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H.B. 274 Enrolled

             1     

STATUTORY CONSTRUCTION COMPLIANCE

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Rebecca D. Lockhart

             6     
Senate Sponsor: Stephen H. Urquhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions of Titles 3 through 16 of the Utah Code by correcting
             11      terms to comply with rules of statutory construction applicable to the Utah Code.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends provisions of Titles 3 through 16 of the Utah Code by correcting terms to
             15      comply with rules of statutory construction applicable to the Utah Code; and
             16          .    makes technical changes.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          3-1-1, Utah Code Annotated 1953
             24          3-1-9, as last amended by Laws of Utah 2007, Chapter 306
             25          3-1-11, as last amended by Laws of Utah 2005, Chapter 110
             26          3-1-13.8, as enacted by Laws of Utah 1994, Chapter 204
             27          3-1-14, Utah Code Annotated 1953
             28          3-1-15, Utah Code Annotated 1953
             29          3-1-15.1, as enacted by Laws of Utah 1994, Chapter 204


             30          3-1-17, as last amended by Laws of Utah 2007, Chapter 306
             31          3-1-22, Utah Code Annotated 1953
             32          3-1-26, Utah Code Annotated 1953
             33          3-1-35, as last amended by Laws of Utah 1994, Chapter 203
             34          3-1-37, as last amended by Laws of Utah 1994, Chapter 203
             35          4-1-7, as enacted by Laws of Utah 1979, Chapter 2
             36          4-2-8.7, as last amended by Laws of Utah 2009, Chapter 368
             37          4-2-15, as enacted by Laws of Utah 1985, Chapter 104
             38          4-5-5, as last amended by Laws of Utah 1990, Chapter 157
             39          4-5-7, as last amended by Laws of Utah 2007, Chapter 179
             40          4-5-8, as last amended by Laws of Utah 1990, Chapter 157
             41          4-5-9, as last amended by Laws of Utah 2008, Chapter 382
             42          4-5-15, as last amended by Laws of Utah 2007, Chapter 179
             43          4-5-18, as last amended by Laws of Utah 1990, Chapter 157
             44          4-7-8, as last amended by Laws of Utah 2003, Chapter 84
             45          4-7-11, as last amended by Laws of Utah 1995, Chapter 41
             46          4-9-15, as last amended by Laws of Utah 2008, Chapter 382
             47          4-14-3, as last amended by Laws of Utah 2009, Chapter 183
             48          4-15-2, as enacted by Laws of Utah 1981, Chapter 126
             49          4-15-10, as enacted by Laws of Utah 1981, Chapter 126
             50          4-17-7, as last amended by Laws of Utah 2009, Chapter 388
             51          4-22-3, as last amended by Laws of Utah 1996, Chapter 243
             52          4-22-6, as last amended by Laws of Utah 1999, Chapter 301
             53          4-23-5, as last amended by Laws of Utah 2008, Chapter 382
             54          4-23-6, as enacted by Laws of Utah 1979, Chapter 2
             55          4-23-8, as last amended by Laws of Utah 2004, Chapter 128
             56          4-24-2, as last amended by Laws of Utah 1997, Chapter 302
             57          4-24-12, as last amended by Laws of Utah 2007, Chapter 240


             58          4-24-20, as last amended by Laws of Utah 1997, Chapter 302
             59          4-26-5, as enacted by Laws of Utah 1979, Chapter 2
             60          4-29-2, as enacted by Laws of Utah 1979, Chapter 2
             61          4-30-7.6, as enacted by Laws of Utah 1999, Chapter 298
             62          4-31-16, as last amended by Laws of Utah 2007, Chapter 179
             63          4-31-16.5, as last amended by Laws of Utah 2008, Chapter 382
             64          4-32-3, as last amended by Laws of Utah 2007, Chapter 179
             65          4-32-7, as last amended by Laws of Utah 2008, Chapter 382
             66          4-32-16, as enacted by Laws of Utah 1979, Chapter 2
             67          4-32-22, as last amended by Laws of Utah 2007, Chapter 179
             68          4-35-7, as last amended by Laws of Utah 1990, Chapter 157
             69          4-37-102, as renumbered and amended by Laws of Utah 1994, Chapter 153
             70          4-37-109, as last amended by Laws of Utah 2008, Chapter 382
             71          4-37-110, as enacted by Laws of Utah 1994, Chapter 153
             72          4-37-202, as enacted by Laws of Utah 1994, Chapter 153
             73          4-37-203, as enacted by Laws of Utah 1994, Chapter 153
             74          4-37-204, as last amended by Laws of Utah 2008, Chapter 69
             75          4-37-302, as enacted by Laws of Utah 1994, Chapter 153
             76          4-37-303, as enacted by Laws of Utah 1994, Chapter 153
             77          4-37-305, as enacted by Laws of Utah 1994, Chapter 153
             78          4-37-402, as enacted by Laws of Utah 1994, Chapter 153
             79          4-37-502, as last amended by Laws of Utah 2007, Chapter 191
             80          4-37-503, as last amended by Laws of Utah 2008, Chapter 69
             81          4-39-201, as enacted by Laws of Utah 1997, Chapter 302
             82          4-39-205, as enacted by Laws of Utah 1997, Chapter 302
             83          4-39-206, as enacted by Laws of Utah 1997, Chapter 302
             84          4-39-302, as enacted by Laws of Utah 1997, Chapter 302
             85          4-39-304, as enacted by Laws of Utah 1997, Chapter 302


             86          4-39-305, as enacted by Laws of Utah 1997, Chapter 302
             87          4-39-306, as enacted by Laws of Utah 1997, Chapter 302
             88          6-1-3, Utah Code Annotated 1953
             89          6-1-9, Utah Code Annotated 1953
             90          6-1-15, Utah Code Annotated 1953
             91          7-1-303, as enacted by Laws of Utah 1981, Chapter 16
             92          7-1-309, as enacted by Laws of Utah 1981, Chapter 16
             93          7-1-607, as enacted by Laws of Utah 1981, Chapter 16
             94          7-1-612, as enacted by Laws of Utah 1981, Chapter 16
             95          7-1-806, as enacted by Laws of Utah 1981, Chapter 16
             96          7-2-9, as last amended by Laws of Utah 2008, Chapter 382
             97          7-2-10, as last amended by Laws of Utah 1989, Chapter 267
             98          7-2-12, as last amended by Laws of Utah 1989, Chapter 267
             99          7-5-2, as last amended by Laws of Utah 2000, Chapter 300
             100          7-5-4, as last amended by Laws of Utah 1982, Chapter 6
             101          7-5-7, as last amended by Laws of Utah 2004, Chapter 89
             102          7-5-8, as last amended by Laws of Utah 1982, Chapter 6
             103          7-5-11, as last amended by Laws of Utah 1982, Chapter 6
             104          7-7-2, as last amended by Laws of Utah 1995, Chapter 49
             105          7-7-4, as last amended by Laws of Utah 1994, Chapter 200
             106          7-7-7, as last amended by Laws of Utah 1994, Chapter 200
             107          7-7-14, as last amended by Laws of Utah 1994, Chapter 200
             108          7-7-15, as last amended by Laws of Utah 1989, Chapter 267
             109          7-7-17, as enacted by Laws of Utah 1981, Chapter 16
             110          7-7-19, as last amended by Laws of Utah 1994, Chapter 200
             111          7-7-21, as last amended by Laws of Utah 1997, Chapter 111
             112          7-7-26, as last amended by Laws of Utah 1995, Chapters 20 and 198
             113          7-7-29, as last amended by Laws of Utah 1983, Chapter 8


             114          7-7-30, as last amended by Laws of Utah 1983, Chapter 8
             115          7-7-32, as last amended by Laws of Utah 1994, Chapter 200
             116          7-7-33, as last amended by Laws of Utah 1994, Chapter 200
             117          7-7-43, as enacted by Laws of Utah 1981, Chapter 16
             118          7-9-5, as last amended by Laws of Utah 2003, Chapter 327
             119          7-9-19, as enacted by Laws of Utah 1981, Chapter 16
             120          7-9-32, as enacted by Laws of Utah 1981, Chapter 16
             121          7-14-5, as enacted by Laws of Utah 1981, Chapter 16
             122          7-17-4, as last amended by Laws of Utah 2002, Chapter 264
             123          7-17-6, as enacted by Laws of Utah 1979, Chapter 124
             124          7-17-8, as enacted by Laws of Utah 1979, Chapter 124
             125          7-17-9, as enacted by Laws of Utah 1979, Chapter 124
             126          7-18a-301, as enacted by Laws of Utah 1996, Chapter 63
             127          8-3-1, Utah Code Annotated 1953
             128          9-3-407, as last amended by Laws of Utah 2001, Chapter 151
             129          9-4-301, as renumbered and amended by Laws of Utah 1992, Chapter 241
             130          9-4-602, as last amended by Laws of Utah 2002, Chapter 185
             131          9-4-703, as last amended by Laws of Utah 2006, Chapter 14
             132          9-4-914, as last amended by Laws of Utah 2001, Chapter 319
             133          9-4-924, as last amended by Laws of Utah 2001, Chapter 319
             134          9-6-203, as renumbered and amended by Laws of Utah 1992, Chapter 241
             135          9-6-405, as renumbered and amended by Laws of Utah 1992, Chapter 241
             136          9-6-504, as last amended by Laws of Utah 2008, Chapter 382
             137          9-7-213, as last amended by Laws of Utah 2008, Chapter 382
             138          9-7-504, as last amended by Laws of Utah 2003, Chapter 47
             139          9-12-103, as last amended by Laws of Utah 2008, Chapter 382
             140          9-12-201, as renumbered and amended by Laws of Utah 1998, Chapter 336
             141          10-1-105, as enacted by Laws of Utah 1977, Chapter 48


             142          10-1-108, as last amended by Laws of Utah 1993, Chapter 4
             143          10-1-109, as enacted by Laws of Utah 1977, Chapter 48
             144          10-1-112, as enacted by Laws of Utah 1977, Chapter 48
             145          10-1-113, as enacted by Laws of Utah 1977, Chapter 48
             146          10-2-109, as last amended by Laws of Utah 2008, Chapter 16
             147          10-2-303, as last amended by Laws of Utah 2008, Chapter 19
             148          10-2-403, as last amended by Laws of Utah 2009, Chapters 205 and 273
             149          10-2-510, as last amended by Laws of Utah 1997, Chapter 389
             150          10-2-614, as enacted by Laws of Utah 1977, Chapter 48
             151          10-3-508, as enacted by Laws of Utah 1977, Chapter 48
             152          10-3-608, as last amended by Laws of Utah 1993, Chapter 4
             153          10-3-702, as enacted by Laws of Utah 1977, Chapter 48
             154          10-3-704, as enacted by Laws of Utah 1977, Chapter 48
             155          10-3-717, as enacted by Laws of Utah 1977, Chapter 48
             156          10-3-905, as enacted by Laws of Utah 1977, Chapter 48
             157          10-3-907, as enacted by Laws of Utah 1977, Chapter 48
             158          10-3-912, as last amended by Laws of Utah 1991, Chapter 221
             159          10-3-1004, as last amended by Laws of Utah 1977, Chapter 39
             160          10-3-1011, as enacted by Laws of Utah 1977, Chapter 48
             161          10-3-1012.5, as enacted by Laws of Utah 1991, Chapter 221
             162          10-3-1306, as last amended by Laws of Utah 1989, Chapter 147
             163          10-5-103, as enacted by Laws of Utah 1983, Chapter 34
             164          10-5-107, as last amended by Laws of Utah 2006, Chapter 178
             165          10-5-114, as enacted by Laws of Utah 1983, Chapter 34
             166          10-5-115, as enacted by Laws of Utah 1983, Chapter 34
             167          10-6-111, as last amended by Laws of Utah 2009, Chapter 350
             168          10-6-116, as last amended by Laws of Utah 1999, Chapter 300
             169          10-6-123, as enacted by Laws of Utah 1979, Chapter 26


             170          10-6-159, as last amended by Laws of Utah 1993, Chapter 4
             171          10-7-4, as last amended by Laws of Utah 2004, Chapter 207
             172          10-7-5, Utah Code Annotated 1953
             173          10-7-18, as last amended by Laws of Utah 2002, Chapter 90
             174          10-7-32, Utah Code Annotated 1953
             175          10-7-71, Utah Code Annotated 1953
             176          10-7-72, Utah Code Annotated 1953
             177          10-7-73, Utah Code Annotated 1953
             178          10-7-85, as enacted by Laws of Utah 1977, Chapter 36
             179          10-8-15, Utah Code Annotated 1953
             180          10-8-16, Utah Code Annotated 1953
             181          10-8-17, Utah Code Annotated 1953
             182          10-8-33, Utah Code Annotated 1953
             183          10-8-36, Utah Code Annotated 1953
             184          10-8-58.5, as last amended by Laws of Utah 2008, Chapter 382
             185          10-9a-403, as last amended by Laws of Utah 2008, Chapter 168
             186          10-9a-509.5, as last amended by Laws of Utah 2008, Chapter 112
             187          10-9a-514, as renumbered and amended by Laws of Utah 2005, Chapter 254
             188          10-9a-519, as renumbered and amended by Laws of Utah 2005, Chapter 254
             189          10-11-2, Utah Code Annotated 1953
             190          10-15-4, as last amended by Laws of Utah 2008, Chapter 360
             191          11-8-1, as enacted by Laws of Utah 1957, Chapter 30
             192          11-13-309, as renumbered and amended by Laws of Utah 2002, Chapter 286
             193          11-13-311, as last amended by Laws of Utah 2003, Chapter 21
             194          11-14-302, as last amended by Laws of Utah 2006, Chapter 83
             195          11-14-308, as last amended by Laws of Utah 2007, Chapter 303
             196          11-14-313, as last amended by Laws of Utah 2006, Chapter 83
             197          11-14-315, as last amended by Laws of Utah 2009, Chapter 388


             198          11-17-1.5, as last amended by Laws of Utah 2005, Chapter 148
             199          11-17-2, as last amended by Laws of Utah 2009, Chapter 92
             200          11-17-4, as last amended by Laws of Utah 1986, Chapter 206
             201          11-17-5, as last amended by Laws of Utah 1986, Chapter 206
             202          11-17-7, as last amended by Laws of Utah 1986, Chapter 206
             203          11-17-10, as last amended by Laws of Utah 1987, Chapter 2
             204          11-25-9, as enacted by Laws of Utah 1977, Chapter 276
             205          11-25-11, as last amended by Laws of Utah 2006, Chapter 359
             206          11-27-5, as last amended by Laws of Utah 2009, Chapter 388
             207          11-30-2, as last amended by Laws of Utah 2007, Chapter 329
             208          11-31-2, as last amended by Laws of Utah 2007, Chapter 329
             209          11-32-7, as enacted by Laws of Utah 1987, Chapter 143
             210          11-34-1, as last amended by Laws of Utah 2007, Chapter 329
             211          11-34-2, as enacted by Laws of Utah 1987, Chapter 200
             212          11-36-401, as last amended by Laws of Utah 2009, Chapter 181
             213          13-1-1, as enacted by Laws of Utah 1983, Chapter 322
             214          13-1a-6, as last amended by Laws of Utah 2008, Chapter 382
             215          13-2-6, as last amended by Laws of Utah 2008, Chapter 382
             216          13-5-3, as last amended by Laws of Utah 1993, Chapter 4
             217          13-5-12, as last amended by Laws of Utah 1997, Chapter 10
             218          13-5-16, Utah Code Annotated 1953
             219          13-7-1, as last amended by Laws of Utah 1973, Chapter 18
             220          13-7-2, as last amended by Laws of Utah 1987, Chapter 92
             221          13-11-6, as last amended by Laws of Utah 1991, Chapter 268
             222          13-11-19, as last amended by Laws of Utah 1995, Chapter 198
             223          13-11-20, as last amended by Laws of Utah 1992, Chapter 30
             224          13-11a-3, as last amended by Laws of Utah 2009, Chapter 133
             225          13-12-3, as enacted by Laws of Utah 1975, First Special Session, Chapter 6


             226          13-12-4, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
             227          13-12-7, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
             228          13-13-4, as enacted by Laws of Utah 1979, Chapter 147
             229          13-14b-103, as enacted by Laws of Utah 2003, Chapter 225
             230          13-15-4, as last amended by Laws of Utah 2009, Chapter 183
             231          13-15-5, as last amended by Laws of Utah 1987, Chapter 92
             232          13-32-103, as enacted by Laws of Utah 1999, Chapter 68
             233          13-32-104, as enacted by Laws of Utah 1999, Chapter 68
             234          13-32-107, as enacted by Laws of Utah 1999, Chapter 68
             235          13-32a-109.8, as last amended by Laws of Utah 2009, Chapter 272
             236          13-34-104, as last amended by Laws of Utah 2008, Chapter 382
             237          13-34-105, as last amended by Laws of Utah 2009, Chapter 372
             238          13-34-107, as last amended by Laws of Utah 2009, Chapter 183
             239          13-41-102, as last amended by Laws of Utah 2008, Chapter 382
             240          13-42-105, as last amended by Laws of Utah 2009, Chapters 183 and 229
             241          13-42-106, as enacted by Laws of Utah 2006, Chapter 154
             242          13-42-111, as last amended by Laws of Utah 2009, Chapters 183 and 229
             243          13-42-113, as enacted by Laws of Utah 2006, Chapter 154
             244          13-42-117, as last amended by Laws of Utah 2009, Chapter 229
             245          13-42-118, as last amended by Laws of Utah 2009, Chapter 229
             246          13-42-119, as last amended by Laws of Utah 2009, Chapter 229
             247          13-42-120, as last amended by Laws of Utah 2009, Chapter 229
             248          13-42-121, as enacted by Laws of Utah 2006, Chapter 154
             249          13-42-122, as last amended by Laws of Utah 2009, Chapter 229
             250          13-42-132, as last amended by Laws of Utah 2009, Chapter 183
             251          13-42-137, as enacted by Laws of Utah 2006, Chapter 154
             252          13-42-138, as enacted by Laws of Utah 2006, Chapter 154
             253          14-1-20, as last amended by Laws of Utah 2005, Chapter 64


             254          14-2-5, as last amended by Laws of Utah 2005, Chapter 64
             255          15-2-5, as enacted by Laws of Utah 1971, Chapter 20
             256          15-3-4, Utah Code Annotated 1953
             257          15-4-2, Utah Code Annotated 1953
             258          15-4-4, Utah Code Annotated 1953
             259          15-4-7, Utah Code Annotated 1953
             260          15-9-105, as last amended by Laws of Utah 2008, Chapter 382
             261          15-9-106, as last amended by Laws of Utah 2008, Chapter 382
             262          15-9-109, as last amended by Laws of Utah 2009, Chapter 183
             263          15-9-110, as enacted by Laws of Utah 2001, Chapter 237
             264          15-9-118, as enacted by Laws of Utah 2001, Chapter 237
             265          16-6a-709, as last amended by Laws of Utah 2007, Chapter 315
             266          16-6a-808, as last amended by Laws of Utah 2001, Chapter 127
             267          16-6a-1419, as enacted by Laws of Utah 2000, Chapter 300
             268          16-7-10, Utah Code Annotated 1953
             269          16-10a-103, as last amended by Laws of Utah 2009, Chapter 388
             270          16-10a-120, as last amended by Laws of Utah 2008, Chapter 364
             271          16-10a-201, as enacted by Laws of Utah 1992, Chapter 277
             272          16-10a-202, as last amended by Laws of Utah 2008, Chapter 364
             273          16-10a-401, as last amended by Laws of Utah 2002, Chapter 222
             274          16-10a-601, as enacted by Laws of Utah 1992, Chapter 277
             275          16-10a-602, as enacted by Laws of Utah 1992, Chapter 277
             276          16-10a-603, as enacted by Laws of Utah 1992, Chapter 277
             277          16-10a-604, as enacted by Laws of Utah 1992, Chapter 277
             278          16-10a-620, as enacted by Laws of Utah 1992, Chapter 277
             279          16-10a-621, as enacted by Laws of Utah 1992, Chapter 277
             280          16-10a-625, as enacted by Laws of Utah 1992, Chapter 277
             281          16-10a-704, as last amended by Laws of Utah 1993, Chapter 184


             282          16-10a-705, as enacted by Laws of Utah 1992, Chapter 277
             283          16-10a-706, as enacted by Laws of Utah 1992, Chapter 277
             284          16-10a-707, as enacted by Laws of Utah 1992, Chapter 277
             285          16-10a-720, as last amended by Laws of Utah 2008, Chapter 364
             286          16-10a-722, as last amended by Laws of Utah 2001, Chapter 218
             287          16-10a-723, as enacted by Laws of Utah 1992, Chapter 277
             288          16-10a-725, as enacted by Laws of Utah 1992, Chapter 277
             289          16-10a-727, as enacted by Laws of Utah 1992, Chapter 277
             290          16-10a-730, as enacted by Laws of Utah 1992, Chapter 277
             291          16-10a-732, as enacted by Laws of Utah 1992, Chapter 277
             292          16-10a-801, as enacted by Laws of Utah 1992, Chapter 277
             293          16-10a-803, as enacted by Laws of Utah 1992, Chapter 277
             294          16-10a-808, as enacted by Laws of Utah 1992, Chapter 277
             295          16-10a-822, as enacted by Laws of Utah 1992, Chapter 277
             296          16-10a-823, as enacted by Laws of Utah 1992, Chapter 277
             297          16-10a-825, as enacted by Laws of Utah 1992, Chapter 277
             298          16-10a-904, as enacted by Laws of Utah 1992, Chapter 277
             299          16-10a-1003, as enacted by Laws of Utah 1992, Chapter 277
             300          16-10a-1007, as enacted by Laws of Utah 1992, Chapter 277
             301          16-10a-1022, as enacted by Laws of Utah 1992, Chapter 277
             302          16-10a-1023, as enacted by Laws of Utah 2007, Chapter 85
             303          16-10a-1101, as enacted by Laws of Utah 1992, Chapter 277
             304          16-10a-1102, as enacted by Laws of Utah 1992, Chapter 277
             305          16-10a-1103, as last amended by Laws of Utah 1993, Chapter 184
             306          16-10a-1202, as enacted by Laws of Utah 1992, Chapter 277
             307          16-10a-1303, as enacted by Laws of Utah 1992, Chapter 277
             308          16-10a-1320, as enacted by Laws of Utah 1992, Chapter 277
             309          16-10a-1321, as enacted by Laws of Utah 1992, Chapter 277


             310          16-10a-1322, as enacted by Laws of Utah 1992, Chapter 277
             311          16-10a-1323, as enacted by Laws of Utah 1992, Chapter 277
             312          16-10a-1325, as enacted by Laws of Utah 1992, Chapter 277
             313          16-10a-1330, as last amended by Laws of Utah 2008, Chapter 364
             314          16-10a-1402, as enacted by Laws of Utah 1992, Chapter 277
             315          16-10a-1404, as enacted by Laws of Utah 1992, Chapter 277
             316          16-10a-1406, as enacted by Laws of Utah 1992, Chapter 277
             317          16-10a-1407, as last amended by Laws of Utah 2009, Chapter 388
             318          16-10a-1434, as enacted by Laws of Utah 1992, Chapter 277
             319          16-10a-1506, as enacted by Laws of Utah 1992, Chapter 277
             320          16-10a-1507, as enacted by Laws of Utah 1992, Chapter 277
             321          16-10a-1510, as enacted by Laws of Utah 1992, Chapter 277
             322          16-10a-1533, as enacted by Laws of Utah 1994, Chapter 31
             323          16-10a-1607, as last amended by Laws of Utah 2008, Chapter 364
             324          16-11-6, as enacted by Laws of Utah 1963, Chapter 20
             325          16-11-8, as last amended by Laws of Utah 2000, Chapters 71 and 261
             326          16-11-15, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
             327          16-11-16, as last amended by Laws of Utah 2002, Chapter 222
             328          16-12-5, as enacted by Laws of Utah 1965, Chapter 114
             329          16-12-6, as enacted by Laws of Utah 1965, Chapter 114
             330          16-13-4, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
             331          16-13-5, as last amended by Laws of Utah 1979, Chapter 55
             332          16-13-9, as last amended by Laws of Utah 1979, Chapter 55
             333          16-13-11, as enacted by Laws of Utah 1965, Chapter 27
             334          16-16-111, as enacted by Laws of Utah 2008, Chapter 363
             335          16-16-112, as enacted by Laws of Utah 2008, Chapter 363
             336          16-16-113, as enacted by Laws of Utah 2008, Chapter 363
             337          16-16-114, as enacted by Laws of Utah 2008, Chapter 363


