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H.B. 263

             1     

TECHNICAL CROSS REFERENCE REVISIONS

             2     
2010 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Johnny Anderson

             5     
Senate Sponsor: Benjamin M. McAdams

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies parts of the Utah Code to make technical corrections including
             10      alphabetizing definitions, updating cross references, and correcting numbering.
             11      Highlighted Provisions:
             12          This bill:
             13          .    modifies parts of the Utah Code to make technical corrections including
             14      alphabetizing definitions, updating cross references, and correcting numbering.
             15      Monies Appropriated in this Bill:
             16          None
             17      Other Special Clauses:
             18          None
             19      Utah Code Sections Affected:
             20      AMENDS:
             21          3-1-2, Utah Code Annotated 1953
             22          3-1-4, Utah Code Annotated 1953
             23          3-1-8, Utah Code Annotated 1953
             24          3-1-19, Utah Code Annotated 1953
             25          3-1-21, as last amended by Laws of Utah 1984, Chapter 66
             26          3-1-45, as enacted by Laws of Utah 1994, Chapter 204
             27          4-1-8, as last amended by Laws of Utah 2000, Chapter 18


             28          4-8-4, as enacted by Laws of Utah 1979, Chapter 2
             29          4-16-2, as last amended by Laws of Utah 1997, Chapter 81
             30          4-16-7, as last amended by Laws of Utah 1997, Chapter 81
             31          4-17-3.5, as last amended by Laws of Utah 1997, Chapter 82
             32          4-19-2, as last amended by Laws of Utah 2009, Chapter 260
             33          4-23-4, as last amended by Laws of Utah 1996, Chapter 243
             34          4-24-4, as last amended by Laws of Utah 1996, Chapter 243
             35          4-24-10, as last amended by Laws of Utah 1997, Chapter 302
             36          4-32-4, as last amended by Laws of Utah 1997, Chapter 302
             37          4-32-7, as last amended by Laws of Utah 2008, Chapter 382
             38          4-38-8, as last amended by Laws of Utah 1993, Chapter 64
             39          7-2-7, as last amended by Laws of Utah 2000, Chapter 260
             40          7-7-15, as last amended by Laws of Utah 1989, Chapter 267
             41          7-9-30, as last amended by Laws of Utah 1990, Chapter 93
             42          7-9-43, as last amended by Laws of Utah 1996, Chapter 243
             43          7-9-53, as last amended by Laws of Utah 2003, Chapter 327
             44          7-15-2, as last amended by Laws of Utah 2007, Chapter 87
             45          8-4-2, as last amended by Laws of Utah 2000, Chapter 167
             46          9-3-410, as last amended by Laws of Utah 2008, Chapter 382
             47          9-4-202, as last amended by Laws of Utah 2008, Chapter 382
             48          9-6-305, as last amended by Laws of Utah 1996, Chapter 243
             49          9-6-505, as renumbered and amended by Laws of Utah 1992, Chapter 241
             50          9-7-204, as last amended by Laws of Utah 1996, Chapters 194 and 243
             51          9-8-705, as enacted by Laws of Utah 1991, Chapter 121
             52          11-32-3.5, as enacted by Laws of Utah 1995, Chapter 235
             53          11-32-15, as enacted by Laws of Utah 1987, Chapter 143
             54          13-11-21, as enacted by Laws of Utah 1973, Chapter 188
             55          13-28-2, as enacted by Laws of Utah 1995, Chapter 196
             56          16-10a-705, as enacted by Laws of Utah 1992, Chapter 277
             57          16-10a-906, as enacted by Laws of Utah 1992, Chapter 277
             58          16-10a-1325, as enacted by Laws of Utah 1992, Chapter 277


             59          17-36-5, as last amended by Laws of Utah 1996, Chapters 212 and 243
             60          19-2-109.2, as last amended by Laws of Utah 1996, Chapter 243
             61          19-2-113, as renumbered and amended by Laws of Utah 1991, Chapter 112
             62          19-5-115, as last amended by Laws of Utah 1998, Chapter 271
             63          19-6-108.5, as enacted by Laws of Utah 1992, Chapter 282
             64          19-6-316, as last amended by Laws of Utah 1995, Chapter 324
             65          19-6-318, as last amended by Laws of Utah 1995, Chapter 324
             66          19-6-325, as enacted by Laws of Utah 1991, Chapter 194
             67          19-6-402, as last amended by Laws of Utah 2005, Chapter 200
             68          19-6-703, as last amended by Laws of Utah 2000, Chapter 1
             69          19-6-706, as enacted by Laws of Utah 1993, Chapter 283
             70          20A-1-703, as last amended by Laws of Utah 1997, Chapter 296
             71          20A-3-307, as enacted by Laws of Utah 1993, Chapter 1
             72          20A-7-501, as renumbered and amended by Laws of Utah 1994, Chapter 272
             73          23-14-2.6, as last amended by Laws of Utah 1997, Chapter 276
             74          23-22-2, as last amended by Laws of Utah 1992, Chapter 86
             75          26-18-102, as last amended by Laws of Utah 1996, Chapter 243
             76          26A-1-111, as last amended by Laws of Utah 2002, Chapter 249
             77          31A-5-217.5, as enacted by Laws of Utah 1992, Chapter 230
             78          31A-8-103, as last amended by Laws of Utah 2004, Chapters 2 and 90
             79          31A-15-202, as enacted by Laws of Utah 1992, Chapter 258
             80          31A-16-106, as repealed and reenacted by Laws of Utah 1992, Chapter 258
             81          31A-17-506, as last amended by Laws of Utah 2002, Chapter 308
             82          36-20-2, as enacted by Laws of Utah 1993, Chapter 282
             83          39-1-1, as last amended by Laws of Utah 1989, Chapter 15
             84          40-6-6.5, as enacted by Laws of Utah 1992, Chapter 34
             85          40-6-9, as last amended by Laws of Utah 1993, Chapter 151
             86          40-10-3, as last amended by Laws of Utah 1997, Chapter 99
             87          40-10-18, as last amended by Laws of Utah 1997, Chapter 49
             88          41-1a-510, as enacted by Laws of Utah 1992, Chapter 1 and last amended by Laws of
             89      Utah 1992, Chapter 218


             90          41-1a-1001, as last amended by Laws of Utah 1994, Chapter 184
             91          41-1a-1002, as last amended by Laws of Utah 1994, Chapter 184
             92          41-3-106, as last amended by Laws of Utah 1996, Chapter 243
             93          48-2a-402, as last amended by Laws of Utah 1991, Chapter 189
             94          52-3-1, as last amended by Laws of Utah 1988, Chapter 25
             95          53-3-213, as renumbered and amended by Laws of Utah 1993, Chapter 234
             96          53-3-225, as last amended by Laws of Utah 1993, Second Special Session, Chapter 5
             97          53-3-416, as renumbered and amended by Laws of Utah 1993, Chapter 234
             98          53-3-908, as last amended by Laws of Utah 1996, Chapter 243
             99          53-5-703, as last amended by Laws of Utah 1997, Chapters 10 and 280
             100          53-6-108, as renumbered and amended by Laws of Utah 1993, Chapter 234
             101          53-6-302, as enacted by Laws of Utah 1995, Chapter 134
             102          53-7-102, as renumbered and amended by Laws of Utah 1993, Chapter 234
             103          53-7-222, as last amended by Laws of Utah 1997, Chapter 82
             104          53-7-309, as renumbered and amended by Laws of Utah 1993, Chapter 234
             105          53-7-315, as renumbered and amended by Laws of Utah 1993, Chapter 234
             106          53-10-211, as renumbered and amended by Laws of Utah 1998, Chapter 263
             107          53A-26a-305, as enacted by Laws of Utah 1994, Chapter 306
             108          53B-12-104, as enacted by Laws of Utah 1987, Chapter 167
             109          53B-21-102, as last amended by Laws of Utah 1997, Chapter 58
             110          54-7-13.6, as enacted by Laws of Utah 2009, Chapter 319
             111          54-8b-13, as enacted by Laws of Utah 1990, Chapter 141
             112          56-1-18.5, as last amended by Laws of Utah 1996, Chapter 122
             113          57-11-7, as last amended by Laws of Utah 1995, Chapter 180
             114          58-1-201, as last amended by Laws of Utah 1997, Chapter 10
             115          58-41-4, as last amended by Laws of Utah 1993, Chapter 297
             116          58-54-3, as last amended by Laws of Utah 1996, Chapters 232 and 243
             117          58-57-7, as last amended by Laws of Utah 2006, Chapter 106
             118          58-73-401, as last amended by Laws of Utah 1996, Chapter 175 and renumbered and
             119      amended by Laws of Utah 1996, Chapter 253
             120          59-2-1114, as last amended by Laws of Utah 2000, Chapter 47


             121          59-10-503, as renumbered and amended by Laws of Utah 1987, Chapter 2
             122          59-10-517, as renumbered and amended by Laws of Utah 1987, Chapter 2
             123          59-11-114, as renumbered and amended by Laws of Utah 1987, Chapter 2
             124          61-1-10, as last amended by Laws of Utah 1991, Chapter 161
             125          62A-3-206, as last amended by Laws of Utah 1993, Chapter 176
             126          63A-3-203, as renumbered and amended by Laws of Utah 1993, Chapter 212
             127          63A-4-103, as renumbered and amended by Laws of Utah 1993, Chapter 212
             128          63A-5-302, as last amended by Laws of Utah 2008, Chapter 382
             129          63J-1-602, as enacted by Laws of Utah 2009, Chapter 368
             130          63M-9-301, as renumbered and amended by Laws of Utah 2008, Chapter 382
             131          67-1-8.1, as last amended by Laws of Utah 1996, Chapter 243
             132          67-19a-201, as last amended by Laws of Utah 1996, Chapters 194 and 243
             133          67-21-3, as last amended by Laws of Utah 1992, Chapter 187
             134          70A-2a-219, as enacted by Laws of Utah 1990, Chapter 197
             135          70A-2a-529, as last amended by Laws of Utah 1993, Chapter 237
             136          70A-3-206, as repealed and reenacted by Laws of Utah 1993, Chapter 237
             137          70A-3-307, as repealed and reenacted by Laws of Utah 1993, Chapter 237
             138          70A-3-310, as enacted by Laws of Utah 1993, Chapter 237
             139          70A-3-502, as repealed and reenacted by Laws of Utah 1993, Chapter 237
             140          70A-4a-507, as last amended by Laws of Utah 1993, Chapter 237
             141          70A-8-106, as repealed and reenacted by Laws of Utah 1996, Chapter 204
             142          70A-8-202, as repealed and reenacted by Laws of Utah 1996, Chapter 204
             143          75-2-103, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             144          75-2-302, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             145          75-2-603, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             146          75-2-606, as repealed and reenacted by Laws of Utah 1998, Chapter 39
             147          75-5-410, as last amended by Laws of Utah 1997, Chapter 161
             148          76-2-402, as last amended by Laws of Utah 1994, Chapter 26
             149          76-9-301.1, as enacted by Laws of Utah 1987, Chapter 22
             150          76-10-920, as last amended by Laws of Utah 1995, Chapter 291
             151          76-10-1219, as last amended by Laws of Utah 1984, Chapter 66


             152          76-10-2101, as enacted by Laws of Utah 1992, Chapter 245
             153          77-7-5, as last amended by Laws of Utah 2002, Chapter 35
             154          77-23a-4, as last amended by Laws of Utah 1994, Chapter 12
             155          77-23a-10, as last amended by Laws of Utah 1994, Chapter 201
             156          78B-7-113, as renumbered and amended by Laws of Utah 2008, Chapter 3
             157     
             158      Be it enacted by the Legislature of the state of Utah:
             159          Section 1. Section 3-1-2 is amended to read:
             160           3-1-2. Definitions.
             161          As used in this act, unless the context or subject matter requires otherwise:
             162          [(a)] (1) "Agricultural products" includes floricultural, horticultural, viticultural,
             163      forestry, nut, seed, ground stock, dairy, livestock, poultry, bee and any and all farm products.
             164          [(k)] (2) "Articles" means the articles of incorporation.
             165          [(b)] (3) "Association" means a corporation organized under this act, or a similar
             166      domestic corporation, or a foreign association or corporation if authorized to do business in this
             167      state, organized under any general or special act as a cooperative association for the mutual
             168      benefit of its members, as agricultural producers, and which confines its operation to purposes
             169      authorized by this act and restricts the return on the stock or membership capital and the
             170      amount of its business with nonmembers to the limits placed thereon by this act for
             171      associations organized hereunder.
             172          [(j)] (4) "Board" means the board of directors.
             173          [(c)] (5) "Domestic associations" means an association or corporation formed under the
             174      laws of this state.
             175          [(d)] (6) "Foreign association" means an association or corporation not formed under
             176      the laws of this state.
             177          [(g)] (7) "Member" includes the holder of a membership of which there shall be but
             178      one class, in an association without stock and the holder of common stock in an association
             179      organized with stock.
             180          [(i)] (8) "Person" includes an individual, a partnership, a corporation and an
             181      association.
             182          [(h)] (9) "Producer" means a person who produces agricultural products, or an


             183      association of such persons.
             184          [(e)] (10) (a) "This act" means the "Uniform Agricultural Cooperative Association
             185      Act."
             186          [(f)] (b) Associations shall be classified as and deemed to be nonprofit corporations,
             187      inasmuch as their primary object is not to pay dividends on invested capital, but to render
             188      service and provide means and facilities by or through which the producers of agricultural
             189      products may receive a reasonable and fair return for their products.
             190          Section 2. Section 3-1-4 is amended to read:
             191           3-1-4. Purposes.
             192          Such association may be organized for the purpose of engaging in any cooperative
             193      activity for producers of agricultural products in connection with:
             194          [(a)] (1) producing, assembling, marketing, buying or selling agricultural products, or
             195      harvesting, preserving, drying, processing, manufacturing, blending, canning, packing, ginning,
             196      grading, storing, warehousing, handling, shipping, or utilizing such products, or manufacturing
             197      or marketing the by-products thereof;
             198          [(b)] (2) seed and crop improvement, and soil conservation and rehabilitation;
             199          [(c)] (3) manufacturing, buying or supplying to its members and others, machinery,
             200      equipment, feed, fertilizer, coal, gasoline and other fuels, oils and other lubricants, seeds, and
             201      all other agricultural and household supplies;
             202          [(d)] (4) generating and distributing electrical energy and furnishing telephone service
             203      to its members and others;
             204          [(e)] (5) performing or furnishing business or educational services, on a co-operative
             205      basis, for or to its members; or
             206          [(f)] (6) financing any of the above enumerated activities.
             207          Section 3. Section 3-1-8 is amended to read:
             208           3-1-8. Bylaws.
             209          The members of the association shall adopt bylaws not inconsistent with law or the
             210      articles, and they may alter and amend the same from time to time. Bylaws may be adopted,
             211      amended or repealed, at any regular meeting, or at any special meeting called for that purpose,
             212      by a majority vote of the members voting thereon. The bylaws may provide for:
             213          [(a)] (1) the time, place and manner of calling and conducting meetings of the


             214      members, and the number of members that shall constitute a quorum;
             215          [(b)] (2) the manner of voting and the condition upon which members may vote at
             216      general and special meetings and by mail or by delegates elected by district groups or other
             217      associations;
             218          [(c)] (3) subject to any provision thereon in the articles and in this act, the number,
             219      qualifications, compensation, duties and terms of office of directors and officers; the time of
             220      their election and the mode and manner of giving notice thereof;
             221          [(d)] (4) the time, place and manner for calling and holding meetings of the directors
             222      and executive committee, and the number that shall constitute a quorum;
             223          [(e)] (5) rules consistent with law and the articles for the management of the
             224      association, the establishment of voting districts, the making of contracts, the issuance,
             225      retirement, and transfer of stock, and the relative rights, interests and preferences of members
             226      and shareholders;
             227          [(f)] (6) penalties for violations of the bylaws; and
             228          [(g)] (7) such additional provisions as shall be deemed necessary for the carrying out of
             229      the purposes of this act.
             230          Section 4. Section 3-1-19 is amended to read:
             231           3-1-19. Association not in restraint of trade -- Right to disseminate information.
             232          [(a)] (1) No association complying with the terms hereof shall be deemed to be a
             233      conspiracy, or a combination in restraint of trade, or an illegal monopoly; or be deemed to have
             234      been formed for the purpose of lessening competition or fixing prices arbitrarily, nor shall the
             235      contracts between the association and its members, or any agreement authorized in this act, be
             236      construed as an unlawful restraint of trade, or as part of a conspiracy or combination to
             237      accomplish an improper or illegal purpose or act.
             238          [(b)] (2) An association may acquire, exchange, interpret and disseminate to its
             239      members, to other cooperative associations, and otherwise, past, present, and prospective crop,
             240      market, statistical, economic, and other similar information relating to the business of the
             241      association, either directly or through an agent created or selected by it or by other associations
             242      acting in conjunction with it.
             243          [(c)] (3) An association may advise its members in respect to the adjustment of their
             244      current and prospective production of agricultural commodities and its relation to the


             245      prospective volume of consumption, selling prices and existing or potential surplus, to the end
             246      that every market may be served from the most convenient productive areas under a program of
             247      orderly marketing that will assure adequate supplies without undue enhancement of prices or
             248      the accumulation of any undue surplus.
             249          Section 5. Section 3-1-21 is amended to read:
             250           3-1-21. Existing associations continued under chapter.
             251          [(a)] (1) This act shall be applicable to any existing association formed under any law
             252      of this state providing for the incorporation of agricultural cooperative associations, for a
             253      purpose for which an association may be formed under this act, and particularly to associations
             254      formed under the Agricultural Cooperative Association Act, and all such associations shall
             255      have and may exercise and enjoy all the rights, privileges, authority, powers, and capacity
             256      heretofore granted, and all such associations shall have and may also exercise and enjoy all the
             257      rights, privileges, authority, powers, and capacity granted or afforded under and in pursuance of
             258      this act to the same extent and effect as though organized hereunder.
             259          [(b)] (2) Any cooperative association heretofore organized by producers of agricultural
             260      products under [Title 3,] Chapter 1, General Provisions Relating to Agricultural Cooperative
             261      Associations, for purposes in this act provided, may bring itself under and within the terms of
             262      this act as if organized hereunder and may thereafter operate in pursuance of the terms hereof,
             263      and may exercise and enjoy all the rights, privileges, authority, powers, and capacity afforded
             264      and provided for under the terms of this act, by filing with the Division of Corporations and
             265      Commercial Code, a sworn statement signed by the president and secretary of such association,
             266      to the effect that by resolution of the board of directors of such association duly adopted, such
             267      association has elected to bring itself within the terms of this act.
             268          Section 6. Section 3-1-45 is amended to read:
             269           3-1-45. Sale, mortgage, and lease of assets.
             270          (1) (a) The association may sell, lease, exchange, mortgage, pledge, dispose of, or
             271      repay a debt with any of the property and assets of an association, if this action is made in the
             272      usual and regular course of business of the association.
             273          (b) The action taken under Subsection (1)(a) may be made upon the terms and
             274      conditions and for consideration as are authorized by the board of directors.
             275          (2) Consideration may include money or property, real or personal, including shares of


             276      any other association or corporation, domestic or foreign, as is authorized by the association's
             277      board of directors.
             278          (3) If the articles of incorporation provide for the mortgage or pledge of the property of
             279      the association by its directors, then the mortgage or pledge of all, or substantially all, of the
             280      property or assets, with or without the good will of an association, is considered to be made in
             281      the usual and regular course of its business.
             282          (4) If the action taken under Subsection (1) is not made in the usual regular course of
             283      the association's business, the action may still be taken if the following requirements are
             284      complied with:
             285          (a) The board of directors shall adopt a resolution recommending the action, and the
             286      members shall vote at an annual or special meeting of members.
             287          (b) Written or printed notice of the meeting shall be given to each member entitled to
             288      vote as provided in this chapter.
             289          (c) (i) At the meeting in which the action is considered, the members may authorize the
             290      action described in Subsection (1) and set the terms, or may authorize the board of directors to
             291      set the terms, conditions, and consideration to be received by the association.
             292          (ii) A two-thirds majority vote of the members is required to approve the action
             293      specified in Subsection (1).
             294          (d) The board of directors may abandon the action, even if approved by the members,
             295      subject to the rights of third parties under any related contracts, without further action or
             296      approval by members.
             297          Section 7. Section 4-1-8 is amended to read:
             298           4-1-8. General definitions.
             299          Subject to additional definitions contained in the chapters of this title which are
             300      applicable to specific chapters, as used in this title:
             301          (1) "Agriculture" means the science and art of the production of plants and animals
             302      useful to man including the preparation of plants and animals for human use and disposal by
             303      marketing or otherwise.
             304          (2) "Agricultural product" or "product of agriculture" means any product which is
             305      derived from agriculture, including any product derived from aquaculture as defined in Section
             306      4-37-103 .


