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H.B. 274 Enrolled
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:
19 Other Special Clauses:
21 Utah Code Sections Affected:
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
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 [
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 [
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
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 [
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
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 [
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
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
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 [
546 discretion of the board of directors.
547 (2) The creation of a committee and appointment of members to it [
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 [
569 signed by 20 per centum of the members residing in the district from which he was elected.
570 The board [
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 [
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 [
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 [
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 [
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
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 [
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 [
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 [
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 [
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
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 [
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 [
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 [
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
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 [
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 [
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 [
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 [
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
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) [
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)
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 [
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 [
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) [
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
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
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 [
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
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 [
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 [
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 [
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 [
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 [
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 [
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
962 (13) The packaging and labeling of a color additive [
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 [
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
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) [
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
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
1090 (5) A copy of the report [
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 [
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 [
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;
1132 (ii) request a verified written statement setting forth the amount claimed due from the
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 [
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 --
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 [
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
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
1292 (8) A person [
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 [
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
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 [
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 [
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 [
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
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
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 [
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
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 [
1423 (f) (i) All ballots received by the commissioner shall be counted and tallied by June
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
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[
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 [
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 [
1484 the year immediately succeeding the year for which the fee was paid.
1485 (e) A refund claim [
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 [
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
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 --
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 [
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 [
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 [
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
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 [
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
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 [
1633 and the amount due and payable to each from funds in the custodial account.
1634 (6) The custodial account [
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 [
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
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.
1672 (2) (a) Instate origin replacement cattle that are kept for breeding stock [
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 [
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 [
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 [
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.
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
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
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
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
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
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
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
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 [
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
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 [
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
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 [
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
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 [
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 [
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 [
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)
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 [
2006 aquaculture or fee fishing facility for a period of two years and [
2007 inspection by a department representative during reasonable hours:
2008 (a) records of purchase, acquisition, distribution, and production histories of aquatic
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
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 [
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 [
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) [
2031 before a certificate of registration is renewed or a subsequent certificate of registration is
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 [
2040 of the fish, including:
2041 (a) name, address, certificate of registration number and health approval number of the
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 [
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 [
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 [
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
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) [
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 [
2112 shall submit to the department an annual report of all live fish purchased or acquired.
2113 (b) The report [
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 [
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 [
2127 (a) name, address, certificate of registration number and health approval number of the
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 [
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 [
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 [
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 [
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
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
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
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 [
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
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
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 [
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 [
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 [
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 [
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 [
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, [
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 [
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
2354 Any domesticated elk transferred to or from a domesticated elk facility within the state
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 [
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 [
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
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 [
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, [
2405 (1) mutual exchange of financial information as to depositors, borrowers, and other
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 [
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 [
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 [
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 [
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 [
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
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 [
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 [
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
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 [
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 [
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 [
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
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, [
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 [
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 [
2749 be permitted to use and [
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 [
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 [
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 [
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
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
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 [
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
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 [
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
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
2929 (b) Upon the issuance to an applicant of a certificate of conversion, the corporate
2930 existence of the converting applicant [
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 [
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
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 [
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
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
3002 the meeting, when so filed, shall be presumptive evidence of the holding of the meeting and of
3003 the action there taken by the members or stockholders.
3004 (c) Within a reasonable time and without any unnecessary delay after the adjournment
3005 of the meeting of shareholders, the association shall take such action as may be necessary
3006 under requirements of the Office of Thrift Supervision or other federal agency to make it a
3007 federal association, and within 10 days after receipt of the federal charter there shall be filed
3008 with the commissioner a copy of the charter or a certificate showing the organization of the
3009 association as a federal association, certified by or on behalf of the Office of Thrift
3010 Supervision or other federal agency. Upon the filing of these instruments the association shall
3011 cease to be a state association and shall thereafter be a federal association.
3012 (d) Upon completion of a conversion to a federal association, the corporate existence
3013 of the converting association [
3014 continuation of the entity so converted. All property of the converting association, including
3015 its rights, titles, and interests in and to all property of whatever kind, whether real, personal, or
3016 mixed, things in action, and every right, privilege, interest, and asset of any conceivable value
3017 or benefit then existing, or pertaining to it, or which would inure to it, immediately, by
3018 operation of law and without any conveyance or transfer and without any further act or deed,
3019 shall vest in and remain the property of the converted association, and the same shall have,
3020 hold, and enjoy that property in its own right as fully and to the same extent as that property
3021 was possessed, held, and enjoyed by the converting association, and the converted association
3022 shall continue to have and succeed to all the rights, obligations, and relations of the converting
3023 association. All pending actions and other judicial proceedings to which the converting
3024 association is a party [
3025 but may be prosecuted to final judgment, order, or decree in the same manner as if the
3026 conversion had not been made, and the converted association may continue the actions in its
3027 new corporate name. Any judgment, order, or decree may be rendered for or against it which
3028 might have been rendered for or against the converting association before the conversion
3029 involved in the proceedings.
3030 (e) Upon the completion of a conversion to a federal association, the converted
3031 association shall cease to be supervised by the commissioner or by this state except as a
3032 federal association.
3033 Section 85. Section 7-7-14 is amended to read:
3034 7-7-14. Bonding of directors, officers, employees, and collection agents.
3035 Each director, officer, and employee of an association shall, before entering upon the
3036 performance of any duty, execute an individual bond with adequate corporate surety payable
3037 to the association as an indemnity for any loss the association may sustain of money or other
3038 property by or through any fraud, dishonesty, forgery or alteration, larceny, theft,
3039 embezzlement, robbery, burglary, hold-up, wrongful or unlawful abstraction, misapplication,
3040 misplacement, destruction or misapprop