             338          16-16-117, as enacted by Laws of Utah 2008, Chapter 363
             339          16-16-118, as enacted by Laws of Utah 2008, Chapter 363
             340          16-16-119, as enacted by Laws of Utah 2008, Chapter 363
             341          16-16-201, as enacted by Laws of Utah 2008, Chapter 363
             342          16-16-203, as enacted by Laws of Utah 2008, Chapter 363
             343          16-16-204, as enacted by Laws of Utah 2008, Chapter 363
             344          16-16-207, as enacted by Laws of Utah 2008, Chapter 363
             345          16-16-301, as enacted by Laws of Utah 2008, Chapter 363
             346          16-16-302, as enacted by Laws of Utah 2008, Chapter 363
             347          16-16-304, as enacted by Laws of Utah 2008, Chapter 363
             348          16-16-402, as enacted by Laws of Utah 2008, Chapter 363
             349          16-16-403, as enacted by Laws of Utah 2008, Chapter 363
             350          16-16-404, as enacted by Laws of Utah 2008, Chapter 363
             351          16-16-405, as enacted by Laws of Utah 2008, Chapter 363
             352          16-16-407, as enacted by Laws of Utah 2008, Chapter 363
             353          16-16-501, as enacted by Laws of Utah 2008, Chapter 363
             354          16-16-507, as enacted by Laws of Utah 2008, Chapter 363
             355          16-16-508, as enacted by Laws of Utah 2008, Chapter 363
             356          16-16-603, as enacted by Laws of Utah 2008, Chapter 363
             357          16-16-801, as enacted by Laws of Utah 2008, Chapter 363
             358          16-16-803, as enacted by Laws of Utah 2008, Chapter 363
             359          16-16-804, as enacted by Laws of Utah 2008, Chapter 363
             360          16-16-809, as enacted by Laws of Utah 2008, Chapter 363
             361          16-16-813, as enacted by Laws of Utah 2008, Chapter 363
             362          16-16-1001, as enacted by Laws of Utah 2008, Chapter 363
             363          16-16-1002, as enacted by Laws of Utah 2008, Chapter 363
             364          16-16-1004, as enacted by Laws of Utah 2008, Chapter 363
             365          16-16-1202, as enacted by Laws of Utah 2008, Chapter 363


             366          16-16-1205, as enacted by Laws of Utah 2008, Chapter 363
             367          16-16-1208, as enacted by Laws of Utah 2008, Chapter 363
             368          16-16-1209, as last amended by Laws of Utah 2009, Chapter 388
             369          16-16-1212, as enacted by Laws of Utah 2008, Chapter 363
             370          16-16-1213, as enacted by Laws of Utah 2008, Chapter 363
             371          16-16-1303, as enacted by Laws of Utah 2008, Chapter 363
             372          16-16-1402, as enacted by Laws of Utah 2008, Chapter 363
             373          16-16-1405, as enacted by Laws of Utah 2008, Chapter 363
             374          16-16-1406, as enacted by Laws of Utah 2008, Chapter 363
             375          16-16-1407, as enacted by Laws of Utah 2008, Chapter 363
             376          16-16-1503, as enacted by Laws of Utah 2008, Chapter 363
             377          16-16-1504, as enacted by Laws of Utah 2008, Chapter 363
             378          16-16-1602, as enacted by Laws of Utah 2008, Chapter 363
             379          16-16-1603, as enacted by Laws of Utah 2008, Chapter 363
             380          16-16-1604, as enacted by Laws of Utah 2008, Chapter 363
             381          16-16-1606, as enacted by Laws of Utah 2008, Chapter 363
             382          16-16-1607, as enacted by Laws of Utah 2008, Chapter 363
             383          16-16-1608, as enacted by Laws of Utah 2008, Chapter 363
             384          16-16-1609, as enacted by Laws of Utah 2008, Chapter 363
             385          16-16-1701, as enacted by Laws of Utah 2008, Chapter 363
             386          16-17-202, as enacted by Laws of Utah 2008, Chapter 364
             387          16-17-203, as enacted by Laws of Utah 2008, Chapter 364
             388          16-17-204, as enacted by Laws of Utah 2008, Chapter 364
             389          16-17-210, as enacted by Laws of Utah 2008, Chapter 364
             390          16-17-301, as enacted by Laws of Utah 2008, Chapter 364
             391          16-17-402, as enacted by Laws of Utah 2008, Chapter 364
             392     
             393      Be it enacted by the Legislature of the state of Utah:


             394          Section 1. Section 3-1-1 is amended to read:
             395           3-1-1. Declaration of policy.
             396          It is the declared policy of this state, as one means of improving the economic position
             397      of agriculture, to encourage the organization of producers of agricultural products into
             398      effective associations under the control of such producers, and to that end this act [should]
             399      shall be liberally construed.
             400          Section 2. Section 3-1-9 is amended to read:
             401           3-1-9. Powers.
             402          (1) An association formed under this act, or an association which might be formed
             403      under this act and which existed at the time this act took effect, shall have power and capacity
             404      to act possessed by natural persons and may do each and everything necessary, suitable, or
             405      proper for the accomplishment of any one or more of the purposes, or the attainment of any
             406      one or more of the objects herein enumerated or conducive to or expedient for the interests or
             407      benefit of the association, and may exercise all powers, rights, and privileges necessary or
             408      incident thereto, including the exercise of any rights, powers, and privileges granted by the
             409      laws of this state to corporations generally, excepting such as are inconsistent with the express
             410      provisions of this act.
             411          (2) Without limiting or enlarging the grant of authority contained in Subsection (1), it
             412      is hereby specifically provided that every such association shall have authority:
             413          (a) to act as agent, broker, or attorney in fact for its members and other producers, and
             414      for any subsidiary or affiliated association, and otherwise to assist or join with associations
             415      engaged in any one or more of the activities authorized by its articles, and to hold title for its
             416      members and other producers, and for subsidiary and affiliated association to property handled
             417      or managed by the association on their behalf;
             418          (b) to make contracts and to exercise by its board or duly authorized officers or agents,
             419      all such incidental powers as may be necessary, suitable or proper for the accomplishment of
             420      the purposes of the association and not inconsistent with law or its articles, and that may be
             421      conducive to or expedient for the interest or benefit of the association;


             422          (c) to make loans or advances to members or producer-patrons or to the members of an
             423      association which is itself a member or subsidiary thereof; to purchase, or otherwise acquire,
             424      endorse, discount, or sell any evidence of debt, obligation or security;
             425          (d) to establish and accumulate reasonable reserves and surplus funds and to abolish
             426      the same; also to create, maintain, and terminate revolving funds or other similar funds which
             427      may be provided for in the bylaws of the association;
             428          (e) to own and hold membership in or shares of the stock of other associations and
             429      corporations and the bonds or other obligations thereof, engaged in any related activity; or, in
             430      producing, warehousing or marketing any of the products handled by the association; or, in
             431      financing its activities; and while the owner thereof, to exercise all the rights of ownership,
             432      including the right to vote thereon;
             433          (f) to acquire, hold, sell, dispose of, pledge, or mortgage, any property which its
             434      purposes may require;
             435          (g) to borrow money without limitation as to amount, and to give its notes, bonds, or
             436      other obligations therefor and secure the payment thereof by mortgage or pledge;
             437          (h) to deal in products of, and handle machinery, equipment, supplies and perform
             438      services for nonmembers to an amount not greater in annual value than such as are dealt in,
             439      handled or performed for or on behalf of its members, but the value of the annual purchases
             440      made for persons who are neither members nor producers [shall not] may not exceed 15 per
             441      centum of the value of all its purchases. Business transacted by an association for or on behalf
             442      of the United States or any agency or instrumentality thereof, shall be disregarded in
             443      determining the volume or value of member and nonmember business transacted by such
             444      association;
             445          (i) if engaged in marketing the products of its members, to hedge its operations;
             446          (j) to have a corporate seal and to alter the same at pleasure;
             447          (k) to continue as a corporation for the time limited in its articles, and if no time limit
             448      is specified then perpetually;
             449          (l) to sue and be sued in its corporate name;


             450          (m) to conduct business in this state and elsewhere as may be permitted by law; and
             451          (n) to dissolve and wind up.
             452          Section 3. Section 3-1-11 is amended to read:
             453           3-1-11. Certificates of and termination of membership -- Dividends and
             454      distribution of reserves -- Preferred stock -- Certificates of interest -- Unclaimed credits.
             455          (1) No certificate for membership or stock shall be issued until fully paid for, but
             456      bylaws may provide that a member may vote and hold office prior to payment in full for his
             457      membership or stock.
             458          (2) Dividends in excess of eight per centum per annum on the actual cash value of the
             459      consideration received by the association [shall not] may not be paid on common stock or
             460      membership capital, but dividends may be cumulative if so provided in the articles or bylaws.
             461          (3) (a) Savings in excess of dividends and additions to reserves and surplus shall be
             462      distributed on the basis of patronage.
             463          (b) The bylaws may provide that any distribution to a nonmember, who is eligible for
             464      membership, may be credited to that nonmember until the amount of the distribution equals
             465      the value of a membership certificate, or a share of the association's common stock.
             466          (c) The distribution credited to the account of the nonmember may be transferred to
             467      the membership fund at the option of the board, if, after two years, the amount is less than the
             468      value of the membership certificate or a share of common stock.
             469          (4) (a) The bylaws shall provide the time and manner of settlement of membership
             470      interests with members who withdraw from the association or whose membership is otherwise
             471      terminated.
             472          (b) Provisions for forfeiture of membership interests may be made in the bylaws.
             473          (c) After the termination of the membership, for whatever cause, the withdrawing
             474      member shall exercise no further control over the facilities, assets, or activities of the
             475      association. The withdrawing member may not claim or receive any assets of the association
             476      except as follows:
             477          (i) undistributed patronage allocated to the withdrawing member may be paid to the


             478      withdrawing member pursuant to the association's bylaws;
             479          (ii) the withdrawing member may be reimbursed for the par value of membership or
             480      stock in the association pursuant to the association's articles, bylaws, and membership
             481      agreement; and
             482          (iii) the withdrawing member shall receive any distributions to which the member is
             483      entitled pursuant to Subsection 3-1-20 (3)(d).
             484          (5) (a) An association may issue preferred stock to members and nonmembers.
             485          (b) Preferred stock may be redeemed or retired by the association on the terms and
             486      conditions as are provided in the articles or bylaws and printed on the stock certificates.
             487          (c) Preferred stockholders [shall not be entitled to] may not vote, but no change in
             488      their priority or preference rights shall be effective until the written consent of the holders of a
             489      majority of the preferred stock has been obtained.
             490          (d) Payment for preferred stock may be made in cash, services, or property on the
             491      basis of the fair value of the stock, services, and property, as determined by the board.
             492          (6) (a) The association may issue to each member a certificate of interest evidencing
             493      the member's interest in any fund, capital investment, or other assets of the association.
             494          (b) Those certificates may be transferred only to the association, or to other
             495      purchasers, as approved by the board of directors, under the terms and conditions provided for
             496      in the bylaws.
             497          (7) (a) As used in this Subsection (7), "reasonable effort" means:
             498          (i) a letter to a member's or former member's last-known address, a listing of
             499      unclaimed credits in an association publication, and the posting of a list of unclaimed credits
             500      at the association's principal place of business; and
             501          (ii) publishing a list of the unclaimed credits exceeding $25 each, or greater, in a
             502      newspaper of general circulation in the area where the association's principal offices are
             503      located.
             504          (b) The association may retain revolving certificates of interest described in this
             505      Subsection (7) as an exception to the provisions of Title 67, Chapter 4a, Unclaimed Property


             506      Act, if:
             507          (i) the board of directors of the association determines to revolve the certificates and
             508      the certificates remain unclaimed by the association's members or former members for five
             509      years after the credit is declared;
             510          (ii) the association is authorized to retain those credits by its bylaws;
             511          (iii) the board of directors of the association approves the retention; and
             512          (iv) before retaining the credits, the association makes a reasonable effort to locate and
             513      communicate the issuance of the credits to the members or former members.
             514          (c) (i) The board of directors may either add the unclaimed credits as a contribution to
             515      the capital fund, or use them to establish an agricultural educational program as described in
             516      Subsection (7)(c)(ii).
             517          (ii) If the board of directors chooses to use the unclaimed credits to establish an
             518      agricultural educational program, it shall establish an agricultural educational program to:
             519          (A) provide scholarships for low income and worthy students to colleges and
             520      universities;
             521          (B) provide funding for director training and education;
             522          (C) provide funds for cooperative education programs in secondary or higher
             523      education institutions; or
             524          (D) provide other educational opportunities.
             525          (iii) The board of directors may not distribute unclaimed credits to current patrons of
             526      the association.
             527          (iv) Upon dissolution of an association, the board of directors shall report and remit
             528      unclaimed credits to the Division of Unclaimed Property.
             529          (d) (i) Each association that applies credits under Subsection (7)(c) during a calendar
             530      year shall file an annual report with the State Treasurer by April 15 of the following year.
             531          (ii) The report shall specify:
             532          (A) the dollar amount of credits applied during the year;
             533          (B) the dollar amount of credit paid to claimants during the year; and


             534          (C) the aggregate dollar amount of credits applied since January 1, 1996.
             535          (e) At any time after the association retains credits under this Subsection (7), the
             536      association shall pay the members, former members, or their successors in interest, the value
             537      of the credit, without interest, if the members, former members, or their successors in interest:
             538          (i) file a written claim for payment with the association; and
             539          (ii) surrender the certificate issued by the association that evidences the credit.
             540          Section 4. Section 3-1-13.8 is amended to read:
             541           3-1-13.8. Director committees.
             542          (1) (a) Unless otherwise provided by the articles of incorporation or bylaws, a board of
             543      directors may create one or more committees and appoint members of the board of directors to
             544      serve on them.
             545          (b) Each committee [must] shall have two or more members who serve at the
             546      discretion of the board of directors.
             547          (2) The creation of a committee and appointment of members to it [must] shall be
             548      approved by the greater of:
             549          (a) a majority of all the directors in office when the action is taken; or
             550          (b) the number of directors required by the articles of incorporation or bylaws to take
             551      action under Section 3-1-13.6 .
             552          (3) Sections 3-1-13.2 and 3-1-13.6 shall apply to committees and their members.
             553          (4) The board of directors, the articles of incorporation, or the bylaws may provide the
             554      scope of the authority that each committee may exercise.
             555          (5) The creation of, delegation of authority to, or action by a committee does not alone
             556      constitute compliance by a director with the standards of conduct described in Section
             557      3-1-13.3 .
             558          Section 5. Section 3-1-14 is amended to read:
             559           3-1-14. Removal of director.
             560          Any member may ask for the removal of a director by filing charges with the secretary
             561      or president of the association, together with a petition signed by 10 per centum of the


             562      members requesting the removal of the director in question. The removal shall be voted upon
             563      at the next meeting of the members, and the association may remove the director by a majority
             564      vote of the members voting thereon. The director whose removal is requested shall be served
             565      with a copy of the charges not less than 10 days prior to the meeting and shall have an
             566      opportunity at the meeting to be heard in person and by counsel and to present evidence; and
             567      the persons requesting the removal shall have the same opportunity. In case the bylaws provide
             568      for election of directors by districts, then the petition for removal of a director [must] shall be
             569      signed by 20 per centum of the members residing in the district from which he was elected.
             570      The board [must] shall call a special meeting of the members residing in that district to
             571      consider the removal of the director; and by a majority vote of the members of that district
             572      voting thereon the director in question shall be removed from office.
             573          Section 6. Section 3-1-15 is amended to read:
             574           3-1-15. Officers.
             575          The board shall elect a president, a secretary and a treasurer, and may elect one or more
             576      vice-presidents, and such other officers as may be authorized in the bylaws. Unless the articles
             577      otherwise specifically provide, the president and at least one of the vice-presidents [must] shall
             578      be directors, but a vice-president who is not a director cannot succeed to or fill the office of
             579      president. Any two of the offices of vice-president, secretary and treasurer may be combined in
             580      one person.
             581          Section 7. Section 3-1-15.1 is amended to read:
             582           3-1-15.1. Duties of officers.
             583          Each officer has the authority and [should] shall perform the duties set forth in the
             584      bylaws, or, to the extent consistent with the bylaws, the duties prescribed by the directors or by
             585      the officer authorized by the board of directors to prescribe the duties of other officers.
             586          Section 8. Section 3-1-17 is amended to read:
             587           3-1-17. Contracts with association.
             588          (1) (a) The bylaws may require members to execute contracts with the association in
             589      which the members agree to patronize the facilities created by the association, and to sell all or


             590      a specified part of their products to or through it, or to buy all or a specified part of their
             591      supplies from or through the association or any facilities created by it.
             592          (b) If the members contract to sell through the association, the fact that for certain
             593      purposes the relation between the association and its members may be one of agency [shall
             594      not] does not prevent the passage from the member to the association of absolute and
             595      exclusive title to the products which are the subject matter of the contract.
             596          (c) Such title shall pass to the association upon delivery of the product, or at any other
             597      time specified in the contract.
             598          (d) If the period of the contract exceeds three years, the bylaws and the contracts
             599      executed thereunder shall specify a reasonable period, not less than 10 days in each year, after
             600      the third year, during which the member, by giving to the association such reasonable notice
             601      as the association may prescribe, may withdraw from the association; provided, that if the
             602      bylaws or contracts executed hereunder so specify, a member may not withdraw from the
             603      association while indebted thereto.
             604          (e) In the absence of such a withdrawal provision, a member may withdraw at any
             605      time after three years.
             606          (2) The contract may fix, as liquidated damages, which [shall not] may not be
             607      regarded as penalties, specific sums to be paid by the members to the association upon the
             608      breach of any provision of the contract regarding the use of any facilities of the association or
             609      the sale, delivery, handling, or withholding of products; and may further provide that the
             610      member who breaks his contract shall pay all costs, including premiums for bonds, and
             611      reasonable attorney's fees, to be fixed by the court, in case the association prevails in any
             612      action upon the contract.
             613          (3) (a) A court of competent jurisdiction may grant an injunction to prevent the breach
             614      or further breach of the contract by a member and may decree specific performance thereof.
             615          (b) Pending the adjudication of such an action and upon filing a verified complaint
             616      showing the breach or threatened breach, and a bond in such form and amount as may be
             617      approved by the court, the court may grant a temporary restraining order or preliminary


             618      injunction against the member.
             619          (4) No remedy, either legal or equitable, herein provided for, shall be exclusive, but
             620      the association may avail itself of any and all such remedies, at the same or different times, in
             621      any action or proceeding.
             622          (5) In any action upon such marketing contracts, it shall be conclusively presumed that
             623      a landowner or landlord or lessor is able to control the delivery of products produced on his
             624      land by tenants or others, whose tenancy or possession or work on such land or the terms of
             625      whose tenancy or possession or labor thereon were created or changed after execution by the
             626      landowner or landlord or lessor of such a marketing contract; and in such actions, the
             627      foregoing remedies for nondelivery or breach shall lie and be enforceable against such
             628      landowner, landlord, or lessor.
             629          (6) (a) The association may file contracts to sell agricultural products to or through the
             630      association in the office of the county recorder of the county in which the products are
             631      produced.
             632          (b) If the association has uniform contracts with more than one member in any county,
             633      it may, in lieu of filing the original contracts, file the affidavit of its president, vice president
             634      or secretary, containing or having attached thereto:
             635          (i) a true copy of the uniform contract entered into with its members producing such
             636      product in that county; and
             637          (ii) the names of the members who have executed such contract and a description of
             638      the land on which the product is produced, if such description is contained in the contract.
             639          (c) The association may file from time to time thereafter affidavits containing revised
             640      or supplementary lists of the members producing such product in that county without setting
             641      forth therein a copy of the uniform contract but referring to the filed or recorded copy thereof.
             642          (d) All affidavits filed under this section shall state in substance that they are filed
             643      pursuant to the provisions of this section.
             644          (e) The county recorder shall file such affidavits and make endorsements thereon and
             645      record and make entries thereof in the same manner as is required by law in the case of chattel


             646      mortgages, and he shall compile and make available for public inspection a convenient index
             647      containing the names of all signers of such contracts, and collect for his services hereunder the
             648      same fees as for chattel mortgages.
             649          (f) The filing of any such contract, or such affidavit, shall constitute constructive
             650      notice of the contents thereof, and of the association's title or right to the product embraced in
             651      such contract, to all subsequent purchasers, encumbrancers, creditors, and to all persons
             652      dealing with the members with reference to such product.
             653          (g) No title, right, or lien of any kind shall be acquired to or on the product thereafter
             654      except through the association or with its consent, or subject to its rights; and the association
             655      may recover the possession of such property from any and all subsequent purchasers,
             656      encumbrancers, and creditors, and those claiming under them, in whose possession the same
             657      may be found, by any appropriate action for the recovery of personal property, and it may have
             658      relief by injunction and for damages.
             659          Section 9. Section 3-1-22 is amended to read:
             660           3-1-22. Accrued rights not affected by chapter.
             661          This act [shall not] does not impair nor affect any act, offense committed, or right
             662      accruing, accrued or acquired, or liability, penalty, forfeiture or punishment incurred prior to
             663      the time this act takes effect, but the same may be enjoyed, asserted, enforced, prosecuted, or
             664      inflicted as fully and to the same extent as if this act had not been passed.
             665          Section 10. Section 3-1-26 is amended to read:
             666           3-1-26. Separability clause.
             667          If any provision of this act or the application thereof to any person or circumstances is
             668      held invalid, such invalidity [shall not] does not affect other provisions or applications of the
             669      act which can be given effect without the invalid provision or application, and to this end the
             670      provisions of this act are declared to be severable.
             671          Section 11. Section 3-1-35 is amended to read:
             672           3-1-35. Procedure at meeting to vote on plan of merger or consolidation --
             673      Abandonment of merger or consolidation prior to filing articles.


             674          (1) At each meeting, a vote of the current members of each cooperative party to the
             675      merger or consolidation having members and a vote of the shareholders of each party to the
             676      merger or consolidation having stock or shares shall be taken on the proposed plan of merger
             677      or consolidation.
             678          (2) (a) If the articles of incorporation or bylaws of any party to the merger or
             679      consolidation provide for the election by members or shareholders at district meetings of
             680      delegates to vote at annual or special meetings of the association or noncooperative
             681      corporation, these procedures shall be followed, and the vote of the delegates at the meeting
             682      where the plan of merger or consolidation is voted on shall be counted in the same way and
             683      entitled to the same weight as a vote of the delegates at any other meeting of the association or
             684      noncooperative corporation.
             685          (b) Members of cooperative parties may vote in person or by signed ballot, if voting
             686      by ballot is allowed in the association's bylaws.
             687          (c) Shareholders or their delegates of noncooperative parties may vote in person or by
             688      written proxy.
             689          (3) The plan of merger or consolidation [must] shall be approved by a 2/3 majority of:
             690          (a) the voting members of cooperative parties; and
             691          (b) holders or delegates of holders of the outstanding shares of noncooperative parties.
             692          (4) After approval by a vote of the members and shareholders of each party to the
             693      merger or consolidation and prior to the filing of the articles of merger or consolidation, the
             694      merger or consolidation may be abandoned pursuant to provisions set forth in the plan of
             695      merger or consolidation.
             696          Section 12. Section 3-1-37 is amended to read:
             697           3-1-37. Effect of merger or consolidation.
             698          (1) After the certificate of merger or consolidation is issued by the Division of
             699      Corporations and Commercial Code, the merger or consolidation shall be effected.
             700          (2) When the merger or consolidation has been effected:
             701          (a) The associations or corporations which are parties to the plan of merger or


             702      consolidation shall be a single corporation designated in the plan of merger or consolidation as
             703      the surviving or new corporation.
             704          (b) The separate existence of all associations and corporations which are parties to the
             705      merger or consolidation, except the surviving or new corporation, shall cease.
             706          (c) The surviving or new corporation shall have all of the rights, privileges,
             707      immunities, and powers and be subject to all the duties and liabilities of a corporation
             708      organized under this chapter or under the Utah Nonprofit Corporation and Cooperative
             709      Association Act, whichever act or chapter is specified in the plan of merger or consolidation.
             710          (d) (i) The surviving or new corporation shall possess all rights, privileges,
             711      immunities, and franchises of each of the merging associations and corporations.
             712          (ii) All property, debts due, including subscriptions to shares, all other choses in
             713      action, and all interests of each of the associations and corporations merged or consolidated,
             714      shall be taken, transferred to, and vested in the single corporation immediately.
             715          (iii) The title to or interest in any real estate vested in any of the associations or
             716      corporations [shall not] may not revert or be in any way impaired by the merger or
             717      consolidation.
             718          (e) (i) The surviving or new corporation shall be responsible and liable for all the
             719      liabilities and obligations of each of the associations and corporations which merged or
             720      consolidated.
             721          (ii) Any claim existing or action or proceeding pending by or against any of the
             722      associations and corporations may be prosecuted as if the merger or consolidation had not
             723      taken place, or the surviving or new corporation may be substituted in its place.
             724          (iii) The rights of creditors or any liens upon the property of any association or
             725      corporation [shall not] may not be impaired by the merger or consolidation.
             726          (f) The articles of incorporation of the surviving or new corporation may be amended,
             727      if changes in the articles of incorporation are stated in the plan of merger or consolidation.
             728          Section 13. Section 4-1-7 is amended to read:
             729           4-1-7. Severability clause.