             307          (3) "Commissioner" means the commissioner of agriculture and food.
             308          (4) "Department" means the Department of Agriculture and Food created [under Title
             309      4,] in Chapter 2, Department - State Chemist - Enforcement.
             310          (5) "Dietary supplement" has the meaning defined in the Federal Food, Drug, and
             311      Cosmetic Act, 21 U.S.C. Sec. 301 et seq.
             312          (6) "Livestock" means cattle, sheep, goats, swine, horses, mules, poultry, domesticated
             313      elk as defined in Section 4-39-102 , or any other domestic animal or domestic furbearer raised
             314      or kept for profit.
             315          (7) "Organization" means a corporation, government or governmental subdivision or
             316      agency, business trust, estate, trust, partnership, association, two or more persons having a joint
             317      or common interest, or any other legal entity.
             318          (8) "Person" means a natural person or individual, corporation, organization, or other
             319      legal entity.
             320          Section 8. Section 4-8-4 is amended to read:
             321           4-8-4. Department functions, powers, and duties.
             322          The department has and shall exercise the following functions, powers, and duties, in
             323      addition to those specified in Chapter 1 [of this code], Short Title and General Provisions:
             324          (1) general supervision over the marketing, sale, trade, advertising, storage, and
             325      transportation practices, used in buying and selling products of agriculture in Utah;
             326          (2) conduct and publish surveys and statistical analyses with its own resources or with
             327      the resources of others through contract, regarding the cost of production for products of
             328      agriculture, including transportation, processing, storage, advertising, and marketing costs;
             329      regarding market locations, demands, and prices for such products; and regarding market
             330      forecasts;
             331          (3) assist and encourage producers of products of agriculture in controlling current and
             332      prospective production and market deliveries in order to stabilize product prices at prices
             333      which assure reasonable profits for producers and at the same time ensure adequate market
             334      supplies; and
             335          (4) actively solicit input from the public and from interested groups or associations,
             336      through public hearings or otherwise, to assist in making fair determinations with respect to the
             337      production, marketing, and consumption of products of agriculture.


             338          Section 9. Section 4-16-2 is amended to read:
             339           4-16-2. Definitions.
             340          As used in this chapter:
             341          (1) "Advertisement" means any representation made relative to seeds, plants, bulbs, or
             342      ground stock other than those on the label of a seed container, disseminated in any manner.
             343          (2) "Agricultural seeds" mean seeds of grass, forage plants, cereal crops, fiber crops,
             344      sugar beets, seed potatoes, or any other kinds of seed or mixtures of seed commonly known
             345      within this state as agricultural or field seeds.
             346          (3) "Flower seeds" mean seeds of herbaceous plants grown for their blooms,
             347      ornamental foliage, or other ornamental plants commonly known and sold under the name of
             348      flower seeds in this state.
             349          (4) "Foundation seed," "registered seed," or "certified seed" means seed that is
             350      produced and labeled in accordance with procedures officially recognized by a seed certifying
             351      agency approved and accredited in this state.
             352          (5) (a) "Hybrid" means the first generation seed of a cross produced by controlling
             353      pollination and by combining:
             354          (i) two or more inbred lines;
             355          (ii) one inbred or a single cross with an open-pollinated variety; or
             356          (iii) two varieties or species, except open-pollinated varieties of corn, Zea mays.
             357          (b) The second generation and subsequent generations from the crosses referred to in
             358      Subsection (5)(a) are not to be regarded as hybrids.
             359          (c) Hybrid designations shall be treated as variety names.
             360          (6) "Kind" means one or more related species or subspecies of seed which singly or
             361      collectively is known by one name, for example, corn, oats, alfalfa, and timothy.
             362          (7) (a) "Label" means any written, printed, or graphic representation accompanying and
             363      pertaining to any seeds, plants, bulbs, or ground stock whether in bulk or in containers.
             364          (b) "Label" includes representations on invoices, bills, and letterheads.
             365          (8) "Lot" means a definite quantity of seed identified by a number or other mark, every
             366      part or bag of which is uniform within recognized tolerances.
             367          (9) "Noxious-weed seeds" mean weed seeds declared noxious by the commissioner.
             368          (10) "Pure seed," "germination," or other terms in common use for testing seeds for


             369      purposes of labeling shall have ascribed to them the meaning set forth for such terms in the
             370      most recent edition of "Rules for Seed Testing" published by the Association of Official Seed
             371      Analysts.
             372          (11) "Seeds for sprouting" means seeds sold for sprouting for salad or culinary
             373      purposes.
             374          (12) "Sowing" means the placement of agricultural seeds, vegetable seeds, flower
             375      seeds, tree and shrub seeds, or seeds for sprouting in a selected environment for the purpose of
             376      obtaining plant growth.
             377          (13) "Treated" means seed that has received an application of a substance to reduce,
             378      control, or repel certain disease organisms, fungi, insects or other pests which may attack the
             379      seed or its seedlings, or has received some other treatment to improve its planting value.
             380          (14) "Tree and shrub seeds" mean seeds of woody plants commonly known and sold
             381      under the name of tree and shrub seeds in this state.
             382          (15) "Variety" means a subdivision of a kind characterized by growth, yield, plant,
             383      fruit, seed, or other characteristic, which differentiate it from other plants of the same kind.
             384          (16) "Vegetable seeds" mean seeds of crops grown in gardens or on truck farms that
             385      are generally known and sold under the name of vegetable seeds, plants, bulbs, and ground
             386      stocks in this state.
             387          (17) "Weed seeds" mean seeds of any plant generally recognized as a weed within this
             388      state.
             389          Section 10. Section 4-16-7 is amended to read:
             390           4-16-7. Inspection -- Samples -- Analysis -- Seed testing facilities to be maintained
             391      -- Rules to control offensive seeds -- Notice of offending seeds -- Warrants.
             392          (1) (a) The department shall periodically enter public or private premises from which
             393      seeds are distributed, offered, or exposed for sale to sample, inspect, analyze, and test
             394      agricultural, vegetable, flower, or tree and shrub seeds or seeds for sprouting distributed within
             395      this state to determine compliance with this chapter.
             396          (b) To perform the duties specified in Subsection (1)(a), the department shall:
             397          (i) establish and maintain facilities for testing the purity and germination of seeds;
             398          (ii) prescribe by rule uniform methods for sampling and testing seeds; and
             399          (iii) establish fees for rendering service.


             400          (2) The department shall prescribe by rule weed seeds and noxious weed seeds and fix
             401      the tolerances permitted for those offensive seeds.
             402          (3) If a seed sample, upon analysis, fails to comply with this chapter, the department
             403      shall give written notice to that effect to any person who is distributing, offering, or exposing
             404      the seeds for sale. Nothing in this chapter, however, shall be construed as requiring the
             405      department to refer minor violations for criminal prosecution or for the institution of
             406      condemnation proceedings if it believes the public interest will best be served through informal
             407      action.
             408          (4) The department may proceed immediately, if admittance is refused, to obtain an ex
             409      parte warrant from the nearest court of competent jurisdiction to allow entry upon the premises
             410      for the purpose of making inspections and obtaining samples.
             411          Section 11. Section 4-17-3.5 is amended to read:
             412           4-17-3.5. Creation of State Weed Committee -- Membership -- Powers and duties
             413      -- Expenses.
             414          (1) There is created a State Weed Committee composed of five members, one member
             415      representing each of the following:
             416          (a) the Department of Agriculture and Food;
             417          (b) the Utah State University Agricultural Experiment Station;
             418          (c) the Utah State University Extension Service;
             419          (d) the Utah Association of Counties; and
             420          (e) private agricultural industry.
             421          (2) The commissioner shall select the members of the committee from those nominated
             422      by each of the respective groups or agencies following approval by the Agricultural Advisory
             423      Board.
             424          (3) (a) Except as required by Subsection (3)(b), as terms of current committee members
             425      expire, the commissioner shall appoint each new member or reappointed member to a four-year
             426      term.
             427          (b) Notwithstanding the requirements of Subsection (3)(a), the commissioner shall, at
             428      the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             429      committee members are staggered so that approximately half of the committee is appointed
             430      every two years.


             431          (4) (a) Members may be removed by the commissioner for cause.
             432          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             433      appointed for the unexpired term.
             434          (5) The State Weed Committee shall:
             435          (a) confer and advise on matters pertaining to the planning, implementation, and
             436      administration of the state noxious weed program;
             437          (b) recommend names for membership on the committee; and
             438          (c) serve as members of the executive committee of the Utah Weed Control
             439      Association.
             440          (6) (a) (i) Members who are not government employees shall receive no compensation
             441      or benefits for their services, but may receive per diem and expenses incurred in the
             442      performance of the member's official duties at the rates established by the Division of Finance
             443      under Sections 63A-3-106 and 63A-3-107 .
             444          (ii) Members may decline to receive per diem and expenses for their service.
             445          (b) (i) State government officer and employee members who do not receive salary, per
             446      diem, or expenses from their agency for their service may receive per diem and expenses
             447      incurred in the performance of their official duties from the committee at the rates established
             448      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             449          (ii) State government officer and employee members may decline to receive per diem
             450      and expenses for their service.
             451          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             452      from the entity that they represent for their service may receive per diem and expenses incurred
             453      in the performance of their official duties from the committee at the rates established by the
             454      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             455          (ii) Higher education members may decline to receive per diem and expenses for their
             456      service.
             457          (d) (i) Local government members who do not receive salary, per diem, or expenses
             458      from the entity that they represent for their service may receive per diem and expenses incurred
             459      in the performance of their official duties at the rates established by the Division of Finance
             460      under Sections 63A-3-106 and 63A-3-107 .
             461          (ii) Local government members may decline to receive per diem and expenses for their


             462      service.
             463          Section 12. Section 4-19-2 is amended to read:
             464           4-19-2. Department authorized to approve and make grants and loans, acquire
             465      property, or lease or operate property.
             466          The department, in conjunction with the administration of the rural rehabilitation
             467      program, may:
             468          (1) approve and make a loan to a farm or agricultural cooperative association regulated
             469      under Title 3, [General Provisions Relating to Agricultural Associations] Uniform Agricultural
             470      Cooperative Association Act, subject to Section 4-19-3 , including:
             471          (a) taking security for the loan through a mortgage, trust deed, pledge, or other security
             472      device;
             473          (b) purchasing a promissory note, real estate contract, mortgage, trust deed, or other
             474      instrument or evidence of indebtedness; and
             475          (c) collecting, compromising, canceling, or adjusting a claim or obligation arising out
             476      of the administration of the rural rehabilitation program;
             477          (2) purchase or otherwise obtain property in which the department has acquired an
             478      interest on account of a mortgage, trust deed, lien, pledge, assignment, judgment, or other
             479      means at any execution or foreclosure sale;
             480          (3) operate or lease, if necessary to protect its investment, property in which it has an
             481      interest or sell or otherwise dispose of the property; and
             482          (4) approve and make an education loan or an education grant to an individual for the
             483      purpose of attending a vocational school, college, or university to obtain additional education,
             484      qualifications, or skills.
             485          Section 13. Section 4-23-4 is amended to read:
             486           4-23-4. Agricultural and Wildlife Damage Prevention Board created --
             487      Composition -- Appointment -- Terms -- Vacancies -- Compensation.
             488          (1) There is created an Agricultural and Wildlife Damage Prevention Board composed
             489      of the commissioner and the director of the Division of Wildlife Resources, who shall serve,
             490      respectively, as the board's chair and vice chair, together with seven other members appointed
             491      by the governor to four-year terms of office as follows:
             492          (a) one sheep producer representing wool growers of the state;


             493          (b) one cattle producer representing range cattle producers of the state;
             494          (c) one person from the United States Department of Agriculture;
             495          (d) one agricultural landowner representing agricultural landowners of the state;
             496          (e) one person representing wildlife interests in the state;
             497          (f) one person from the United States Forest Service; and
             498          (g) one person from the United States Bureau of Land Management.
             499          (2) Appointees' term of office shall commence June 1.
             500          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             501      expire, the governor shall appoint each new member or reappointed member to a four-year
             502      term.
             503          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             504      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             505      board members are staggered so that approximately half of the board is appointed every two
             506      years.
             507          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             508      appointed for the unexpired term.
             509          (5) Attendance of five members at a duly called meeting shall constitute a quorum for
             510      the transaction of official business. The board shall convene at the times and places prescribed
             511      by the chair or vice chair.
             512          (6) (a) (i) Members who are not government employees shall receive no compensation
             513      or benefits for their services, but may receive per diem and expenses incurred in the
             514      performance of the member's official duties at the rates established by the Division of Finance
             515      under Sections 63A-3-106 and 63A-3-107 .
             516          (ii) Members may decline to receive per diem and expenses for their service.
             517          (b) (i) State government officer and employee members who do not receive salary, per
             518      diem, or expenses from their agency for their service may receive per diem and expenses
             519      incurred in the performance of their official duties from the board at the rates established by the
             520      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             521          (ii) State government officer and employee members may decline to receive per diem
             522      and expenses for their service.
             523          Section 14. Section 4-24-4 is amended to read:


             524           4-24-4. Livestock Brand Board created -- Composition -- Terms -- Removal --
             525      Quorum for transaction of business -- Compensation -- Duties.
             526          (1) There is created the Livestock Brand Board consisting of seven members appointed
             527      by the governor as follows:
             528          (a) four cattle ranchers recommended by the Utah Cattlemen's Association, one of
             529      whom shall be a feeder operator;
             530          (b) one dairyman recommended by the Utah Dairymen's Association;
             531          (c) one livestock market operator recommended jointly by the Utah Cattlemen's
             532      Association and the Utah Dairymen's Association and the Livestock Market Association; and
             533          (d) one horse breeder recommended by the Utah Horse Council.
             534          (2) If a nominee is rejected by the governor, the recommending association shall
             535      submit another nominee.
             536          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             537      expire, the governor shall appoint each new member or reappointed member to a four-year
             538      term.
             539          (b) Notwithstanding the requirements of Subsection (3)(a), the governor shall, at the
             540      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             541      board members are staggered so that approximately half of the board is appointed every two
             542      years.
             543          (4) (a) A member may, at the discretion of the governor, be removed at the request of
             544      the association that recommended the appointment.
             545          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             546      appointed for the unexpired term.
             547          (5) One member elected by the board shall serve as chair for a term of one year and be
             548      responsible for the call and conduct of meetings of the Livestock Brand Board. Attendance of
             549      a simple majority of the members at a duly called meeting shall constitute a quorum for the
             550      transaction of official business.
             551          (6) (a) Members shall receive no compensation or benefits for their services, but may
             552      receive per diem and expenses incurred in the performance of the member's official duties at
             553      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             554          (b) Members may decline to receive per diem and expenses for their service.


             555          (7) The Livestock Brand Board with the cooperation of the department shall direct the
             556      procedures and policies to be followed in administering and enforcing this chapter.
             557          Section 15. Section 4-24-10 is amended to read:
             558           4-24-10. Livestock on open range or outside enclosure to be marked or branded
             559      -- Cattle upon transfer of ownership to be marked or branded -- Exceptions.
             560          (1) (a) Except as provided in Subsections (1)(b) and [(1)] (c), no livestock shall forage
             561      upon an open range in this state or outside an enclosure unless they bear a brand or mark
             562      recorded in accordance with this chapter.
             563          (b) Swine, goats, and unweaned calves or colts are not required to bear a brand or mark
             564      to forage upon open range or outside an enclosure.
             565          (c) Domesticated elk may not forage upon open range or outside an enclosure under
             566      any circumstances as provided in Chapter 39 [of this title], Domesticated Elk Act.
             567          (2) (a) Except as provided in Subsection (2)(b), all cattle, upon sale or other transfer of
             568      ownership, shall be branded or marked with the recorded brand or mark of the new owner
             569      within 30 days after transfer of ownership.
             570          (b) No branding or marking, upon change of ownership, is required within the 30-day
             571      period for:
             572          (i) unweaned calves;
             573          (ii) registered or certified cattle;
             574          (iii) youth project calves, if the number transferred is less than five; or
             575          (iv) dairy cattle held on farms.
             576          Section 16. Section 4-32-4 is amended to read:
             577           4-32-4. License required to operate slaughterhouse -- Slaughtering livestock
             578      except in slaughterhouse prohibited -- Exceptions -- Violation a misdemeanor.
             579          (1) No person shall operate a slaughterhouse in this state without a license issued by
             580      the department, nor shall any person, except in a licensed slaughterhouse, slaughter livestock as
             581      a business or assist other persons in the slaughter of livestock except as otherwise provided in
             582      Subsection (2) or (3).
             583          (2) Except as provided in Subsection (3), a person who raises his own livestock or an
             584      employee of that person may slaughter livestock without a farm custom slaughter permit if:
             585          (a) the livestock is slaughtered on property owned by that person;


             586          (b) the livestock product derived from the slaughtered animal is consumed exclusively
             587      by that person or his immediate family, regular employees of that person, or nonpaying guests;
             588      and
             589          (c) the livestock product is marked "Not For Sale."
             590          (3) Domesticated elk may only be slaughtered as provided in this chapter and in
             591      Chapter 39 [of this title], Domesticated Elk Act.
             592          (4) Farm custom slaughter may be performed by a person who holds a valid farm
             593      custom slaughter permit.
             594          (5) Any person who violates this section, except as otherwise provided in Subsection
             595      [(5)] (6), is guilty of a class C misdemeanor.
             596          (6) Any person who offers for sale or sells any uninspected livestock product is guilty
             597      of a class B misdemeanor.
             598          Section 17. Section 4-32-7 is amended to read:
             599           4-32-7. Mandatory functions, powers, and duties of department prescribed.
             600          The department shall make rules pursuant to Title 63G, Chapter 3, Utah Administrative
             601      Rulemaking Act, regarding the following functions, powers, and duties, in addition to those
             602      specified in [Title 4,] Chapter 1, [Utah Agricultural Code] Short Title and General Provisions,
             603      for the administration and enforcement of this chapter:
             604          (1) The department shall require antemortem and postmortem inspections, quarantine,
             605      segregation, and reinspections by inspectors appointed for those purposes with respect to the
             606      slaughter of livestock and poultry and the preparation of livestock and poultry products at
             607      official establishments, except as provided in Subsection 4-32-8 (13).
             608          (2) The department shall require that:
             609          (a) livestock and poultry be identified for inspection purposes;
             610          (b) livestock or poultry products, or their containers be marked or labeled as:
             611          (i) "Utah Inspected and Passed" if, upon inspection, the products are found to be
             612      unadulterated; and
             613          (ii) "Utah Inspected and Condemned" if, upon inspection, the products are found to be
             614      adulterated; and
             615          (c) condemned products, which otherwise would be used for human consumption, be
             616      destroyed under the supervision of an inspector.


