Legislature;
             1004          (iii) the state auditor;
             1005          (iv) the state treasurer;
             1006          (v) the Office of the Attorney General;
             1007          (vi) the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             1008          (vii) the Heber Valley Railroad Authority created in Title 9, Chapter 3, Part [3] 5,
             1009      Heber Valley Historic Railroad Authority;
             1010          (viii) the Utah Science Center Authority created in Title 9, Chapter 3, Part 4, Utah
             1011      Science Center Authority;
             1012          (ix) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             1013      Corporation Act;
             1014          (x) the Utah State Fair Corporation created in Title 9, Chapter 4, Part 11, Utah State
             1015      Fair Corporation Act;
             1016          (xi) the Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             1017      Compensation Fund;


             1018          (xii) the Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             1019      Retirement Systems Administration;
             1020          (xiii) a charter school chartered by the State Charter School Board under Title 53A,
             1021      Chapter 1a, Part 5, The Utah Charter Schools Act;
             1022          (xiv) the Utah Schools for the Deaf and the Blind created in Title 53A, Chapter 25b,
             1023      Utah Schools for the Deaf and the Blind;
             1024          (xv) an institution of higher education as defined in Section 53B-3-102 ;
             1025          (xvi) the School and Institutional Trust Lands Administration created in Title 53C,
             1026      Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             1027          (xvii) the Utah Communications Agency Network created in Title 63C, Chapter 7,
             1028      Utah Communications Agency Network Act; or
             1029          (xviii) the Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part
             1030      12, Utah Venture Capital Enhancement Act.
             1031          (3) "Agency head" means the chief administrative officer of an agency.
             1032          (4) "Board" means the Privatization Policy Board created in Section 63I-4-201 .
             1033          (5) "Commercial activity" means to engage in an activity that can be obtained in whole
             1034      or in part from a private enterprise.
             1035          (6) "Local entity" means:
             1036          (a) a political subdivision of the state, including a:
             1037          (i) county;
             1038          (ii) city;
             1039          (iii) town;
             1040          (iv) local school district;
             1041          (v) local district; or
             1042          (vi) special service district;
             1043          (b) an agency of an entity described in this Subsection (6), including a department,
             1044      office, division, authority, commission, or board; and
             1045          (c) an entity created by an interlocal cooperative agreement under Title 11, Chapter 13,
             1046      Interlocal Cooperation Act, between two or more entities described in this Subsection (6).
             1047          (7) "Private enterprise" means a person that for profit:
             1048          (a) manufactures a good or service;


             1049          (b) processes a good or service;
             1050          (c) sells a good or service;
             1051          (d) offers for sale a good or service;
             1052          (e) rents a good or service;
             1053          (f) leases a good or service;
             1054          (g) delivers a good or service;
             1055          (h) distributes a good or service; or
             1056          (i) advertises a good or service.
             1057          (8) "Privatize" means that an activity engaged in by an agency is transferred so that a
             1058      private enterprise engages in the activity including a transfer by:
             1059          (a) contract;
             1060          (b) transfer of property; or
             1061          (c) another arrangement.
             1062          Section 16. Section 63J-7-102 is amended to read:
             1063           63J-7-102. Scope and applicability of chapter.
             1064          (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
             1065      superseding provisions of this chapter by explicit reference to this chapter, the provisions of
             1066      this chapter apply to each agency and govern each grant received on or after May 5, 2008.
             1067          (2) This chapter does not govern:
             1068          (a) a grant deposited into a General Fund restricted account;
             1069          (b) a grant deposited into a Trust and Agency Fund as defined in Section 51-5-4 ;
             1070          (c) a grant deposited into an Enterprise Fund as defined in Section 51-5-4 ;
             1071          (d) a grant made to the state without a restriction or other designated purpose that is
             1072      deposited into the General Fund as free revenue;
             1073          (e) a grant made to the state that is restricted only to "education" and that is deposited
             1074      into the Education Fund or Uniform School Fund as free revenue;
             1075          (f) in-kind donations;
             1076          (g) a tax, fees, penalty, fine, surcharge, money judgment, or other monies due the state
             1077      when required by state law or application of state law;
             1078          (h) a contribution made under Title 59, Chapter 10, Part 13, Individual Income Tax
             1079      Contribution Act;


             1080          (i) a grant received by an agency from another agency or political subdivision;
             1081          (j) a grant to the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion
             1082      Act;
             1083          (k) a grant to the Heber Valley Railroad Authority created in Title 9, Chapter 3, Part
             1084      [3] 5, Heber Valley Historic Railroad Authority;
             1085          (l) a grant to the Utah Science Center Authority created in Title 9, Chapter 3, Part 4,
             1086      Utah Science Center Authority;
             1087          (m) a grant to the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah
             1088      Housing Corporation Act;
             1089          (n) a grant to the Utah State Fair Corporation created in Title 9, Chapter 4, Part 11,
             1090      Utah State Fair Corporation Act;
             1091          (o) a grant to the Workers' Compensation Fund created in Title 31A, Chapter 33,
             1092      Workers' Compensation Fund;
             1093          (p) a grant to the Utah State Retirement Office created in Title 49, Chapter 11, Utah
             1094      State Retirement Systems Administration;
             1095          (q) a grant to the School and Institutional Trust Lands Administration created in Title
             1096      53C, Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             1097          (r) a grant to the Utah Communications Agency Network created in Title 63C, Chapter
             1098      7, Utah Communications Agency Network Act;
             1099          (s) a grant to the Medical Education Program created in Section 63C-8-102 ;
             1100          (t) a grant to the Utah Capital Investment Corporation created in Title 63M, Chapter 1,
             1101      Part 12, Utah Venture Capital Enhancement Act;
             1102          (u) a grant to the State Charter School Finance Authority created in Section
             1103      53A-20b-103 ;
             1104          (v) a grant to the State Building Ownership Authority created in Section 63B-1-304 ;
             1105          (w) a grant to the Utah Comprehensive Health Insurance Pool created in Section
             1106      31A-29-104 ; or
             1107          (x) a grant to the Military Installation Development Authority created in Section
             1108      63H-1-201 .
             1109          (3) An agency need not seek legislative review or approval of grants under Part 2,
             1110      Grant Approval Requirements, when:


             1111          (a) the governor has declared a state of emergency; and
             1112          (b) the grant is donated to the agency to assist disaster victims under Subsection
             1113      63K-4-201 (2).
             1114          Section 17. Effective date -- Retrospective operation.
             1115          (1) This bill takes effect on May 11, 2010.
             1116          (2) The amendments to Sections 9-3-511 and 59-12-104 shall have retrospective
             1117      operation for taxable periods beginning on or after July 1, 2009.


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