             730          If any provision of this code or the application of any such provision to any person or
             731      circumstance is held invalid, the invalidity [shall not] does not affect other provisions or
             732      applications of this code which can be given effect without the invalid provision or
             733      application, and to this end the provisions of this code are declared to be severable.
             734          Section 14. Section 4-2-8.7 is amended to read:
             735           4-2-8.7. Invasive Species Mitigation Fund created.
             736          (1) As used in this section, "project" means an undertaking that prevents catastrophic
             737      wildland fire through land restoration in a watershed that:
             738          (a) is impacted by cheatgrass or other invasive species; or
             739          (b) has a fuel load that may contribute to a catastrophic wildland fire.
             740          (2) (a) There is created a general fund restricted account known as the "Invasive
             741      Species Mitigation Fund."
             742          (b) The fund shall consist of:
             743          (i) money appropriated by the Legislature;
             744          (ii) grants from the federal government; and
             745          (iii) grants or donations from a person.
             746          (3) Any unallocated balance in the fund at the end of the year is nonlapsing.
             747          (4) (a) After consulting with the Department of Natural Resources and the
             748      Conservation Commission, the department may expend fund monies:
             749          (i) on a project implemented by:
             750          (A) the department; or
             751          (B) the Conservation Commission; or
             752          (ii) by giving a grant for a project to:
             753          (A) a state agency;
             754          (B) a federal agency; or
             755          (C) a federal, state, tribal, or private landowner.
             756          (b) A grant to a federal landowner [must] shall be matched with at least an equal
             757      amount of money by the federal landowner.


             758          (c) In expending the fund monies authorized by Subsection (4)(a)(i), the department
             759      shall use existing infrastructure and employees to plan and implement the project.
             760          (5) In giving a grant, the department shall consider the effectiveness of a project in
             761      preventing:
             762          (a) first, the risk to public safety and health from:
             763          (i) air pollution;
             764          (ii) flooding; and
             765          (iii) reduced visibility on a highway;
             766          (b) second, damage to the environment, including:
             767          (i) soil erosion;
             768          (ii) degraded water quality; and
             769          (iii) release of carbon; and
             770          (c) third, damage to:
             771          (i) a local economy; and
             772          (ii) habitat for wildlife or livestock.
             773          Section 15. Section 4-2-15 is amended to read:
             774           4-2-15. Civil and criminal penalties -- Costs -- Civil liability.
             775          (1) Except as otherwise provided by this title, any person, or the officers or employees
             776      of any person, who violates this title or any lawful notice or order issued pursuant to this title
             777      shall be assessed a penalty not to exceed $5,000 per violation in a civil proceeding, and in a
             778      criminal proceeding is guilty of a class B misdemeanor. A subsequent criminal violation
             779      within two years is a class A misdemeanor.
             780          (2) Any person, or the officers or employees of any person, shall be liable for any
             781      expenses incurred by the department in abating any violation of this title.
             782          (3) A penalty assessment or criminal conviction under this title [shall not] does not
             783      relieve the person assessed or convicted from civil liability for claims arising out of any act
             784      which was also a violation.
             785          Section 16. Section 4-5-5 is amended to read:


             786           4-5-5. Adulterated or misbranded articles -- Tagging -- Detention or embargo --
             787      Court proceedings for condemnation -- Perishable food.
             788          (1) (a) When an authorized agent of the department finds or has probable cause to
             789      believe that any food is adulterated, or so misbranded as to be dangerous or fraudulent within
             790      the meaning of this chapter, he shall affix to the food a tag or other appropriate marking,
             791      giving notice that:
             792          (i) the food is, or is suspected of being, adulterated or misbranded;
             793          (ii) the food has been detained or embargoed; and
             794          (iii) removal of the food is prohibited as provided in Subsection (1)(b).
             795          (b) No person may remove or dispose of detained or embargoed food by sale or
             796      otherwise until permission for removal or disposal is given by an agent of the department or
             797      the court.
             798          (2) When food detained or embargoed under Subsection (1) has been found by an
             799      agent to be adulterated or misbranded, the department shall petition the district court in whose
             800      jurisdiction the food is detained or embargoed for an order of condemnation of the food.
             801      When the agent has found that food so detained or embargoed is not adulterated or
             802      misbranded, the department shall remove the tag or other marking.
             803          (3) (a) If the court finds that detained or embargoed food is adulterated or misbranded,
             804      the food [must] shall, after entry of the decree, be destroyed under the supervision of the agent.
             805          (b) If the adulteration or misbranding can be corrected by proper labeling or
             806      processing of the food, the court may by order direct that the food be delivered to the claimant
             807      for labeling or processing after:
             808          (i) entry of the decree;
             809          (ii) all costs, fees, and expenses have been paid; and
             810          (iii) a sufficient bond, conditioned that the food [must] shall be properly labeled and
             811      processed, has been executed.
             812          (c) An agent of the department shall supervise, at the claimant's expense, the labeling
             813      or processing of the food.


             814          (d) The bond shall be returned to the claimant of the food upon:
             815          (i) representation to the court by the department that the food is no longer in violation
             816      of this chapter; and
             817          (ii) the expenses of supervision have been paid.
             818          (4) If an authorized agent of the department finds in any building or vehicle any
             819      perishable food which is unsound, contains any filthy, decomposed, or putrid substance, or
             820      may be poisonous, deleterious to health, or otherwise unsafe, the commissioner or his
             821      authorized agent shall condemn or destroy the food or render it unsalable as human food.
             822          Section 17. Section 4-5-7 is amended to read:
             823           4-5-7. Adulterated food specified.
             824          A food is adulterated:
             825          (1) (a) if it bears or contains any poisonous or deleterious substance that may render it
             826      injurious to health; but in case the substance is not an added substance the food [shall not]
             827      may not be considered adulterated under this Subsection (1)(a) if the quantity of the substance
             828      in such food does not ordinarily render it injurious to health;
             829          (b) (i) if it bears or contains any added poisonous or added deleterious substance other
             830      than one that is:
             831          (A) a pesticide chemical in or on a raw agricultural commodity;
             832          (B) a food additive; or
             833          (C) a color additive that is unsafe within the meaning of Subsection 4-5-11 (1); or
             834          (ii) if it is a raw agricultural commodity and it bears or contains a pesticide chemical
             835      that is unsafe within the meaning of 21 U.S.C. Sec. 346a; or
             836          (iii) if it is or it bears or contains any food additive that is unsafe within the meaning
             837      of 21 U.S.C. Sec. 348; provided that where a pesticide chemical has been used in or on a raw
             838      agricultural commodity in conformity with an exemption granted or tolerance prescribed under
             839      21 U.S.C. 346a and the raw agricultural commodity has been subjected to processing such as
             840      canning, cooking, freezing, dehydrating, or milling the residue of such pesticide chemical
             841      remaining in or on such processed food shall, notwithstanding the provisions of Section


             842      4-5-11 and this Subsection (1)(b)(iii), not be considered unsafe if such residue in or on the raw
             843      agricultural commodity has been removed to the extent possible in good manufacturing
             844      practice, and the concentration of such residue in the processed food when ready to eat is not
             845      greater than the tolerance prescribed for the raw agricultural commodity;
             846          (c) if it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
             847      decomposed substance, or if it is otherwise unfit for food;
             848          (d) if it has been produced, prepared, packed, or held under unsanitary conditions
             849      whereby it may have become contaminated with filth, or whereby it may have been rendered
             850      diseased, unwholesome, or injurious to health;
             851          (e) if it is, in whole or in part, the product of a diseased animal or an animal that has
             852      died otherwise than by slaughter, or of an animal that has been fed upon the uncooked offal
             853      from a slaughterhouse;
             854          (f) if its container is composed, in whole or in part, of any poisonous or deleterious
             855      substance that may render the contents injurious to health;
             856          (g) if it has been intentionally subjected to radiation, unless the use of the radiation
             857      was in conformity with a rule or exemption in effect pursuant to Section 4-5-11 , or 21 U.S.C.
             858      Sec. 348; or
             859          (h) in meat or meat products are adulterated:
             860          (i) if such products are in casings, packages, or wrappers through which any part of
             861      their contents can be seen and which, or the markings of which, are colored red or any other
             862      color so as to be misleading or deceptive with respect to the color, quality, or kind of such
             863      products to which they are applied; or
             864          (ii) if such products contain or bear any color additive;
             865          (2) (a) if any valuable constituent has been in whole or in part omitted or abstracted
             866      therefrom;
             867          (b) if any substance has been substituted wholly or in part therefor;
             868          (c) if damage or inferiority has been concealed in any manner; or
             869          (d) if any substance has been added or mixed or packed therewith so as to increase its


             870      bulk or weight, or reduce its quality or strength or make it appear better or of greater value
             871      than it is; or
             872          (3) if it is confectionery, and:
             873          (a) has partially or completely imbedded therein any nonnutritive object; provided that
             874      this Subsection (3)(a) [shall not] does not apply in the case of any nonnutritive objective if, in
             875      the judgment of the department such object is of practical functional value to the
             876      confectionery product and would not render the product injurious or hazardous to health;
             877          (b) bears or contains any alcohol other than alcohol not in excess of .05% by volume
             878      derived solely from the use of flavoring extracts; or
             879          (c) bears or contains any nonnutritive substance; provided, that this Subsection (3)(c)
             880      [shall not] does not apply to a safe nonnutritive substance that is in or on confectionery by
             881      reason of its use for some practical functional purpose in the manufacture, packaging, or
             882      storing of such confectionery if the use of the substance does not promote deception of the
             883      consumer or otherwise result in adulteration or misbranding in violation of this chapter.
             884          (4) The department may, for the purpose of avoiding or resolving uncertainty as to the
             885      application of Subsection (3)(c), issue rules allowing or prohibiting the use of particular
             886      nonnutritive substances.
             887          Section 18. Section 4-5-8 is amended to read:
             888           4-5-8. Misbranded food specified.
             889          (1) Food is misbranded if:
             890          (a) its label is false or misleading in any way;
             891          (b) its labeling or packaging fails to conform with the requirements of Section 4-5-15 ;
             892          (c) it is offered for sale under the name of another food;
             893          (d) its container is so made, formed, or filled with packing material or air as to be
             894      misleading; or
             895          (e) it fails to conform with any requirement specified in this section.
             896          (2) A food that is an imitation of another food [must] shall bear a label, in type of
             897      uniform size and prominence, stating the word "imitation," and, immediately thereafter, the


             898      name of the food imitated.
             899          (3) (a) A food in package form [must] shall bear a label containing:
             900          (i) the name and place of business of the manufacturer, packer, or distributor; and
             901          (ii) an accurate statement of the quantity of the contents in terms of weight, measure,
             902      or numerical count.
             903          (b) The statement required by Subsection (3)(a)(ii) [must] shall be separately and
             904      accurately stated in a uniform location upon the principal display panel of the label unless
             905      reasonable variations and exemptions for small packages are established by a rule made by the
             906      department.
             907          (c) A manufacturer or distributor of carbonated beverages who utilizes proprietary
             908      stock or a proprietary crown is exempt from Subsection (3)(a)(i) if he files with the
             909      department:
             910          (i) a sworn affidavit giving a full and complete description of each area within the
             911      state in which beverages of his manufacturing or distributing are to be distributed; and
             912          (ii) the name and address of the person responsible for compliance with this chapter
             913      within each of those areas.
             914          (4) Any word, statement, or other information required by this chapter to appear on the
             915      label or labeling [must] shall be:
             916          (a) prominently placed on the label;
             917          (b) conspicuous in comparison with other words, statements, designs, or devices in the
             918      labeling; and
             919          (c) in terms which render it likely to be read and understood by the ordinary individual
             920      under customary conditions of purchase and use.
             921          (5) If a food is represented as a food for which a definition and standard of identity has
             922      been prescribed by federal regulations or department rules as provided by Section 4-5-6 , it
             923      [must] shall:
             924          (a) conform to the definition and standard; and
             925          (b) have a label bearing:


             926          (i) the name of the food specified in the definition and standard; and
             927          (ii) insofar as may be required by the rules, the common names of optional
             928      ingredients, other than spices, flavorings, and colorings, present in the food.
             929          (6) If a food is represented as a food for which a standard of quality has been
             930      prescribed by federal regulations or department rules as provided by Section 4-5-6 , and its
             931      quality falls below the standard, its label [must] shall bear, in the manner and form as the
             932      regulations or rules specify, a statement indicating that it falls below the standards.
             933          (7) If a food is represented as a food for which a standard of fill of container has been
             934      prescribed by federal regulations or department rules as provided by Section 4-5-6 , and it falls
             935      below the applicable standard of fill, its label [must] shall bear, in the manner and form as the
             936      regulations or rules specify, a statement indicating that it falls below the standard.
             937          (8) (a) Any food for which neither a definition nor standard of identity has been
             938      prescribed by federal regulations or department rules as provided by Section 4-5-6 [must] shall
             939      bear labeling clearly giving:
             940          (i) the common or usual name of the food, if any; and
             941          (ii) in case it is fabricated from two or more ingredients, the common or usual name of
             942      each ingredient, except that spices, flavorings, and colorings, other than those sold as such,
             943      may be designated as spices, flavorings, and colorings without naming each.
             944          (b) To the extent that compliance with the requirements of Subsection (8)(a)(ii) is
             945      impractical or results in deception or unfair competition, exemptions shall be established by
             946      rules made by the department.
             947          (9) If a food is represented as a food for special dietary uses, its label [must] shall bear
             948      the information concerning its vitamin, mineral, and other dietary properties as the department
             949      by rule prescribes.
             950          (10) If a food bears or contains any artificial flavoring, artificial coloring, or chemical
             951      preservatives, its label [must] shall state that fact. If compliance with the requirements of this
             952      subsection is impracticable, exemptions shall be established by rules made by the department.
             953          (11) The shipping container of any raw agricultural commodity bearing or containing


             954      a pesticide chemical applied after harvest [must] shall bear labeling which declares the
             955      presence of the chemical in or on the commodity and the common or usual name and function
             956      of the chemical. The declaration is not required while the commodity, having been removed
             957      from the shipping container, is being held or displaced for sale at retail out of the container in
             958      accordance with the custom of the trade.
             959          (12) A product intended as an ingredient of another food, when used according to the
             960      directions of the purveyor, may not result in the final food product being adulterated or
             961      misbranded.
             962          (13) The packaging and labeling of a color additive [must] shall be in conformity with
             963      the packaging and labeling requirements applicable to the color additive prescribed under the
             964      federal act.
             965          (14) Subsections (5), (8), and (10) with respect to artificial coloring do not apply to
             966      butter, cheese, or ice cream. Subsection (10) with respect to chemical preservatives does not
             967      apply to a pesticide chemical when used in or on a raw agricultural commodity.
             968          Section 19. Section 4-5-9 is amended to read:
             969           4-5-9. Registration of food establishments -- Fee -- Suspension and reinstatement
             970      of registration -- Inspection for compliance.
             971          (1) (a) Pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             972      department shall establish rules providing for the registration of food establishments to protect
             973      public health and ensure a safe food supply.
             974          (b) The owner or operator of a food establishment shall register with the department
             975      before operating a food establishment.
             976          (c) Prior to granting a registration to the owner or operator of a food establishment, the
             977      department shall inspect and assess the food establishment to determine whether it complies
             978      with the rules established under Subsection (1)(a).
             979          (d) An applicant shall register with the department, in writing, using forms required by
             980      the department.
             981          (e) The department shall issue a registration to an applicant, if the department


             982      determines that the applicant meets the qualifications of registration established under
             983      Subsection (1)(a).
             984          (f) If the applicant does not meet the qualifications of registration, the department
             985      shall notify the applicant, in writing, that the applicant's registration is denied.
             986          (g) (i) If an applicant submits an incomplete application, a written notice of
             987      conditional denial of registration shall be provided to an applicant.
             988          (ii) The applicant [must] shall correct the deficiencies within the time period specified
             989      in the notice to receive a registration.
             990          (h) (i) The department may, as provided under Subsection 4-2-2 (2), charge the food
             991      establishment a registration fee.
             992          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             993      administer the registration of food establishments.
             994          (2) (a) A registration, issued under this section, shall be valid from the date the
             995      department issues the registration, to December 31 of the year the registration is issued.
             996          (b) A registration may be renewed for the following year by applying for renewal by
             997      December 31 of the year the registration expires.
             998          (3) A registration, issued under this section, shall specify:
             999          (a) the name and address of the food establishment;
             1000          (b) the name of the owner or operator of the food establishment; and
             1001          (c) the registration issuance and expiration date.
             1002          (4) (a) The department may immediately suspend a registration, issued under this
             1003      section, if any of the conditions of registration have been violated.
             1004          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for
             1005      the reinstatement of a registration.
             1006          (ii) If the department determines that all registration requirements have been met, the
             1007      department shall reinstate the registration.
             1008          (5) (a) A food establishment, registered under this section, shall allow the department
             1009      to have access to the food establishment to determine if the food establishment is complying


             1010      with the registration requirements.
             1011          (b) If a food establishment denies access for an inspection required under Subsection
             1012      (5)(a), the department may suspend the food establishment's registration until the department
             1013      is allowed access to the food establishment's premises.
             1014          Section 20. Section 4-5-15 is amended to read:
             1015           4-5-15. Consumer commodities -- Labeling and packaging.
             1016          (1) All labels of consumer commodities, as defined by this chapter, shall conform with
             1017      the requirements for the declaration of net quantity of contents of 15 U.S.C. Sec. 1453 and the
             1018      regulations promulgated pursuant thereto: provided, that consumer commodities exempted
             1019      from 15 U.S.C. Sec. 1453(4) shall also be exempt from this Subsection (1).
             1020          (2) The label of any package of a consumer commodity that bears a representation as
             1021      to the number of servings of the commodity contained in the package shall bear a statement of
             1022      the net quantity in terms of weight, measure, or numerical count for each serving.
             1023          (3) (a) No person shall distribute or cause to be distributed in commerce any packaged
             1024      consumer commodity if any qualifying words or phrases appear in conjunction with the
             1025      separate statement of the net quantity of contents required by Subsection (1), but nothing in
             1026      this section shall prohibit supplemental statements, at other places on the package, describing
             1027      in nondeceptive terms the net quantity of contents.
             1028          (b) Supplemental statements of net quantity of contents may not include any term
             1029      qualifying a unit of weight, measure, or count that tends to exaggerate the amount of the
             1030      commodity contained in the package.
             1031          (4) (a) Whenever the department determines that rules other than those prescribed by
             1032      Subsection(1) are necessary to prevent the deception of consumers or to facilitate value
             1033      comparisons as to any consumer commodity, the department shall promulgate rules effective
             1034      to:
             1035          (i) establish and define standards for the characterization of the size of a package
             1036      enclosing any consumer commodity, which may be used to supplement the label statement of
             1037      net quantity of contents of packages containing the commodity, but this Subsection (4) [shall


             1038      not be construed as authorizing] does not authorize any limitation on the size, shape, weight,
             1039      dimensions, or number of packages that may be used to enclose any commodity;
             1040          (ii) regulate the placement upon any package containing any commodity, or upon any
             1041      label affixed to a commodity, of any printed matter stating or representing by implication that
             1042      the commodity is offered for retail sale at a price lower than the ordinary and customary retail
             1043      sale price or that a retail sale price advantage is accorded to purchasers by reason of the size of
             1044      that package or the quantity of its contents;
             1045          (iii) require that the label on each package of a consumer commodity bear:
             1046          (A) the common or usual name of such consumer commodity, if any; and
             1047          (B) if the consumer commodity consists of two or more ingredients, the common or
             1048      usual name of each such ingredient listed in order of decreasing predominance, but nothing in
             1049      this Subsection (4) shall be considered to require that any trade secret be divulged; or
             1050          (iv) prevent the nonfunctional slack-fill of packages containing consumer
             1051      commodities.
             1052          (b) For the purposes of Subsection (4)(a)(iv), a package is nonfunctionally slack-filled
             1053      if it is filled to substantially less than its capacity for reasons other than:
             1054          (i) protection of the contents of such package; or
             1055          (ii) the requirements of machines used for enclosing the contents in such package;
             1056      provided, that the department may adopt any rules promulgated according to the Fair
             1057      Packaging and Labeling Act, 15 U.S.C. Sec. 1453.
             1058          Section 21. Section 4-5-18 is amended to read:
             1059           4-5-18. Inspection of premises and records -- Authority to take samples --
             1060      Inspection results reported.
             1061          (1) An authorized agent of the department upon presenting appropriate credentials to
             1062      the owner, operator, or agent in charge, may:
             1063          (a) enter at reasonable times any factory, warehouse, or establishment in which food is
             1064      manufactured, processed, packed, or held for introduction into commerce or after introduction
             1065      into commerce;


             1066          (b) enter any vehicle being used to transport or hold food in commerce;
             1067          (c) inspect at reasonable times and within reasonable limits and in a reasonable
             1068      manner any factory, warehouse, establishment, or vehicle and all pertinent equipment, finished
             1069      and unfinished materials, containers, and labeling located within it;
             1070          (d) obtain samples necessary for the enforcement of this chapter so long as the
             1071      department pays the posted price for the sample if requested to do so and receives a signed
             1072      receipt from the person from whom the sample is taken;
             1073          (e) have access to and copy all records of carriers in commerce showing:
             1074          (i) the movement in commerce of any food;
             1075          (ii) the holding of food during or after movement in commerce; and
             1076          (iii) the quantity, shipper, and consignee of food.
             1077          (2) Evidence obtained under this section may not be used in a criminal prosecution of
             1078      the person from whom the evidence was obtained.
             1079          (3) Carriers may not be subject to the other provisions of this chapter by reason of
             1080      their receipt, carriage, holding, or delivery of food in the usual course of business as carriers.
             1081          (4) Upon completion of the inspection of a factory, warehouse, consulting laboratory,
             1082      or other establishment and prior to leaving the premises, the authorized agent making the
             1083      inspection shall give to the owner, operator, or agent in charge a report in writing setting forth
             1084      any conditions or practices observed by him which in his judgment indicate that any food in
             1085      the establishment:
             1086          (a) consists in whole or in part of any filthy, putrid, or decomposed substance; or
             1087          (b) has been prepared, packed, or held under unsanitary conditions whereby it may
             1088      have become contaminated with filth or whereby it may have been rendered injurious to
             1089      health.
             1090          (5) A copy of the report [must] shall be sent promptly to the department.
             1091          (6) If the authorized agent making the inspection of a factory, warehouse, or other
             1092      establishment has obtained any sample in the course of the inspection, the agent shall give to
             1093      the owner, operator, or agent in charge a receipt describing the samples obtained.