             617          (3) The department shall prohibit or limit livestock products, poultry products, or other
             618      materials not prepared under inspection procedures provided in this chapter, from being
             619      brought into official establishments.
             620          (4) The department shall require that labels and containers for livestock and poultry
             621      products:
             622          (a) bear all information required under Section 4-32-3 if the product leaves the official
             623      establishment; and
             624          (b) be approved prior to sale or transportation.
             625          (5) For official establishments required to be inspected under Subsection (1), the
             626      department shall:
             627          (a) prescribe sanitary standards;
             628          (b) require experts in sanitation or other competent investigators to investigate sanitary
             629      conditions; and
             630          (c) refuse to provide inspection service if the sanitary conditions allow adulteration of
             631      any livestock or poultry product.
             632          (6) (a) The department shall require that any person engaged in a business referred to in
             633      Subsection (6)(b) shall:
             634          (i) keep accurate records disclosing all pertinent business transactions;
             635          (ii) allow inspection of the business premises at reasonable times and examination of
             636      inventory, records, and facilities; and
             637          (iii) allow inventory samples to be taken after payment of their fair market value.
             638          (b) Subsection (6)(a) shall refer to any person who:
             639          (i) slaughters livestock or poultry;
             640          (ii) prepares, freezes, packages, labels, buys, sells, transports, or stores any livestock or
             641      poultry products for human or animal consumption;
             642          (iii) renders livestock or poultry; or
             643          (iv) buys, sells, or transports any dead, dying, disabled, or diseased livestock or poultry,
             644      or parts of their carcasses that died by a method other than slaughter.
             645          (7) (a) The department shall:
             646          (i) adopt by reference rules and regulations under federal acts with changes that the
             647      commissioner considers appropriate to make the rules and regulations applicable to operations


             648      and transactions subject to this chapter; and
             649          (ii) promulgate any other rules considered necessary for the efficient execution of the
             650      provisions of this chapter, including rules of practice providing an opportunity for hearing in
             651      connection with the issuance of orders under Subsection (5) or under Subsection 4-32-8 (1), (2),
             652      or (3) and prescribing procedures for proceedings in these cases.
             653          (b) These procedures shall not preclude requiring that a label or container be withheld
             654      from use, or inspection be refused under Subsections (1) and (5), or Subsection 4-32-8 (3),
             655      pending issuance of a final order in the proceeding.
             656          (8) (a) To prevent the inhumane slaughtering of livestock and poultry, inspectors shall
             657      be appointed to examine and inspect methods of handling and slaughtering livestock and
             658      poultry.
             659          (b) Inspection of new slaughtering establishments may be refused or temporarily
             660      suspended if livestock or poultry have been slaughtered or handled by any method not in
             661      accordance with the Humane Methods of Slaughter Act of 1978, Public Law 95-445.
             662          (9) (a) The department shall require all livestock and poultry showing symptoms of
             663      disease during antemortem inspection, performed by an inspector appointed for that purpose, to
             664      be set apart and slaughtered separately from other livestock and poultry.
             665          (b) When slaughtered, the carcasses of livestock and poultry shall be subject to careful
             666      examination and inspection in accordance with rules prescribed by the commissioner.
             667          Section 18. Section 4-38-8 is amended to read:
             668           4-38-8. Stewards.
             669          (1) (a) The commission may delegate authority to enforce its rules and this chapter to
             670      three stewards employed by the commission at each recognized race meet. At least one of them
             671      shall be selected by the commission.
             672          (b) Stewards shall exercise reasonable and necessary authority as designated by rules of
             673      the commission including the following:
             674          (i) enforce rules of the commission;
             675          (ii) rule on the outcome of events;
             676          (iii) evict from an event any person who has been convicted of bookmaking, bribery, or
             677      attempts to alter the outcome of any race through tampering with any animal that is not in
             678      accordance with this chapter or the rules of the commission;


             679          (iv) levy fines not to exceed $2,500 for violations of rules of the commission, which
             680      fines shall be reported daily and paid to the commission within 48 hours of imposition and
             681      notice;
             682          (v) suspend licenses not to exceed one year for violations of rules of the commission,
             683      which suspension shall be reported to the commission daily; and
             684          (vi) recommend that the commission impose fines or suspensions greater than
             685      permitted by Subsections (1)(b)(iv) and (v).
             686          (2) If a majority of the stewards agree, they may impose fines or suspend licenses.
             687          (3) (a) Any fine or license suspension imposed by a steward may be appealed in writing
             688      to the commission within five days after its imposition. The commission may affirm or reverse
             689      the decision of a steward or may increase or decrease any fine or suspension.
             690          (b) A fine imposed by the commission under this section or Section 4-38-9 may not
             691      exceed $10,000.
             692          (c) Suspensions of a license may be for any period of time but shall be commensurate
             693      with the seriousness of the offense.
             694          Section 19. Section 7-2-7 is amended to read:
             695           7-2-7. Stay of proceedings against institution -- Relief.
             696          (1) Except as otherwise specified, a taking of an institution or other person by the
             697      commissioner or a receiver or liquidator appointed by the commissioner under this chapter
             698      operates as a stay of the commencement or continuation of the following with respect to the
             699      institution:
             700          (a) any judicial, administrative, or other proceeding, including service of process;
             701          (b) the enforcement of any judgment;
             702          (c) any act to obtain possession of property;
             703          (d) any act to create, perfect, or enforce any lien against property of the institution;
             704          (e) any act to collect, assess, or recover a claim against the institution; and
             705          (f) the setoff of any debt owing to the institution against any claim against the
             706      institution.
             707          (2) Except as provided in Subsections (3), (4), (5), and (8):
             708          (a) the stay of any action against property of the institution continues until the
             709      institution has no interest in the property; and


             710          (b) the stay of any other action continues until the earlier of when the case is:
             711          (i) closed; or
             712          (ii) dismissed.
             713          (3) On the motion of any party in interest and after notice and a hearing, the court may
             714      terminate, annul, modify, condition, or otherwise grant relief from the stay:
             715          (a) for cause, including the lack of adequate protection of an interest in property of the
             716      party in interest; or
             717          (b) with respect to a stay of any action against property if:
             718          (i) the institution does not have an equity interest in the property; and
             719          (ii) the property would have no value in a reorganization or liquidation of the
             720      institution.
             721          (4) (a) Thirty days after a request under Subsection (3) for relief from the stay of any
             722      act against property of the institution, the stay is terminated with respect to the party in interest
             723      making the request unless the court, after notice and a hearing, orders the stay continued in
             724      effect pending the conclusion of, or as a result of, a final hearing and determination under
             725      Subsection (3).
             726          (b) A hearing under this Subsection (4) may be:
             727          (i) a preliminary hearing; or
             728          (ii) consolidated with the final hearing under Subsection (3).
             729          (c) The court shall order the stay continued in effect pending the conclusion of the final
             730      hearing under Subsection (3) if there is a reasonable likelihood that the party opposing relief
             731      from the stay will prevail at the conclusion of the final hearing.
             732          (d) If the hearing under this Subsection (4) is a preliminary hearing, the final hearing
             733      shall be commenced not later than 30 days after the conclusion of the preliminary hearing.
             734          (5) Upon request of a party in interest, the court, with or without a hearing, may grant
             735      relief from the stay provided under Subsection (1) to the extent necessary to prevent irreparable
             736      damage to the interest of an entity in property, if the interest will or could be damaged before
             737      there is an opportunity for notice and a hearing under Subsection (3) or (4).
             738          (6) In any hearing under Subsection (3) or (4) concerning relief from the stay of any act
             739      under Subsection (1):
             740          (a) the party requesting relief has the burden of proof on the issue of the institution's


             741      equity in property; and
             742          (b) the party opposing relief has the burden of proof on all other issues.
             743          (7) A person injured by any willful violation of a stay provided by this section shall
             744      recover actual damages, including costs and attorneys' fees and, when appropriate, may recover
             745      punitive damages.
             746          (8) Nothing in this section prevents the holder or the trustee for any holder of any bond,
             747      note, debenture, or other evidence of indebtedness issued by a city, county, municipal
             748      corporation, commission, district, authority, agency, subdivision, or other public body pursuant
             749      to Title 11, Chapter 17, Utah Industrial Facilities and Development Act, from exercising any
             750      rights it may have to sell, take possession of, foreclose upon, or enforce a lien against or
             751      security interest in property of an institution that has been pledged, assigned, or mortgaged as
             752      collateral for that bond, note, debenture, or evidence of indebtedness, or as collateral for a letter
             753      of credit or other instrument issued in support of that bond, note, debenture, or evidence of
             754      indebtedness.
             755          (9) Notice of any hearing under this section shall be served as provided in Subsection
             756      7-2-9 (6).
             757          Section 20. Section 7-7-15 is amended to read:
             758           7-7-15. Fiduciary relationship of directors and officers to association --
             759      Disclosure requirements -- Prohibitions -- Violations as misdemeanors.
             760          (1) (a) Directors and officers occupy fiduciary relationships to the association of which
             761      they are directors or officers. No director or officer may engage or participate, directly or
             762      indirectly, in any business or transaction conducted on behalf of or involving the association,
             763      which would result in a conflict of his own personal interests with those of the association
             764      which he serves, unless:
             765          (i) the business or transactions are conducted in good faith and are honest, fair, and
             766      reasonable to the association;
             767          (ii) a full disclosure of the business or transactions and the nature of the director's or
             768      officer's interest is made to the board of directors;
             769          (iii) the business or transactions are approved in good faith by the board of directors,
             770      any interested director abstaining; and
             771          (iv) the business or transactions do not represent a breach of the officer's or director's


             772      fiduciary duty and are not fraudulent, illegal, or ultra vires.
             773          (b) Without limitation by any of the specific provisions of this section, the supervisor
             774      may require the disclosure by directors, officers and employees of their personal interest, direct
             775      or indirect, in any business or transaction on behalf of or involving the association and of their
             776      control of or active participation in enterprises having activities related to the business of the
             777      association.
             778          (2) The following express restrictions governing the conduct of directors and officers
             779      of associations shall apply, but shall not be construed in any manner as excusing those persons
             780      from the observance of any other aspect of the general fiduciary duty owed by them to the
             781      association which they serve:
             782          (a) No officer or director of an association may, without the prior written approval of
             783      the commissioner, serve as a director or officer of another savings institution, the principal
             784      office of which is located in the same community as an office of the association, unless he
             785      served as director or officer of both institutions before the effective date of this act.
             786          (b) A director may not receive remuneration as a director, except reasonable fees for
             787      service as a director or for service as a member of a committee of directors. This Subsection
             788      (2)(b) does not prohibit or in any way limit any right of a director who is also an officer,
             789      employee, or attorney for the association to receive compensation for service as an officer,
             790      employee, or attorney.
             791          (c) No director or officer may have any interest, directly or indirectly, in the proceeds
             792      of a loan or investment or of a purchase or sale made by the association, unless the loan,
             793      investment, purchase, or sale is authorized expressly by resolution of the board of directors,
             794      and unless the resolution is approved by vote of at least two-thirds of the directors authorized
             795      of the association, any interested director taking no part in the vote.
             796          (d) No director or officer may have any interest, direct or indirect, in the purchase at
             797      less than its face value of any evidence of a savings account, deposit or other indebtedness
             798      issued by the association.
             799          (e) An association or a director, officer, or employee of an association may not require,
             800      as a condition to the granting of any loan or the extension of any other service by the
             801      association, that the borrower or any other person undertake a contract of insurance or any
             802      other agreement or understanding with respect to the furnishing of any other goods or services,


             803      with any specific company, agency, or individual.
             804          (f) No officer or director acting as proxy for a member or stockholder of an association
             805      may exercise, transfer, or delegate the proxy vote or votes in consideration of a private benefit
             806      or advantage, direct or indirect, accruing to himself, nor may he surrender control or pass his
             807      office to any other for any consideration of a private benefit or advantage, direct or indirect.
             808      The voting rights of members and directors may not be the subject of sale, barter, exchange, or
             809      similar transaction, either directly or indirectly. Any officer or director who violates this
             810      Subsection (2)(f) shall be held accountable to the association for any increment.
             811          (g) No director or officer may solicit, accept, or agree to accept, directly or indirectly,
             812      from any person other than the association any gratuity, compensation or other personal benefit
             813      for any action taken by the association or for endeavoring to procure any such action.
             814          (h) Any person violating any of the specific prohibitions set forth in Subsections (2)(a)
             815      through (g) is guilty of a class C misdemeanor.
             816          Section 21. Section 7-9-30 is amended to read:
             817           7-9-30. Reserve requirements -- "Risk assets" defined.
             818          (1) As used in this section, the words "risk assets" means all assets except the
             819      following:
             820          (a) cash on hand;
             821          (b) deposits and shares in federal or state banks, savings and loan associations, and
             822      credit unions;
             823          (c) assets which are insured by any agency of the federal government, the Federal
             824      National Mortgage Association, or the Government Mortgage Association;
             825          (d) loans to students insured under Title IV, Part B of the Higher Education Act of
             826      1965, 20 U.S.C. Sections 1071 et seq. or similar state insurance programs;
             827          (e) loans insured under Title 1 of the National Housing Act, 12 U.S.C. Sections 1702
             828      et seq. by the Federal Housing Administration;
             829          (f) shares or deposits in corporate credit unions as provided in Section 7-9-44 , or of any
             830      other state act, or of the Federal Credit Union Act;
             831          (g) accrued interest on nonrisk investments; and
             832          (h) loans fully guaranteed by shares or deposits.
             833          (2) At the end of each accounting period, after payment of any interest refunds, the


             834      credit union shall determine the gross income from member loans and from this amount shall
             835      set aside a regular reserve in accordance with Subsections (2)(a), (b), and (c).
             836          (a) A credit union in operation for more than four years and having assets of $500,000
             837      or more shall set aside a minimum of 10% of gross income from member loans until the
             838      regular reserve equals at least 4% of the total of outstanding loans and risk assets, then a
             839      minimum of 5% of gross income from member loans until the regular reserve equals at least
             840      6% of the total of outstanding loans and risk assets.
             841          (b) A credit union in operation for less than four years or having assets of less than
             842      $500,000 shall set aside a minimum of 10% of gross income from member loans until the
             843      regular reserve equals at least 7-1/2% of the total of outstanding loans and risk assets, then a
             844      minimum of 5% of gross income from member loans until the regular reserve equals at least
             845      10% of the total of outstanding loans and risk assets.
             846          (c) The regular reserve belongs to the credit union and shall be used to build equity and
             847      to meet contingencies or losses when authorized by the commissioner or the supervisor of
             848      credit unions.
             849          (d) The commissioner may temporarily reduce or waive the requirements for the
             850      regular reserve placement if he finds it to be in the best interest of the credit union.
             851          Section 22. Section 7-9-43 is amended to read:
             852           7-9-43. Board of Credit Union Advisors.
             853          There is created a Board of Credit Union Advisors of five members to be appointed by
             854      the governor.
             855          (1) Members of the board shall be individuals who are familiar with and associated in
             856      the field of credit unions.
             857          (2) At least three of the members shall be persons who have had three or more years of
             858      experience as a credit union officer and shall be selected from a list submitted to the governor
             859      by the Utah League of Credit Unions.
             860          (3) The board shall meet quarterly.
             861          (4) A chair of the advisory board shall be chosen each year from the membership of the
             862      advisory board by a majority of the members present at the board's first meeting each year.
             863          (5) (a) Except as required by Subsection (5)(b), as terms of current board members
             864      expire, the governor shall appoint each new member or reappointed member to a four-year


             865      term.
             866          (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
             867      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             868      board members are staggered so that approximately half of the board is appointed every two
             869      years.
             870          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             871      appointed for the unexpired term.
             872          (7) All members shall serve until their successors are appointed and qualified.
             873          (8) (a) Members shall receive no compensation or benefits for their services, but may
             874      receive per diem and expenses incurred in the performance of the member's official duties at
             875      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             876          (b) Members may decline to receive per diem and expenses for their service.
             877          (9) Meetings of the advisory board shall be held on the call of the chair. A majority of
             878      the members of the board shall constitute a quorum.
             879          (10) The Board of Credit Union Advisors has the duty to advise the governor and
             880      commissioner on problems relating to credit unions and to foster the interest and cooperation of
             881      credit unions in the improvement of their services to the people of the state of Utah.
             882          Section 23. Section 7-9-53 is amended to read:
             883           7-9-53. Grandfathering.
             884          (1) As used in this section:
             885          (a) "Association that resides in a domicile-county" means an association that:
             886          (i) operates a place of business or other physical location in the domicile-county; or
             887          (ii) has at least 100 members that are residents of the domicile-county.
             888          (b) "Domicile-county" means the county:
             889          (i) in the field of membership of the credit union as of January 1, 1999; and
             890          (ii) in which the credit union has located the greatest number of branches as of January
             891      1, 1999.
             892          (c) "Grandfathered field of membership" means the field of membership as of May 3,
             893      1999, of a credit union described in Subsection (2)(d).
             894          (2) For each credit union formed before January 1, 1999, its field of membership as of
             895      May 3, 1999, is determined as follows:


             896          (a) if the field of membership stated in the bylaws of the credit union as of January 1,
             897      1999, complies with Section 7-9-51 , the credit union's field of membership is the field of
             898      membership indicated in its bylaws;
             899          (b) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
             900      Subsection (2)(b)(ii) if:
             901          (A) the field of membership stated in the bylaws of the credit union as of January 1,
             902      1999, includes the residents of more than one county; and
             903          (B) as of January 1, 1999, the credit union's main office and any of its branches are
             904      located in only one county in its field of membership;
             905          (ii) as of May 3, 1999, the field of membership of a credit union described in
             906      Subsection (2)(b)(i) is:
             907          (A) the immediate family of a member of the credit union;
             908          (B) the employees of the credit union;
             909          (C) residents of the one county in which the credit union has its main office or
             910      branches as of January 1, 1999[,]; and
             911          (D) any association that as of January 1, 1999, is in the field of membership of the
             912      credit union;
             913          (c) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
             914      Subsection (2)(c)(ii) if:
             915          (A) the field of membership of a credit union stated in the bylaws of the credit union as
             916      of January 1, 1999, includes residents of more than one county;
             917          (B) as of January 1, 1999, the credit union has a main office or branch in more than one
             918      county; and
             919          (C) as a result of a merger pursuant to a supervisory action under Chapter 2, Possession
             920      of Depository Institution by Commissioner, or Chapter 19, Acquisition of Failing Depository
             921      Institutions or Holding Companies, that is effective on or after January 1, 1983, but before
             922      January 1, 1994, the credit union acquired a branch in a county in the field of membership of
             923      the credit union and the credit union did not have a branch in the county before the merger;
             924          (ii) as of May 3, 1999, the field of membership of a credit union described in
             925      Subsection (2)(c)(i) is the same field of membership that the credit union would have had
             926      under Subsection (2)(d) except that the credit union:


             927          (A) is not subject to Subsection (3); and
             928          (B) is subject to Subsection (4)(b); and
             929          (d) (i) the field of membership of a credit union as of May 3, 1999, is as provided in
             930      Subsection (2)(d)(ii) if:
             931          (A) the field of membership stated in the bylaws of the credit union as of January 1,
             932      1999, includes the residents of more than one county; and
             933          (B) as of January 1, 1999, the credit union has a main office or branch in more than one
             934      county;
             935          (ii) as of May 3, 1999, the field of membership of a credit union described in
             936      Subsection (2)(d)(i) is:
             937          (A) the immediate family of a member of the credit union;
             938          (B) the employees of the credit union;
             939          (C) residents of the credit union's domicile-county;
             940          (D) the residents of any county other than the domicile-county:
             941          (I) if, as of January 1, 1999, the county is in the field of membership of the credit
             942      union; and
             943          (II) in which, as of January 1, 1994, the credit union had located its main office or a
             944      branch; and
             945          (E) any association that as of January 1, 1999, is in the field of membership of the
             946      credit union.
             947          (3) If a credit union's field of membership is as described in Subsection (2)(d),
             948      beginning May 3, 1999, the credit union:
             949          (a) within the credit union's domicile-county, may establish, relocate, or otherwise
             950      change the physical location of the credit union's:
             951          (i) main office; or
             952          (ii) branch;
             953          (b) within a county other than a domicile-county that is in the credit union's
             954      grandfathered field of membership, may not:
             955          (i) establish a main office or branch that:
             956          (A) was not located in the county as of January 1, 1999; or
             957          (B) for which the credit union has not received by January 1, 1999, approval or


             958      conditional approval of a site plan for the main office or branch from the planning commission
             959      of the municipality where the main office or branch will be located;
             960          (ii) participate in a service center in which it does not participate as of January 1, 1999;
             961          (iii) relocate the credit union's main office or a branch located in the county as of
             962      January 1, 1999, unless the commissioner finds that the main office or branch is relocated
             963      within a three-mile radius of where it was originally located; or
             964          (iv) after a voluntary merger under Section 7-9-39 , operate a branch in the county if:
             965          (A) the effective date of the merger is on or after May 5, 2003;
             966          (B) the credit union with the field of membership described in Subsection (2)(d) is the
             967      surviving credit union after the merger; and
             968          (C) the credit union did not own and operate the branch before the effective date of the
             969      merger; and
             970          (c) may only admit as a member:
             971          (i) a person in the credit union's grandfathered field of membership; or
             972          (ii) a person belonging to an association that:
             973          (A) is added to the field of membership of the credit union; and
             974          (B) resides in the domicile-county of the credit union.
             975          (4) (a) If a credit union's field of membership is as described in Subsection (2)(b), as of
             976      May 3, 1999, the credit union may operate as a credit union having a field of membership
             977      under Section 7-9-51 .
             978          (b) If a credit union's field of membership is as described in Subsection (2)(c), as of
             979      May 3, 1999, the credit union:
             980          (i) within the credit union's domicile-county, may establish, relocate, or otherwise
             981      change the physical location of the credit union's:
             982          (A) main office; or
             983          (B) branch;
             984          (ii) within a county other than its domicile-county that is in the credit union's field of
             985      membership under Subsection (2)(c), may not:
             986          (A) establish a main office or branch that was not located in the county as of January 1,
             987      1999;
             988          (B) participate in a service center in which it does not participate as of January 1, 1999;


             989      or
             990          (C) relocate the credit union's main office or a branch located in the county as of
             991      January 1, 1999, unless the commissioner finds that the main office or branch is relocated
             992      within a three-mile radius of where it was originally located; and
             993          (iii) may only admit as a member:
             994          (A) a person in the credit union's field of membership under Subsection (2)(c); or
             995          (B) a person belonging to an association that is added to the field of membership of the
             996      credit union, regardless of whether the association resides in the domicile-county of the credit
             997      union.
             998          (5) (a) Notwithstanding Subsections (1) through (4), after May 3, 1999, a credit union
             999      described in Subsection (2)(c) or [(2)] (d) may:
             1000          (i) operate an office or branch that is operated by the credit union on May 3, 1999, but
             1001      that is not located in a county that is in the credit union's field of membership as of May 3,
             1002      1999; and
             1003          (ii) serve a member who is not in a credit union's field of membership as of May 3,
             1004      1999, if the member is a member of the credit union as of March 15, 1999.
             1005          (b) Subsection (5)(a) does not authorize a credit union to:
             1006          (i) establish a branch in a county that is not in the credit union's field of membership as
             1007      of May 3, 1999, unless the branch meets the requirements under this title for establishing a
             1008      branch; or
             1009          (ii) for a credit union described in Subsection (2)(d), include in its field of membership
             1010      an association that:
             1011          (A) as of January 1, 1999, is not included in the credit union's field of membership; and
             1012          (B) does not reside within the credit union's domicile-county.
             1013          (6) A credit union shall amend its bylaws in accordance with Section 7-9-11 by no later
             1014      than August 3, 1999, to comply with this section.
             1015          (7) In addition to any requirement under this section, a credit union shall comply with
             1016      any requirement under this title for the establishment, relocation, or change in the physical
             1017      location of a main office or branch of a credit union.
             1018          Section 24. Section 7-15-2 is amended to read:
             1019           7-15-2. Notice -- Form.