             1094          (7) When in the course of the inspection the officer or employee making the inspection
             1095      obtains a sample of any food and an analysis is made of the sample for the purpose of
             1096      ascertaining whether the food consists in whole or in part of any filthy, putrid, or decomposed
             1097      substance or is otherwise unfit for food, a copy of the results of the analysis [must] shall be
             1098      furnished promptly to the owner, operator, or agent in charge.
             1099          Section 22. Section 4-7-8 is amended to read:
             1100           4-7-8. Applicant for dealer's license to post security -- Increase in amount of
             1101      security posted -- Action on security authorized -- Duties of commissioner -- Option to
             1102      require posting new security if action filed -- Effect of failure to post new security --
             1103      Commissioner's authority to call bond if not renewed.
             1104          (1) (a) Before a license is issued to a dealer, the applicant [must] shall post a corporate
             1105      surety bond, irrevocable letter of credit, trust fund agreement, or any other security agreement
             1106      considered reasonable in an amount not less than $10,000 nor more than $200,000, as
             1107      determined by the commissioner or as required by the Packers and Stockyards Act, 1921, 7
             1108      U.S.C. Section 181 et seq.
             1109          (b) Any bond shall be written by a surety licensed under the laws of Utah and name
             1110      the state, as obligee, for the use and benefit of producers.
             1111          (c) The bond or other security posted shall be conditioned upon:
             1112          (i) the faithful performance of contracts and the faithful accounting for and handling
             1113      of any product of agriculture consigned to the dealer;
             1114          (ii) the performance of the obligations imposed under this chapter; and
             1115          (iii) the payment of court costs and attorney's fees to the prevailing party incident to
             1116      any suit upon the bond or other security posted.
             1117          (2) (a) The commissioner may require a dealer who is issued a license to increase the
             1118      amount of the bond or other security posted under Subsection (1)(a) if the commissioner
             1119      determines the bond or other security posted is inadequate to secure performance of the
             1120      dealer's obligations.
             1121          (b) The commissioner shall notify the Packers and Stockyards Administration of an


             1122      increase made under Subsection (2)(a).
             1123          (c) The commissioner may suspend a dealer's license for failure to comply with
             1124      Subsection (2)(a) within 10 days after notice is given to the dealer.
             1125          (3) A consignor claiming damages, as a result of fraud, deceit, or willful negligence by
             1126      a dealer or as a result of the dealer's failure to comply with this chapter, may bring an action
             1127      upon the bond or other security posted for damages against both the principal and surety.
             1128          (4) (a) If it is reported to the department by a consignor that a dealer has failed to pay
             1129      in a timely manner for any product of agriculture received for sale, the commissioner shall:
             1130          (i) ascertain the name and address of each consignor who is a creditor of the dealer;
             1131      and
             1132          (ii) request a verified written statement setting forth the amount claimed due from the
             1133      dealer.
             1134          (b) Upon receipt of the verified statements, the commissioner shall bring an action
             1135      upon the bond or other security posted on behalf of the consignors who claim amounts due
             1136      from the dealer.
             1137          (5) (a) If an action is filed upon the bond or other security posted, the commissioner
             1138      may require the filing of new security.
             1139          (b) Immediately upon recovery in the action, the commissioner shall require the dealer
             1140      to file a new bond or other security.
             1141          (c) Failure, in either case, to file the bond or other security within 10 days after
             1142      demand is cause for suspension of the license until a new bond or other security is filed.
             1143          (d) If the bond or other security posted under this section is not renewed within 10
             1144      days of its expiration date, unless the commissioner states in writing that this is unnecessary,
             1145      the commissioner may obtain, after a hearing, the full amount of the bond or other security
             1146      before it expires.
             1147          Section 23. Section 4-7-11 is amended to read:
             1148           4-7-11. Department authority -- Examination and investigation of transactions --
             1149      Notice of agency action upon probable cause -- Settlement of disputes -- Cease and desist


             1150      order -- Enforcement -- Review.
             1151          (1) For the purpose of enforcing this chapter the department may, upon its own
             1152      motion, or shall, upon the verified complaint of an interested consignor, investigate, examine,
             1153      or inspect any transaction involving:
             1154          (a) the solicitation, receipt, sale, or attempted sale of any product of agriculture by a
             1155      dealer or person assuming to act as a dealer;
             1156          (b) the failure to make a correct account of sales;
             1157          (c) the intentional making of a false statement about market conditions or the
             1158      condition or quantity of any product of agriculture consigned;
             1159          (d) the failure to remit payment in a timely manner to the consignor as required by
             1160      contract or by this chapter;
             1161          (e) any other consignment transaction alleged to have resulted in damage to the
             1162      consignor; or
             1163          (f) any dealer or agent with an unsatisfied judgment by a civil court related to an
             1164      activity for which licensing is required by this chapter.
             1165          (2) (a) After investigation upon its own motion, if the department determines that
             1166      probable cause exists to believe that a dealer has engaged or is engaging in acts that violate
             1167      this chapter, it shall issue a notice of agency action.
             1168          (b) (i) Upon the receipt of a verified complaint, the department shall undertake to
             1169      effect a settlement between the consignor and the dealer.
             1170          (ii) If a settlement cannot be effected, the department shall treat the verified complaint
             1171      as a request for agency action.
             1172          (3) (a) In a hearing upon a verified complaint, if the commissioner, or hearing officer
             1173      designated by the commissioner, determines by a preponderance of the evidence that the
             1174      person complained of has violated this chapter and that the violation has resulted in damage to
             1175      the complainant, the officer shall:
             1176          (i) prepare written findings of fact detailing the findings and fixing the amount of
             1177      damage suffered; and


             1178          (ii) order the defendant to pay damages.
             1179          (b) In a hearing initiated upon the department's own motion, if the commissioner or
             1180      hearing officer determines by a preponderance of the evidence that the person complained of
             1181      by the department has engaged in, or is engaging in, acts that violate this chapter, the
             1182      commissioner or officer shall prepare written findings of fact and an order requiring the person
             1183      to cease and desist from the activity.
             1184          (4) The department may petition any court having jurisdiction in the county where the
             1185      action complained of occurred to enforce its order.
             1186          (5) Any dealer aggrieved by an order issued under this section may obtain judicial
             1187      review of the order.
             1188          (6) (a) The department may not act upon a verified complaint submitted to the
             1189      department more than six months after the consignor allegedly suffered damage.
             1190          (b) A livestock claim [must] shall be made in writing within 120 days from the date of
             1191      the transaction.
             1192          Section 24. Section 4-9-15 is amended to read:
             1193           4-9-15. Registration of commercial establishments using weights and measures
             1194      -- Approved weights and measures inspectors -- Application -- Fee -- Expiration --
             1195      Renewal.
             1196          (1) (a) Pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1197      department shall establish rules providing for the registration of weights and measures users
             1198      and issuance of certification of weights and measures devices to ensure the use of correct
             1199      weights and measures in commerce or trade.
             1200          (b) The division may:
             1201          (i) determine whether weights and measures are correct through:
             1202          (A) inspection and testing by department employees; or
             1203          (B) acceptance of an inspection and testing report prepared by a registered weights
             1204      and measures service person;
             1205          (ii) establish standards and qualifications for registered weights and measures service


             1206      persons; and
             1207          (iii) determine the form and content of an inspection and testing report.
             1208          (c) A weights and measures user shall register with the department.
             1209          (d) Prior to granting a registration to a weights and measures user, the department
             1210      shall determine whether the weights and measures user complies with the rules established
             1211      under Subsection (1)(a).
             1212          (e) An applicant shall register with the department, in writing, using forms required by
             1213      the department.
             1214          (f) The department shall issue a registration to an applicant, if the department
             1215      determines that the applicant meets the qualifications of registration established under
             1216      Subsection (1)(a).
             1217          (g) If the applicant does not meet the qualifications of registration, the department
             1218      shall notify the applicant, in writing, that the applicant's registration is denied.
             1219          (h) (i) If an applicant submits an incomplete application, a written notice of
             1220      conditional denial of registration shall be provided to an applicant.
             1221          (ii) The applicant [must] shall correct the deficiencies within the time period specified
             1222      in the notice to receive a registration.
             1223          (i) (i) The department may, as provided under Subsection 4-2-2 (2), charge the weights
             1224      and measures user a registration fee.
             1225          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             1226      administer the registration of weights and measures users.
             1227          (2) (a) A registration, issued under this section, shall be valid from the date the
             1228      department issues the registration, to December 31 of the year the registration is issued.
             1229          (b) A registration may be renewed for the following year by applying for renewal by
             1230      December 31 of the year the registration expires.
             1231          (3) A registration, issued under this section, shall specify:
             1232          (a) the name and address of the weights and measures user;
             1233          (b) the registration issuance and expiration date; and


             1234          (c) the number and type of weights and measures devices to be certified.
             1235          (4) (a) The department may immediately suspend a registration, issued under this
             1236      section, if any of the requirements of Section 4-9-12 are violated.
             1237          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for
             1238      the reinstatement of a registration.
             1239          (ii) If the department determines that all requirements under Section 4-9-12 are being
             1240      met, the department shall reinstate the registration.
             1241          (5) (a) A weights and measures user, registered under this section, shall allow the
             1242      department access to the weights and measures user's place of business to determine if the
             1243      weights and measures user is complying with the registration requirements.
             1244          (b) If a weights and measures user denies access for an inspection required under
             1245      Subsection (5)(a), the department may suspend the weights and measures user's registration
             1246      until the department is allowed access to the weights and measures user's place of business.
             1247          Section 25. Section 4-14-3 is amended to read:
             1248           4-14-3. Registration required for distribution -- Application -- Fees -- Renewal --
             1249      Local needs registration -- Distributor or applicator license -- Fees -- Renewal.
             1250          (1) (a) No person may distribute a pesticide in this state that is not registered with the
             1251      department.
             1252          (b) Application for registration shall be made to the department upon forms prescribed
             1253      and furnished by it accompanied with an annual registration fee determined by the department
             1254      pursuant to Subsection 4-2-2 (2) for each pesticide registered.
             1255          (c) Upon receipt by the department of a proper application and payment of the
             1256      appropriate fee, the commissioner shall issue a registration to the applicant allowing
             1257      distribution of the registered pesticide in this state through June 30 of each year, subject to
             1258      suspension or revocation for cause.
             1259          (d) (i) Each registration is renewable for a period of one year upon the payment of an
             1260      annual registration renewal fee in an amount equal to the current applicable original
             1261      registration fee.


             1262          (ii) Each renewal fee shall be paid on or before June 30 of each year.
             1263          (2) The application shall include the following information:
             1264          (a) the name and address of the applicant and the name and address of the person
             1265      whose name will appear on the label, if other than the applicant's name;
             1266          (b) the name of the pesticide;
             1267          (c) a complete copy of the label which will appear on the pesticide; and
             1268          (d) any information prescribed by rule of the department considered necessary for the
             1269      safe and effective use of the pesticide.
             1270          (3) (a) Forms for the renewal of registration shall be mailed to registrants at least 30
             1271      days before their registration expires.
             1272          (b) A registration in effect on June 30 for which a renewal application has been filed
             1273      and the registration fee tendered shall continue in effect until the applicant is notified either
             1274      that the registration is renewed or that it is suspended or revoked pursuant to Section 4-14-8 .
             1275          (4) The department may, before approval of any registration, require the applicant to
             1276      submit the complete formula of any pesticide including active and inert ingredients and may
             1277      also, for any pesticide not registered according to 7 U.S.C. Sec. 136a or for any pesticide on
             1278      which restrictions are being considered, require a complete description of all tests and test
             1279      results that support the claims made by the applicant or the manufacturer of the pesticide.
             1280          (5) A registrant who desires to register a pesticide to meet special local needs
             1281      according to 7 U.S.C. Sec. 136v(c) shall, in addition to complying with Subsections (1) and
             1282      (2), satisfy the department that:
             1283          (a) a special local need exists;
             1284          (b) the pesticide warrants the claims made for it;
             1285          (c) the pesticide, if used in accordance with commonly accepted practices, will not
             1286      cause unreasonable adverse effects on the environment; and
             1287          (d) the proposed classification for use conforms with 7 U.S.C. Sec. 136a(d).
             1288          (6) No registration is required for a pesticide distributed in this state pursuant to an
             1289      experimental use permit issued by the EPA or under Section 4-14-5 .


             1290          (7) No pesticide dealer may distribute a restricted use pesticide in this state without a
             1291      license.
             1292          (8) A person [must] shall receive a license before applying:
             1293          (a) a restricted use pesticide; or
             1294          (b) a general use pesticide for hire or in exchange for compensation.
             1295          (9) (a) A license to engage in an activity listed in Subsection (7) or (8) may be
             1296      obtained by:
             1297          (i) submitting an application on a form provided by the department;
             1298          (ii) paying the license fee determined by the department according to Subsection
             1299      4-2-2 (2); and
             1300          (iii) complying with the rules adopted as authorized by this chapter.
             1301          (b) A person may apply for a license that expires on December 31:
             1302          (i) of the calendar year in which the license is issued; or
             1303          (ii) of the second calendar year after the calendar year in which the license is issued.
             1304          (c) (i) Notwithstanding Section 63J-1-504 , the department shall retain the fees as
             1305      dedicated credits and may only use the fees to administer and enforce this chapter.
             1306          (ii) The Legislature may annually designate the revenue generated from the fee as
             1307      nonlapsing in an appropriations act.
             1308          Section 26. Section 4-15-2 is amended to read:
             1309           4-15-2. Definitions.
             1310          As used in this chapter:
             1311          (1) "Balled and burlapped stock" means nursery stock which is removed from the
             1312      growing site with a ball of soil containing its root system intact and encased in burlap or other
             1313      material to hold the soil in place;
             1314          (2) "Bare-root stock" means nursery stock which is removed from the growing site
             1315      with the root system free of soil;
             1316          (3) "Container stock" means nursery stock which is transplanted in soil or in a potting
             1317      mixture contained within a metal, clay, plastic, or other rigid container for a period sufficient


             1318      to allow newly developed fibrous roots to form so that if the plant is removed from the
             1319      container its root-media ball will remain intact;
             1320          (4) "Etiolated growth" means bleached and unnatural growth resulting from the
             1321      exclusion of sunlight;
             1322          (5) "Minimum indices of vitality" mean standards adopted by the department to
             1323      determine the health and vigor of nursery stock offered for sale in this state;
             1324          (6) "Nonestablished container stock" means deciduous nursery stock which is
             1325      transplanted in soil or in a potting mixture contained within a metal, clay, plastic, or other
             1326      rigid container for a period insufficient to allow the formation of fibrous roots sufficient to
             1327      form a root-media ball;
             1328          (7) "Nursery" means any place where nursery stock is propagated and grown for sale
             1329      or distribution;
             1330          (8) "Nursery outlet" means any place or location where nursery stock is offered for
             1331      wholesale or retail sale;
             1332          (9) "Nursery stock" means all plants, whether field grown, container grown, or
             1333      collected native plants; trees, shrubs, vines, grass sod; seedlings, perennials, biennials; and
             1334      buds, cuttings, grafts, or scions grown or collected or kept for propagation, sale, or
             1335      distribution; except that it [shall not mean] does not include dormant bulbs, tubers, roots,
             1336      corms, rhizomes, pips; field, vegetable, or flower seeds; or bedding plants, annual plants,
             1337      florists' greenhouse or field-grown plants, flowers or cuttings;
             1338          (10) "Place of business" means each separate nursery, or nursery outlet, where nursery
             1339      stock is offered for sale, sold, or distributed;
             1340          (11) "Packaged stock" means bare-root stock which is packed either in bundles or in
             1341      single plants with the roots in some type of moisture-retaining material designed to retard
             1342      evaporation and hold the moisture-retaining material in place.
             1343          Section 27. Section 4-15-10 is amended to read:
             1344           4-15-10. Infested or diseased stock not to be offered for sale -- Identification of
             1345      "nonestablished container stock" -- Requirements for container stock -- Inspected and


             1346      certified stock only to be offered for sale -- Prohibition against coating aerial plant
             1347      surfaces.
             1348          (1) Nursery stock which is infested with plant pests, including noxious weeds, or
             1349      infected with disease or which does not meet minimum indices of vitality [shall not] may not
             1350      be offered for sale.
             1351          (2) All nonestablished container stock offered for sale shall be identified by the words
             1352      "nonestablished container stock" legibly printed on a water resistant tag which states the
             1353      length of time it has been planted or the date it was planted and [shall not] may not be offered
             1354      for sale in any manner which leads a purchaser to believe it is container stock.
             1355          (3) All container stock offered for sale shall be established with a root-media mass that
             1356      will retain its shape and hold together when removed from the container.
             1357          (4) No nursery stock other than officially inspected and certified stock shall be offered
             1358      for wholesale or retail sale in this state.
             1359          (5) Colored waxes or other materials which coat the aerial parts of a plant and change
             1360      the appearance of the plant surface are prohibited.
             1361          Section 28. Section 4-17-7 is amended to read:
             1362           4-17-7. Notice of noxious weeds to be published annually in county -- Notice to
             1363      particular property owners to control noxious weeds -- Methods of prevention or control
             1364      specified -- Failure to control noxious weeds considered public nuisance.
             1365          (1) Each county weed control board before May 1 of each year shall post a general
             1366      notice of the noxious weeds within the county in at least three public places within the county
             1367      and publish the same notice on:
             1368          (a) at least three occasions in a newspaper or other publication of general circulation
             1369      within the county; and
             1370          (b) as required in Section 45-1-101 .
             1371          (2) If the county weed control board determines that particular property within the
             1372      county requires prompt and definite attention to prevent or control noxious weeds, it shall
             1373      serve the owner or the person in possession of the property, personally or by certified mail, a


             1374      notice specifying when and what action [should] is required to be taken on the property.
             1375      Methods of prevention or control may include definite systems of tillage, cropping, use of
             1376      chemicals, and use of livestock.
             1377          (3) An owner or person in possession of property who fails to take action to control or
             1378      prevent the spread of noxious weeds as specified in the notice is maintaining a public
             1379      nuisance.
             1380          Section 29. Section 4-22-3 is amended to read:
             1381           4-22-3. Commission -- Organization -- Quorum to transact business -- Vacancies
             1382      -- Ineligibility to serve -- Compensation.
             1383          (1) The members of the commission shall elect a chair, vice chair, and secretary from
             1384      among their number.
             1385          (2) Attendance of a simple majority of the commission members at a called meeting
             1386      shall constitute a quorum for the transaction of official business.
             1387          (3) The commission shall meet:
             1388          (a) at the time and place designated by the chair; and
             1389          (b) no less often than once every three months.
             1390          (4) Vacancies which occur on the commission for any reason shall be filled for the
             1391      unexpired term of the vacated member by appointment of a majority of the remaining
             1392      members.
             1393          (5) If a member moves from the district that he represents or ceases to act as a
             1394      producer during his term of office, he [must] shall resign from the commission within 30 days
             1395      after moving from the district or ceasing production.
             1396          (6) (a) (i) Members who are not government employees shall receive no compensation
             1397      or benefits for their services, but may receive per diem and expenses incurred in the
             1398      performance of the member's official duties at the rates established by the Division of Finance
             1399      under Sections 63A-3-106 and 63A-3-107 .
             1400          (ii) Members may decline to receive per diem and expenses for their service.
             1401          (b) (i) State government officer and employee members who do not receive salary, per


             1402      diem, or expenses from their agency for their service may receive per diem and expenses
             1403      incurred in the performance of their official duties from the commission at the rates
             1404      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1405          (ii) State government officer and employee members may decline to receive per diem
             1406      and expenses for their service.
             1407          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             1408      from the entity that they represent for their service may receive per diem and expenses
             1409      incurred in the performance of their official duties from the committee at the rates established
             1410      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1411          (ii) Higher education members may decline to receive per diem and expenses for their
             1412      service.
             1413          Section 30. Section 4-22-6 is amended to read:
             1414           4-22-6. Commission to conduct elections -- Nomination of candidates -- Expenses
             1415      of election paid by commission.
             1416          (1) (a) The commissioner shall administer all commission elections.
             1417          (b) The commissioner shall mail a ballot to each producer within the district in which
             1418      an election is to be held by May 15 of each election year.
             1419          (c) The candidate who receives the highest number of votes cast in the candidate's
             1420      district shall be elected.
             1421          (d) The commissioner shall determine all questions of eligibility.
             1422          (e) A ballot [must] shall be postmarked by May 31 of an election year.
             1423          (f) (i) All ballots received by the commissioner shall be counted and tallied by June
             1424      15.
             1425          (ii) A member of the commission whose name appears on a ballot may not participate
             1426      in counting or tallying the ballots.
             1427          (2) (a) Candidates for election to the commission shall be nominated, not later than
             1428      April 15, by a petition signed by five or more producers who are residents of the district in
             1429      which the election is to be held.


             1430          (b) If two or more candidates are not nominated by petition, the commission shall
             1431      select a nominating committee composed of three producers who are residents of the district
             1432      who shall select the candidates not nominated by petition.
             1433          (3) The names of all nominees, whether nominated by petition or by a nominating
             1434      committee, shall be submitted to the commissioner on or before May 1 of each year in which
             1435      an election is held.
             1436          (4) All election expenses incurred by the commissioner shall be paid by the
             1437      commission.
             1438          Section 31. Section 4-23-5 is amended to read:
             1439           4-23-5. Board responsibilities -- Damage prevention policy -- Rules -- Methods to
             1440      control predators and depredating birds and animals.
             1441          (1) The board is responsible for the formulation of the agricultural and wildlife
             1442      damage prevention policy of the state and in conjunction with its responsibility may,
             1443      consistent with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopt rules to
             1444      implement its policy which shall be administered by the department.
             1445          (2) In its policy deliberations the board shall:
             1446          (a) specify programs designed to prevent damage to livestock, poultry, and agricultural
             1447      crops; and
             1448          (b) specify methods for the prevention of damage and for the selective control of
             1449      predators and depredating birds and animals including[, but not limited to,] hunting, trapping,
             1450      chemical toxicants, and the use of aircraft.
             1451          (3) The board may also:
             1452          (a) specify bounties on designated predatory animals and recommend procedures for
             1453      the payment of bounty claims, recommend bounty districts, recommend persons not
             1454      authorized to receive bounty, and recommend to the department other actions it considers
             1455      advisable for the enforcement of its policies; and
             1456          (b) cooperate with federal, state, and local governments, educational institutions, and
             1457      private persons or organizations, through agreement or otherwise, to effectuate its policies.


             1458          Section 32. Section 4-23-6 is amended to read:
             1459           4-23-6. Department to issue licenses and permits -- Department to issue aircraft
             1460      use permits -- Reports.
             1461          The department is responsible for the issuance of permits and licenses for the purposes
             1462      of the federal Fish and Wildlife Act of 1956. No state agency or private person shall use any
             1463      aircraft for the prevention of damage without first obtaining a use permit from the department.
             1464      A state agency which contemplates the use of aircraft for the protection of agricultural crops,
             1465      livestock, poultry, or wildlife shall file an application with the department for an aircraft use
             1466      permit to enable the agency to issue licenses to personnel within the agency charged with the
             1467      responsibility to protect such resources. Persons who desire to use privately owned aircraft for
             1468      the protection of land, water, crops, wildlife, or livestock [shall not] may not engage in any
             1469      such protective activity without first obtaining an aircraft permit from the department.
             1470      Agencies and private persons which obtain aircraft use permits shall file such reports with the
             1471      department as it deems necessary in the administration of its licensing authority.
             1472          Section 33. Section 4-23-8 is amended to read:
             1473           4-23-8. Proceeds of sheep fee -- Refund of sheep fees -- Annual audit of books,
             1474      records, and accounts.
             1475          (1) (a) The commissioner may spend an amount not to exceed the equivalent of 16
             1476      cents per head each year from the proceeds collected from the fee imposed on sheep for the
             1477      promotion, advancement, and protection of the sheep interests of the state.
             1478          (b) All costs to promote or advance sheep interests shall be deducted from the total
             1479      revenue collected before calculating the annual budget request, which shall be made by the
             1480      Division of Wildlife Resources as specified in Section 4-23-9 .
             1481          (c) A sheep fee is refundable in an amount equal to that part of the fee used to
             1482      promote, advance, or protect sheep interests.
             1483          (d) A refund claim [must] shall be filed with the department on or before January 1 of
             1484      the year immediately succeeding the year for which the fee was paid.
             1485          (e) A refund claim [must] shall be certified by the department to the state treasurer for


             1486      payment from the Agricultural and Wildlife Damage Prevention Account created in Section
             1487      4-23-7.5 .
             1488          (2) Any expense incurred by the department in administering refunds shall be paid
             1489      from funds allocated for the promotion, advancement, and protection of the sheep interests of
             1490      the state.
             1491          (3) (a) The books, records, and accounts of the Utah Woolgrowers Association, or any
             1492      other organization which receives funds from the agricultural and wildlife damage prevention
             1493      account, for the purpose of promoting, advancing, or protecting the sheep interests of the state,
             1494      shall be audited at least once annually by a licensed accountant.
             1495          (b) The results of this audit shall be submitted to the commissioner.
             1496          Section 34. Section 4-24-2 is amended to read:
             1497           4-24-2. Definitions.
             1498          As used in this chapter:
             1499          (1) "Brand" means any identifiable mark applied to livestock which is intended to
             1500      show ownership.
             1501          (2) "Carcass" means any part of the body of an animal, including [but not limited to]
             1502      hides, entrails, and edible meats.
             1503          (3) "Domesticated elk" shall have the meaning as defined in Section 4-39-102 .
             1504          (4) "Hide" means any skins or wool removed from livestock.
             1505          (5) "Livestock" means cattle, calves, horses, mules, sheep, goats, hogs, or
             1506      domesticated elk.
             1507          (6) (a) "Livestock market" means a public market place consisting of pens or other
             1508      enclosures where cattle, calves, horses, or mules are received on consignment and kept for
             1509      subsequent sale, either through public auction or private sale.
             1510          (b) "Livestock market" does not mean:
             1511          (i) a place used solely for liquidation of livestock by a farmer, dairyman, livestock
             1512      breeder, or feeder who is going out of business; or
             1513          (ii) a place where an association of livestock breeders under its own management,