             1020          (1) (a) "Notice" means notice given to the issuer of a check either orally or in writing.
             1021          (b) Written notice may be given by United States mail that is:
             1022          (i) first class; and
             1023          (ii) postage prepaid.
             1024          (c) Notwithstanding Subsection (1)(b), written notice is conclusively presumed to have
             1025      been given when the notice is:
             1026          (i) properly deposited in the United States mail;
             1027          (ii) postage prepaid;
             1028          (iii) certified or registered mail;
             1029          (iv) return receipt requested; and
             1030          (v) addressed to the signer at the signer's:
             1031          (A) address as it appears on the check; or
             1032          (B) last-known address.
             1033          (2) Written notice under Subsection 7-15-1 (5) shall take substantially the following
             1034      form:
             1035          "Date: ____
             1036          To: _____
             1037          You are hereby notified that the check(s) described below issued by you has (have)
             1038      been returned to us unpaid:
             1039          Check date: ____
             1040          Check number: ____
             1041          Originating institution: ____
             1042          Amount: ____
             1043          Reason for dishonor (marked on check): ____
             1044          In accordance with Section 7-15-1 , Utah Code Annotated, you are liable for this check
             1045      together with a service charge of $20, which must be paid to the undersigned.
             1046          If you do not pay the check amount and the $20 service charge within 15 calendar days
             1047      from the day on which this notice was mailed, you are required to pay within 30 calendar days
             1048      from the day on which this notice is mailed:
             1049          (1) the check amount;
             1050          (2) the $20 service charge; and


             1051          (3) collection costs not to exceed $20.
             1052          If you do not pay the check amount, the $20 service charge, and the collection costs
             1053      within 30 calendar days from the day on which this notice is mailed, in accordance with
             1054      Section 7-15-1 , Utah Code Annotated, an appropriate civil legal action may be filed against
             1055      you for:
             1056          (1) the check amount;
             1057          (2) interest;
             1058          (3) court costs;
             1059          (4) attorneys' fees;
             1060          (5) actual costs of collection as provided by law; and
             1061          (6) damages in an amount equal to the greater of $100 or triple the check amount,
             1062      except:
             1063          (a) that damages recovered under this Subsection (6) may not exceed the check amount
             1064      by more than $500; and
             1065          (b) you are not liable for these damages for a check used to obtain a deferred deposit
             1066      loan.
             1067          In addition, the criminal code provides in Section 76-6-505 , Utah Code Annotated, that
             1068      any person who issues or passes a check for the payment of money, for the purpose of
             1069      obtaining from any person, firm, partnership, or corporation, any money, property, or other
             1070      thing of value or paying for any services, wages, salary, labor, or rent, knowing it will not be
             1071      paid by the drawee and payment is refused by the drawee, is guilty of issuing a bad check.
             1072          The civil action referred to in this notice does not preclude the right to prosecute under
             1073      the criminal code of the state.
             1074          (Signed)         ____________________________________________________
             1075          Name of Holder:     ____________________________________________________
             1076          Address of Holder:     ____________________________________________________
             1077          Telephone Number:     ___________________________________________________"
             1078          (3) Notwithstanding the other provisions of this section, a holder exempt under
             1079      Subsection 7-15-1 (9) is exempt from this section.
             1080          Section 25. Section 8-4-2 is amended to read:
             1081           8-4-2. Endowment care cemetery trust funds -- Deposits in endowment fund --


             1082      Reports -- Penalties for failure to file -- Investment of trust fund monies -- Attestation.
             1083          (1) An endowment care cemetery shall establish an endowment care trust fund
             1084      pursuant to Title 75, Chapter 7, [Trust Administration] Utah Uniform Trust Code.
             1085          (a) Any newly established endowment care cemetery or existing cemetery converting
             1086      to an endowment care cemetery shall deposit a minimum of $25,000 in the endowment care
             1087      trust fund.
             1088          (b) Each endowment care cemetery shall deposit in the endowment care trust fund for
             1089      each plot space sold or disposed of a minimum of:
             1090          (i) $1.50 a square foot for each grave;
             1091          (ii) $15 for each niche; and
             1092          (iii) $60 for each crypt.
             1093          (2) (a) An endowment care cemetery shall collect endowment care funds only pursuant
             1094      to a written contract of sale signed by the endowment care cemetery and the purchaser.
             1095          (b) The contract of sale shall specify the terms of the endowment care trust consistent
             1096      with this section and the terms of payment.
             1097          (c) If requested by the purchaser, a copy of the endowment care trust shall be provided
             1098      to the purchaser.
             1099          (3) (a) Each endowment care cemetery shall prepare an annual written report for the
             1100      benefit of its trustor lot holders.
             1101          (b) The report shall contain:
             1102          (i) information determined to be reasonable and necessary to show compliance with the
             1103      provisions of this chapter;
             1104          (ii) the number and square feet of grave space;
             1105          (iii) the number of crypts and niches sold or disposed of under endowment care during
             1106      a specific period; and
             1107          (iv) the dollar amount of sales, amounts paid, amounts receivable, and amounts
             1108      deposited in endowment care funds for crypts, niches, and grave space during a specific period,
             1109      set forth on the accrual basis as determined by the cemetery authority.
             1110          (c) An officer of the endowment care cemetery authority shall verify the report.
             1111          (d) The report shall be on file in the principal office of the endowment care cemetery
             1112      and shall be made available upon request.


             1113          (e) The report shall be completed by the 15th day of the third month following the end
             1114      of the endowment care cemetery's fiscal year.
             1115          (4) An officer, director, partner, proprietor, or other person having control of the
             1116      records of an endowment care cemetery shall provide the reports and records necessary to
             1117      comply with the provisions of this chapter.
             1118          (5) A person is guilty of a class A misdemeanor who willfully and intentionally fails to:
             1119          (a) deposit funds collected as endowment care funds into the endowment care trust
             1120      within 30 days of receipt of the funds; or
             1121          (b) prepare the report required by Subsection (3).
             1122          (6) Endowment care funds may be invested separately or together. The investment
             1123      income shall be divided between the funds in the proportion that each contributed to the
             1124      invested amount.
             1125          (7) Endowment care funds shall be invested in accordance with Section 31A-18-105
             1126      and Title 75, Chapter 7, [Trust Administration] Utah Uniform Trust Code.
             1127          (8) (a) An endowment care cemetery shall place endowment care funds with an
             1128      independent trustee appointed by the endowment care cemetery.
             1129          (b) A trustee may be independent even if it has common ownership with the cemetery.
             1130          (c) The independent trustee shall be a depository institution, as defined by Section
             1131      7-1-103 , or an insurer, as defined in Section 31A-1-301 .
             1132          (9) (a) The trustee shall submit to the endowment care cemetery an annual independent
             1133      attestation of the endowment care trust funds.
             1134          (b) The attestation shall state:
             1135          (i) the total amount of the general and special endowment care funds invested by law;
             1136          (ii) the amount of cash on hand not invested;
             1137          (iii) the location, description, and character of the investments in which the special
             1138      endowment care funds are invested;
             1139          (iv) the value of any securities held in the endowment care fund; and
             1140          (v) the actual financial condition of the funds.
             1141          (10) (a) A trustee may not receive compensation for services and expenses, including
             1142      audits, in excess of 5% of the income derived from an endowment care fund in any year.
             1143          (b) If there are insufficient funds from the income derived from the endowment care


             1144      trust fund to pay for the attestation of the endowment care funds, the endowment care cemetery
             1145      shall pay amounts due from funds other than the endowment care trust fund or income derived
             1146      from that fund.
             1147          (11) The income from an endowment care fund shall be used for the care, maintenance,
             1148      and embellishment of the cemetery as determined by the endowment care cemetery, and to pay
             1149      for administering the fund.
             1150          Section 26. Section 9-3-410 is amended to read:
             1151           9-3-410. Relation to certain acts.
             1152          (1) The authority is exempt from:
             1153          (a) Title 51, Chapter 5, Funds Consolidation Act;
             1154          (b) Title 63A, Chapter 1, [Utah] Department of Administrative Services [Code];
             1155          (c) Title 63G, Chapter 6, Utah Procurement Code;
             1156          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             1157          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             1158          (2) The authority shall be subject to audit by:
             1159          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
             1160          (b) the legislative auditor general pursuant to Section 36-12-15 .
             1161          (3) The authority shall annually report to the Retirement and Independent Entities
             1162      Committee created under Section 63E-1-201 concerning the authority's implementation of this
             1163      part.
             1164          Section 27. Section 9-4-202 is amended to read:
             1165           9-4-202. Powers and duties of division.
             1166          (1) The division shall:
             1167          (a) assist local governments and citizens in the planning, development, and
             1168      maintenance of necessary public infrastructure and services;
             1169          (b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
             1170      planning commissions, area-wide clearinghouses, zoning commissions, parks or recreation
             1171      boards, community development groups, community action agencies, and other agencies
             1172      created for the purpose of aiding and encouraging an orderly, productive, and coordinated
             1173      development of the state and its political subdivisions;
             1174          (c) assist the governor in coordinating the activities of state agencies which have an


             1175      impact on the solution of community development problems and the implementation of
             1176      community plans;
             1177          (d) serve as a clearinghouse for information, data, and other materials which may be
             1178      helpful to local governments in discharging their responsibilities and provide information on
             1179      available federal and state financial and technical assistance;
             1180          (e) carry out continuing studies and analyses of the problems faced by communities
             1181      within the state and develop such recommendations for administrative or legislative action as
             1182      appear necessary;
             1183          (f) assist in funding affordable housing and addressing problems of homelessness;
             1184          (g) support economic development activities through grants, loans, and direct programs
             1185      financial assistance;
             1186          (h) certify project funding at the local level in conformance with federal, state, and
             1187      other requirements;
             1188          (i) utilize the capabilities and facilities of public and private universities and colleges
             1189      within the state in carrying out its functions;
             1190          (j) assist and support local governments, community action agencies, and citizens in
             1191      the planning, development, and maintenance of home weatherization, energy efficiency, and
             1192      antipoverty activities; and
             1193          (k) assist and support volunteer efforts in the state.
             1194          (2) The division may:
             1195          (a) by following the procedures and requirements of Title 63J, Chapter 5, Federal
             1196      Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
             1197          (b) if any federal program requires the expenditure of state funds as a condition to
             1198      participation by the state in any fund, property, or service, with the governor's approval, expend
             1199      whatever funds are necessary out of the money provided by the Legislature for the use of the
             1200      department;
             1201          (c) in accordance with Part 13, Domestic Violence Shelters, assist in developing,
             1202      constructing, and improving shelters for victims of domestic violence, as described in Section
             1203      77-36-1 , through loans and grants to nonprofit and governmental entities; and
             1204          (d) assist, when requested by a county or municipality, in the development of
             1205      accessible housing.


             1206          (3) (a) The division is recognized as an issuing authority as defined in Subsection
             1207      9-4-502 (7), entitled to issue bonds from the Small Issue Bond Account created in Subsection
             1208      9-4-506 (1)(c) as a part of the state's private activity bond volume cap authorized by the Internal
             1209      Revenue Code of 1986 and computed under Section 146 of the code.
             1210          (b) To promote and encourage the issuance of bonds from the Small Issue Bond
             1211      Account for manufacturing projects, the division may:
             1212          (i) develop campaigns and materials that inform qualified small manufacturing
             1213      businesses about the existence of the program and the application process;
             1214          (ii) assist small businesses in applying for and qualifying for these bonds; or
             1215          (iii) develop strategies to lower the cost to small businesses of applying for and
             1216      qualifying for these bonds, including making arrangements with financial advisors,
             1217      underwriters, bond counsel, and other professionals involved in the issuance process to provide
             1218      their services at a reduced rate when the division can provide them with a high volume of
             1219      applicants or issues.
             1220          Section 28. Section 9-6-305 is amended to read:
             1221           9-6-305. Art collection committee.
             1222          (1) The division shall appoint a committee of artists or judges of art to take charge of
             1223      all works of art acquired under this chapter. This collection shall be known as the Utah State
             1224      Alice Art Collection.
             1225          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             1226      expire, the division shall appoint each new member or reappointed member to a four-year term.
             1227          (b) Notwithstanding the requirements of Subsection (2)(a), the division shall, at the
             1228      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1229      board members are staggered so that approximately half of the board is appointed every two
             1230      years.
             1231          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             1232      appointed for the unexpired term.
             1233          (4) (a) Members shall receive no compensation or benefits for their services, but may
             1234      receive per diem and expenses incurred in the performance of the member's official duties at
             1235      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1236          (b) Members may decline to receive per diem and expenses for their service.


             1237          Section 29. Section 9-6-505 is amended to read:
             1238           9-6-505. Eligibility requirements of qualifying arts organizations -- Allocation
             1239      limitations -- Matching requirements.
             1240          (1) Any qualifying organization may apply to receive moneys from the state fund to be
             1241      deposited in an endowment fund it has created under Subsection 9-6-503 (1):
             1242          (a) if it has received a grant from the board during one of the three years immediately
             1243      before making application for state fund moneys under this Subsection (1); or
             1244          (b) upon approval by the board if it has not received a grant from the board within the
             1245      past three years.
             1246          (2) (a) The maximum amount that may be allocated to each qualifying organization
             1247      from the state fund shall be determined by the board by calculating the average cash income of
             1248      the qualifying organization during the past three fiscal years as contained in the qualifying
             1249      organization's final reports on file with the board. The board shall notify each qualifying
             1250      organization of the maximum amount of moneys from the state fund for which it qualifies.
             1251          (b) The minimum amount that may be allocated to each qualifying organization from
             1252      the state fund is $2,500.
             1253          (c) If the maximum amount for which the organization qualifies is less than $2,500, the
             1254      organization may still apply for $2,500.
             1255          (3) After the board determines that a qualifying organization is eligible to receive
             1256      moneys from the state fund and before any money is allocated to the qualifying organization
             1257      from the state fund, the qualifying organization shall match the amount qualified for by moneys
             1258      raised and designated exclusively for that purpose. State moneys, in-kind contributions, and
             1259      preexisting endowment gifts may not be used to match moneys from the state fund.
             1260          (4) Endowment match moneys shall be based on a sliding scale as follows:
             1261          (a) any amount requested not exceeding $100,000 shall be matched one-to-one;
             1262          (b) any additional amount requested that makes the aggregate amount requested exceed
             1263      $100,000 but not exceed $500,000 shall be matched two-to-one; and
             1264          (c) any additional amount requested that makes the aggregate amount requested exceed
             1265      $500,000 shall be matched three-to-one.
             1266          (5) (a) Qualifying organizations shall raise the matching amount within three years
             1267      after applying for moneys from the state fund by a date determined by the board.


             1268          (b) Moneys from the state fund shall be released to the qualifying organization only
             1269      upon verification by the board that the matching money has been received on or before the date
             1270      determined under Subsection (5)(a). Verification of matching funds shall be made by a certified
             1271      public accountant.
             1272          (c) Moneys from the state fund shall be released to qualifying organizations with
             1273      professional endowment management in increments not less than $20,000 as audited
             1274      confirmation of matching funds is received by the board.
             1275          (d) Moneys from the state fund shall be granted to each qualifying organization on the
             1276      basis of the matching funds it has raised by the date determined under Subsection (5)(a).
             1277          Section 30. Section 9-7-204 is amended to read:
             1278           9-7-204. State Library Board -- Members -- Meetings -- Expenses.
             1279          (1) There is created within the department the State Library Board.
             1280          (2) (a) The board shall consist of nine members appointed by the governor.
             1281          (b) One member shall be appointed on recommendation from each of the following
             1282      agencies:
             1283          (i) the State Office of Education;
             1284          (ii) the Board of Control of the State Law Library;
             1285          (iii) the Office of Legislative Research and General Counsel; and
             1286          (iv) the Utah System of Higher Education.
             1287          (c) Of the five remaining members at least two shall be appointed from rural areas.
             1288          (3) (a) Except as required by Subsection (3)(b), as terms of current board members
             1289      expire, the governor shall appoint each new member or reappointed member to a four-year
             1290      term.
             1291          (b) [Notwithstanding the requirements of Subsection (a), the] The governor shall, at the
             1292      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1293      board members are staggered so that approximately half of the board is appointed every two
             1294      years.
             1295          (4) The members may not serve more than two full consecutive terms.
             1296          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             1297      appointed for the unexpired term in the same manner as originally appointed.
             1298          (6) Five members of the board constitute a quorum for conducting board business.


             1299          (7) The governor shall select one of the board members as chair who shall serve for a
             1300      period of two years.
             1301          (8) The director of the State Library Division shall be executive officer of the board.
             1302          (9) (a) (i) Members who are not government employees shall receive no compensation
             1303      or benefits for their services, but may receive per diem and expenses incurred in the
             1304      performance of the member's official duties at the rates established by the Division of Finance
             1305      under Sections 63A-3-106 and 63A-3-107 .
             1306          (ii) Members may decline to receive per diem and expenses for their service.
             1307          (b) (i) State government officer and employee members who do not receive salary, per
             1308      diem, or expenses from their agency for their service may receive per diem and expenses
             1309      incurred in the performance of their official duties from the board at the rates established by the
             1310      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1311          (ii) State government officer and employee members may decline to receive per diem
             1312      and expenses for their service.
             1313          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             1314      from the entity that they represent for their service may receive per diem and expenses incurred
             1315      in the performance of their official duties from the committee at the rates established by the
             1316      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1317          (ii) Higher education members may decline to receive per diem and expenses for their
             1318      service.
             1319          Section 31. Section 9-8-705 is amended to read:
             1320           9-8-705. Eligibility requirements of qualifying history organizations -- Allocation
             1321      limitations -- Matching requirements.
             1322          (1) Any qualifying organization may apply to receive monies from the state fund to be
             1323      deposited in an endowment fund it has created under Section 9-8-703 :
             1324          (a) if it has received a grant from the division during one of the three years immediately
             1325      before making application for state fund monies under this Subsection (1); or
             1326          (b) if it has not received a grant from the division within the past three years, it may
             1327      receive a grant upon approval by the division according to policy of the board.
             1328          (2) (a) The maximum amount that may be allocated to each qualifying organization
             1329      from the state fund shall be determined by the division in a format to be developed in


             1330      consultation with the board.
             1331          (b) The minimum amount that may be allocated to each qualifying organization from
             1332      the state fund is $2,500.
             1333          (3) After the division determines that a qualifying organization is eligible to receive
             1334      monies from the state fund and before any money is allocated to the qualifying organization
             1335      from the state fund, the qualifying organization shall match the amount qualified for by monies
             1336      raised and designated exclusively for that purpose. State monies and in-kind contributions may
             1337      not be used to match monies from the state fund.
             1338          (4) Endowment match monies shall be based on a sliding scale as follows:
             1339          (a) amounts requested up to $20,000 shall be matched one-to-one;
             1340          (b) any additional amount requested that makes the aggregate amount requested exceed
             1341      $20,000 but not exceed $50,000 shall be matched two-to-one; and
             1342          (c) any additional amount requested that makes the aggregate amount requested exceed
             1343      $50,000 shall be matched three-to-one.
             1344          (5) (a) Qualifying organizations shall raise the matching amount by a date determined
             1345      by the board.
             1346          (b) Monies from the state fund shall be released to the qualifying organization only
             1347      upon verification by the division that the matching money has been received on or before the
             1348      date determined under Subsection (5)(a). Verification of matching funds shall be made by a
             1349      certified public accountant.
             1350          (c) Monies from the state fund shall be released to qualifying organizations with
             1351      professional endowment management in increments not less than $2,500 as audited
             1352      confirmation of matching funds is received by the board.
             1353          (d) Monies from the state fund shall be granted to each qualifying organization on the
             1354      basis of the matching funds it has raised by the date determined under Subsection (5)(a).
             1355          Section 32. Section 11-32-3.5 is amended to read:
             1356           11-32-3.5. Entry into an established interlocal finance authority -- Withdrawal
             1357      from an interlocal finance authority -- Effect of outstanding debt -- Effect on
             1358      organization.
             1359          (1) The governing body of any public body, which is not at that time a member of a
             1360      financing authority established in the county in which the public body is located, may, by


             1361      resolution, elect to join the authority.
             1362          (2) The resolution shall state the name of the public body and that the public body
             1363      thereby petitions for membership in the authority. A certified copy of the resolution shall be
             1364      delivered to the authority.
             1365          (3) The public body shall become a participant member of the authority, upon receipt
             1366      by the authority of the resolution, but only with respect to any financing initiated after the
             1367      public body has become a member of the authority.
             1368          (4) A participant member may elect to withdraw from an authority by resolution
             1369      adopted by the governing body of the participant member following:
             1370          (a) the payment of all outstanding bonds for which a participant member's delinquent
             1371      tax receivables have been assigned;
             1372          (b) the distribution of remaining amounts as provided in Section 11-32-15 ; and
             1373          (c) satisfactory completion of any independent accounting audits requested by the
             1374      authority or the county.
             1375          (5) The resolution of the governing body of the public body which is withdrawing its
             1376      membership shall state the name of the public body it represents and that the public body
             1377      thereby petitions for withdrawal from the authority. A certified copy of the resolution shall be
             1378      delivered to the authority. The membership of the public body in the authority shall terminate
             1379      upon receipt of the resolution by the authority.
             1380          (6) A public body which has withdrawn from membership in an authority may elect to
             1381      join such authority to participate in future financings by the authority.
             1382          (7) (a) By resolution of its governing body, a participant member may elect not to
             1383      participate in future financings of the authority. Such election shall be effective upon delivery
             1384      of a certified copy of the resolution to the authority.
             1385          (b) In addition to the method outlined in Subsection (7)(a), a participant member may
             1386      be considered to have elected not to participate in future financings in any reasonable manner
             1387      selected by the authority.
             1388          (8) For purposes of determining the presence of a quorum of the board of trustees or
             1389      for other purposes, the board of trustees of an authority may treat participant members which
             1390      have elected or are considered to have elected not to participate in a financing as not being
             1391      participant members.