             1514      offers registered livestock or breeding sires for sale and assumes all responsibility for the sale,
             1515      guarantees title to the livestock or sires sold, and arranges with the department for brand
             1516      inspection of all animals sold.
             1517          (7) "Mark" means any dulap, waddle, or cutting and shaping of the ears or brisket area
             1518      of livestock which is intended to show ownership.
             1519          (8) "Slaughterhouse" means any building, plant, or establishment where animals are
             1520      killed, dressed, or processed and their meat or meat products offered for sale for human
             1521      consumption.
             1522          Section 35. Section 4-24-12 is amended to read:
             1523           4-24-12. Livestock -- Verification of ownership through brand inspection --
             1524      Issuance of certificate of brand inspection -- Brand inspector may demand evidence of
             1525      ownership-- Brand inspection of livestock seized by the federal government prohibited --
             1526      Exception.
             1527          (1) A brand inspector, as an agent of the department, shall verify livestock ownership
             1528      by conducting a brand inspection during daylight hours.
             1529          (2) After conducting the brand inspection, the brand inspector, if satisfied that the
             1530      livestock subject to inspection bears registered brands or marks owned by the owner of the
             1531      livestock, shall issue a brand inspection certificate to the owner or owner's agent.
             1532          (3) The brand inspector shall record the number, sex, breed, and brand or mark on
             1533      each animal inspected together with the owner's name.
             1534          (4) If any livestock subject to inspection bears a brand or mark other than that of the
             1535      owner or, if no brand or mark appears on such livestock, the brand inspector may demand
             1536      evidence of ownership such as a bill of sale or other evidence of ownership before issuing a
             1537      brand inspection certificate.
             1538          (5) A brand inspector [shall not] may not issue a brand inspection certificate for any
             1539      privately owned livestock seized by the federal government unless:
             1540          (a) the brand inspector receives consent from the livestock's owner;
             1541          (b) the owner is unknown; or


             1542          (c) the brand inspector receives a copy of a court order authorizing the seizure.
             1543          Section 36. Section 4-24-20 is amended to read:
             1544           4-24-20. Livestock sold at market to be brand inspected -- Proceeds of sale may
             1545      be withheld -- Distribution of withheld proceeds -- Effect of receipt of proceeds by
             1546      department -- Deposit of proceeds -- Use of proceeds if ownership not established.
             1547          (1) Livestock [shall not] may not be sold at any livestock market until after they have
             1548      been brand inspected by the department. Title to purchased livestock shall be furnished to the
             1549      buyer by the livestock market.
             1550          (2) Upon notice from the department that a question exists concerning the ownership
             1551      of consigned livestock, the operator of the livestock market or meat packing plant shall
             1552      withhold the proceeds from the sale of the livestock for 60 days to allow the consignor of the
             1553      questioned livestock to establish ownership. If the owner or consignor fails within 60 days to
             1554      establish ownership to the satisfaction of the department, the proceeds of the sale shall be
             1555      transmitted to the department. Receipt of the proceeds by the department shall relieve the
             1556      livestock market or meat packing plant from further responsibility for the proceeds.
             1557          (3) Proceeds withheld under Subsection (2) shall be deposited in the Utah Livestock
             1558      Brand and Anti-Theft Account created in Section 4-24-24 . If ownership is not satisfactorily
             1559      established within one year, the department shall use the proceeds for animal identification.
             1560          Section 37. Section 4-26-5 is amended to read:
             1561           4-26-5. Adjoining landowners -- Partition fences -- Contribution.
             1562          If two or more persons agree to a fence enclosure or to the construction of a partition
             1563      fence, the cost of construction and maintenance of the fence shall be apportioned between
             1564      each party to the agreement based upon the amount of land enclosed. A person who is a party
             1565      to such agreement and who fails to maintain such person's part of the fence is liable in a civil
             1566      action for any damage sustained by another party to the agreement as a result of the failure to
             1567      maintain the fence. If a person has enclosed land with a fence and the owner of adjoining land
             1568      desires to enclose land adjoining the fence so that the existing fence or any part of it will
             1569      become a partition fence between such tracts of land, the owner of the adjoining land shall


             1570      before making the enclosure pay to the owner of the existing fence one-half of the value of all
             1571      that part of the fence that will become a partition fence; and when one party ceases to improve
             1572      or cultivate his land or opens his enclosure he [must not] may not take away any part of the
             1573      partition fence belonging to him, if the owner or occupant of the adjoining enclosure within 30
             1574      days after notice, pays for the value of such fence; nor shall the partition fence be removed if
             1575      the crops enclosed by it will be exposed to injury.
             1576          Section 38. Section 4-29-2 is amended to read:
             1577           4-29-2. Restrictions on importation of chickens, turkeys, chicks, turkey poults,
             1578      and hatching eggs -- Certificate to accompany shipment -- Disposition of nonconforming
             1579      shipments.
             1580          (1) No chickens, turkeys, chicks, turkey poults, or hatching eggs to be used for
             1581      breeding purposes shall be imported to this state, or sold by hatcheries or others within this
             1582      state unless they originate from flocks participating in the pullorum control and eradication
             1583      phase of the National Poultry Improvement Plan, or the National Turkey Improvement Plan, or
             1584      have passed a negative agglutination blood test for pullorum disease administered under the
             1585      supervision of the department within 12 months prior to the date of sale.
             1586          (2) Baby chicks, turkey poults, or hatching eggs to be used for purposes other than
             1587      breeding [shall not] may not be imported to this state, or sold by hatcheries or others within
             1588      this state unless they originate from flocks participating in the pullorum control and
             1589      eradication phase of the National Poultry Improvement Plan, or the National Turkey
             1590      Improvement Plan, or have passed a negative agglutination blood test for pullorum disease
             1591      administered under supervision of the department within 12 months prior to the date of sale.
             1592          (3) A certificate issued by the appropriate authority of the "state of origin" shall
             1593      accompany each shipment of hatching eggs, baby chicks, poults, started chicks, started poults,
             1594      or chicken or turkey breed stock imported to this state. The certificate shall specify that the
             1595      contents of the shipment is free of pullorum or other poultry disease, the name and address of
             1596      the consignee in this state, the name and address of the person who consigned the poultry for
             1597      shipment, the name of the certifying authority in the state of origin, and the date the test or


             1598      inspection for pullorum was performed by such authority.
             1599          (4) The department may seize and destroy any shipment of chickens, chicks, turkeys,
             1600      poults, or hatching eggs transported into this state in contravention of this section without
             1601      notice to the person who consigned the poultry for shipment to this state, or it may return the
             1602      contents of the shipment to such person at the latter's expense.
             1603          Section 39. Section 4-30-7.6 is amended to read:
             1604           4-30-7.6. Custodial accounts for trust funds.
             1605          (1) (a) Each payment that a livestock buyer makes to a livestock market selling on
             1606      commission is a trust fund.
             1607          (b) Funds deposited in custodial accounts are trust funds.
             1608          (2) Each livestock market engaged in selling livestock on a commission or agency
             1609      basis shall establish and maintain a separate bank account designated as "custodial account for
             1610      shippers' proceeds" or some similar identifying designation, to disclose that the depositor is
             1611      acting as a fiduciary and that the funds in the account are trust funds.
             1612          (3) (a) The livestock market shall deposit in its custodial account before the close of
             1613      the next business day after the livestock is sold:
             1614          (i) the proceeds from the sale of the livestock that have been collected; and
             1615          (ii) an amount equal to the proceeds receivable from the sale of livestock that are due
             1616      from:
             1617          (A) the livestock market;
             1618          (B) any owner, officer, or employee of the livestock market; and
             1619          (C) any buyer to whom the livestock market has extended credit.
             1620          (b) The livestock market shall thereafter deposit in the custodial account all proceeds
             1621      collected until the account has been reimbursed in full, and shall, before the close of the
             1622      seventh day following the sale of livestock, deposit an amount equal to all the remaining
             1623      proceeds receivable whether or not the proceeds have been collected by the livestock market.
             1624          (4) The custodial account shall be drawn on only for payment of:
             1625          (a) the net proceeds to the consignor or shipper, or to any person that the livestock


             1626      market knows is entitled to payment;
             1627          (b) to pay lawful charges against the consignment of livestock which the market
             1628      agency shall, in its capacity as agent, be required to pay; and
             1629          (c) to obtain any sums due the livestock market as compensation for its services.
             1630          (5) (a) Each livestock market shall keep accounts and records that will disclose at all
             1631      times the handling of funds in the custodial account.
             1632          (b) Accounts and records [must] shall at all times disclose the name of the consignors
             1633      and the amount due and payable to each from funds in the custodial account.
             1634          (6) The custodial account [must] shall be established and maintained in a bank whose
             1635      deposits are insured by the Federal Deposit Insurance Corporation.
             1636          Section 40. Section 4-31-16 is amended to read:
             1637           4-31-16. Contagious or infectious disease -- Duties of department.
             1638          (1) (a) The department shall investigate and may quarantine any reported case of
             1639      contagious or infectious disease, or any epidemic, or poisoning affecting domestic animals or
             1640      any animal or animals that it believes may jeopardize the health of animals within the state.
             1641          (b) The department shall make a prompt and thorough examination of all
             1642      circumstances surrounding the disease, epidemic, or poisoning and may order quarantine,
             1643      care, or any necessary remedies.
             1644          (c) The department may also order immunization or testing and sanitary measures to
             1645      prevent the spread of disease.
             1646          (d) Investigations involving fish or wildlife shall be conducted under a cooperative
             1647      agreement with the Division of Wildlife Resources.
             1648          (2) (a) If the owner or person in possession of such animals, after written notice from
             1649      the department, fails to take the action ordered, the commissioner is authorized to seize and
             1650      hold the animals and take action necessary to prevent the spread of disease, including [but not
             1651      limited to:] immunization[;], testing[;], dipping[;], or spraying.
             1652          (b) Animals seized for testing or treatment under this section shall be sold by the
             1653      commissioner at public sale to reimburse the department for all costs incurred in the seizure,


             1654      testing, treatment, maintenance, and sale of such animals unless the owner sooner tenders
             1655      payment for the costs incurred by the department.
             1656          (c) (i) No seized animal shall be sold, however, until the owner or person in possession
             1657      is served with a notice specifying the itemized costs incurred by the department and the time,
             1658      place, and purpose of sale and the number of animals to be sold.
             1659          (ii) The notice shall be served at least three days in advance of sale in the manner:
             1660          (A) prescribed for personal service in Rule 4(d)(1), Utah Rules of Civil Procedure; or
             1661          (B) if the owner cannot be found after due diligence, in the manner prescribed for
             1662      service by publication in Rule 4(d)(4), Utah Rules of Civil Procedure.
             1663          (3) Any amount realized from the sale of the animals over the total charges shall be
             1664      paid to the owner of the animals if the owner is known or can by reasonable diligence be
             1665      found; otherwise, the excess shall be paid to the tuberculosis and Bangs Disease Control
             1666      Account.
             1667          Section 41. Section 4-31-16.5 is amended to read:
             1668           4-31-16.5. Brucellosis -- Vaccination required for certain cattle -- Testing
             1669      required to import certain cattle.
             1670          (1) As used in this section, "test-eligible" has the meaning defined in 9 C.F.R. Sec.
             1671      78.1.
             1672          (2) (a) Instate origin replacement cattle that are kept for breeding stock [must] shall be
             1673      official calfhood vaccinated for brucellosis.
             1674          (b) Female cattle from within the state that are not kept for breeding stock will not be
             1675      required to be vaccinated.
             1676          (c) For purposes of this Subsection (2), the department may make rules in accordance
             1677      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing non-legible
             1678      brucellosis tattoos and may accept brucellosis vaccination record forms as evidence that
             1679      brucellosis vaccinations were performed.
             1680          (3) All female beef-breed cattle imported into the state are required to be official
             1681      calfhood vaccinated for brucellosis except female cattle:


             1682          (a) less than four months of age;
             1683          (b) going directly to slaughter;
             1684          (c) going to a qualified feedlot; or
             1685          (d) going to an approved auction to be vaccinated on arrival or designated for
             1686      slaughter only.
             1687          (4) (a) Test-eligible cattle imported from states designated as brucellosis-free under 9
             1688      C.F.R. Sec. 78.43 that are acquired directly from the farm of origin are not required to be
             1689      tested for brucellosis before movement into the state.
             1690          (b) Test-eligible cattle imported from states designated as brucellosis-free under 9
             1691      C.F.R. Sec. 78.43 that are acquired through trading channels [must] shall test negative for
             1692      brucellosis within 30 days before movement into the state.
             1693          (5) Test-eligible cattle imported from states that have not been designated as
             1694      brucellosis-free under 9 C.F.R. Sec. 78.43 [must] shall test negative for brucellosis within 30
             1695      days before movement into the state.
             1696          (6) The department may investigate situations where fees for brucellosis vaccinations
             1697      are considered to be excessive.
             1698          (7) The department may make rules in accordance with Title 63G, Chapter 3, Utah
             1699      Administrative Rulemaking Act, for beef-breed cattle that are acquired for specialized
             1700      breeding purposes, and may exempt those cattle from brucellosis vaccination requirements.
             1701          (8) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             1702      Administrative Rulemaking Act, to implement this section.
             1703          Section 42. Section 4-32-3 is amended to read:
             1704           4-32-3. Definitions.
             1705          As used in this chapter:
             1706          (1) "Adulterated" means any livestock product or poultry product that:
             1707          (a) bears or contains any poisonous or deleterious substance that may render it
             1708      injurious to health, but, if the substance is not an added substance, the livestock product [shall
             1709      not be] is not considered adulterated under this subsection if the quantity of the substance in


             1710      or on the livestock product does not ordinarily render it injurious to health;
             1711          (b) bears or contains, by reason of the administration of any substance to the livestock
             1712      or poultry or otherwise, any added poisonous or added deleterious substance which in the
             1713      judgment of the commissioner makes the livestock product unfit for human food;
             1714          (c) contains, in whole or in part, a raw agricultural commodity and such commodity
             1715      bears or contains a pesticide chemical that is unsafe within the meaning of 21 U.S.C. Sec.
             1716      346a;
             1717          (d) bears or contains any food additive that is unsafe within the meaning of 21 U.S.C.
             1718      Sec. 348;
             1719          (e) bears or contains any color additive that is unsafe within the meaning of 21 U.S.C.
             1720      Sec. 379e; provided, that a livestock product which is not otherwise considered adulterated
             1721      under Subsections (1)(c), (d), or (e) of this section shall nevertheless be considered adulterated
             1722      if use of the pesticide chemical, food additive, or color additive is prohibited in official
             1723      establishments by rules of the department;
             1724          (f) consists, in whole or in part, of any filthy, putrid, or decomposed substance or is for
             1725      any other reason unsound, unhealthful, unwholesome, or otherwise unfit for human food;
             1726          (g) has been prepared, packaged, or held under unsanitary conditions if it may have
             1727      become contaminated with filth, or if it may have been rendered injurious to health;
             1728          (h) is in whole or in part the product of an animal that has died otherwise than by
             1729      slaughter;
             1730          (i) is contained in a container that is composed, in whole or in part, of any poisonous
             1731      or deleterious substance that may render the meat product injurious to health;
             1732          (j) has been intentionally subjected to radiation, unless the use of the radiation was in
             1733      conformity with a regulation or exemption in effect pursuant to 21 U.S.C. Sec. 348;
             1734          (k) has a valuable constituent in whole or in part omitted, abstracted, or substituted; or
             1735      if damage or inferiority is concealed in any manner; or if any substance has been added,
             1736      mixed, or packed with the meat product to increase its bulk or weight, or reduce its quality or
             1737      strength, or to make it appear better or of greater value; or


             1738          (l) is margarine containing animal fat and any of the raw material used in the
             1739      margarine consists in whole or in part of any filthy, putrid, or decomposed substance.
             1740          (2) "Animal food manufacturer" means any person engaged in the business of
             1741      preparing animal food derived from livestock carcasses or parts or products of such carcasses.
             1742          (3) "Broker" means any person engaged in the business of buying or selling livestock
             1743      or livestock products on commission, or otherwise negotiating purchases or sales of livestock
             1744      or livestock products other than for such person's own account.
             1745          (4) "Capable of use as human food" means any livestock carcass, or part or product of
             1746      a carcass, unless it is denatured or otherwise identified as required by rules of the department
             1747      to deter its use as human food, or unless it is naturally inedible by humans.
             1748          (5) "Container" or "package" means any box, can, tin, cloth, plastic, or other
             1749      receptacle, wrapper, or cover.
             1750          (6) "Director of meat inspection" means a licensed graduate veterinarian whose duties
             1751      and responsibilities are specified by the commissioner.
             1752          (7) "Domesticated elk" shall have the meaning as defined in Section 4-39-102 .
             1753          (8) "Farm custom slaughter" means custom slaughtering of livestock or poultry for an
             1754      owner without inspection.
             1755          (9) "Farm custom slaughter permit" means a permit issued by the department to allow
             1756      farm custom slaughter.
             1757          (10) "Farm custom slaughter tag" means a tag which specifies the animal's
             1758      identification and certifies its ownership which is issued by the department through a brand
             1759      inspector to the owner of the animal before it is slaughtered.
             1760          (11) "Federal Food, Drug and Cosmetic Act" means the act so entitled, approved June
             1761      25, 1938 (52 Stat. 1040) (21 U.S.C. 301 et seq.), and any amendments to it.
             1762          (12) "Federal Meat Inspection Act" means the act so entitled approved March 4, 1907
             1763      (34 Stat. 1260), as amended by the Wholesome Meat Act, 21 U.S.C. 601 et seq.; the term
             1764      "federal Poultry Products Inspection Act" means the act so entitled approved August 28, 1957
             1765      71 Stat. 441, as amended by the Wholesome Poultry Products Act, 82 Stat. 791 21 U.S.C. 451


             1766      et seq.; and the term "federal acts" means these two federal acts.
             1767          (13) "Immediate container" means any consumer package, or any other container in
             1768      which livestock products not consumer packaged, are packed.
             1769          (14) "Inspector" means a licensed veterinarian or competent lay person working under
             1770      the supervision of a licensed graduate veterinarian.
             1771          (15) "Label" means a display of printed, or graphic matter upon any livestock or
             1772      poultry product or the immediate container, not including package liners, of any such product.
             1773          (16) "Labeling" means all labels and other printed, or graphic matter:
             1774          (a) upon any livestock product or any of its containers or wrappers; or
             1775          (b) accompanying a livestock product.
             1776          (17) "Livestock" means any cattle, domesticated elk, sheep, swine, goats, horses,
             1777      mules or other equines, whether living or dead.
             1778          (18) "Livestock product" means any carcass, part of a carcass, meat, or meat food
             1779      product of any livestock.
             1780          (19) "Meat food product" means any product capable of use as human food that is
             1781      made wholly or in part from any meat or other part of the carcass of any cattle, sheep, swine,
             1782      or goats, excepting products that contain meat or other parts of such carcasses in relatively
             1783      small proportion or that historically have not been considered by consumers as products of the
             1784      meat food industry, and which are exempted from definition as a meat food product by the
             1785      commissioner. Meat food product as applied to food products of equines shall have a meaning
             1786      comparable to that provided in this subsection with respect to cattle, sheep, swine, and goats.
             1787          (20) "Misbranded" means any livestock product or poultry product that:
             1788          (a) bears a label that is false or misleading in any particular;
             1789          (b) is offered for sale under the name of another food;
             1790          (c) is an imitation of another food, unless the label bears, in type of uniform size and
             1791      prominence, the word "imitation" followed by the name of the food imitated;
             1792          (d) if its container is so made, formed, or filled as to be misleading;
             1793          (e) does not bear a label showing:


             1794          (i) the name and place of business of the manufacturer, packer, or distributor; and
             1795          (ii) an accurate statement of the quantity of the product in terms of weight, measure, or
             1796      numerical count; provided, that under this Subsection (20)(e), exemptions as to livestock
             1797      products not in containers may be established by rules of the department and that under this
             1798      Subsection (20)(e)(ii), reasonable variations may be permitted, and exemptions for small
             1799      packages may be established for livestock or poultry products by rule of the department;
             1800          (f) does not bear any word, statement, or other information required by or under
             1801      authority of this chapter to appear on the label or other labeling is not prominently placed with
             1802      such conspicuousness, as compared with other words, statements, designs, or devices, in the
             1803      labeling, and in such terms as to render it likely to be read and understood by the ordinary
             1804      individual under customary conditions of purchase and use;
             1805          (g) is a food for which a definition and standard of identity or composition has been
             1806      prescribed by rules of the department under Section 4-32-7 if the food does not conform to
             1807      such definition and standard and the label does not bear the name of the food and any other
             1808      information that is required by the rule;
             1809          (h) is a food for which a standard of fill has been prescribed by rule of the department
             1810      for the container and the actual fill of the container falls below that prescribed unless its label
             1811      bears, in such manner and form as such rules specify, a statement that it falls below such
             1812      standard;
             1813          (i) is a food for which no standard or definition of identity has been prescribed under
             1814      Subsection (20)(g) unless its label bears:
             1815          (i) the common or usual name of the food, if there be any; and
             1816          (ii) if it is fabricated from two or more ingredients, the common or usual name of each
             1817      such ingredient; except that spices, flavorings, and colorings may, when authorized by the
             1818      department, be designated as spices, flavorings, and colorings without naming each; provided,
             1819      that to the extent that compliance with the requirements of Subsection (20)(i)(ii) is
             1820      impracticable, or results in deception or unfair competition, exemptions shall be established by
             1821      rule;


             1822          (j) is a food that purports to be or is represented to be for special dietary uses, unless
             1823      its label bears such information concerning its vitamin, mineral, and other dietary properties as
             1824      the department, after consultation with the Secretary of Agriculture of the United States,
             1825      prescribes by rules as necessary to inform purchasers as to its value for such uses;
             1826          (k) bears or contains any artificial flavoring, artificial coloring, or chemical
             1827      preservative, unless it bears labeling stating that fact; provided, that to the extent that
             1828      compliance with the requirements of this subsection are impracticable, exemptions shall be
             1829      prescribed by rules of the department; or
             1830          (l) does not bear directly thereon and on its containers, as the department may
             1831      prescribe by rule, the official inspection legend and establishment number of the official
             1832      establishment where the product was prepared, and, unrestricted by any of the foregoing, such
             1833      other information as the department may require by rules to assure that it will not have false or
             1834      misleading labeling and that the public will be informed of the manner of handling required to
             1835      maintain it in a wholesome condition.
             1836          (21) "Official certificate" means any certificate prescribed by rules of the department
             1837      for issuance by an inspector or other person performing official functions under this chapter.
             1838          (22) "Official device" means any device prescribed or authorized by the commissioner
             1839      for use in applying any official mark.
             1840          (23) "Official establishment" means any establishment at which inspection of the
             1841      slaughter of livestock or the preparation of livestock products is maintained under the
             1842      authority of this chapter.
             1843          (24) "Official inspection legend" means any symbol prescribed by rules of the
             1844      department showing that a livestock product was inspected and passed in accordance with this
             1845      chapter.
             1846          (25) "Official mark" means the official legend or any other symbol prescribed by rules
             1847      of the department to identify the status of any livestock or livestock product under this
             1848      chapter.
             1849          (26) "Permittee" means a person who holds a valid farm custom slaughter permit.