             1392          (9) The composition organization of the authority shall change upon the entrance,
             1393      election to participate, election not to participate, or withdrawal of a participant member.
             1394          Section 33. Section 11-32-15 is amended to read:
             1395           11-32-15. Special fund -- Apportionment of excess amounts.
             1396          (1) The provisions of Title 59, Revenue and Taxation, otherwise notwithstanding,
             1397      delinquent taxes paid to the county on behalf of the participant members shall be paid into the
             1398      special fund created with respect to the bonds issued by any authority.
             1399          (2) Following the payment of all bonds issued with respect to any delinquent tax
             1400      receivables and all other amounts due and owing under any assignment agreement, amounts
             1401      remaining on deposit with the authority or in the special fund created with respect to the
             1402      issuance of the bonds shall be apportioned and distributed as follows:
             1403          (a) Any amounts which represent the amount by which the delinquent taxes recovered
             1404      exceed the amount originally paid by the authority at the time of transfer of the delinquent tax
             1405      receivables to the authority shall be distributed to the respective participant members, including
             1406      the county, in the proportion of their respective taxes.
             1407          (b) Any amounts remaining following the distribution directed in Subsection (2)(a)
             1408      shall be paid to the county.
             1409          Section 34. Section 13-11-21 is amended to read:
             1410           13-11-21. Settlement of class action -- Complaint in class action delivered to
             1411      enforcing authority.
             1412          (1) (a) A defendant in a class action may file a written offer of settlement. If it is not
             1413      accepted within a reasonable time by a plaintiff class representative, the defendant may file an
             1414      affidavit reciting the rejection. The court may determine that the offer has enough merit to
             1415      present to the members of the class. If it so determines, it shall order a hearing to determine
             1416      whether the offer should be approved. It shall give the best notice of the hearing that is
             1417      practicable under the circumstances, including notice to each member who can be identified
             1418      through reasonable effort. The notice shall specify the terms of the offer and a reasonable
             1419      period within which members of the class who request it are entitled to be included in the class.
             1420      The statute of limitations for those who are excluded pursuant to this Subsection (1) is tolled
             1421      for the period the class action has been pending, plus an additional year.
             1422          (b) If a member who has previously lost an opportunity to be excluded from the class is


             1423      excluded at his request in response to notice of the offer of settlement during the period
             1424      specified under Subsection (1)(a), he may not thereafter participate in a class action for
             1425      damages respecting the same consumer transaction, unless the court later disapproves the offer
             1426      of settlement or approves a settlement materially different from that proposed in the original
             1427      offer of settlement. After the expiration of the period of limitations, a member of the class is
             1428      not entitled to be excluded from it.
             1429          (c) If the court later approves the offer of settlement, including changes, if any,
             1430      required by the court in the interest of a just settlement of the action, it shall enter judgment,
             1431      which is binding on all persons who are then members of the class. If the court disapproves the
             1432      offer or approves a settlement materially different from that proposed in the original offer,
             1433      notice shall be given to a person who was excluded from the action at his request in response to
             1434      notice of the offer under Subsection (1)(a), and he is entitled to rejoin the class and, in the case
             1435      of the approval, participate in the settlement.
             1436          (2) On the commencement of a class action under Section 13-11-19 , the class
             1437      representative shall mail by certified mail with return receipt requested or personally serve a
             1438      copy of the complaint on the enforcing authority. Within 30 days after the receipt of a copy of
             1439      the complaint, but not thereafter, the enforcing authority may intervene in the class action.
             1440          Section 35. Section 13-28-2 is amended to read:
             1441           13-28-2. Definitions.
             1442          For the purpose of this part:
             1443          (1) "Division" means the Division of Consumer Protection in the Department of
             1444      Commerce.
             1445          (2) "Prize" means a gift, award, or other item or service of value.
             1446          (3) (a) "Prize notice" means a notice given to an individual in this state that satisfies all
             1447      of the following:
             1448          (i) is or contains a representation that the individual has been selected or may be
             1449      eligible to receive a prize; and
             1450          (ii) conditions receipt of a prize on a payment or donation from the individual or
             1451      requires or invites the individual to make a contact to learn how to receive the prize or to obtain
             1452      other information related to the notice.
             1453          (b) "Prize notice" does not include:


             1454          (i) a notice given at the request of the individual; or
             1455          (ii) a notice informing the individual that he or she has been awarded a prize as a result
             1456      of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is
             1457      awarded the prize stated in the notice.
             1458          (4) "Solicitor" means a person who represents to an individual that the individual has
             1459      been selected or may be eligible to receive a prize.
             1460          (5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.
             1461          (6) "Verifiable retail value" of a prize means:
             1462          (a) a price at which the solicitor or sponsor can demonstrate that a substantial number
             1463      of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in
             1464      which the prize notice is given; or
             1465          (b) if the solicitor or sponsor is unable to satisfy Subsection (6)(a), no more than 1.5
             1466      times the amount the solicitor or sponsor paid for the prize.
             1467          Section 36. Section 16-10a-705 is amended to read:
             1468           16-10a-705. Notice of meeting.
             1469          (1) A corporation shall give notice to shareholders of the date, time, and place of each
             1470      annual and special shareholders' meeting no fewer than 10 nor more than 60 days before the
             1471      meeting date. Unless this chapter or the articles of incorporation require otherwise, the
             1472      corporation is required to give notice only to shareholders entitled to vote at the meeting.
             1473          (2) Unless this chapter or the articles of incorporation require otherwise, notice of an
             1474      annual meeting need not include a description of the purpose or purposes for which the meeting
             1475      is called.
             1476          (3) Notice of a special meeting must include a description of the purpose or purposes
             1477      for which the meeting is called.
             1478          (4) (a) Subject to Subsection (4)(b), unless the bylaws require otherwise, if an annual
             1479      or special shareholders' meeting is adjourned to a different date, time, or place, notice need not
             1480      be given of the new date, time, or place if the new date, time, or place is announced at the
             1481      meeting before adjournment.
             1482          (b) If the adjournment is for more than 30 days, or if after the adjournment a new
             1483      record date for the adjourned meeting is or must be fixed under Section 16-10a-707 , notice of
             1484      the adjourned meeting must be given pursuant to the requirements of this section to


             1485      shareholders of record who are entitled to vote at the meeting.
             1486          (5) (a) Notwithstanding a requirement that notice be given under any provision of this
             1487      chapter, the articles of incorporation, or bylaws of any corporation, notice shall not be required
             1488      to be given to any shareholder to whom:
             1489          (i) a notice of two consecutive annual meetings, and all notices of meetings or of the
             1490      taking of action by written consent without a meeting during the period between the two
             1491      consecutive annual meetings, have been mailed, addressed to the shareholder at the
             1492      shareholder's address as shown on the records of the corporation, and have been returned
             1493      undeliverable; or
             1494          (ii) at least two payments, if sent by first class mail, of dividends or interest on
             1495      securities during a 12 month period, have been mailed, addressed to the shareholder at the
             1496      shareholder's address as shown on the records of the corporation, and have been returned
             1497      undeliverable.
             1498          (b) Any action taken or meeting held without notice to a shareholder to whom notice is
             1499      excused under Subsection (5) has the same force and effect as if notice had been duly given. If
             1500      a shareholder to whom notice is excused under Subsection (5) delivers to the corporation a
             1501      written notice setting forth the shareholder's current address, or if another address for the
             1502      shareholder is otherwise made known to the corporation, the requirement that notice be given
             1503      to the shareholder is reinstated. In the event that the action taken by the corporation requires the
             1504      filing of a certificate under any provision of this chapter, the certificate need not state that
             1505      notice was not given to shareholders to whom notice was not required pursuant to this
             1506      Subsection (5).
             1507          Section 37. Section 16-10a-906 is amended to read:
             1508           16-10a-906. Determination and authorization of indemnification of directors.
             1509          (1) A corporation may not indemnify a director under Section 16-10a-902 unless
             1510      authorized and a determination has been made in the specific case that indemnification of the
             1511      director is permissible in the circumstances because the director has met the applicable
             1512      standard of conduct set forth in Section 16-10a-902 . A corporation may not advance expenses
             1513      to a director under Section 16-10a-904 unless authorized in the specific case after the written
             1514      affirmation and undertaking required by Subsections 16-10a-904 (1)(a) and (b) are received and
             1515      the determination required by Subsection 16-10a-904 (1)(c) has been made.


             1516          (2) The determinations required by Subsection (1) shall be made:
             1517          (a) by the board of directors by a majority vote of those present at a meeting at which a
             1518      quorum is present, and only those directors not parties to the proceeding shall be counted in
             1519      satisfying the quorum; or
             1520          (b) if a quorum cannot be obtained as contemplated in Subsection (2)(a), by a majority
             1521      vote of a committee of the board of directors designated by the board of directors, which
             1522      committee shall consist of two or more directors not parties to the proceeding, except that
             1523      directors who are parties to the proceeding may participate in the designation of directors for
             1524      the committee;
             1525          (c) by special legal counsel:
             1526          (i) selected by the board of directors or its committee in the manner prescribed in
             1527      Subsection (2)(a) or (b); or
             1528          (ii) if a quorum of the board of directors cannot be obtained under Subsection (2)(a)
             1529      and a committee cannot be designated under Subsection (2)(b), selected by a majority vote of
             1530      the full board of directors, in which selection directors who are parties to the proceeding may
             1531      participate; or
             1532          (d) by the shareholders, by a majority of the votes entitled to be cast by holders of
             1533      qualified shares present in person or by proxy at a meeting.
             1534          (3) A majority of the votes entitled to be cast by the holders of all qualified shares
             1535      constitutes a quorum for purposes of action that complies with this section. Shareholders'
             1536      action that otherwise complies with this section is not affected by the presence of holders, or
             1537      the voting, of shares that are not qualified shares.
             1538          (4) Unless authorization is required by the bylaws, authorization of indemnification
             1539      and advance of expenses shall be made in the same manner as the determination that
             1540      indemnification or advance of expenses is permissible. However, if the determination that
             1541      indemnification or advance of expenses is permissible is made by special legal counsel,
             1542      authorization of indemnification and advance of expenses shall be made by a body entitled
             1543      under Subsection (2)(c) to select legal counsel.
             1544          Section 38. Section 16-10a-1325 is amended to read:
             1545           16-10a-1325. Payment.
             1546          (1) Except as provided in Section 16-10a-1327 , upon the later of the effective date of


             1547      the corporate action creating dissenters' rights under Section 16-10a-1302 , and receipt by the
             1548      corporation of each payment demand pursuant to Section 16-10a-1323 , the corporation shall
             1549      pay the amount the corporation estimates to be the fair value of the dissenter's shares, plus
             1550      interest to each dissenter who has complied with Section 16-10a-1323 , and who meets the
             1551      requirements of Section 16-10a-1321 , and who has not yet received payment.
             1552          (2) Each payment made pursuant to Subsection (1) must be accompanied by:
             1553          (a) (i) (A) the corporation's balance sheet as of the end of its most recent fiscal year, or
             1554      if not available, a fiscal year ending not more than 16 months before the date of payment;
             1555          (B) an income statement for that year;
             1556          (C) a statement of changes in shareholders' equity for that year and a statement of cash
             1557      flow for that year, if the corporation customarily provides such statements to shareholders; and
             1558          (D) the latest available interim financial statements, if any;
             1559          (ii) the balance sheet and statements referred to in Subsection (2)(a)(i) must be audited
             1560      if the corporation customarily provides audited financial statements to shareholders;
             1561          (b) a statement of the corporation's estimate of the fair value of the shares and the
             1562      amount of interest payable with respect to the shares;
             1563          (c) a statement of the dissenter's right to demand payment under Section 16-10a-1328 ;
             1564      and
             1565          (d) a copy of this part.
             1566          Section 39. Section 17-36-5 is amended to read:
             1567           17-36-5. Creation of Citizens and County Officials Advisory Committee.
             1568          (1) For the purpose of this act there is created a Citizens and County Officials Advisory
             1569      Committee appointed by the state auditor composed of the following persons:
             1570          (a) five county auditors elected to that specific and exclusive position;
             1571          (b) five county treasurers elected to that specific and exclusive position;
             1572          (c) two citizens with expertise in the area of local government and the needs and
             1573      problems of such government;
             1574          (d) four additional elected county officers, one of whom shall be from the five largest
             1575      counties in the state and one of whom shall be from the five smallest counties in the state; and
             1576          (e) such other members as the auditor considers appropriate.
             1577          (2) (a) Except as required by Subsection (2)(b), the terms of committee members shall


             1578      be four years each.
             1579          (b) Notwithstanding the requirements of Subsection (2)(a), the state auditor shall, at the
             1580      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1581      committee members are staggered so that approximately half of the committee is appointed
             1582      every two years.
             1583          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             1584      appointed for the unexpired term.
             1585          (4) (a) (i) Members who are not government employees shall receive no compensation
             1586      or benefits for their services, but may receive per diem and expenses incurred in the
             1587      performance of the member's official duties at the rates established by the Division of Finance
             1588      under Sections 63A-3-106 and 63A-3-107 .
             1589          (ii) Members may decline to receive per diem and expenses for their service.
             1590          (b) (i) State government officer and employee members who do not receive salary, per
             1591      diem, or expenses from their agency for their service may receive per diem and expenses
             1592      incurred in the performance of their official duties from the committee at the rates established
             1593      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1594          (ii) State government officer and employee members may decline to receive per diem
             1595      and expenses for their service.
             1596          (c) (i) Local government members who do not receive salary, per diem, or expenses
             1597      from the entity that they represent for their service may receive per diem and expenses incurred
             1598      in the performance of their official duties at the rates established by the Division of Finance
             1599      under Sections 63A-3-106 and 63A-3-107 .
             1600          (ii) Local government members may decline to receive per diem and expenses for their
             1601      service.
             1602          (5) The advisory committee shall assist, advise, and make recommendations to the
             1603      state auditor in the preparation of a uniform system of county budgeting, accounting, and
             1604      reporting.
             1605          Section 40. Section 19-2-109.2 is amended to read:
             1606           19-2-109.2. Small business assistance program.
             1607          (1) The board shall establish a small business stationary source technical and
             1608      environmental compliance assistance program that conforms with Title V of the 1990 Clean


             1609      Air Act to assist small businesses to comply with state and federal air pollution laws.
             1610          (2) There is created the Compliance Advisory Panel to advise and monitor the program
             1611      created in Subsection (1). The seven panel members are:
             1612          (a) two members who are not owners or representatives of owners of small business
             1613      stationary air pollution sources, selected by the governor to represent the general public;
             1614          (b) four members who are owners or who represent owners of small business stationary
             1615      sources selected by leadership of the Utah Legislature as follows:
             1616          (i) one member selected by the majority leader of the Senate;
             1617          (ii) one member selected by the minority leader of the Senate;
             1618          (iii) one member selected by the majority leader of the House of Representatives; and
             1619          (iv) one member selected by the minority leader of the House of Representatives; and
             1620          (c) one member selected by the executive director to represent the Division of Air
             1621      Quality, Department of Environmental Quality.
             1622          (3) (a) Except as required by Subsection (3)(b), as terms of current panel members
             1623      expire, the department shall appoint each new member or reappointed member to a four-year
             1624      term.
             1625          (b) Notwithstanding the requirements of Subsection (3)(a), the department shall, at the
             1626      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1627      panel members are staggered so that approximately half of the panel is appointed every two
             1628      years.
             1629          (4) Members may serve more than one term.
             1630          (5) Members shall hold office until the expiration of their terms and until their
             1631      successors are appointed, but not more than 90 days after the expiration of their terms.
             1632          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             1633      appointed for the unexpired term.
             1634          (7) Every two years, the panel shall elect a chair from its members.
             1635          (8) (a) The panel shall meet as necessary to carry out its duties. Meetings may be called
             1636      by the chair, the executive secretary, or upon written request of three of the members of the
             1637      panel.
             1638          (b) Three days' notice shall be given to each member of the panel prior to a meeting.
             1639          (9) Four members constitute a quorum at any meeting, and the action of the majority of


             1640      members present is the action of the panel.
             1641          (10) (a) (i) Members who are not government employees shall receive no
             1642      compensation or benefits for their services, but may receive per diem and expenses incurred in
             1643      the performance of the member's official duties at the rates established by the Division of
             1644      Finance under Sections 63A-3-106 and 63A-3-107 .
             1645          (ii) Members may decline to receive per diem and expenses for their service.
             1646          (b) (i) State government officer and employee members who do not receive salary, per
             1647      diem, or expenses from their agency for their service may receive per diem and expenses
             1648      incurred in the performance of their official duties from the panel at the rates established by the
             1649      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1650          (ii) State government officer and employee members may decline to receive per diem
             1651      and expenses for their service.
             1652          (c) Legislators on the committee shall receive compensation and expenses as provided
             1653      by law and legislative rule.
             1654          Section 41. Section 19-2-113 is amended to read:
             1655           19-2-113. Variances -- Judicial review.
             1656          (1) (a) Any person who owns or is in control of any plant, building, structure,
             1657      establishment, process, or equipment may apply to the board for a variance from its rules.
             1658          (b) The board may grant the requested variance following an announced public
             1659      meeting, if it finds, after considering the endangerment to human health and safety and other
             1660      relevant factors, that compliance with the rules from which variance is sought would produce
             1661      serious hardship without equal or greater benefits to the public.
             1662          (2) A variance may not be granted under this section until the board has considered the
             1663      relative interests of the applicant, other owners of property likely to be affected by the
             1664      discharges, and the general public.
             1665          (3) Any variance or renewal of a variance shall be granted within the requirements of
             1666      Subsection (1) and for time periods and under conditions consistent with the reasons for it, and
             1667      within the following limitations:
             1668          (a) if the variance is granted on the grounds that there are no practicable means known
             1669      or available for the adequate prevention, abatement, or control of the air pollution involved, it
             1670      shall be only until the necessary means for prevention, abatement, or control become known


             1671      and available, and subject to the taking of any substitute or alternate measures that the board
             1672      may prescribe;
             1673          (b) (i) if the variance is granted on the grounds that compliance with the requirements
             1674      from which variance is sought will require that measures, because of their extent or cost, must
             1675      be spread over a long period of time, the variance shall be granted for a reasonable time that, in
             1676      the view of the board, is required for implementation of the necessary measures; and
             1677          (ii) a variance granted on this ground shall contain a timetable for the implementation
             1678      of remedial measures in an expeditious manner and shall be conditioned on adherence to the
             1679      timetable; or
             1680          (c) if the variance is granted on the ground that it is necessary to relieve or prevent
             1681      hardship of a kind other than that provided for in Subsection (3)(a) or (b), it shall not be
             1682      granted for more than one year.
             1683          (4) (a) Any variance granted under this section may be renewed on terms and
             1684      conditions and for periods that would be appropriate for initially granting a variance.
             1685          (b) If a complaint is made to the board because of the variance, a renewal may not be
             1686      granted unless, following an announced public meeting, the board finds that renewal is
             1687      justified.
             1688          (c) To receive a renewal, an applicant shall submit a request for agency action to the
             1689      board requesting a renewal.
             1690          (d) Immediately upon receipt of an application for renewal, the board shall give public
             1691      notice of the application as required by its rules.
             1692          (5) (a) A variance or renewal is not a right of the applicant or holder but may be
             1693      granted at the board's discretion.
             1694          (b) A person aggrieved by the board's decision may obtain judicial review.
             1695          (c) Venue for judicial review of informal adjudicative proceedings is in the district
             1696      court in which the air contaminant source is situated.
             1697          (6) (a) The board may review any variance during the term for which it was granted.
             1698          (b) The review procedure is the same as that for an original application.
             1699          (c) The variance may be revoked upon a finding that:
             1700          (i) the nature or amount of emission has changed or increased; or
             1701          (ii) if facts existing at the date of the review had existed at the time of the original


             1702      application, the variance would not have been granted.
             1703          (7) Nothing in this section and no variance or renewal granted pursuant to it shall be
             1704      construed to prevent or limit the application of the emergency provisions and procedures of
             1705      Section 19-2-112 to any person or property.
             1706          Section 42. Section 19-5-115 is amended to read:
             1707           19-5-115. Violations -- Penalties -- Civil actions by board -- Ordinances and rules
             1708      of political subdivisions.
             1709          (1) The terms "knowingly," "willfully," and "criminal negligence" shall mean as
             1710      defined in Section 76-2-103 .
             1711          (2) Any person who violates this chapter, or any permit, rule, or order adopted under it,
             1712      upon a showing that the violation occurred, is subject in a civil proceeding to a civil penalty not
             1713      to exceed $10,000 per day of violation.
             1714          (3) (a) A person is guilty of a class A misdemeanor and is subject to imprisonment
             1715      under Section 76-3-204 and a fine not exceeding $25,000 per day who with criminal
             1716      negligence:
             1717          (i) discharges pollutants in violation of Subsection 19-5-107 (1) or in violation of any
             1718      condition or limitation included in a permit issued under Subsection 19-5-107 (3);
             1719          (ii) violates Section 19-5-113 ;
             1720          (iii) violates a pretreatment standard or toxic effluent standard for publicly owned
             1721      treatment works; or
             1722          (iv) manages sewage sludge in violation of this chapter or rules adopted under it.
             1723          (b) A person is guilty of a third degree felony and is subject to imprisonment under
             1724      Section 76-3-203 and a fine not to exceed $50,000 per day of violation who knowingly:
             1725          (i) discharges pollutants in violation of Subsection 19-5-107 (1) or in violation of any
             1726      condition or limitation included in a permit issued under Subsection 19-5-107 (3);
             1727          (ii) violates Section 19-5-113 ;
             1728          (iii) violates a pretreatment standard or toxic effluent standard for publicly-owned
             1729      treatment works; or
             1730          (iv) manages sewage sludge in violation of this chapter or rules adopted under it.
             1731          (4) A person is guilty of a third degree felony and subject to imprisonment under
             1732      Section 76-3-203 and shall be punished by a fine not exceeding $10,000 per day of violation if


             1733      that person knowingly:
             1734          (a) makes a false material statement, representation, or certification in any application,
             1735      record, report, plan, or other document filed or required to be maintained under this chapter, or
             1736      by any permit, rule, or order issued under it; or
             1737          (b) falsifies, tampers with, or knowingly renders inaccurate any monitoring device or
             1738      method required to be maintained under this chapter.
             1739          (5) (a) As used in this section:
             1740          (i) "Organization" means a legal entity, other than a government, established or
             1741      organized for any purpose, and includes a corporation, company, association, firm, partnership,
             1742      joint stock company, foundation, institution, trust, society, union, or any other association of
             1743      persons.
             1744          (ii) "Serious bodily injury" means bodily injury which involves a substantial risk of
             1745      death, unconsciousness, extreme physical pain, protracted and obvious disfigurement, or
             1746      protracted loss or impairment of the function of a bodily member, organ, or mental faculty.
             1747          (b) A person is guilty of a second degree felony and, upon conviction, is subject to
             1748      imprisonment under Section 76-3-203 and a fine of not more than $250,000 if that person:
             1749          (i) knowingly violates this chapter, or any permit, rule, or order adopted under it; and
             1750          (ii) knows at that time that he is placing another person in imminent danger of death or
             1751      serious bodily injury.
             1752          (c) If a person is an organization, it shall, upon conviction of violating Subsection
             1753      (5)(a), be subject to a fine of not more than $1,000,000.
             1754          (d) (i) A defendant who is an individual is considered to have acted knowingly if:
             1755          (A) the defendant's conduct placed another person in imminent danger of death or
             1756      serious bodily injury; and
             1757          (B) the defendant was aware of or believed that there was an imminent danger of death
             1758      or serious bodily injury to another person.
             1759          (ii) Knowledge possessed by a person other than the defendant may not be attributed to
             1760      the defendant.
             1761          (iii) Circumstantial evidence may be used to prove that the defendant possessed actual
             1762      knowledge, including evidence that the defendant took affirmative steps to be shielded from
             1763      receiving relevant information.


             1764          (e) (i) It is an affirmative defense to prosecution under Subsection (5) that the conduct
             1765      charged was consented to by the person endangered and that the danger and conduct charged
             1766      were reasonably foreseeable hazards of:
             1767          (A) an occupation, a business, or a profession; or
             1768          (B) medical treatment or medical or scientific experimentation conducted by
             1769      professionally approved methods and the other person was aware of the risks involved prior to
             1770      giving consent.
             1771          (ii) The defendant has the burden of proof to establish any affirmative defense under
             1772      this Subsection (5)(e) and must prove that defense by a preponderance of the evidence.
             1773          (6) For purposes of Subsections 19-5-115 (3) through (5), a single operational upset
             1774      which leads to simultaneous violations of more than one pollutant parameter shall be treated as
             1775      a single violation.
             1776          (7) (a) The board may begin a civil action for appropriate relief, including a permanent
             1777      or temporary injunction, for any violation or threatened violation for which it is authorized to
             1778      issue a compliance order under Section 19-5-111 .
             1779          (b) Actions shall be brought in the district court where the violation or threatened
             1780      violation occurs.
             1781          (8) (a) The attorney general is the legal advisor for the board and its executive secretary
             1782      and shall defend them in all actions or proceedings brought against them.
             1783          (b) The county attorney or district attorney as appropriate under Sections 17-18-1 ,
             1784      17-18-1.5 , and 17-18-1.7 in the county in which a cause of action arises, shall bring any action,
             1785      civil or criminal, requested by the board, to abate a condition that exists in violation of, or to
             1786      prosecute for the violation of, or to enforce, the laws or the standards, orders, and rules of the
             1787      board or the executive secretary issued under this chapter.
             1788          (c) The board may itself initiate any action under this section and be represented by the
             1789      attorney general.
             1790          (9) If any person fails to comply with a cease and desist order that is not subject to a
             1791      stay pending administrative or judicial review, the board may, through its executive secretary,
             1792      initiate an action for and be entitled to injunctive relief to prevent any further or continued
             1793      violation of the order.
             1794          (10) Any political subdivision of the state may enact and enforce ordinances or rules


             1795      for the implementation of this chapter that are not inconsistent with this chapter.
             1796          (11) (a) Except as provided in Subsection (11)(b), all penalties assessed and collected
             1797      under the authority of this section shall be deposited in the General Fund.
             1798          (b) The department may reimburse itself and local governments from monies collected
             1799      from civil penalties for extraordinary expenses incurred in environmental enforcement
             1800      activities.
             1801          (c) The department shall regulate reimbursements by making rules that:
             1802          (i) define qualifying environmental enforcement activities; and
             1803          (ii) define qualifying extraordinary expenses.
             1804          Section 43. Section 19-6-108.5 is amended to read:
             1805           19-6-108.5. Management of hazardous waste generated outside Utah.
             1806          (1) On and after July 1, 1992, any waste entering Utah for disposal or treatment,
             1807      excluding incineration, that is classified by Utah as nonhazardous solid waste and by the state
             1808      of origin as hazardous waste, and that exceeds the base volume provided in Subsection (2) for
             1809      each receiving facility or site, shall be treated according to the same treatment standards to
             1810      which it would have been subject had it remained in the state where it originated. However, if
             1811      those standards are less protective of human health or the environment than the treatment
             1812      standards applicable under Utah law, the waste shall be treated in compliance with the Utah
             1813      standards.
             1814          (2) The base volume provided in Subsection (1) for each receiving facility or site is the
             1815      average of the annual quantities of nonhazardous solid waste that originated outside Utah and
             1816      were received by the facility or site in calendar years 1990 and 1991.
             1817          (3) (a) The base volume for each receiving facility or site that has an operating plan
             1818      approved prior to July 1, 1992, but did not receive nonhazardous solid waste originating
             1819      outside Utah during calendar years 1990 and 1991, shall be the average of annual quantities of
             1820      out-of-state nonhazardous waste the facility or site received during the 24 months following the
             1821      date of initial receipt of nonhazardous waste originating outside Utah.
             1822          (b) The base determined under Subsection (3)(a) applies to the facility or site on and
             1823      after July 1, 1995, regardless of the amount of nonhazardous waste originating outside Utah
             1824      received by the facility or site prior to this date.
             1825          Section 44. Section 19-6-316 is amended to read:


             1826           19-6-316. Liability for costs of remedial investigations -- Liability agreements.
             1827          (1) The executive director may recover only a proportionate share of costs of any
             1828      remedial investigation performed under Sections 19-6-314 and 19-6-315 from each responsible
             1829      party, as provided in this section.
             1830          (2) (a) In apportioning responsibility for the remedial investigation, or liability for the
             1831      costs of the remedial investigation, in any administrative proceeding or judicial action, the
             1832      following standards apply:
             1833          (i) liability shall be apportioned in proportion to each responsible party's respective
             1834      contribution to the release;
             1835          (ii) the apportionment of liability shall be based on equitable factors, including the
             1836      quantity, mobility, persistence, and toxicity of hazardous substances contributed by a
             1837      responsible party, and the comparative behavior of a responsible party in contributing to the
             1838      release, relative to other responsible parties.
             1839          (b) Liability may not be apportioned against a current or previous owner or operator
             1840      who acquired or became the operator of the facility before March 18, 1985, who may otherwise
             1841      be a responsible party but who did not know that any hazardous material which is the subject of
             1842      a release was on, in, or at the facility prior to acquisition or operation of the facility, and the
             1843      release is not the result of an act or omission of the current or previous owner or operator.
             1844          (c) Liability may not be apportioned against a current or previous owner or operator
             1845      who acquired or became the operator of the facility on or after March 18, 1985, who may
             1846      otherwise be a responsible party but who did not know and had no reason to know, after having
             1847      taken all appropriate inquiry into the previous ownership and uses of the facility, consistent
             1848      with good commercial or customary practice at the time of the purchase, that any hazardous
             1849      material which is the subject of a release was on, in, or at the facility prior to acquisition or
             1850      operation of the facility, and the release is not the result of an act or omission of the current or
             1851      previous owner or operator.
             1852          (d) A responsible party who is not exempt under Subsection (2)(b) or (c) may be
             1853      considered to have contributed to the release and may be liable for a proportionate share of
             1854      costs as provided under this section either by affirmatively causing a release or by failing to
             1855      take action to prevent or abate a release which has originated at or from the facility. A person
             1856      whose property is contaminated by migration from an offsite release is not considered to have


             1857      contributed to the release unless the person takes actions which exacerbate the release.
             1858          (e) A responsible party who meets the criteria in Subsection (2)(b) or (c) or a person
             1859      who is not considered to have contributed to a release under Subsection (2)(d) is not considered
             1860      to have contributed to a release solely by failing to take abatement or remedial action pursuant
             1861      to an administrative order.
             1862          (f) (i) The burden of proving proportionate contribution shall be borne by each
             1863      responsible party.
             1864          (ii) If a responsible party does not prove his proportionate contribution, the court or the
             1865      executive director shall apportion liability to the party based solely on available evidence and
             1866      the standards of Subsection (2)(a).
             1867          (iii) The ability of a responsible party to pay is not a factor in the apportionment of
             1868      liability.
             1869          (g) The court may not impose joint and several liability.
             1870          (h) Each responsible party is strictly liable solely for his proportionate share of
             1871      investigation costs.
             1872          (3) The failure of the executive director to name all responsible parties is not a defense
             1873      to an action under this section.
             1874          (4) (a) Any party who incurs costs under this part in excess of his liability may seek
             1875      contribution from any other party who is or may be liable under this part for the excess costs in
             1876      district court.
             1877          (b) In resolving claims made under Subsection (4)(a), the court shall allocate costs
             1878      using the standards set forth in Subsection (2).
             1879          (5) (a) A party who has resolved his liability in an agreement under Sections 19-6-314
             1880      through this section is not liable for claims for contribution regarding matters addressed in the
             1881      settlement.
             1882          (b) (i) An agreement does not discharge any of the liability of responsible parties who
             1883      are not parties to the agreement, unless the terms of the agreement provide otherwise.
             1884          (ii) An agreement made under this Subsection (5)(b) reduces the potential liability of
             1885      other responsible parties by the amount of the agreement.
             1886          (6) (a) If the executive director obtains less than complete relief from a party who has
             1887      resolved his liability in an agreement under Sections 19-6-314 through this section, the


             1888      executive director may bring an action against any party who has not resolved his liability in an
             1889      agreement.
             1890          (b) In apportioning liability, the standards of Subsection (2) apply.
             1891          (c) A party who resolved his liability for some or all of the costs in an agreement under
             1892      Sections 19-6-314 through this section may seek contribution from any person who is not party
             1893      to an agreement under Sections 19-6-314 through this section.
             1894          (7) (a) An agreement made under Sections 19-6-314 through this section may provide
             1895      that the executive director will pay for costs of actions that the parties have agreed to perform,
             1896      but which the executive director has agreed to finance, under the agreement.
             1897          (b) If the executive director makes payments from the fund, he may recover the amount
             1898      paid using the authority of Sections 19-6-314 through this section or any other applicable
             1899      authority.
             1900          Section 45. Section 19-6-318 is amended to read:
             1901           19-6-318. Remedial action liability -- Liability agreements.
             1902          (1) (a) In apportioning responsibility for the remedial action in any administrative
             1903      proceeding or judicial action under Sections 19-6-317 and 19-6-319 , the following standards
             1904      apply:
             1905          (i) liability shall be apportioned in proportion to each responsible party's respective
             1906      contribution to the release;
             1907          (ii) the apportionment of liability shall be based on equitable factors, including the
             1908      quantity, mobility, persistence, and toxicity of hazardous substances contributed by a
             1909      responsible party, and the comparative behavior of a responsible party in contributing to the
             1910      release, relative to other responsible parties.
             1911          (b) Liability may not be apportioned against a current or previous owner or operator
             1912      who acquired or became the operator of the facility before March 18, 1985, who may otherwise
             1913      be a responsible party but who did not know that any hazardous material which is the subject of
             1914      a release was on, in, or at the facility prior to acquisition or operation of the facility, and the
             1915      release is not the result of an act or omission of the current or previous owner or operator.
             1916          (c) Liability may not be apportioned against a current or previous owner or operator
             1917      who acquired or became the operator of the facility on or after March 18, 1985, who may
             1918      otherwise be a responsible party but who did not know and had no reason to know, after having


             1919      taken all appropriate inquiry into the previous ownership and uses of the facility, consistent
             1920      with good commercial or customary practice at the time of the purchase, that any hazardous
             1921      material which is the subject of a release was on, in, or at the facility prior to acquisition or
             1922      operation of the facility, and the release is not the result of an act or omission of the current or
             1923      previous owner or operator.
             1924          (d) A responsible party who is not exempt under Subsection (1)(b) or (c) may be
             1925      considered to have contributed to the release and may be liable for a proportionate share of
             1926      costs as provided under this section either by affirmatively causing a release or by failing to
             1927      take action to prevent or abate a release which has originated at or from the facility. A person
             1928      whose property is contaminated by migration from an offsite release is not considered to have
             1929      contributed to the release unless the person takes actions which exacerbate the release.
             1930          (e) A responsible party who meets the criteria in Subsection (1)(b) or (c) or a person
             1931      who is not considered to have contributed to a release under Subsection (1)(d) is not considered
             1932      to have contributed to a release solely by failing to take abatement or remedial action pursuant
             1933      to an administrative order.
             1934          (f) (i) The burden of proving proportionate contribution shall be borne by each
             1935      responsible party.
             1936          (ii) If a responsible party does not prove his proportionate contribution, the court or the
             1937      director shall apportion liability to the party solely based on available evidence and the
             1938      standards of Subsection (1)(a).
             1939          (iii) The ability of a responsible party to pay is not a factor in the apportionment of
             1940      liability.
             1941          (g) The court may not impose joint and several liability.
             1942          (h) Each responsible party is strictly liable solely for his proportionate share of
             1943      remedial action costs.
             1944          (2) The failure of the executive director to name all responsible parties is not a defense
             1945      to an action under this section.
             1946          (3) (a) Any party who incurs costs under Sections 19-6-317 through 19-6-320 in excess
             1947      of his liability may seek contribution from any other party who is or may be liable under
             1948      Sections 19-6-317 through 19-6-320 for the excess costs in district court.
             1949          (b) In resolving claims made under Subsection (3)(a), the court shall allocate costs


             1950      using the standards set forth in Subsection (1).
             1951          (4) (a) A party who has resolved his liability in an agreement under Sections 19-6-317
             1952      through 19-6-320 is not liable for claims for contribution regarding matters addressed in the
             1953      settlement.
             1954          (b) (i) An agreement does not discharge any of the liability of responsible parties who
             1955      are not parties to the agreement, unless the terms of the agreement provide otherwise.
             1956          (ii) An agreement made under this Subsection (4)(b) reduces the potential liability of
             1957      other responsible parties by the amount of the agreement.
             1958          (5) (a) If the executive director obtains less than complete relief from a party who has
             1959      resolved his liability in an agreement under Sections 19-6-317 through 19-6-320 , the executive
             1960      director may bring an action against any party who has not resolved his liability in an
             1961      agreement.
             1962          (b) In apportioning liability, the standards of Subsection (1) apply.
             1963          (c) A party who resolved his liability for some or all of the costs in an agreement under
             1964      Sections 19-6-317 through 19-6-320 may seek contribution from any person who is not party to
             1965      an agreement under Sections 19-6-317 through 19-6-320 .
             1966          (6) (a) An agreement made under Sections 19-6-317 through 19-6-320 may provide
             1967      that the executive director will pay for costs of actions that the parties have agreed to perform,
             1968      but which the executive director has agreed to finance, under the agreement.
             1969          (b) If the executive director makes payments, he may recover the amount using the
             1970      authority of Sections 19-6-317 through 19-6-320 or any other applicable authority.
             1971          Section 46. Section 19-6-325 is amended to read:
             1972           19-6-325. Voluntary agreements -- Parties -- Funds -- Enforcement.
             1973          (1) (a) Under this part, and subject to Subsection (1)(b), the executive director may
             1974      enter into a voluntary agreement with a responsible party providing for the responsible party to
             1975      conduct an investigation or a cleanup action on sites that contain hazardous materials.
             1976          (b) The executive director and a responsible party may not enter into a voluntary
             1977      agreement under this part unless all known potentially responsible parties:
             1978          (i) have been notified by either the executive director or the responsible party of the
             1979      proposed agreement; and
             1980          (ii) have been given an opportunity to comment on the proposed agreement prior to the


             1981      parties' entering into the agreement.
             1982          (2) (a) The executive director may receive funds from any responsible party that signs a
             1983      voluntary agreement allowing the executive director to:
             1984          (i) review any proposals outlining how the investigation or cleanup action is to be
             1985      performed; and
             1986          (ii) oversee the investigation or cleanup action.
             1987          (b) Funds received by the executive director under this section shall be deposited in the
             1988      fund and used by the executive director as provided in the voluntary agreement.
             1989          (3) If a responsible party fails to perform as required under a voluntary agreement
             1990      entered into under this part, the executive director may take action and seek penalties to enforce
             1991      the agreement as provided in the agreement.
             1992          (4) The executive director may not use the provisions of Section 19-6-310 , 19-6-316 ,
             1993      or 19-6-318 to recover costs received or expended pursuant to a voluntary agreement from any
             1994      person not a party to that agreement.
             1995          (5) (a) Any party who incurs costs under a voluntary agreement in excess of his
             1996      liability may seek contribution from any other party who is or may be liable under this part for
             1997      the excess costs in district court.
             1998          (b) In resolving claims made under Subsection (5)(a), the court shall allocate costs
             1999      using the standards in Subsection 19-6-310 (2).
             2000          (6) This section takes precedence over conflicting provisions in this chapter regarding
             2001      agreements with responsible parties to conduct an investigation or cleanup action.
             2002          Section 47. Section 19-6-402 is amended to read:
             2003           19-6-402. Definitions.
             2004          As used in this part:
             2005          (1) "Abatement action" means action taken to limit, reduce, mitigate, or eliminate a
             2006      release from an underground storage tank or petroleum storage tank, or to limit or reduce,
             2007      mitigate, or eliminate the damage caused by that release.
             2008          (2) "Board" means the Solid and Hazardous Waste Control Board created in Section
             2009      19-1-106 .
             2010          (3) "Bodily injury" means bodily harm, sickness, disease, or death sustained by any
             2011      person.