             1850          (27) "Pesticide chemical," "food additive," "color additive," and "raw agricultural
             1851      commodity," have the same meanings for purposes of this chapter as ascribed to them in the
             1852      Federal Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. 301 et seq.
             1853          (28) "Poultry" means any domesticated bird, whether living or dead.
             1854          (29) "Poultry product" means any product capable of use as human food that is made
             1855      wholly or in part from any poultry carcass, excepting products that contain poultry ingredients
             1856      in relatively small proportion or that historically have not been considered by consumers as
             1857      products of the poultry food industry, and that are exempted from definition as a poultry
             1858      product by the commissioner.
             1859          (30) "Prepared" means slaughtered, canned, salted, stuffed, rendered, boned, cut up, or
             1860      otherwise manufactured or processed.
             1861          (31) "Renderer" means any person engaged in the business of rendering livestock
             1862      carcasses, or parts or products of such carcasses, except rendering conducted under inspection
             1863      or exemption under this chapter.
             1864          (32) "Slaughter" means the killing of livestock or poultry in a humane manner
             1865      including skinning, dressing, or the process of performing any of the specified acts in
             1866      preparing livestock or poultry for human consumption.
             1867          (33) "Slaughterhouse" or "custom slaughterhouse" means any building, plant, or
             1868      establishment used for the purpose of killing, dressing, or processing, whether such dressing or
             1869      processing is in conjunction with a killing operation or is a separate business, livestock or
             1870      livestock products or poultry or poultry products offered for sale or to be used for human
             1871      consumption.
             1872          (34) "Slaughtering of livestock or poultry as a business" means the slaughtering of
             1873      livestock or poultry for the owner or caretaker of the livestock or poultry by a person who is
             1874      not a full-time employee of the owner or caretaker of such livestock or poultry.
             1875          Section 43. Section 4-32-7 is amended to read:
             1876           4-32-7. Mandatory functions, powers, and duties of department prescribed.
             1877          The department shall make rules pursuant to Title 63G, Chapter 3, Utah Administrative


             1878      Rulemaking Act, regarding the following functions, powers, and duties, in addition to those
             1879      specified in Title 4, Chapter 1, Utah Agricultural Code, for the administration and
             1880      enforcement of this chapter:
             1881          (1) The department shall require antemortem and postmortem inspections, quarantine,
             1882      segregation, and reinspections by inspectors appointed for those purposes with respect to the
             1883      slaughter of livestock and poultry and the preparation of livestock and poultry products at
             1884      official establishments, except as provided in Subsection 4-32-8 (13).
             1885          (2) The department shall require that:
             1886          (a) livestock and poultry be identified for inspection purposes;
             1887          (b) livestock or poultry products, or their containers be marked or labeled as:
             1888          (i) "Utah Inspected and Passed" if, upon inspection, the products are found to be
             1889      unadulterated; and
             1890          (ii) "Utah Inspected and Condemned" if, upon inspection, the products are found to be
             1891      adulterated; and
             1892          (c) condemned products, which otherwise would be used for human consumption, be
             1893      destroyed under the supervision of an inspector.
             1894          (3) The department shall prohibit or limit livestock products, poultry products, or
             1895      other materials not prepared under inspection procedures provided in this chapter, from being
             1896      brought into official establishments.
             1897          (4) The department shall require that labels and containers for livestock and poultry
             1898      products:
             1899          (a) bear all information required under Section 4-32-3 if the product leaves the official
             1900      establishment; and
             1901          (b) be approved prior to sale or transportation.
             1902          (5) For official establishments required to be inspected under Subsection (1), the
             1903      department shall:
             1904          (a) prescribe sanitary standards;
             1905          (b) require experts in sanitation or other competent investigators to investigate sanitary


             1906      conditions; and
             1907          (c) refuse to provide inspection service if the sanitary conditions allow adulteration of
             1908      any livestock or poultry product.
             1909          (6) (a) The department shall require that any person engaged in a business referred to
             1910      in Subsection (6)(b) shall:
             1911          (i) keep accurate records disclosing all pertinent business transactions;
             1912          (ii) allow inspection of the business premises at reasonable times and examination of
             1913      inventory, records, and facilities; and
             1914          (iii) allow inventory samples to be taken after payment of their fair market value.
             1915          (b) Subsection (6)(a) shall refer to any person who:
             1916          (i) slaughters livestock or poultry;
             1917          (ii) prepares, freezes, packages, labels, buys, sells, transports, or stores any livestock or
             1918      poultry products for human or animal consumption;
             1919          (iii) renders livestock or poultry; or
             1920          (iv) buys, sells, or transports any dead, dying, disabled, or diseased livestock or
             1921      poultry, or parts of their carcasses that died by a method other than slaughter.
             1922          (7) (a) The department shall:
             1923          (i) adopt by reference rules and regulations under federal acts with changes that the
             1924      commissioner considers appropriate to make the rules and regulations applicable to operations
             1925      and transactions subject to this chapter; and
             1926          (ii) promulgate any other rules considered necessary for the efficient execution of the
             1927      provisions of this chapter, including rules of practice providing an opportunity for hearing in
             1928      connection with the issuance of orders under Subsection (5) or under Subsection 4-32-8 (1),
             1929      (2), or (3) and prescribing procedures for proceedings in these cases.
             1930          (b) These procedures [shall not] do not preclude requiring that a label or container be
             1931      withheld from use, or inspection be refused under Subsections (1) and (5), or Subsection
             1932      4-32-8 (3), pending issuance of a final order in the proceeding.
             1933          (8) (a) To prevent the inhumane slaughtering of livestock and poultry, inspectors shall


             1934      be appointed to examine and inspect methods of handling and slaughtering livestock and
             1935      poultry.
             1936          (b) Inspection of new slaughtering establishments may be refused or temporarily
             1937      suspended if livestock or poultry have been slaughtered or handled by any method not in
             1938      accordance with the Humane Methods of Slaughter Act of 1978, Public Law 95-445.
             1939          (9) (a) The department shall require all livestock and poultry showing symptoms of
             1940      disease during antemortem inspection, performed by an inspector appointed for that purpose,
             1941      to be set apart and slaughtered separately from other livestock and poultry.
             1942          (b) When slaughtered, the carcasses of livestock and poultry shall be subject to careful
             1943      examination and inspection in accordance with rules prescribed by the commissioner.
             1944          Section 44. Section 4-32-16 is amended to read:
             1945           4-32-16. Detention of animals or livestock or poultry products -- Removal of
             1946      official marks.
             1947          Whenever any livestock or poultry product or any product exempted from the
             1948      definition of a livestock or poultry product, or any dead, dying, disabled, or diseased livestock
             1949      or poultry, is found by any authorized representative of the commissioner, and there is reason
             1950      to believe that it is adulterated or misbranded and is capable of use as human food, or that it
             1951      has not been inspected and passed, or that it has been or is intended to be distributed in
             1952      violation of this chapter, it may be detained by such representative pending action under
             1953      Section 4-32-17 , and [shall not] may not be moved by any person from the place at which it is
             1954      located when so detained, until released by such representative. All official marks may be
             1955      required by such representative to be removed from such product or animal before it is
             1956      released.
             1957          Section 45. Section 4-32-22 is amended to read:
             1958           4-32-22. Animals slaughtered or the meat and poultry products not intended for
             1959      human use -- No inspection -- Products to be denatured or otherwise identified.
             1960          Inspection [shall not] may not be provided under this chapter at any establishment for
             1961      the slaughter of livestock or poultry or the preparation of any livestock products or poultry


             1962      products that are not intended for use as human food, but such products shall be denatured or
             1963      otherwise identified as prescribed by rules of the department prior to their offer for sale or
             1964      transportation.
             1965          Section 46. Section 4-35-7 is amended to read:
             1966           4-35-7. Notice to owner or occupant -- Corrective action required -- Directive
             1967      issued by department -- Costs -- Owner or occupant may prohibit spraying.
             1968          (1) The department or an authorized agent of the department shall notify the owner or
             1969      occupant of the problem and the available alternatives to remedy the problem. The owner or
             1970      occupant [must] shall take corrective action within 30 days.
             1971          (2) If the owner or occupant fails to take corrective action under Subsection (1), the
             1972      department may issue a directive for corrective action which [must] shall be taken within 15
             1973      days. If the owner or occupant fails to act within the required time, the department shall take
             1974      the necessary action. The department may recover costs incurred for controlling an insect
             1975      infestation emergency from the owner or occupant of the property on whose property
             1976      corrective action was taken.
             1977          (3) Owners or occupants of property may prohibit spraying by presenting an affidavit
             1978      from their attending physician to the department which states that the spraying as planned is a
             1979      danger to their health. The department shall provide the owner or occupant with alternatives
             1980      to spraying which will abate the infestation.
             1981          Section 47. Section 4-37-102 is amended to read:
             1982           4-37-102. Purpose statement -- Aquaculture considered a branch of agriculture.
             1983          (1) The Legislature declares that it is in the interest of the people of the state to
             1984      encourage the practice of aquaculture, while protecting the public fishery resource, in order to
             1985      augment food production, expand employment, promote economic development, and protect
             1986      and better utilize the land and water resources of the state.
             1987          (2) The Legislature further declares that aquaculture [should be] is considered a
             1988      branch of the agricultural industry of the state for purposes of any laws that apply to or provide
             1989      for the advancement, benefit, or protection of the agricultural industry within the state.


             1990          Section 48. Section 4-37-109 is amended to read:
             1991           4-37-109. Department to make rules.
             1992          (1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             1993      Administrative Rulemaking Act:
             1994          (a) specifying procedures for the application and renewal of certificates of registration
             1995      for operating an aquaculture or fee fishing facility; and
             1996          (b) governing the disposal or removal of aquatic animals from an aquaculture or fee
             1997      fishing facility for which the certificate of registration has lapsed or been revoked.
             1998          (2) (a) The department may make other rules consistent with its responsibilities set
             1999      forth in Section 4-37-104 .
             2000          (b) Except as provided by this chapter, the rules authorized by Subsection (2)(a)
             2001      [must] shall be consistent with the suggested procedures for the detection and identification of
             2002      pathogens published by the American Fisheries Society's Fish Health Section.
             2003          Section 49. Section 4-37-110 is amended to read:
             2004           4-37-110. Inspection of records and facilities.
             2005          (1) The following records and information [must] shall be maintained by an
             2006      aquaculture or fee fishing facility for a period of two years and [must] shall be available for
             2007      inspection by a department representative during reasonable hours:
             2008          (a) records of purchase, acquisition, distribution, and production histories of aquatic
             2009      animals;
             2010          (b) certificate of registration; and
             2011          (c) valid identification of stocks, including origin of stocks.
             2012          (2) Department representatives may conduct pathological, fish culture, or physical
             2013      investigations at any aquaculture, public aquaculture, or fee fishing facility during reasonable
             2014      hours.
             2015          Section 50. Section 4-37-202 is amended to read:
             2016           4-37-202. Acquisition of aquatic animals for use in aquaculture facilities.
             2017          (1) Live aquatic animals intended for use in aquaculture facilities may be purchased or


             2018      acquired only from:
             2019          (a) aquaculture facilities within the state that have a certificate of registration and
             2020      health approval number;
             2021          (b) public aquaculture facilities within the state that have a health approval number; or
             2022          (c) sources outside the state that are health approved as provided in Part 5.
             2023          (2) A person holding a certificate of registration for an aquaculture facility [must]
             2024      shall submit annually to the department a record of each purchase of live aquatic animals and
             2025      transfer of live aquatic animals into the facility. This record [must] shall include the following
             2026      information:
             2027          (a) name, address, and health approval number of the source;
             2028          (b) date of transaction; and
             2029          (c) number and weight by species.
             2030          (3) The records required by Subsection (2) [must] shall be submitted to the department
             2031      before a certificate of registration is renewed or a subsequent certificate of registration is
             2032      issued.
             2033          Section 51. Section 4-37-203 is amended to read:
             2034           4-37-203. Transportation of aquatic animals to or from aquaculture facilities.
             2035          (1) Any person holding a certificate of registration for an aquaculture facility may
             2036      transport the live aquatic animals specified on the certificate of registration to the facility or to
             2037      any person who has been issued a certificate of registration to possess those aquatic animals.
             2038          (2) Each transfer or shipment of live aquatic animals from or to an aquaculture facility
             2039      within the state [must] shall be accompanied by documentation of the source and destination
             2040      of the fish, including:
             2041          (a) name, address, certificate of registration number and health approval number of the
             2042      source;
             2043          (b) number and weight being shipped, by species; and
             2044          (c) name, address, and certificate of registration number of the destination.
             2045          Section 52. Section 4-37-204 is amended to read:


             2046           4-37-204. Sale of aquatic animals from aquaculture facilities.
             2047          (1) (a) Except as provided by Subsection (1)(b), a person holding a certificate of
             2048      registration for an aquaculture facility may take an aquatic animal as approved on the
             2049      certificate of registration from the facility at any time and offer the aquatic animal for sale;
             2050      however, live aquatic animals may be sold within Utah only to a person who has been issued a
             2051      certificate of registration to possess the aquatic animal.
             2052          (b) A person who owns or operates an aquaculture facility may stock a live aquatic
             2053      animal in a private fish pond if the person:
             2054          (i) obtains a health approval number for the aquaculture facility;
             2055          (ii) provides the private fish pond's owner with a brochure published by the Division
             2056      of Wildlife Resources that summarizes the statutes and rules related to a private fish pond and
             2057      the possession of an aquatic animal;
             2058          (iii) inspects the private fish pond to verify that the private fish pond is in compliance
             2059      with Subsections 23-15-10 (2) and (3)(c); and
             2060          (iv) stocks the species, strain, and reproductive capability of aquatic animal authorized
             2061      by the Wildlife Board in accordance with Section 23-15-10 for stocking in the area where the
             2062      private fish pond is located.
             2063          (2) An aquatic animal sold or transferred by the owner or operator of an aquaculture
             2064      facility [must] shall be accompanied by the seller's receipt that contains the following
             2065      information:
             2066          (a) date of transaction;
             2067          (b) name, address, certificate of registration number, health approval number, and
             2068      signature of seller;
             2069          (c) number and weight of aquatic animal by:
             2070          (i) species;
             2071          (ii) strain; and
             2072          (iii) reproductive capability; and
             2073          (d) name and address of the receiver.


             2074          (3) (a) A person holding a certificate of registration for an aquaculture facility [must]
             2075      shall submit to the department an annual report of each sale of live aquatic animals or each
             2076      transfer of live aquatic animals to:
             2077          (i) another aquaculture facility; or
             2078          (ii) a fee fishing facility.
             2079          (b) The report [must] shall contain the following information:
             2080          (i) name, address, and certificate of registration number of the seller or supplier;
             2081          (ii) number and weight by species;
             2082          (iii) date of sale or transfer; and
             2083          (iv) name, address, phone number, and certificate of registration number of the
             2084      receiver.
             2085          (4) (a) A person who owns or operates an aquaculture facility shall submit to the
             2086      Division of Wildlife Resources an annual report of each sale or transfer of a live aquatic
             2087      animal to a private fish pond.
             2088          (b) The report shall contain:
             2089          (i) the name, address, and health approval number of the person;
             2090          (ii) the name, address, and phone number of the private fish pond's owner or operator;
             2091          (iii) the number and weight of aquatic animal by:
             2092          (A) species;
             2093          (B) strain; and
             2094          (C) reproductive capability;
             2095          (iv) date of sale or transfer;
             2096          (v) the private fish pond's location; and
             2097          (vi) verification that the private fish pond was inspected and is in compliance with
             2098      Subsections 23-15-10 (2) and (3)(c).
             2099          (5) The reports required by Subsections (3) and (4) [must] shall be submitted before:
             2100          (a) a certificate of registration is renewed or a subsequent certificate of registration is
             2101      issued for an aquaculture facility in the state; or


             2102          (b) a health approval number is issued for an out-of-state source.
             2103          Section 53. Section 4-37-302 is amended to read:
             2104           4-37-302. Acquisition of aquatic animals for use in fee fishing facilities.
             2105          (1) Live aquatic animals intended for use in fee fishing facilities may be purchased or
             2106      acquired only from:
             2107          (a) aquaculture facilities within the state that have a certificate of registration and
             2108      health approval number;
             2109          (b) public aquaculture facilities within the state that have a health approval number; or
             2110          (c) sources outside the state that are health approved pursuant to Part 5.
             2111          (2) (a) A person holding a certificate of registration for a fee fishing facility [must]
             2112      shall submit to the department an annual report of all live fish purchased or acquired.
             2113          (b) The report [must] shall contain the following information:
             2114          (i) name, address, and certificate of registration number of the seller or supplier;
             2115          (ii) number and weight by species;
             2116          (iii) date of purchase or transfer; and
             2117          (iv) name, address, and certificate of registration number of the receiver.
             2118          (c) The report [must] shall be submitted to the department before a certificate of
             2119      registration is renewed or subsequent certificate of registration is issued.
             2120          Section 54. Section 4-37-303 is amended to read:
             2121           4-37-303. Transportation of live aquatic animals to fee fishing facilities.
             2122          (1) Any person holding a certificate of registration for a fee fishing facility may
             2123      transport the live aquatic animals specified on the certificate of registration to the facility.
             2124          (2) Each transfer or shipment of live aquatic animals to a fee fishing facility within the
             2125      state [must] shall be accompanied by documentation of the source and destination of the fish,
             2126      including:
             2127          (a) name, address, certificate of registration number and health approval number of the
             2128      source;
             2129          (b) number and weight being shipped by species; and


             2130          (c) name, address, and certificate of registration number of the destination.
             2131          Section 55. Section 4-37-305 is amended to read:
             2132           4-37-305. Fishing license not required to fish at fee fishing facilities --
             2133      Transportation of dead fish.
             2134          (1) A fishing license is not required to take fish from fee fishing facilities.
             2135          (2) To transport dead fish from fee fishing facilities the fish [must] shall be
             2136      accompanied by the seller's receipt containing the following information:
             2137          (a) species and number of fish;
             2138          (b) date caught;
             2139          (c) certificate of registration number of the fee fishing facility; and
             2140          (d) name, address, and telephone number of the seller.
             2141          Section 56. Section 4-37-402 is amended to read:
             2142           4-37-402. Documentation required to import aquatic animals.
             2143          Any aquatic animals classified as controlled species by rules of the Wildlife Board that
             2144      are imported into the state for use in aquaculture or fee fishing facilities [must] shall be
             2145      accompanied by documentation indicating the following:
             2146          (1) the health approval number assigned by the department to the source facility;
             2147          (2) common or scientific names of the imported animals;
             2148          (3) name and address of the consignor and consignee;
             2149          (4) origin of shipment;
             2150          (5) final destination;
             2151          (6) number or pounds shipped;
             2152          (7) purpose for which shipped;
             2153          (8) method of transportation; and
             2154          (9) any other information required by the department.
             2155          Section 57. Section 4-37-502 is amended to read:
             2156           4-37-502. Inspections -- Health approval report -- Report for quarantine facility
             2157      -- Qualifications of inspectors -- Notification of department.


             2158          (1) (a) Except as provided by Subsection (1)(b), approval shall be based upon
             2159      inspections carried out in accordance with standards and rules of the Fish Health Policy Board
             2160      made pursuant to Section 4-37-503 .
             2161          (b) An owner or operator of an aquaculture facility that is under quarantine or whose
             2162      health approval has been canceled or denied prior to July 1, 2007 may seek health approval
             2163      without submitting or complying with a biosecurity plan required by rule by submitting a new
             2164      health inspection report to the department.
             2165          (2) (a) The inspections [must] shall be done by an individual who has received
             2166      certification from the American Fisheries Society as a fish health inspector.
             2167          (b) An inspection of an aquaculture facility may not be done by an inspector who is
             2168      employed by, or has pecuniary interest in, the facility being inspected.
             2169          (c) The department shall post on its website a current list of:
             2170          (i) certified fish health inspectors; and
             2171          (ii) approved laboratories to which a fish health inspector may send the samples
             2172      collected during the inspections required by this section.
             2173          (d) (i) If the fish health inspector conducting the inspection is not an employee of the
             2174      department, the owner or operator of the aquaculture facility shall notify the department of the
             2175      date and time of the inspection at least five business days before the date on which the
             2176      inspection will occur.
             2177          (ii) The department may be present for the inspection.
             2178          (3) To receive a health approval number, inspection reports and other evidence of the
             2179      disease status of a source facility [must] shall be submitted to the agency responsible for
             2180      certifying the source as health approved pursuant to Section 4-37-501 .
             2181          Section 58. Section 4-37-503 is amended to read:
             2182           4-37-503. Fish Health Policy Board.
             2183          (1) There is created within the department the Fish Health Policy Board which shall
             2184      establish policies designed to prevent the outbreak of, control the spread of, and eradicate
             2185      pathogens that cause disease in aquatic animals.


             2186          (2) The Fish Health Policy Board shall:
             2187          (a) in accordance with Subsection (6)(b), determine procedures and requirements for
             2188      certifying a source of aquatic animals as health approved, including:
             2189          (i) the pathogens for which inspection is required to receive health approval;
             2190          (ii) the pathogens that may not be present to receive health approval; and
             2191          (iii) standards and procedures required for the inspection of aquatic animals;
             2192          (b) establish procedures for the timely reporting of the presence of a pathogen and
             2193      disease threat;
             2194          (c) create policies and procedures for, and appoint, an emergency response team to:
             2195          (i) investigate a serious disease threat;
             2196          (ii) develop and monitor a plan of action; and
             2197          (iii) report to:
             2198          (A) the commissioner of agriculture and food;
             2199          (B) the director of the Division of Wildlife Resources; and
             2200          (C) the chair of the Fish Health Policy Board; and
             2201          (d) develop a unified statewide aquaculture disease control plan.
             2202          (3) The Fish Health Policy Board shall advise the commissioner of agriculture and
             2203      food and the executive director of the Department of Natural Resources regarding:
             2204          (a) educational programs and information systems to educate and inform the public
             2205      about practices that the public may employ to prevent the spread of disease; and
             2206          (b) communication and interaction between the department and the Division of
             2207      Wildlife Resources regarding fish health policies and procedures.
             2208          (4) (a) (i) The governor shall appoint the following seven members to the Fish Health
             2209      Policy Board:
             2210          (A) one member from names submitted by the Department of Natural Resources;
             2211          (B) one member from names submitted by the Department of Agriculture and Food;
             2212          (C) one member from names submitted by a nonprofit corporation that promotes sport
             2213      fishing;


             2214          (D) one member from names submitted by a nonprofit corporation that promotes the
             2215      aquaculture industry;
             2216          (E) one member from names submitted by the Department of Natural Resources and
             2217      the Department of Agriculture and Food;
             2218          (F) one member from names submitted by a nonprofit corporation that promotes sport
             2219      fishing; and
             2220          (G) one member from names submitted by a nonprofit corporation that promotes the
             2221      aquaculture industry.
             2222          (ii) The members appointed under Subsections (4)(a)(i)(E) through (G) shall be:
             2223          (A) (I) faculty members of an institution of higher education; or
             2224          (II) qualified professionals; and
             2225          (B) have education and knowledge in:
             2226          (I) fish pathology;
             2227          (II) business;
             2228          (III) ecology; or
             2229          (IV) parasitology.
             2230          (iii) At least one member appointed under Subsections (4)(a)(i)(E) through (G) shall
             2231      have education and knowledge about fish pathology.
             2232          (iv) (A) A nominating person shall submit at least three names to the governor.
             2233          (B) If the governor rejects all the names submitted for a member, the recommending
             2234      person shall submit additional names.
             2235          (b) Except as required by Subsection (4)(c), the term of office of board members shall
             2236      be four years.
             2237          (c) Notwithstanding the requirements of Subsection (4)(b), the governor shall, at the
             2238      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             2239      board members are staggered so that approximately half of the board is appointed every two
             2240      years.
             2241          (d) When a vacancy occurs in the membership for any reason, the replacement shall be


             2242      appointed for the unexpired term.
             2243          (e) The board members shall elect a chair of the board from the board's membership.
             2244          (f) The board shall meet upon the call of the chair or a majority of the board members.
             2245          (g) An action of the board shall be adopted upon approval of the majority of voting
             2246      members.
             2247          (5) (a) (i) A member who is not a government employee may not receive compensation
             2248      or benefits for the member's service, but may receive per diem and expenses incurred in the
             2249      performance of the member's official duties at the rates established by the Division of Finance
             2250      under Sections 63A-3-106 and 63A-3-107 .
             2251          (ii) A member may decline to receive per diem and expenses for the member's service.
             2252          (b) (i) A state government officer and employee member who does not receive salary,
             2253      per diem, or expenses from the agency the member represents for the member's service may
             2254      receive per diem and expenses incurred in the performance of the member's official duties at
             2255      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2256          (ii) A state government officer and employee member may decline to receive per diem
             2257      and expenses for the member's service.
             2258          (c) (i) A higher education member who does not receive salary, per diem, or expenses
             2259      from the entity that the member represents for the member's service may receive per diem and
             2260      expenses incurred in the performance of the member's official duties at the rates established by
             2261      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2262          (ii) A higher education member may decline to receive per diem and expenses for the
             2263      member's service.
             2264          (6) (a) The board shall make rules consistent with its responsibilities and duties
             2265      specified in this section.
             2266          (b) Except as provided by this chapter, all rules adopted by the Fish Health Policy
             2267      Board [must] shall be consistent with the suggested procedures for the detection and
             2268      identification of pathogens published by the American Fisheries Society's Fish Health Section.
             2269          (c) (i) Rules of the department and Fish Health Policy Board pertaining to the control