             2012          (4) "Certificate of compliance" means a certificate issued to a facility by the executive
             2013      secretary:
             2014          (a) demonstrating that an owner or operator of a facility containing one or more
             2015      petroleum storage tanks has met the requirements of this part; and
             2016          (b) listing all tanks at the facility, specifying which tanks may receive petroleum and
             2017      which tanks have not met the requirements for compliance.
             2018          (5) "Certificate of registration" means a certificate issued to a facility by the executive
             2019      secretary demonstrating that an owner or operator of a facility containing one or more
             2020      underground storage tanks has:
             2021          (a) registered the tanks; and
             2022          (b) paid the annual underground storage tank fee.
             2023          (6) (a) "Certified underground storage tank consultant" means any person who:
             2024          (i) meets the education and experience standards established by the board under
             2025      Subsection 19-6-403 (1)(a)(vi) in order to provide or contract to provide information, opinions,
             2026      or advice relating to underground storage tank management, release abatement, investigation,
             2027      corrective action, or evaluation for a fee, or in connection with the services for which a fee is
             2028      charged; and
             2029          (ii) has submitted an application to the board and received a written statement of
             2030      certification from the board.
             2031          (b) "Certified underground storage tank consultant" does not include:
             2032          (i) an employee of the owner or operator of the underground storage tank, or an
             2033      employee of a business operation that has a business relationship with the owner or operator of
             2034      the underground storage tank, and that markets petroleum products or manages underground
             2035      storage tanks; or
             2036          (ii) persons licensed to practice law in this state who offer only legal advice on
             2037      underground storage tank management, release abatement, investigation, corrective action, or
             2038      evaluation.
             2039          (7) "Closed" means an underground storage tank no longer in use that has been:
             2040          (a) emptied and cleaned to remove all liquids and accumulated sludges; and
             2041          (b) either removed from the ground or filled with an inert solid material.
             2042          (8) "Corrective action plan" means a plan for correcting a release from a petroleum


             2043      storage tank that includes provisions for all or any of the following:
             2044          (a) cleanup or removal of the release;
             2045          (b) containment or isolation of the release;
             2046          (c) treatment of the release;
             2047          (d) correction of the cause of the release;
             2048          (e) monitoring and maintenance of the site of the release;
             2049          (f) provision of alternative water supplies to persons whose drinking water has become
             2050      contaminated by the release; or
             2051          (g) temporary or permanent relocation, whichever is determined by the executive
             2052      secretary to be more cost-effective, of persons whose dwellings have been determined by the
             2053      executive secretary to be no longer habitable due to the release.
             2054          (9) "Costs" means any monies expended for:
             2055          (a) investigation;
             2056          (b) abatement action;
             2057          (c) corrective action;
             2058          (d) judgments, awards, and settlements for bodily injury or property damage to third
             2059      parties;
             2060          (e) legal and claims adjusting costs incurred by the state in connection with judgments,
             2061      awards, or settlements for bodily injury or property damage to third parties; or
             2062          (f) costs incurred by the state risk manager in determining the actuarial soundness of
             2063      the fund.
             2064          (10) "Covered by the fund" means the requirements of Section 19-6-424 have been
             2065      met.
             2066          (11) "Dwelling" means a building that is usually occupied by a person lodging there at
             2067      night.
             2068          (12) "Enforcement proceedings" means a civil action or the procedures to enforce
             2069      orders established by Section 19-6-425 .
             2070          (13) "Executive secretary" means the executive secretary of the board.
             2071          (14) "Facility" means all underground storage tanks located on a single parcel of
             2072      property or on any property adjacent or contiguous to that parcel.
             2073          (15) "Fund" means the Petroleum Storage Tank Trust Fund created in Section


             2074      19-6-409 .
             2075          (16) "Loan fund" means the Petroleum Storage Tank Loan Fund created in Section
             2076      19-6-405.3 .
             2077          (17) "Operator" means any person in control of or who is responsible on a daily basis
             2078      for the maintenance of an underground storage tank that is in use for the storage, use, or
             2079      dispensing of a regulated substance.
             2080          (18) "Owner" means:
             2081          (a) in the case of an underground storage tank in use on or after November 8, 1984, any
             2082      person who owns an underground storage tank used for the storage, use, or dispensing of a
             2083      regulated substance; and
             2084          (b) in the case of any underground storage tank in use before November 8, 1984, but
             2085      not in use on or after November 8, 1984, any person who owned the tank immediately before
             2086      the discontinuance of its use for the storage, use, or dispensing of a regulated substance.
             2087          (19) "Petroleum" includes crude oil or any fraction of crude oil that is liquid at 60
             2088      degrees Fahrenheit and at a pressure of 14.7 pounds per square inch absolute.
             2089          (20) "Petroleum storage tank" means a tank that:
             2090          (a) (i) is underground;
             2091          (ii) is regulated under Subtitle I of the Resource Conservation and Recovery Act, 42
             2092      U.S.C. Section 6991c, et seq.; and
             2093          (iii) contains petroleum; or
             2094          (b) is a tank that the owner or operator voluntarily submits for participation in the
             2095      Petroleum Storage Tank Trust Fund under Section 19-6-415 .
             2096          (21) "Petroleum Storage Tank Restricted Account" means the account created in
             2097      Section 19-6-405.5 .
             2098          (22) "Program" means the Environmental Assurance Program under Section
             2099      19-6-410.5 .
             2100          (23) "Property damage" means physical injury to or destruction of tangible property
             2101      including loss of use of that property.
             2102          (24) "Regulated substance" means petroleum and petroleum-based substances
             2103      comprised of a complex blend of hydrocarbons derived from crude oil through processes of
             2104      separation, conversion, upgrading, and finishing, and includes motor fuels, jet fuels, distillate


             2105      fuel oils, residual fuel oils, lubricants, petroleum solvents, and used oils.
             2106          (25) "Release" means any spilling, leaking, emitting, discharging, escaping, leaching,
             2107      or disposing from an underground storage tank or petroleum storage tank. The entire release is
             2108      considered a single release.
             2109          (26) (a) "Responsible party" means any person who:
             2110          (i) is the owner or operator of a facility;
             2111          (ii) owns or has legal or equitable title in a facility or an underground storage tank;
             2112          (iii) owned or had legal or equitable title in the facility at the time any petroleum was
             2113      received or contained at the facility;
             2114          (iv) operated or otherwise controlled activities at the facility at the time any petroleum
             2115      was received or contained at the facility; or
             2116          (v) is an underground storage tank installation company.
             2117          (b) "Responsible party" as defined in Subsections (26)(a)(i), (ii), and (iii) does not
             2118      include:
             2119          (i) any person who is not an operator and, without participating in the management of a
             2120      facility and otherwise not engaged in petroleum production, refining, and marketing, holds
             2121      indicia of ownership:
             2122          (A) primarily to protect his security interest in the facility; or
             2123          (B) as a fiduciary or custodian under Title 75, Utah Uniform Probate Code, or under an
             2124      employee benefit plan; or
             2125          (ii) governmental ownership or control of property by involuntary transfers as provided
             2126      in CERCLA Section 101(20)(D), 42 U.S.C. Sec. 9601(20)(D).
             2127          (c) The exemption created by Subsection (26)(b)(i)(B) does not apply to actions taken
             2128      by the state or its officials or agencies under this part.
             2129          (d) The terms and activities "indicia of ownership," "primarily to protect a security
             2130      interest," "participation in management," and "security interest" under this part are in
             2131      accordance with 40 CFR Part 280, Subpart I, as amended, and 42 U.S.C. Sec. 6991b(h)(9).
             2132          (e) The terms "participate in management" and "indicia of ownership" as defined in 40
             2133      CFR Part 280, Subpart I, as amended, and 42 U.S.C. Sec. 6991b(h)(9) include and apply to the
             2134      fiduciaries listed in Subsection (26)(b)(i)(B).
             2135          (27) "Soil test" means a test, established or approved by board rule, to detect the


             2136      presence of petroleum in soil.
             2137          (28) "State cleanup appropriation" means the money appropriated by the Legislature to
             2138      the department to fund the investigation, abatement, and corrective action regarding releases
             2139      not covered by the fund.
             2140          (29) "Underground storage tank" means any tank regulated under Subtitle I, Resource
             2141      Conservation and Recovery Act, 42 U.S.C. Sec. 6991c, et seq., including:
             2142          (a) a petroleum storage tank;
             2143          (b) underground pipes and lines connected to a storage tank; and
             2144          (c) any underground ancillary equipment and containment system.
             2145          (30) "Underground storage tank installation company" means any person, firm,
             2146      partnership, corporation, governmental entity, association, or other organization who installs
             2147      underground storage tanks.
             2148          (31) "Underground storage tank installation company permit" means a permit issued to
             2149      an underground storage tank installation company by the executive secretary.
             2150          (32) "Underground storage tank technician" means a person employed by and acting
             2151      under the direct supervision of a certified underground storage tank consultant to assist in
             2152      carrying out the functions described in Subsection (6)(a).
             2153          Section 48. Section 19-6-703 is amended to read:
             2154           19-6-703. Definitions.
             2155          (1) "Board" means the Solid and Hazardous Waste Control Board created in Section
             2156      19-1-106 .
             2157          (2) "Commission" means the State Tax Commission.
             2158          (3) "Department" means the Department of Environmental Quality created in Title 19,
             2159      Chapter 1, General Provisions.
             2160          (4) "Division" means the Division of Solid and Hazardous Waste as created in Section
             2161      19-1-105 .
             2162          (5) "DIY" means do it yourself.
             2163          (6) "DIYer" means a person who generates used oil through household activities,
             2164      including maintenance of personal vehicles.
             2165          (7) "DIYer used oil" means used oil a person generates through household activities,
             2166      including maintenance of personal vehicles.


             2167          (8) "DIYer used oil collection center" means any site or facility that accepts or
             2168      aggregates and stores used oil collected only from DIYers.
             2169          (9) "Executive secretary" means the executive secretary of the board.
             2170          (10) "Hazardous waste" means any substance defined as hazardous waste under Title
             2171      19, Chapter 6, Hazardous Substances.
             2172          (11) "Lubricating oil" means the fraction of crude oil or synthetic oil used to reduce
             2173      friction in an industrial or mechanical device. Lubricating oil includes rerefined oil.
             2174          (12) "Lubricating oil vendor" means the person making the first sale of a lubricating oil
             2175      in Utah.
             2176          (13) "Manifest" means the form used for identifying the quantity and composition and
             2177      the origin, routing, and destination of used oil during its transportation from the point of
             2178      collection to the point of storage, processing, use, or disposal.
             2179          (14) "Off-specification used oil" means used oil that exceeds levels of constituents and
             2180      properties as specified by board rule and consistent with 40 CFR 279, Standards for the
             2181      Management of Used Oil.
             2182          (15) "On-specification used oil" means used oil that does not exceed levels of
             2183      constituents and properties as specified by board rule and consistent with 40 CFR 279,
             2184      Standards for the Management of Used Oil.
             2185          (16) (a) "Processing" means chemical or physical operations under Subsection (16)(b)
             2186      designed to produce from used oil, or to make used oil more amenable for production of:
             2187          (i) gasoline, diesel, and other petroleum derived fuels;
             2188          (ii) lubricants; or
             2189          (iii) other products derived from used oil.
             2190          (b) "Processing" includes:
             2191          (i) blending used oil with virgin petroleum products;
             2192          (ii) blending used oils to meet fuel specifications;
             2193          (iii) filtration;
             2194          (iv) simple distillation;
             2195          (v) chemical or physical separation; and
             2196          (vi) rerefining.
             2197          (17) "Recycled oil" means oil reused for any purpose following its original use,


             2198      including:
             2199          (a) the purpose for which the oil was originally used; and
             2200          (b) used oil processed or burned for energy recovery.
             2201          (18) "Rerefining distillation bottoms" means the heavy fraction produced by vacuum
             2202      distillation of filtered and dehydrated used oil. The composition varies with column operation
             2203      and feedstock.
             2204          (19) "Used oil" means any oil, refined from crude oil or a synthetic oil, that has been
             2205      used and as a result of that use is contaminated by physical or chemical impurities.
             2206          (20) (a) "Used oil aggregation point" means any site or facility that accepts, aggregates,
             2207      or stores used oil collected only from other used oil generation sites owned or operated by the
             2208      owner or operator of the aggregation point, from which used oil is transported to the
             2209      aggregation point in shipments of no more than 55 gallons.
             2210          (b) A used oil aggregation point may also accept oil from DIYers.
             2211          (21) "Used oil burner" means a person who burns used oil for energy recovery.
             2212          (22) "Used oil collection center" means any site or facility registered with the state to
             2213      manage used oil and that accepts or aggregates and stores used oil collected from used oil
             2214      generators, other than DIYers, who are regulated under this part and bring used oil to the
             2215      collection center in shipments of no more than 55 gallons and under the provisions of this part.
             2216      Used oil collection centers may accept DIYer used oil also.
             2217          (23) "Used oil fuel marketer" means any person who:
             2218          (a) directs a shipment of off-specification used oil from its facility to a used oil burner;
             2219      or
             2220          (b) first claims the used oil to be burned for energy recovery meets the used oil fuel
             2221      specifications of 40 CFR 279, Standards for the Management of Used Oil, except when the oil
             2222      is to be burned in accordance with rules for on-site burning in space heaters in accordance with
             2223      40 CFR 279.
             2224          (24) "Used oil generator" means any person, by site, whose act or process produces
             2225      used oil or whose act first causes used oil to become subject to regulation.
             2226          (25) "Used oil handler" means a person generating used oil, collecting used oil,
             2227      transporting used oil, operating a transfer facility or aggregation point, processing or rerefining
             2228      used oil, or marketing used oil.


             2229          (26) "Used oil processor or rerefiner" means a facility that processes used oil.
             2230          (27) "Used oil transfer facility" means any transportation-related facility, including
             2231      loading docks, parking areas, storage areas, and other areas where shipments of used oil are
             2232      held for more than 24 hours during the normal course of transportation and not longer than 35
             2233      days.
             2234          (28) (a) "Used oil transporter" means the following persons unless they are exempted
             2235      under Subsection (28)(b):
             2236          (i) any person who transports used oil;
             2237          (ii) any person who collects used oil from more than one generator and transports the
             2238      collected oil;
             2239          (iii) except as exempted under Subsection (28)(b)(i), (ii), or (iii), any person who
             2240      transports collected DIYer used oil from used oil generators, collection centers, aggregation
             2241      points, or other facilities required to be permitted or registered under this part and where
             2242      household DIYer used oil is collected; and
             2243          (iv) owners and operators of used oil transfer facilities.
             2244          (b) "Used oil transporter" does not include:
             2245          (i) persons who transport oil on site;
             2246          (ii) generators who transport shipments of used oil totalling 55 gallons or less from the
             2247      generator to a used oil collection center as allowed under 40 CFR 279.24, Off-site Shipments;
             2248          (iii) generators who transport shipments of used oil totalling 55 gallons or less from the
             2249      generator to a used oil aggregation point owned or operated by the same generator as allowed
             2250      under 40 CFR 279.24, Off-site Shipments;
             2251          (iv) persons who transport used oil generated by DIYers from the initial generator to a
             2252      used oil generator, used oil collection center, used oil aggregation point, used oil processor or
             2253      rerefiner, or used oil burner subject to permitting or registration under this part; or
             2254          (v) railroads that transport used oil and are regulated under 49 U.S.C. Subtitle V, Rail
             2255      Programs, and 49 U.S.C. 5101 et seq., federal Hazardous Materials Transportation Uniform
             2256      Safety Act.
             2257          Section 49. Section 19-6-706 is amended to read:
             2258           19-6-706. Disposal of used oil -- Prohibitions.
             2259          (1) (a) Except as authorized by the board or exempted in this section, a person may not


             2260      place, discard, or otherwise dispose of used oil:
             2261          (i) in any solid waste treatment, storage, or disposal facility operated by a political
             2262      subdivision or a private entity, except as authorized for the disposal of used oil that is
             2263      hazardous waste under state law;
             2264          (ii) in sewers, drainage systems, septic tanks, surface or ground waters, watercourses,
             2265      or any body of water; or
             2266          (iii) on the ground.
             2267          (b) A person who unknowingly disposes of used oil in violation of Subsection (1)(a)(i)
             2268      is not guilty of a violation of this section.
             2269          (2) (a) A person may dispose of an item or substance that contains de minimis amounts
             2270      of oil in disposal facilities under Subsection (1)(a)(i) if:
             2271          (i) to the extent reasonably possible all oil has been removed from the item or
             2272      substance; and
             2273          (ii) no free flowing oil remains in the item or substance.
             2274          (b) (i) A nonterne plated used oil filter complies with this section if it is not mixed with
             2275      hazardous waste and the oil filter has been gravity hot-drained by one of the following
             2276      methods:
             2277          (A) puncturing the filter antidrain back valve or the filter dome end and gravity
             2278      hot-draining;
             2279          (B) gravity hot-draining and crushing;
             2280          (C) dismantling and gravity hot-draining; or
             2281          (D) any other equivalent gravity hot-draining method that will remove used oil from
             2282      the filter at least as effectively as the methods listed in this Subsection (2)(b)(i).
             2283          (ii) As used in this Subsection (2), "gravity hot-drained" means drained for not less
             2284      than 12 hours near operating temperature but above 60 degrees Fahrenheit.
             2285          (3) A person may not mix or commingle used oil with the following substances, except
             2286      as incidental to the normal course of processing, mechanical, or industrial operations:
             2287          (a) solid waste that is to be disposed of in any solid waste treatment, storage, or
             2288      disposal facility, except as authorized by the board under this chapter; or
             2289          (b) any hazardous waste so the resulting mixture may not be recycled or used for other
             2290      beneficial purpose as authorized under this part.


             2291          (4) (a) This section does not apply to releases to land or water of de minimis quantities
             2292      of used oil, except:
             2293          (i) the release of de minimis quantities of used oil is subject to any regulation or
             2294      prohibition under the authority of the department; and
             2295          (ii) the release of de minimis quantities of used oil is subject to any rule made by the
             2296      board under this part prohibiting the release of de minimis quantities of used oil to the land or
             2297      water from tanks, pipes, or other equipment in which used oil is processed, stored, or otherwise
             2298      managed by used oil handlers, except wastewater under Subsection 19-6-708 (2)(j).
             2299          (b) As used in this Subsection (4), "de minimis quantities of used oil:"
             2300          (i) means small spills, leaks, or drippings from pumps, machinery, pipes, and other
             2301      similar equipment during normal operations; and
             2302          (ii) does not include used oil discarded as a result of abnormal operations resulting in
             2303      substantial leaks, spills, or other releases.
             2304          (5) Used oil may not be used for road oiling, dust control, weed abatement, or other
             2305      similar uses that have the potential to release used oil in the environment, except in compliance
             2306      with Section 19-6-711 and board rule.
             2307          (6) (a) (i) Facilities in existence on July 1, 1993, and subject to this section may apply
             2308      to the executive secretary for an extension of time beyond that date to meet the requirements of
             2309      this section.
             2310          (ii) The executive secretary may grant an extension of time beyond July 1, 1993, upon
             2311      a finding of need under Subsection (6)(b) or (c).
             2312          (iii) The total of all extensions of time granted to one applicant under this Subsection
             2313      (6)(a) may not extend beyond January 1, 1995.
             2314          (b) The executive secretary upon receipt of a request for an extension of time may
             2315      request from the facility any information the executive secretary finds reasonably necessary to
             2316      evaluate the need for an extension. This information may include:
             2317          (i) why the facility is unable to comply with the requirements of this section on or
             2318      before July 1, 1993;
             2319          (ii) the processes or functions which prevent compliance on or before July 1, 1993;
             2320          (iii) measures the facility has taken and will take to achieve compliance; and
             2321          (iv) a proposed compliance schedule, including a proposed date for being in


             2322      compliance with this section.
             2323          (c) Additional extensions of time may be granted by the executive secretary upon
             2324      application by the facility and a showing by the facility that:
             2325          (i) the additional extension is reasonably necessary; and
             2326          (ii) the facility has made a diligent and good faith effort to comply with this section
             2327      within the time frame of the prior extension.
             2328          Section 50. Section 20A-1-703 is amended to read:
             2329           20A-1-703. Proceedings by registered voter.
             2330          (1) Any registered voter who has information that any provisions of this title have been
             2331      violated by any candidate for whom the registered voter had the right to vote, by any personal
             2332      campaign committee of that candidate, by any member of that committee, or by any election
             2333      official, may file a verified petition with the lieutenant governor.
             2334          (2) (a) The lieutenant governor shall gather information and determine if a special
             2335      investigation is necessary.
             2336          (b) If the lieutenant governor determines that a special investigation is necessary, the
             2337      lieutenant governor shall refer the information to the attorney general, who shall:
             2338          (i) bring a special proceeding to investigate and determine whether or not there has
             2339      been a violation; and
             2340          (ii) appoint special counsel to conduct that proceeding on behalf of the state.
             2341          (3) If it appears from the petition or otherwise that sufficient evidence is obtainable to
             2342      show that there is probable cause to believe that a violation has occurred, the attorney general
             2343      shall:
             2344          (a) grant leave to bring the proceeding; and
             2345          (b) appoint special counsel to conduct the proceeding.
             2346          (4) (a) If leave is granted, the registered voter may, by a special proceeding brought in
             2347      the district court in the name of the state upon the relation of the registered voter, investigate
             2348      and determine whether or not the candidate, candidate's personal campaign committee, any
             2349      member of the candidate's personal campaign committee, or any election officer has violated
             2350      any provision of this title.
             2351          (b) (i) In the proceeding, the complaint shall:
             2352          (A) be served with the summons; and