             2270      of disease shall remain in effect until the Fish Health Policy Board enacts rules to replace
             2271      those provisions.
             2272          (ii) The Fish Health Policy Board shall promptly amend rules that are inconsistent
             2273      with the current suggested procedures published by the American Fisheries Society.
             2274          (d) The Fish Health Policy Board may waive a requirement established by the Fish
             2275      Health Policy Board's rules if:
             2276          (i) the rule specifies the waiver criteria and procedures; and
             2277          (ii) the waiver will not threaten other aquaculture facilities or wild aquatic animal
             2278      populations.
             2279          Section 59. Section 4-39-201 is amended to read:
             2280           4-39-201. Fencing, posts, and gates.
             2281          (1) Each domesticated elk facility shall, at a minimum, meet the requirements of this
             2282      section and shall be constructed to prevent the movement of domesticated elk into or out of the
             2283      facility.
             2284          (2) (a) All perimeter fences and gates shall be:
             2285          (i) a minimum of eight feet above ground level; and
             2286          (ii) constructed of hi-tensile steel.
             2287          (b) At least the bottom four feet [must] shall be mesh with a maximum mesh size of 6"
             2288      x 6".
             2289          (c) The remaining four feet shall be mesh with a maximum mesh size of 12" x 6".
             2290          (3) The minimum wire gauge shall be 14-1/2 gauge for a 2 woven hi-tensile fence.
             2291          (4) All perimeter gates at the entrances of domesticated elk handling facilities shall be
             2292      locked, with consecutive or self-closing gates when animals are present.
             2293          (5) Posts shall be:
             2294          (a) (i) constructed of treated wood which is at least four inches in diameter; or
             2295          (ii) constructed of a material with the strength equivalent of Subsection (5)(a)(i);
             2296          (b) spaced no more than 30 feet apart if one stay is used, or 20 feet apart if no stays are
             2297      used; and


             2298          (c) at least eight feet above ground level and two feet below ground level.
             2299          (6) Stays, between the posts, shall be:
             2300          (a) constructed of treated wood or steel;
             2301          (b) spaced no more than 15 feet from any post; and
             2302          (c) at least eight feet above ground level, and two feet below ground level.
             2303          (7) Corner posts and gate posts shall be braced wood or its strength equivalent.
             2304          Section 60. Section 4-39-205 is amended to read:
             2305           4-39-205. License renewal.
             2306          (1) To renew a license, the licensee [must] shall submit to the department:
             2307          (a) an inspection certificate showing that:
             2308          (i) the domesticated elk, on the domesticated elk facility, have been inspected and
             2309      certified by the department for health, proof of ownership, and genetic purity; and
             2310          (ii) the facility has been properly maintained as provided in this chapter during the
             2311      immediately preceding 60-day period; and
             2312          (b) a record of each purchase of domesticated elk and transfer of domesticated elk into
             2313      the facility, which [must] shall include the following information:
             2314          (i) name, address, and health approval number of the source;
             2315          (ii) date of transaction; and
             2316          (iii) number and sex.
             2317          (2) (a) If the application for renewal is not received on or before April 30, a late fee
             2318      will be charged.
             2319          (b) A license may not be renewed until the fee is paid.
             2320          (3) If the application and fee for renewal are not received on or before July 1, the
             2321      license may not be renewed, and a new license shall be required.
             2322          Section 61. Section 4-39-206 is amended to read:
             2323           4-39-206. Records to be maintained.
             2324          (1) The following records and information [must] shall be maintained by a
             2325      domesticated elk facility for a period of five years:


             2326          (a) records of purchase, acquisition, distribution, and production histories of
             2327      domesticated elk;
             2328          (b) records documenting antler harvesting, production, and distribution; and
             2329          (c) health certificates and genetic purity records.
             2330          (2) For purposes of carrying out the provisions of this chapter and rules promulgated
             2331      under this chapter and, at any reasonable time during regular business hours, the department
             2332      shall have free and unimpeded access to inspect all records required to be kept.
             2333          (3) The department may make copies of the records referred to in this section.
             2334          Section 62. Section 4-39-302 is amended to read:
             2335           4-39-302. Acquisition of domesticated elk for use in domesticated elk facilities.
             2336          Domesticated elk intended for use in domesticated elk facilities [must] shall meet all
             2337      health and genetic requirements of this chapter.
             2338          Section 63. Section 4-39-304 is amended to read:
             2339           4-39-304. Marking domesticated elk.
             2340          (1) Each domesticated elk, not previously tattooed, [must] shall be marked by either a
             2341      tattoo, as provided in Subsection (2), or by a microchip, as provided in Subsection (3):
             2342          (a) within 30 days of a change of ownership; or
             2343          (b) in the case of newborn calves, within 15 days after being weaned, but in any case,
             2344      no later than September 15.
             2345          (2) If a domesticated elk is identified with a tattoo, the tattoo shall:
             2346          (a) be placed peri-anally or inside the right ear; and
             2347          (b) consist of a four-digit herd number assigned by the department over a three-digit
             2348      individual animal number assigned by the owner.
             2349          (3) If a domesticated elk is identified with a microchip, it [must] shall be placed in the
             2350      right ear.
             2351          Section 64. Section 4-39-305 is amended to read:
             2352           4-39-305. Transportation of domesticated elk to or from domesticated elk
             2353      facilities.


             2354          Any domesticated elk transferred to or from a domesticated elk facility within the state
             2355      [must] shall be:
             2356          (1) accompanied by a brand inspection certificate specifying the following:
             2357          (a) the name, address, and facility license number of the source;
             2358          (b) number, sex, and individual identification number; and
             2359          (c) name, address, and facility license number of the destination;
             2360          (2) accompanied by proof of genetic purity as provided in Section 4-39-301 ; and
             2361          (3) inspected by the department as provided in Section 4-39-306 .
             2362          Section 65. Section 4-39-306 is amended to read:
             2363           4-39-306. Inspection prior to movement, sale, removal of antlers, or slaughter.
             2364          (1) Each domesticated elk facility licensee shall have the domesticated elk inspected
             2365      by the department prior to any transportation, sale, removal of antlers, or slaughter.
             2366          (2) Any person transporting or possessing domesticated elk or domesticated elk
             2367      products [must] shall have the appropriate brand inspection certificate in his or her possession.
             2368          Section 66. Section 6-1-3 is amended to read:
             2369           6-1-3. Assignment to be written -- Contents -- Recording.
             2370          Every such assignment shall be by an instrument in writing, setting forth the name of
             2371      the assignor, his residence and business, the name of the assignee and his residence and
             2372      business, and in a general way describing the property assigned with its location, and stating
             2373      the purpose of the assignment. It shall be executed and acknowledged in the manner
             2374      prescribed for the execution and acknowledgment of deeds, and recorded in the office of the
             2375      recorder of the county where the property assigned is located. The assignor shall annex to such
             2376      instrument an inventory, under oath, of his estate, real and personal, according to the best of
             2377      his knowledge, and a list of his creditors and the amount of their respective demands; but such
             2378      inventory [shall not be] is not conclusive as to the amount of the debtor's estate, and such
             2379      assignment shall vest in the assignee the title to any other property belonging to the debtor at
             2380      the time of making the assignment, except property exempt from execution and insurance
             2381      upon the life of the assignor, unless the instrument mentions such exempt property and


             2382      insurance and declares an intention of the assignor that they shall pass thereby. As soon as
             2383      such instrument is recorded it shall be filed, with the inventory and list of creditors, in the
             2384      office of the clerk of the district court of the county in which the property so assigned is
             2385      located; as shall all subsequent papers connected with such proceedings.
             2386          Section 67. Section 6-1-9 is amended to read:
             2387           6-1-9. Taxes to be paid.
             2388          In all assignments of property for the benefit of creditors, assessments and taxes levied
             2389      thereon either under the laws of the state or ordinances of municipal corporations shall be
             2390      entitled to priority, and paid in full by the assignee, and claims therefor need not be filed with
             2391      him.
             2392          Section 68. Section 6-1-15 is amended to read:
             2393           6-1-15. Debts not matured -- Delay in filing claims.
             2394          Any creditor may claim debts to become due as well as debts due, but on debts not due
             2395      a reasonable rebate shall be made when the same are not drawing interest. Creditors who [shall
             2396      not] do not file their claims within three months from the publication of notice as aforesaid
             2397      [shall not] may not participate in dividends until after payment in full of all claims presented
             2398      within said time and allowed by the court, unless the court has extended the time for filing
             2399      such claims.
             2400          Section 69. Section 7-1-303 is amended to read:
             2401           7-1-303. Joint operations and information exchange by institutions.
             2402          The commissioner may authorize institutions subject to the jurisdiction of the
             2403      department to engage in such joint and cooperative actions as the commissioner finds will be
             2404      in the public interest, [such as, but not limited to] including:
             2405          (1) mutual exchange of financial information as to depositors, borrowers, and other
             2406      customers;
             2407          (2) joint use of facilities;
             2408          (3) joint operation of clearing houses and other facilities for payment of checks, drafts,
             2409      or other instruments drawn on or issued by various classes of depository institutions;


             2410          (4) joint participation in lending programs to promote the public welfare;
             2411          (5) joint risk management services; and
             2412          (6) joint ownership, operation, or furnishing of electronic funds transfer services.
             2413          Section 70. Section 7-1-309 is amended to read:
             2414           7-1-309. Hearings by commissioner -- Discretion of commissioner -- Procedure --
             2415      Judicial review.
             2416          The commissioner may conduct or cause to be conducted hearings relating to matters
             2417      within his supervisory jurisdiction and shall establish rules for discovery and other procedures
             2418      applicable to the hearings consistent with the provisions of the Utah Rules of Civil Procedure.
             2419      The decision whether or not to hold a formal hearing on any matter coming before the
             2420      commissioner under this title shall be solely within the discretion of the commissioner. His
             2421      failure or refusal to hold a formal hearing [shall not be] is not a ground for reversal of any
             2422      decision or order of the commissioner unless the reviewing court finds that such failure or
             2423      refusal has deprived an interested party of due process of law, or that a formal hearing is
             2424      required by the provisions of this title.
             2425          Section 71. Section 7-1-607 is amended to read:
             2426           7-1-607. Lost or destroyed account book or certificate.
             2427          If the holder of record of an account as shown by the books of a depository institution,
             2428      or his legal representative, files with the institution an affidavit to the effect that the account
             2429      book or certificate has been lost or destroyed and has not been pledged or assigned in whole or
             2430      in part, the institution shall issue a new account book or certificate in the name of the holder of
             2431      record. The new account book or certificate shall state that it is issued in lieu of the one lost or
             2432      destroyed. The institution [shall not be] is not liable thereafter on the original account book or
             2433      certificate. However, the board of directors of the institution shall, if in its judgment it is
             2434      necessary, require a bond in an amount it considers sufficient to indemnify the institution
             2435      against any loss which might result from the issuance of the new account book or certificate.
             2436          Section 72. Section 7-1-612 is amended to read:
             2437           7-1-612. Pledge or hypothecation of joint savings accounts.


             2438          The pledge or hypothecation to any depository institution of all or part of a savings
             2439      account in joint tenancy signed by any tenant or tenants whether minor or adult, upon whose
             2440      signature or signatures withdrawals may be made from the account shall, unless the terms of
             2441      the savings account provide specifically to the contrary, be a valid pledge and transfer to the
             2442      institution of that part of the account pledged or hypothecated, and [shall not] does not operate
             2443      to sever or terminate the joint and survivorship ownership of all or any part of the account.
             2444          Section 73. Section 7-1-806 is amended to read:
             2445           7-1-806. Money market funds arranging with bank to honor two-party
             2446      instruments -- Discouraging payment of interest to two persons on funds in transit --
             2447      Pyramiding and similar schemes as misdemeanors.
             2448          Nothing in this act shall be construed to prevent money market funds from making
             2449      arrangements with banks to honor two party checks, drafts, or other instruments.
             2450          The commissioner shall exert his influence to discourage banks, money market funds
             2451      and other programs in Utah and throughout the United States from paying interest to two
             2452      persons at the same time on funds in the process of transfer.
             2453          The process or the practice referred to as pyramiding or any similar process or practice
             2454      as defined by the commissioner, and such definition is approved by the governor, shall be
             2455      prohibited within this state and persons found guilty of these schemes shall be found guilty of
             2456      a class C misdemeanor. This [shall not] does not preclude more serious punishment under
             2457      federal law.
             2458          Money market funds, similar funds and bank regulated institutions shall cooperate with
             2459      the commissioner to stop these practices.
             2460          Section 74. Section 7-2-9 is amended to read:
             2461           7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointment
             2462      of receiver -- Review of actions.
             2463          (1) Upon taking possession of the institution, the commissioner may appoint a
             2464      receiver to perform the duties of the commissioner. Subject to any limitations, conditions, or
             2465      requirements specified by the commissioner and approved by the court, a receiver shall have


             2466      all the powers and duties of the commissioner under this chapter and the laws of this state to
             2467      act as a conservator, receiver, or liquidator of the institution. Actions of the commissioner in
             2468      appointing a receiver shall be subject to review only as provided in Section 7-2-2 .
             2469          (2) (a) If the deposits of the institution are to any extent insured by a federal deposit
             2470      insurance agency, the commissioner may appoint that agency as receiver. After receiving
             2471      notice in writing of the acceptance of the appointment, the commissioner shall file a certificate
             2472      of appointment in the commissioner's office and with the clerk of the district court. After the
             2473      filing of the certificate, the possession of all assets, business, and property of the institution is
             2474      considered transferred from the institution and the commissioner to the agency, and title to all
             2475      assets, business, and property of the institution is vested in the agency without the execution of
             2476      any instruments of conveyance, assignment, transfer, or endorsement.
             2477          (b) If a federal deposit insurance agency accepts an appointment as receiver, it has all
             2478      the powers and privileges provided by the laws of this state and the United States with respect
             2479      to the conservatorship, receivership, or liquidation of an institution and the rights of its
             2480      depositors, and other creditors, including authority to make an agreement for the purchase of
             2481      assets and assumption of deposit and other liabilities by another depository institution or take
             2482      other action authorized by Title 12 of the United States Code to maintain the stability of the
             2483      banking system. Such action by a federal deposit insurance agency may be taken upon
             2484      approval by the court, with or without prior notice. Such actions or agreements may be
             2485      disapproved, amended, or rescinded only upon a finding by the court that the decisions or
             2486      actions of the receiver are arbitrary, capricious, fraudulent, or contrary to law. In the event of
             2487      any conflict between state and federal law, including provisions for adjudicating claims
             2488      against the institution or receiver, the receiver shall comply with the federal law and any
             2489      resulting violation of state law [shall not] does not by itself constitute grounds for the court to
             2490      disapprove the actions of the receiver or impose any penalty for such violation.
             2491          (c) The commissioner or any receiver appointed by him shall possess all the rights and
             2492      claims of the institution against any person whose breach of fiduciary duty or violations of the
             2493      laws of this state or the United States applicable to depository institutions may have caused or


             2494      contributed to a condition which resulted in any loss incurred by the institution or to its assets
             2495      in the possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary
             2496      duty includes those duties and standards applicable under statutes and laws of this state and
             2497      the United States to a director, officer, or other party employed by or rendering professional
             2498      services to a depository institution whose deposits are insured by a federal deposit insurance
             2499      agency. Upon taking possession of an institution, no person other than the commissioner or
             2500      receiver shall have standing to assert any such right or claim of the institution, including its
             2501      depositors, creditors, or shareholders unless the right or claim has been abandoned by the
             2502      commissioner or receiver with approval of the court. Any judgment based on the rights and
             2503      claims of the commissioner or receiver shall have priority in payment from the assets of the
             2504      judgment debtors.
             2505          (d) For the purposes of this section, the term "federal deposit insurance agency" shall
             2506      include the Federal Deposit Insurance Corporation, the National Credit Union Administration
             2507      and any departments thereof or successors thereto, and any other federal agency authorized by
             2508      federal law to act as a conservator, receiver, and liquidator of a federally insured depository
             2509      institution, including the Resolution Trust Corporation and any department thereof or
             2510      successor thereto.
             2511          (3) The receiver may employ assistants, agents, accountants, and legal counsel. If the
             2512      receiver is not a federal deposit insurance agency, the compensation to be paid such assistants,
             2513      agents, accountants, and legal counsel shall be approved by the commissioner. All expenses
             2514      incident to the receivership shall be paid out of the assets of the institution. If a receiver is not
             2515      a federal deposit insurance agency, the receiver and any assistants and agents shall provide
             2516      bond or other security specified by the commissioner and approved by the court for the faithful
             2517      discharge of all duties and responsibilities in connection with the receivership including the
             2518      accounting for money received and paid. The cost of the bond shall be paid from the assets of
             2519      the institution. Suit may be maintained on the bond by the commissioner or by any person
             2520      injured by a breach of the condition of the bond.
             2521          (4) (a) Upon the appointment of a receiver for an institution in possession pursuant to


             2522      this chapter, the commissioner and the department are exempt from liability or damages for
             2523      any act or omission of any receiver appointed pursuant to this section.
             2524          (b) This section does not limit the right of the commissioner to prescribe and enforce
             2525      rules regulating a receiver in carrying out its duties with respect to an institution subject to the
             2526      jurisdiction of the department.
             2527          (c) Any act or omission of the commissioner or of any federal deposit insurance
             2528      agency as a receiver appointed by him while acting pursuant to this chapter shall be deemed to
             2529      be the exercise of a discretionary function within the meaning of Section 63G-7-301 of the
             2530      laws of this state or Section 28 U.S.C. 2680(a) of the laws of the United States.
             2531          (5) Actions, decisions, or agreements of a receiver under this chapter, other than
             2532      allowance or disallowance of claims under Section 7-2-6 , shall be subject to judicial review
             2533      only as follows:
             2534          (a) A petition for review shall be filed with the court having jurisdiction under Section
             2535      7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or
             2536      its terms are filed with the court.
             2537          (b) The petition shall state in simple, concise, and direct terms the facts and principles
             2538      of law upon which the petitioner claims the act, decision, or agreement of the receiver was or
             2539      would be arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may
             2540      be damaged thereby. The court shall dismiss any petition which fails to allege that the
             2541      petitioner would be directly injured or damaged by the act, decision, or agreement which is the
             2542      subject of the petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties
             2543      with respect to the allegations set forth in a petition or response.
             2544          (c) The receiver shall have 30 days after service of the petition within which to
             2545      respond.
             2546          (d) All further proceedings are to be conducted in accordance with the Utah Rules of
             2547      Civil Procedure.
             2548          (6) All notices required under this section shall be made in accordance with the Utah
             2549      Rules of Civil Procedure and served upon the attorney general of the state of Utah, the


             2550      commissioner of financial institutions, the receiver of the institution appointed under this
             2551      chapter, and upon the designated representative of any party in interest who requests in writing
             2552      such notice.
             2553          Section 75. Section 7-2-10 is amended to read:
             2554           7-2-10. Inventory of assets -- Listings of claims -- Report of proceedings -- Filing
             2555      -- Inspection.
             2556          As soon as is practical after taking possession of an institution the commissioner, or
             2557      any receiver or liquidator appointed by him, shall make or cause to be made in duplicate an
             2558      inventory of its assets, one copy to be filed in his office and one with the clerk of the district
             2559      court. Upon the expiration of the time fixed for presentation of claims the commissioner, or
             2560      any receiver or liquidator appointed by him, shall make in duplicate a full and complete list of
             2561      the claims presented, including and specifying claims disallowed by him, of which one copy
             2562      shall be filed in his office and one copy in the office of the clerk of the district court. The
             2563      commissioner, or any receiver or liquidator appointed by him, shall in like manner make and
             2564      file supplemental lists showing all claims presented after the filing of the first list. The
             2565      supplemental lists shall be filed every six months and at least 15 days before the declaration of
             2566      any dividend. At the time of the order for final distribution the commissioner, or any receiver
             2567      or liquidator appointed by him, shall make a report in duplicate of the proceeding, showing the
             2568      disposition of the assets and liabilities of the institution, one copy to be filed in his office and
             2569      one with the clerk of the district court. The accounting, inventory, and lists of claims shall be
             2570      open at all reasonable times for inspection. Any objection to any report or accounting [must]
             2571      shall be filed with the clerk of the district court within 30 days after the report of accounting
             2572      has been filed by the commissioner, or any receiver or liquidator appointed by him, and shall
             2573      be subject to judicial review only as provided in Section 7-2-9 .
             2574          Section 76. Section 7-2-12 is amended to read:
             2575           7-2-12. Powers of commissioner in possession -- Sale of assets -- Postpossession
             2576      financing -- New deposit instruments -- Executory contracts -- Transfer of property --
             2577      Avoidance of transfers -- Avoidable preferences -- Setoff.


             2578          (1) Upon taking possession of the institution, the commissioner may do all things
             2579      necessary to preserve its assets and business, and shall rehabilitate, reorganize, or liquidate the
             2580      affairs of the institution in a manner he determines to be in the best interests of the institution's
             2581      depositors and creditors. Any such determination by the commissioner may not be overruled
             2582      by a reviewing court unless it is found to be arbitrary, capricious, fraudulent, or contrary to
             2583      law. In the event of a liquidation, he shall collect all debts due and claims belonging to it, and
             2584      may compromise all bad or doubtful debts. He may sell, upon terms he may determine, any or
             2585      all of the property of the institution for cash or other consideration. The commissioner shall
             2586      give such notice as the court may direct to the institution of the time and place of hearing upon
             2587      an application to the court for approval of the sale. The commissioner shall execute and
             2588      deliver to the purchaser of any property of the institution sold by him those deeds or
             2589      instruments necessary to evidence the passing of title.
             2590          (2) With approval of the court and upon terms and with priority determined by the
             2591      court, the commissioner may borrow money and issue evidence of indebtedness. To secure
             2592      repayment of the indebtedness, he may mortgage, pledge, transfer in trust, or hypothecate any
             2593      or all of the property of the institution superior to any charge on the property for expenses of
             2594      the proceeding as provided in Section 7-2-14 . These loans may be obtained for the purpose of
             2595      facilitating liquidation, protecting or preserving the assets in the charge of the commissioner,
             2596      expediting the making of distributions to depositors and other claimants, aiding in the
             2597      reopening or reorganization of the institution or its merger or consolidation with another
             2598      institution, or the sale of all of its assets. Neither the commissioner nor any special deputy or
             2599      other person lawfully in charge of the affairs of the institution is under any personal obligation
             2600      to repay those loans. The commissioner may take any action necessary or proper to
             2601      consummate the loan and to provide for its repayment and to give bond when required for the
             2602      faithful performance of all undertakings in connection with it. The commissioner or special
             2603      deputy shall make application to the court for approval of any loan proposed under this
             2604      section. Notice of hearing upon the application shall be given as the court directs. At the
             2605      hearing upon the application any stockholder or shareholder of the institution or any depositor


             2606      or other creditor of the institution may appear and be heard on the application. Prior to the
             2607      obtaining of a court order, the commissioner or special deputy in charge of the affairs of the
             2608      institution may make application or negotiate for the loan or loans subject to the obtaining of
             2609      the court order.
             2610          (3) With the approval of the court pursuant to a plan of reorganization or liquidation
             2611      under Section 7-2-18 , the commissioner may provide for depositors to receive new deposit
             2612      instruments from a depository institution that purchases or receives some or all of the assets of
             2613      the institution in the possession of the commissioner. All new deposit instruments issued by
             2614      the acquiring depository institution may, in accordance with the terms of the plan of
             2615      reorganization or liquidation, be subject to different amounts, terms, and interest rates than the
             2616      original deposit instruments of the institution in the possession of the commissioner. All
             2617      deposit instruments issued by the acquiring institution shall be considered new deposit
             2618      obligations of the acquiring institution. The original deposit instruments issued by the
             2619      institution in the possession of the commissioner are not liabilities of the acquiring institution,
             2620      unless assumed by the acquiring institution. Unpaid claims of depositors against the
             2621      institution in the possession of the commissioner continue, and may be provided for in the
             2622      plan of reorganization or liquidation.
             2623          (4) The commissioner, after taking possession of any institution or other person
             2624      subject to the jurisdiction of the department, may terminate any executory contract, including
             2625      standby letters of credit, unexpired leases and unexpired employment contracts, to which the
             2626      institution or other person is a party. If the termination of an executory contract or unexpired
             2627      lease constitutes a breach of the contract or lease, the date of the breach is the date on which
             2628      the commissioner took possession of the institution. Claims for damages for breach of an
             2629      executory contract [must] shall be filed within 30 days of receipt of notice of the termination,
             2630      and if allowed, shall be paid in the same manner as all other allowable claims of the same
             2631      priority out of the assets of the institution available to pay claims.
             2632          (5) With approval of the court and upon a showing by the commissioner that it is in
             2633      the best interests of the depositors and creditors, the commissioner may transfer property on


             2634      account of an indebtedness incurred by the institution prior to the date of the taking.
             2635          (6) (a) The commissioner may avoid any transfer of any interest of the institution in
             2636      property or any obligation incurred by the institution that is void or voidable by a creditor
             2637      under Title 25, Chapter 6.
             2638          (b) The commissioner may avoid any transfer of any interest in real property of the
             2639      institution that is void as against or voidable by a subsequent purchaser in good faith and for a
             2640      valuable consideration of the same real property or any portion thereof who has duly recorded
             2641      his conveyance at the time possession of the institution is taken, whether or not such a
             2642      purchaser exists.
             2643          (c) The commissioner may avoid any transfer of any interest in property of the
             2644      institution or any obligation incurred by the institution that is invalid or void as against, or is
             2645      voidable by a creditor that extends credit to the institution at the time possession of the
             2646      institution is taken by the commissioner, and that obtains, at such time and with respect to
             2647      such credit, a judgment lien or a lien by attachment, levy, execution, garnishment, or other
             2648      judicial lien on the property involved, whether or not such a creditor exists.
             2649          (d) The right of the commissioner under Subsections (6)(b) and (c) to avoid any
             2650      transfer of any interest in property of the institution shall be unaffected by and without regard
             2651      to any knowledge of the commissioner or of any creditor of the institution.
             2652          (e) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary
             2653      or involuntary, or disposing of or parting with property or with an interest in property,
             2654      including retention of title as a security interest.
             2655          (f) The commissioner may avoid and recover any payment or other transfer of any
             2656      interest in property of the institution to or for the benefit of a creditor, for or on account of an
             2657      antecedent debt owed by the institution before the transfer was made if the creditor at the time
             2658      of such transfer had reasonable cause to believe that the institution was insolvent, and if the
             2659      payment or other transfer will allow the creditor to obtain a greater percentage of his debt than
             2660      he would be entitled to under the provisions of Section 7-2-15 . For the purposes of this
             2661      subsection:


             2662          (i) antecedent debt does not include earned wages and salaries and other operating
             2663      expenses incurred and paid in the normal course of business;
             2664          (ii) a transfer of any interest in real property is deemed to have been made or suffered
             2665      when it became so far perfected that a subsequent good faith purchaser of the property from
             2666      the institution for a valuable consideration could not acquire an interest superior to the
             2667      transferee; and
             2668          (iii) a transfer of property other than real property is deemed to have been made or
             2669      suffered when it became so far perfected that a creditor on a simple contract could not acquire
             2670      a lien by attachment, levy, execution, garnishment, or other judicial lien superior to the interest
             2671      of the transferee.
             2672          (g) For purposes of this section, "date of possession" means the earlier of the date the
             2673      commissioner takes possession of a financial institution under Title 7, Chapter 2, or the date
             2674      when the commissioner enters an order suspending payments to depositors and other creditors
             2675      under Section 7-2-19 .
             2676          (7) (a) With or without the prior approval of the court, the commissioner or any federal
             2677      deposit insurance agency appointed by him as receiver or liquidator of a depository institution
             2678      closed by the commissioner under the provisions of this chapter may setoff against the
             2679      deposits or other liabilities of the institution any debts or other obligations of the depositor or
             2680      claimant due and owing to the institution. The amount of any setoff against the liabilities of
             2681      the institution shall be no greater than the amount the depositor or claimant would receive
             2682      pursuant to Section 7-2-15 after final liquidation of the institution. When the liquidation
             2683      value of a depositor's or claimant's claim against the institution will or may be less than the
             2684      full amount of the claim, setoff may be made prior to final liquidation if the commissioner or
             2685      any receiver or liquidator appointed by him can reasonably estimate the liquidation value of
             2686      the claim, and the court, after notice and opportunity for hearing, approves the estimate for
             2687      purposes of making the setoff. If the right of setoff is exercised, the commissioner or any
             2688      receiver or liquidator appointed by him shall give written notice to the depositor or claimant of
             2689      the amount setoff.


             2690          (b) The existence and amount of a debtor or creditor relationship or both, between the
             2691      institution and its depositor or claimant and the right to the proceeds in a deposit account shall
             2692      be determined solely by the books and records of the institution.
             2693          (c) Any contract purporting to affect the right of setoff [must] shall be in writing and
             2694      signed by the depositor-debtor and an authorized officer of the institution and be maintained
             2695      as a part of the records of the institution.
             2696          (d) Any claim that a deposit account is a special account not subject to setoff because
             2697      it was maintained for a specific purpose or to satisfy a particular obligation other than
             2698      satisfaction of or as security for an indebtedness to the institution or that the right to the
             2699      deposit actually belongs to a third party [shall not] does not affect the right to setoff of the
             2700      commissioner or any receiver or liquidator appointed by him unless the special nature of the
             2701      account is clearly shown in the books and records of the institution.
             2702          (e) In the absence of any other instrument in writing, the terms and provisions of the
             2703      signature card applicable to a particular account in effect at the time the commissioner takes
             2704      possession of the institution shall be determinative of the right of setoff by the commissioner
             2705      or any receiver or liquidator appointed by him.
             2706          (f) Knowledge of the institution or of any director, officer, or employee of the
             2707      institution that the nature of the account is other than as shown in the books and records of the
             2708      institution [shall not] does not affect the right of setoff by the commissioner or any receiver or
             2709      liquidator appointed by him.
             2710          (g) The liability of the commissioner or any receiver or liquidator appointed by him
             2711      for exercising a right of setoff other than as authorized by this section shall be only to a person
             2712      who establishes by the procedure set forth in Section 7-2-6 that his interest in the account is
             2713      superior to that of the person whose debt to the institution was setoff against the account. The
             2714      amount of any such liability shall be no greater than the amount of the setoff and neither the
             2715      commissioner or any receiver or liquidator appointed by him shall be liable for any action
             2716      taken under this section unless the action taken is determined by the court to be arbitrary or
             2717      capricious.


             2718          Section 77. Section 7-5-2 is amended to read:
             2719           7-5-2. Permit required to engage in trust business -- Exceptions.
             2720          (1) No trust company shall accept any appointment to act in any agency or fiduciary
             2721      capacity, [such as but not limited to] including that of personal representative, executor,
             2722      administrator, conservator, guardian, assignee, receiver, depositary, or trustee under order or
             2723      judgment of any court or by authority of any law of this state or as trustee for any purpose
             2724      permitted by law or otherwise engage in the trust business in this state, unless and until it has
             2725      obtained from the commissioner a permit to act under this chapter. This provision [shall not]
             2726      does not apply to any bank or other corporation authorized to engage and lawfully engaged in
             2727      the trust business in this state before July 1, 1981.
             2728          (2) Nothing in this chapter prohibits:
             2729          (a) any corporation organized under Title 16, Chapter 6a or 10a, from acting as trustee
             2730      of any employee benefit trust established for the employees of the corporation or the
             2731      employees of one or more other corporations affiliated with the corporation;
             2732          (b) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit
             2733      Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or
             2734      religious organization from acting as a trustee for that organization or members of that
             2735      organization but not offering trust services to the general public;
             2736          (c) any corporation organized under Title 16, Chapter 6a or 10a, from holding in a
             2737      fiduciary capacity the controlling shares of another corporation but not offering trust services
             2738      to the general public; or
             2739          (d) any depository institution from holding in an agency or fiduciary capacity
             2740      individual retirement accounts or Keogh plan accounts established under Section 401(a) or
             2741      408(a) of Title 26 of the United States Code.
             2742          Section 78. Section 7-5-4 is amended to read:
             2743           7-5-4. Withdrawal from trust business.
             2744          Any trust company which desires to withdraw from and discontinue doing a trust
             2745      business shall furnish to the commissioner satisfactory evidence of its release and discharge


             2746      from all the obligations and trusts undertaken by it, and after the company has furnished that
             2747      evidence the commissioner shall revoke his certificate of authority to do a trust business
             2748      previously issued to that trust company, and thereafter that trust company [shall not] may not
             2749      be permitted to use and [shall not] may not use the word "trust" in its corporate name or in
             2750      connection with its business, nor undertake the administration of any trust business.
             2751          Section 79. Section 7-5-7 is amended to read:
             2752           7-5-7. Management and investment of trust funds.
             2753          (1) Funds received or held by any trust company as agent or fiduciary, whether for
             2754      investment or distribution, shall be invested or distributed as soon as practicable as authorized
             2755      under the instrument creating the account and [shall not] may not be held uninvested any
             2756      longer than is reasonably necessary.
             2757          (2) If the instrument creating an agency or fiduciary account contains provisions
             2758      authorizing the trust company, its officers, or its directors to exercise their discretion in the
             2759      matter of investments, funds held in the trust account under that instrument may be invested
             2760      only in those classes of securities which are approved by the directors of the trust company or
             2761      a committee of directors appointed for that purpose. If a trust company acts in any agency or
             2762      fiduciary capacity under appointment by a court of competent jurisdiction, it shall make and
             2763      account for all investments according to the provisions of Title 75, Utah Uniform Probate
             2764      Code, unless the underlying instrument provides otherwise.
             2765          (3) (a) Funds received or held as agent or fiduciary by any trust company which is also
             2766      a depository institution, whether for investment or distribution, may be deposited in the
             2767      commercial department or savings department of that trust company to the credit of its trust
             2768      department. Whenever the funds so deposited in a fiduciary or managing agency account
             2769      exceed the amount of federal deposit insurance applicable to that account, the trust company
             2770      shall deliver to the trust department or put under its control collateral security as outlined in
             2771      Regulation 9.10 of the Comptroller of the Currency or in Regulation 550.8 of the Office of
             2772      Thrift Supervision, as amended. However, if the instrument creating such a fiduciary or
             2773      managing agency account expressly provides that funds may be deposited to the commercial


             2774      or savings department of the trust company, then the funds may be so deposited without
             2775      setting aside collateral securities as required under this section and the deposits in the event of
             2776      insolvency of any such trust company shall be treated as other general deposits are treated. A
             2777      trust company which deposits trust funds in its commercial or savings department shall be
             2778      liable for interest on the deposits only at the rates, if any, paid by the trust company on
             2779      deposits of like kind not made to the credit of its trust department.
             2780          (b) Funds received or held as agent or fiduciary by a trust company, whether for
             2781      investment or distribution, may be deposited in an affiliated depository institution. Whenever
             2782      the funds so deposited in a fiduciary or managing agency account exceed the amount of
             2783      federal deposit insurance applicable to that account, the depository institution shall deliver to
             2784      the trust company or put under its control collateral security as outlined in Regulation 9.10 of
             2785      the Comptroller of the Currency or in Regulation 550.8 of the Office of Thrift Supervision as
             2786      amended. However, if the instrument creating the fiduciary or managing agency account
             2787      expressly permits funds to be deposited in the affiliated depository institution, the funds may
             2788      be so deposited without setting aside collateral securities as required under this section and
             2789      deposits in the event of insolvency of the depository institution shall be treated as other
             2790      general deposits are treated. A trust company which deposits trust funds in an affiliated
             2791      depository institution is liable for interest on the deposits only at the rates, if any, paid by the
             2792      depository institution on deposits of like kind.
             2793          (4) In carrying out all aspects of its trust business, a trust company shall have all the
             2794      powers, privileges, and duties as set forth in Sections 75-7-813 and 75-7-814 with respect to
             2795      trustees, whether or not the trust company is acting as a trustee as defined in Title 75.
             2796          (5) Nothing in this section may alter, amend, or limit the powers of a trust company
             2797      acting in a fiduciary capacity as specified in the particular instrument or order creating the
             2798      fiduciary relationship.
             2799          Section 80. Section 7-5-8 is amended to read:
             2800           7-5-8. Segregation of trust assets -- Books and records required -- Examination
             2801      -- Trust property not subject to claims or debts against trust company.


             2802          A trust company exercising the powers to act as an agent or fiduciary under this
             2803      chapter shall segregate all assets held in any agency or fiduciary capacity from the general
             2804      assets of the company and shall keep a separate set of books and records showing in proper
             2805      detail all transactions engaged in under authority of this chapter. These books and records
             2806      shall be open to inspection by the commissioner and shall be examined by him or by
             2807      examiners appointed by him as provided in Chapter 1 or examined by other appropriate
             2808      regulating agencies or both. Property held in an agency or fiduciary capacity by a trust
             2809      company [shall not be] is not subject to claims or debts against the trust company.
             2810          Section 81. Section 7-5-11 is amended to read:
             2811           7-5-11. Self-dealing with trust property -- Own stock as trust property -- Policies
             2812      for dealing with trust securities.
             2813          (1) Except as provided in Section 7-5-7 , in Title 75, or as authorized under the
             2814      instrument creating the relationship, a trust company [shall not] may not invest funds held as
             2815      an agent or fiduciary in stock or obligations of, or with such funds acquire property from, the
             2816      trust company or any of its directors, officers or employees, nor shall a trust company sell
             2817      property held as an agent or fiduciary to the company or to any of its directors, officers, or
             2818      employees.
             2819          (2) A trust company may retain and vote stock of the trust company or of any of its
             2820      affiliates received by it as assets of any trust account or in any other fiduciary relationship of
             2821      which it is appointed agent or fiduciary, unless the instrument creating the relationship
             2822      otherwise provides.
             2823          (3) Every trust company shall adopt written policies and procedures regarding
             2824      decisions or recommendations to purchase or sell any security to facilitate compliance with
             2825      federal and state securities laws. These policies and procedures, in particular, shall prohibit the
             2826      trust company from using material inside information in connection with any decision or
             2827      recommendation to purchase or sell any security.
             2828          Section 82. Section 7-7-2 is amended to read:
             2829           7-7-2. Definitions.


             2830          As used in this chapter:
             2831          (1) "Association" means a mutual or capital stock savings association, a savings and
             2832      loan association, a mutual or capital stock savings bank, or a building and loan association
             2833      subject to the provisions of this chapter, including all out-of-state associations qualified to do
             2834      business in this state.
             2835          (2) "Federal association" means a savings association, a savings and loan association,
             2836      or a savings bank, chartered by the Office of Thrift Supervision or successor federal agency.
             2837          (3) "Impaired condition" means a condition in which the assets of an association in the
             2838      aggregate do not have a fair value equal to the aggregate amount of liabilities of the
             2839      association to its creditors, including the holders of its savings accounts and all other persons.
             2840          (4) "Insured association" means an association the deposit accounts of which are
             2841      insured by the Federal Deposit Insurance Corporation or any successor agency of the federal
             2842      government.
             2843          (5) "Liquid assets" means cash on hand and cash on deposit in federal home loan
             2844      banks, federal reserve banks, state banks performing similar reserve functions, or in
             2845      commercial banks, which cash is withdrawable upon not more than 30 days notice and which
             2846      is not pledged as security for indebtedness. Any deposits in a financial institution under the
             2847      control or in the possession of any supervisory authority [shall not] may not be considered as
             2848      liquid assets. Liquid assets also means obligations of, or obligations that are fully guaranteed
             2849      as to principal and interest by, the United States, the Federal National Mortgage Association,
             2850      the Government National Mortgage Association, any federal home loan bank, or this state,
             2851      which obligations will mature in five years or less, and any other assets readily convertible into
             2852      cash.
             2853          (6) "Out-of-state association" means an association whose home state is not Utah.
             2854          (7) "Real estate loan" means any loan or other obligation secured by a lien on real
             2855      estate in any state held in fee or in a leasehold, and any transaction out of which a lien or its
             2856      equivalent is created against real estate, including the purchase of real estate in fee by an
             2857      association and the concurrent or immediate sale of the real estate on installment contract.


             2858          (8) "Savings liability" means the aggregate amount of savings accounts of depositors,
             2859      including earnings credited to those accounts, less redemptions and withdrawals.
             2860          (9) "Service organization" means an organization substantially all the activities of
             2861      which consist of originating, purchasing, selling, or servicing loans and participating interests
             2862      therein, or clerical, bookkeeping, accounting, statistical, or other similar functions or any
             2863      combination thereof performed primarily for financial institutions, plus such other activities as
             2864      the commissioner may approve.
             2865          (10) "Supervisor" means the supervisor of savings and loan associations.
             2866          (11) "Surplus" means the aggregate amount of the undistributed net income of an
             2867      association held as undivided profits or unallocated reserves for general corporate purposes,
             2868      and any paid-in surplus held by an association.
             2869          (12) "Withdrawal value" means the amount credited to a savings account less lawful
             2870      deductions, as shown by the records of the association.
             2871          Section 83. Section 7-7-4 is amended to read:
             2872           7-7-4. Mutual association -- Chair of incorporators -- Surety bond or escrow --
             2873      Capital requirements -- Expense fund -- Organization meeting.
             2874          (1) The incorporators of a mutual association shall appoint one of their number as
             2875      chair of the incorporators. This chair shall procure from a surety company or other surety
             2876      acceptable to the commissioner, a surety bond in an amount at least equal to the amount
             2877      subscribed by the incorporators plus the expense fund described in Subsection (2). This bond
             2878      shall name the commissioner as obligee and shall be delivered to him. It shall assure the
             2879      safekeeping of the funds described, their delivery to the association after the issuance of the
             2880      certificate of authority and after the bonding of the officers, and, in the event of the failure to
             2881      complete organization, the return of the amounts collected to the respective subscribers or their
             2882      assigns, less reasonable expense which shall be deducted from the expense fund. The required
             2883      surety may be waived by the commissioner if the funds are held in escrow so as to provide
             2884      similar assurance with regard to the funds. Before a certificate of authority is issued, the
             2885      incorporators shall pay in cash, to the chairman, as subscriptions to the savings accounts of the


             2886      proposed association, including that part of the original subscription paid by the chairman.
             2887      The minimum required capital shall be prescribed by the commissioner by rule. These capital
             2888      requirements may not be greater than those required by the Office of Thrift Supervision or
             2889      successor agency for the formation of a federally chartered mutual association.
             2890          (2) The incorporators, in addition to their subscriptions to savings accounts, shall
             2891      create an expense fund in an amount not less than 25% of the minimum amount of savings
             2892      account subscriptions required to be paid under this chapter. From this expense fund the
             2893      expense of organizing the association and its operating expenses may be paid until such time
             2894      as its net income is sufficient to pay such earnings as may be declared and paid or credited to
             2895      its savings account holders from sources available for payment of earnings. The incorporators
             2896      and others, before a certificate of authority is issued, shall deposit to the credit of the chairman
             2897      of the incorporators in cash the amount of the expense fund. The amounts contributed to the
             2898      expense fund by the incorporators and others [shall not] do not constitute a liability of the
             2899      association except as provided by this chapter.
             2900          (3) Contributions made by the incorporators and others to the expense fund may be
             2901      repaid pro rata to the contributors from the net income of the association after provision for
             2902      statutory reserves and declaration of earnings of not less than 2% on savings accounts. If an
             2903      association is liquidated before contributions to the expense fund have been repaid, any
             2904      contributions to the expense fund remaining unexpended, after the payment of expenses of
             2905      liquidation, all creditors, and the withdrawal value of all savings accounts, shall be repaid to
             2906      the contributors pro rata. The books of the association shall reflect the expense fund.
             2907      Contributors to the expense fund shall at the times earnings regularly are distributed to savings
             2908      account holders be paid earnings on the amounts paid in by them and for that purpose the
             2909      contributions shall in all respects be considered as savings accounts of the association.
             2910          (4) Within 90 days after the corporate existence of an association begins, the directors
             2911      of the association shall hold an organization meeting and shall adopt bylaws and elect officers
             2912      under this chapter. At the organization meeting the directors shall take such other action as is
             2913      appropriate in connection with beginning the transaction of business by the association. The


             2914      commissioner may extend by order the time within which the organization meeting shall be
             2915      held.
             2916          Section 84. Section 7-7-7 is amended to read:
             2917           7-7-7. Conversion of associations.
             2918          (1) Any state or federal mutual association and any federal capital stock association
             2919      may convert to a state capital stock association, and any state or federal capital stock
             2920      association and any federal mutual association may convert to a state mutual association upon
             2921      an equitable basis subject to the laws and rules governing the converting association, the
             2922      approval of the commissioner, the approval of the members or stockholders of the converting
             2923      association, and any rules adopted by the commissioner under this subsection.
             2924          (a) Upon receipt of the approval of a proposed conversion from the commissioner, a
             2925      converting association may, under the supervision of the supervisor, carry out the plan of
             2926      conversion. A record of all acts and proceedings taken by the board of directors of the
             2927      converting association in carrying out the proposed conversion shall be filed with the
             2928      supervisor.
             2929          (b) Upon the issuance to an applicant of a certificate of conversion, the corporate
             2930      existence of the converting applicant [shall not] does not terminate, but the applicant shall be a
             2931      continuation of the entity so converted. All property of the converting applicant, including its
             2932      rights, titles, and interests in and to all property of whatever kind, whether real, personal, or
             2933      mixed, things in action, and every right, privilege, interest and asset of any conceivable value
             2934      or benefit then existing, or pertaining to it, or which would inure to it, immediately, by
             2935      operation of law and without any conveyance or transfer and without any further act or deed,
             2936      shall vest in and remain the property of the converted applicant, and the same shall have, hold,
             2937      and enjoy that property in its own right as fully and to the same extent as that property was
             2938      possessed, held, and enjoyed by the converting applicant before the conversion, and the
             2939      converted applicant, upon issuance of the certificate of the conversion, shall continue to have
             2940      and succeed to all the rights, obligations, and relations of the converting applicant. Pending
             2941      actions and other judicial proceedings to which the converting applicant is a party [shall not


             2942      be] are not abated or discontinued by reason of the conversion, but may be prosecuted to final
             2943      judgment, order, or decree in the same manner as if conversion had not occurred, and the
             2944      converted applicant may continue the actions in its new corporate name. Any judgment,
             2945      order, or decree may be rendered for or against it which might have been rendered for or
             2946      against the converting applicant involved before the conversion in the proceedings.
             2947          (c) A conversion carried out under this Subsection (1) is effective on the date that all
             2948      provisions of this chapter and the rules adopted under it have been complied with and a
             2949      certificate of conversion has been issued by the commissioner.
             2950          (d) In adopting rules or issuing orders in connection with the conversion of an
             2951      association, the commissioner shall ensure that:
             2952          (i) accurate and adequate disclosure of the terms and effects of plans of conversion are
             2953      provided to purchasers of capital stock in resulting associations, including account holders of
             2954      converting mutual associations;
             2955          (ii) adjustments are made in plans of conversion to be effected by way of merger or
             2956      holding company acquisition necessary or appropriate to accomplish the purposes of this
             2957      section;
             2958          (iii) plans of conversion and proxy statements, offering circulars and related
             2959      instruments and actions implementing those plans are subject to review and approval by the
             2960      appropriate supervisory authorities;
             2961          (iv) the capital stock issued as a part of conversion is fairly and independently valued
             2962      and priced;
             2963          (v) the capital stock is allocated and distributed fairly and without employment of
             2964      manipulative or deceptive devices;
             2965          (vi) appropriate provision is made regarding fractional share interest and minimum
             2966      capital stock purchase requirements; and
             2967          (vii) plans of conversion are adopted and implemented in such form and manner that
             2968      stability and continuity of management are encouraged and that the stability, safety, and
             2969      soundness of associations and other financial institutions are not impaired. In no event shall


             2970      any rule or order issued by the commissioner regarding the conversion of an association make
             2971      it more difficult for an association subject to those rules or orders to implement conversion
             2972      than for an association subject only to federal laws and regulations.
             2973          (e) A conversion proposed by a domestic association shall, after approval by the
             2974      commissioner, be submitted to the members or stockholders at an annual meeting or at a
             2975      special meeting called to consider that action. The conversion [must] shall have the approval
             2976      of a majority of the total votes eligible to be cast by members or stockholders at the meeting.
             2977      Notice shall be given of any meeting at which a conversion is to be considered. The notice
             2978      shall expressly state that a proposed conversion will be submitted for approval or disapproval,
             2979      include a full and accurate description of the plan of conversion and all other matters to be
             2980      brought before the meeting, state that a proxy for the meeting given previously is revocable,
             2981      and state the time, date, and place of the meeting. The notice shall be mailed at least 20 days
             2982      prior to the date of the meeting to each voting member or stockholder of the converting
             2983      association addressed to his address shown on the records of the association and to the
             2984      supervisor or commissioner.
             2985          (f) If the commissioner finds that a conversion proceeding has been completed in
             2986      accordance with the requirements of this section and any other applicable law and rules, he
             2987      shall issue to the applicant a certificate of conversion, attaching as a part of the certificate a
             2988      copy of the charter, articles of incorporation, articles of association, or similar instrument. The
             2989      commissioner shall also cause the same to be filed with the Division of Corporations and
             2990      Commercial Code.
             2991          (2) Any state mutual or state capital stock association eligible under federal law or
             2992      regulations to become a federal association may convert to a federal association by following
             2993      the procedure outlined in this Subsection (2).
             2994          (a) At any regular meeting or at any special meeting of the members or stockholders of
             2995      the association called to consider the action and held in accordance with the laws governing
             2996      the association, the members or stockholders by majority vote of those present or voting by
             2997      proxy may declare by resolution the determination to convert the association into a federal


             2998      association.
             2999          (b) A copy of the minutes of the meeting of the members or shareholders verified by
             3000      the affidavit of the president or vice president and the secretary of the meeting shall be, within
             3001      10 days after the meeting, filed with the commissioner. This verified copy of the minutes of
 &