             2353          (B) set forth the name of the person or persons who have allegedly violated this title
             2354      and the grounds of those violations in detail.
             2355          (ii) The complaint may not be amended except by leave of the court.
             2356          (iii) The summons and complaint in the proceeding shall be filed with the court no
             2357      later than five days after they are served.
             2358          (c) (i) The answer to the complaint shall be served and filed within 10 days after the
             2359      service of the summons and complaint.
             2360          (ii) Any allegation of new matters in the answer shall be considered controverted by the
             2361      adverse party without reply, and the proceeding shall be considered at issue and stand ready for
             2362      trial upon five days' notice of trial.
             2363          (d) (i) All proceedings initiated under this section have precedence over any other civil
             2364      actions.
             2365          (ii) The court shall always be considered open for the trial of the issues raised in this
             2366      proceeding.
             2367          (iii) The proceeding shall be tried and determined as a civil action without a jury, with
             2368      the court determining all issues of fact and issues of law.
             2369          (iv) If more than one proceeding is pending or the election of more than one person is
             2370      investigated and contested, the court may:
             2371          (A) order the proceedings consolidated and heard together; and
             2372          (B) equitably apportion costs and disbursements.
             2373          (e) (i) Either party may request a change of venue as provided by law in civil actions,
             2374      but application for a change of venue must be made within five days after service of summons
             2375      and complaint.
             2376          (ii) The judge shall decide the request for a change of venue and issue any necessary
             2377      orders within three days after the application is made.
             2378          (iii) If a party fails to request a change of venue within five days of service, he has
             2379      waived his right to a change of venue.
             2380          (f) (i) If judgment is in favor of the plaintiff, the relator may petition the judge to
             2381      recover his taxable costs and disbursements against the person whose right to the office is
             2382      contested.
             2383          (ii) The judge may not award costs to the defendant unless it appears that the


             2384      proceeding was brought in bad faith.
             2385          (iii) Subject to the limitations contained in Subsection (4)(f), the judge may decide
             2386      whether or not to award costs and disbursements.
             2387          (5) Nothing in this section may be construed to prohibit any other civil or criminal
             2388      actions or remedies against alleged violators.
             2389          (6) In the event a witness asserts a privilege against self-incrimination, testimony and
             2390      evidence from the witness may be compelled pursuant to Title 77, Chapter 22b, Grants of
             2391      Immunity.
             2392          Section 51. Section 20A-3-307 is amended to read:
             2393           20A-3-307. Processing of absentee ballot.
             2394          (1) Except as provided in Subsection (2), upon receipt of an envelope containing an
             2395      absentee ballot, the election officer shall:
             2396          (a) enclose the unopened envelope containing the absentee ballot and the written
             2397      application of the absentee voter in a larger envelope;
             2398          (b) seal that envelope and endorse it with:
             2399          (i) the name or number of the proper voting precinct;
             2400          (ii) the name and official title of the election officer; and
             2401          (iii) the words "This envelope contains an absentee ballot and may only be opened on
             2402      election day at the polls while the polls are open."; and
             2403          (c) safely keep the envelope in his office until it is delivered by him to the proper
             2404      election judges.
             2405          (2) If the election officer receives envelopes containing absentee ballots too late to
             2406      transmit them to the election judges on election day, the election officer shall retain those
             2407      absentee ballots in a safe and secure place until they can be processed as provided in Section
             2408      20A-3-309 .
             2409          (3) (a) Except as provided in Subsection (3)(c), when reasonably possible, the election
             2410      officer shall deliver or mail valid absentee ballots to the appropriate voting precinct election
             2411      judges so that they may be processed at the voting precinct on election day.
             2412          (b) If the election officer is unable to determine the voting precinct to which an
             2413      absentee ballot should be sent, or if a valid absentee ballot is received too late for delivery on
             2414      election day to election judges, the election officer shall retain the absentee ballot in a safe


             2415      place until it can be processed as required by Section 20A-3-309 .
             2416          (c) When the absentee ballots will be centrally counted, the election officer shall
             2417      deliver those absentee ballots to the counting center on election day for counting.
             2418          Section 52. Section 20A-7-501 is amended to read:
             2419           20A-7-501. Initiatives.
             2420          (1) (a) Except as provided in Subsection (1)(b), a person seeking to have an initiative
             2421      submitted to a local legislative body or to a vote of the people for approval or rejection shall
             2422      obtain legal signatures equal to:
             2423          (i) 10% of all the votes cast in the county, city, or town for all candidates for governor
             2424      at the last election at which a governor was elected if the total number of votes exceeds 25,000;
             2425          (ii) 12-1/2% of all the votes cast in the county, city, or town for all candidates for
             2426      governor at the last election at which a governor was elected if the total number of votes does
             2427      not exceed 25,000 but is more than 10,000;
             2428          (iii) 15% of all the votes cast in the county, city, or town for all candidates for governor
             2429      at the last election at which a governor was elected if the total number of votes does not exceed
             2430      10,000 but is more than 2,500;
             2431          (iv) 20% of all the votes cast in the county, city, or town for all candidates for governor
             2432      at the last election at which a governor was elected if the total number of votes does not exceed
             2433      2,500 but is more than 500;
             2434          (v) 25% of all the votes cast in the county, city, or town for all candidates for governor
             2435      at the last election at which a governor was elected if the total number of votes does not exceed
             2436      500 but is more than 250; and
             2437          (vi) 30% of all the votes cast in the county, city, or town for all candidates for governor
             2438      at the last election at which a governor was elected if the total number of votes does not exceed
             2439      250.
             2440          (b) In addition to the signature requirements of Subsection (1)(a), a person seeking to
             2441      have an initiative submitted to a local legislative body or to a vote of the people for approval or
             2442      rejection in a county, city, or town where the local legislative body is elected from council
             2443      districts shall obtain, from each of a majority of council districts, legal signatures equal to the
             2444      percentages established in Subsection (1)(a).
             2445          (2) If the total number of certified names from each verified signature sheet equals or


             2446      exceeds the number of names required by this section, the clerk or recorder shall deliver the
             2447      proposed law to the local legislative body at its next meeting.
             2448          (3) (a) The local legislative body shall either adopt or reject the proposed law without
             2449      change or amendment within 30 days of receipt of the proposed law.
             2450          (b) The local legislative body may:
             2451          (i) adopt the proposed law and refer it to the people;
             2452          (ii) adopt the proposed law without referring it to the people; or
             2453          (iii) reject the proposed law.
             2454          (c) If the local legislative body adopts the proposed law but does not refer it to the
             2455      people, it is subject to referendum as with other local laws.
             2456          (d) (i) If a county legislative body rejects a proposed county ordinance or amendment,
             2457      or takes no action on it, the county clerk shall submit it to the voters of the county at the next
             2458      regular general election.
             2459          (ii) If a local legislative body rejects a proposed municipal ordinance or amendment, or
             2460      takes no action on it, the municipal recorder or clerk shall submit it to the voters of the
             2461      municipality at the next municipal general election.
             2462          (e) (i) If the local legislative body rejects the proposed ordinance or amendment, or
             2463      takes no action on it, the local legislative body may adopt a competing local law.
             2464          (ii) The local legislative body shall prepare and adopt the competing local law within
             2465      the 30 days allowed for its action on the measure proposed by initiative petition.
             2466          (iii) If the local legislative body adopts a competing local law, the clerk or recorder
             2467      shall submit it to the voters of the county or municipality at the same election at which the
             2468      initiative proposal is submitted.
             2469          (f) If conflicting local laws are submitted to the people at the same election and two or
             2470      more of the conflicting measures are approved by the people, then the measure that receives the
             2471      greatest number of affirmative votes shall control all conflicts.
             2472          Section 53. Section 23-14-2.6 is amended to read:
             2473           23-14-2.6. Regional advisory councils -- Creation -- Membership -- Duties -- Per
             2474      diem and expenses.
             2475          (1) There are created five regional advisory councils which shall consist of 12 to 15
             2476      members each from the wildlife region whose boundaries are established for administrative


             2477      purposes by the division.
             2478          (2) The members shall include individuals who represent the following groups and
             2479      interests:
             2480          (a) agriculture;
             2481          (b) sportsmen;
             2482          (c) nonconsumptive wildlife;
             2483          (d) locally elected public officials;
             2484          (e) federal land agencies; and
             2485          (f) the public at large.
             2486          (3) The executive director of the Department of Natural Resources, in consultation
             2487      with the director of the Division of Wildlife Resources, shall select the members from a list of
             2488      nominees submitted by the respective interest group or agency.
             2489          (4) The councils shall:
             2490          (a) hear broad input, including recommendations, biological data, and information
             2491      regarding the effects of wildlife;
             2492          (b) gather information from staff, the public, and government agencies; and
             2493          (c) make recommendations to the Wildlife Board in an advisory capacity.
             2494          (5) (a) Except as required by Subsection (5)(b), each member shall serve a four-year
             2495      term.
             2496          (b) Notwithstanding the requirements of Subsection (5)(a), the executive director shall,
             2497      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             2498      of council members are staggered so that approximately half of the council is appointed every
             2499      two years.
             2500          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             2501      appointed for the unexpired term.
             2502          (7) The councils shall determine:
             2503          (a) the time and place of meetings; and
             2504          (b) any other procedural matter not specified in this chapter.
             2505          (8) Members of the councils shall complete an orientation course as provided in
             2506      Subsection 23-14-2 (8).
             2507          (9) (a) (i) Members who are not government employees shall receive no compensation


             2508      or benefits for their services, but may receive per diem and expenses incurred in the
             2509      performance of the member's official duties at the rates established by the Division of Finance
             2510      under Sections 63A-3-106 and 63A-3-107 .
             2511          (ii) Members may decline to receive per diem and expenses for their service.
             2512          (b) (i) State government officer and employee members who do not receive salary, per
             2513      diem, or expenses from their agency for their service may receive per diem and expenses
             2514      incurred in the performance of their official duties from the council at the rates established by
             2515      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2516          (ii) State government officer and employee members may decline to receive per diem
             2517      and expenses for their service.
             2518          (c) (i) Local government members who do not receive salary, per diem, or expenses
             2519      from the entity that they represent for their service may receive per diem and expenses incurred
             2520      in the performance of their official duties at the rates established by the Division of Finance
             2521      under Sections 63A-3-106 and 63A-3-107 .
             2522          (ii) Local government members may decline to receive per diem and expenses for their
             2523      service.
             2524          Section 54. Section 23-22-2 is amended to read:
             2525           23-22-2. Acceptance of Acts of Congress.
             2526          (1) The state assents to the provisions of 16 U.S.C. Sec. 669 et seq., Wildlife
             2527      Restoration Act and 16 U.S.C. 777 et seq., Sport Fish Restoration Act.
             2528          (2) The division shall conduct and establish cooperative fish and wildlife restoration
             2529      projects as provided by the acts specified in Subsection (1) and rules promulgated under those
             2530      acts.
             2531          (3) The following revenues received by the state may not be used for any purpose other
             2532      than the administration of the division:
             2533          (a) revenue from the sale of any license, permit, tag, stamp, or certificate of registration
             2534      that conveys to a person the privilege to take wildlife for sport or recreation, less reasonable
             2535      vendor fees;
             2536          (b) revenue from the sale, lease, rental, or other granting of rights of real or personal
             2537      property acquired with revenue specified in Subsection (3)(a);
             2538          (c) interest, dividends, or other income earned on revenue specified in Subsection


             2539      (3)(a) or (b); and
             2540          (d) federal aid project reimbursements to the extent that revenue specified in
             2541      Subsection (3)(a) or (b) originally funded the project for which the reimbursement is being
             2542      made.
             2543          Section 55. Section 26-18-102 is amended to read:
             2544           26-18-102. DUR Board -- Creation and membership -- Expenses.
             2545          (1) There is created a 12-member Drug Utilization Review Board responsible for
             2546      implementation of a retrospective and prospective DUR program.
             2547          (2) (a) Except as required by Subsection (2)(b), as terms of current board members
             2548      expire, the executive director shall appoint each new member or reappointed member to a
             2549      four-year term.
             2550          (b) Notwithstanding the requirements of Subsection (2)(a), the executive director shall,
             2551      at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
             2552      of board members are staggered so that approximately half of the board is appointed every two
             2553      years.
             2554          (c) Persons appointed to the board may be reappointed upon completion of their terms,
             2555      but may not serve more than two consecutive terms.
             2556          (d) The executive director shall provide for geographic balance in representation on the
             2557      board.
             2558          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
             2559      appointed for the unexpired term.
             2560          (4) The membership shall be comprised of the following:
             2561          (a) four physicians who are actively engaged in the practice of medicine or osteopathic
             2562      medicine in this state, to be selected from a list of nominees provided by the Utah Medical
             2563      Association;
             2564          (b) one physician in this state who is actively engaged in academic medicine;
             2565          (c) three pharmacists who are actively practicing in retail pharmacy in this state, to be
             2566      selected from a list of nominees provided by the Utah Pharmaceutical Association;
             2567          (d) one pharmacist who is actively engaged in academic pharmacy;
             2568          (e) one person who shall represent consumers;
             2569          (f) one person who shall represent pharmaceutical manufacturers, to be recommended


             2570      by the Pharmaceutical Manufacturers Association; and
             2571          (g) one dentist licensed to practice in this state under Title 58, Chapter 69, Dentists and
             2572      Dental Hygienists Act, who is actively engaged in the practice of dentistry, nominated by the
             2573      Utah Dental Association.
             2574          (5) Physician and pharmacist members of the board shall have expertise in clinically
             2575      appropriate prescribing and dispensing of outpatient drugs.
             2576          (6) The board shall elect a chair from among its members who shall serve a one-year
             2577      term, and may serve consecutive terms.
             2578          (7) (a) Members shall receive no compensation or benefits for their services, but may
             2579      receive per diem and expenses incurred in the performance of the member's official duties at
             2580      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2581          (b) Members may decline to receive per diem and expenses for their service.
             2582          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             2583      from the entity that they represent for their service may receive per diem and expenses incurred
             2584      in the performance of their official duties from the committee at the rates established by the
             2585      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2586          (ii) Higher education members may decline to receive per diem and expenses for their
             2587      service.
             2588          Section 56. Section 26A-1-111 is amended to read:
             2589           26A-1-111. Removal of local health officer.
             2590          (1) The local health officer may be removed for cause in accordance with this section
             2591      by:
             2592          (a) the board; or
             2593          (b) a majority of the counties in the local health department if the county executives
             2594      rescind, or withdraw, in writing the ratification of the local health officer.
             2595          (2) (a) A hearing shall be granted, if requested by the local health officer, prior to
             2596      removal of the local health officer.
             2597          (b) If a hearing is requested, it shall be conducted by a five-member panel with:
             2598          (i) two elected members from the county or counties in the local health department,
             2599      selected by the county executives;
             2600          (ii) two members of the board of the local health department who are not elected


             2601      officials of the counties in the local health department, selected by the board; and
             2602          (iii) one member selected by the members appointed under Subsections (2)(b)(i) and
             2603      (ii), however, the member appointed under this Subsection (2)(b)(iii) may not be an elected
             2604      official of the counties in the local health department and may not be a member of the board of
             2605      the local health department.
             2606          (c) (i) The hearing panel shall report its decision regarding termination to the board and
             2607      to the counties in the local health department.
             2608          (ii) The counties and board receiving the report shall vote on whether to retain or
             2609      terminate the local health officer.
             2610          (iii) The health officer is terminated if:
             2611          (A) the board votes to terminate; or
             2612          (B) a majority of the counties in the local health department vote to terminate.
             2613          Section 57. Section 31A-5-217.5 is amended to read:
             2614           31A-5-217.5. Variable contract law.
             2615          (1) This section applies to all separate accounts that are used to support any one or
             2616      more of the following:
             2617          (a) variable life insurance policies that satisfy the requirements of Section 817, Internal
             2618      Revenue Code;
             2619          (b) variable annuity contracts, including modified guaranteed annuities; or
             2620          (c) benefits under plans governed by the Employee Retirement Income Security Act of
             2621      1974.
             2622          (2) In the event of a conflict between this section and any other section of this title as it
             2623      relates to these accounts, this section prevails.
             2624          (3) A domestic life insurance company may establish one or more separate accounts,
             2625      and may allocate to those accounts amounts, which include proceeds applied under optional
             2626      modes of settlement or under dividend options, to provide for life insurance or annuities, and
             2627      benefits incidental to life insurance or annuities, payable in fixed or variable amounts or both,
             2628      subject to the following:
             2629          (a) The income, gains, and losses, realized or unrealized, from assets allocated to a
             2630      separate account shall be credited to or charged against the account, without regard to other
             2631      income, gains, or losses of the company.


             2632          (b) Except as may be provided with respect to reserves for guaranteed benefits and
             2633      funds referred to in Subsection (3)(c):
             2634          (i) amounts allocated to any separate account and accumulations on such amounts may
             2635      be invested and reinvested without regard to any requirements or limitations prescribed by the
             2636      laws of this state governing the investments of life insurance companies; and
             2637          (ii) the investments in any such separate account may not be taken into account in
             2638      applying the investment limitations that otherwise apply to the investments of the company.
             2639          (c) Except with the approval of the commissioner and under any conditions as to
             2640      investments and other matters as he may prescribe, which shall recognize the guaranteed nature
             2641      of the benefits provided, reserves for benefits guaranteed as to dollar amount and duration, and
             2642      funds guaranteed as to principal amount or stated rate of interest may not be maintained in a
             2643      separate account.
             2644          (d) Unless otherwise approved by the commissioner, assets allocated to a separate
             2645      account shall be valued at their market value on the date of valuation, or if there is no readily
             2646      available market, then as provided under the terms of the contract or the rules or other written
             2647      agreement that applies to the separate account. However, unless otherwise approved by the
             2648      commissioner, the portion of any of the assets of the separate account equal to the company's
             2649      reserve liability with regard to the guaranteed benefits and funds referred to in Subsection
             2650      (3)(c) shall be valued in accordance with the rules that otherwise apply to the company's assets.
             2651          (e) Amounts allocated to a separate account in the exercise of the power granted by this
             2652      section shall be owned by the company, and the company may not be, nor hold itself out to be,
             2653      a trustee with respect to those amounts. If, and to the extent provided under the applicable
             2654      contracts, that portion of the assets of any separate account that is equal to the reserves and
             2655      other contract liabilities with respect to the account may not be chargeable with liabilities
             2656      arising out of any other business the company may conduct.
             2657          (f) A sale, exchange, or other transfer of assets may not be made by a company
             2658      between any of its separate accounts or between any other investment account and one or more
             2659      of its separate accounts unless, in case of a transfer into a separate account, the transfer is made
             2660      solely to establish the account or to support the operation of the contracts with respect to the
             2661      separate account to which the transfer is made, and unless the transfer, whether into or from a
             2662      separate account, is made by a transfer of cash, or by a transfer of securities having a readily


             2663      determinable market value, if the transfer of securities is approved by the commissioner. The
             2664      commissioner may approve other transfers among such accounts if, in his opinion, the transfers
             2665      would not be inequitable.
             2666          (g) To the extent a company considers it necessary to comply with any applicable
             2667      federal or state laws, the company, with respect to any separate account, including any separate
             2668      account which is a management investment company or a unit investment trust, may provide
             2669      for persons having an interest in the account appropriate voting and other rights and special
             2670      procedures for the conduct of the business of the account, including special rights and
             2671      procedures relating to investment policy, investment advisory services, selection of
             2672      independent public accountants, and the selection of a committee, the members of which need
             2673      not be otherwise affiliated with the company, to manage the business of the account.
             2674          (4) Any contract providing benefits payable in variable amounts delivered or issued for
             2675      delivery in this state shall contain a statement of the essential features of the procedures to be
             2676      followed by the insurance company in determining the dollar amount of the variable benefits.
             2677      Any contract under which the benefits vary to reflect investment experience, including a group
             2678      contract and any certificate in evidence of variable benefits issued under a group contract, shall
             2679      state that the dollar amount will vary according to investment experience. The contract shall
             2680      contain on its first page a statement to the effect that the benefits under the contract are on a
             2681      variable basis.
             2682          (5) (a) A company may not deliver or issue for delivery within this state variable
             2683      contracts unless it is licensed or organized to do a life insurance or annuity business in this
             2684      state, and the commissioner is satisfied that its condition or method of operation in connection
             2685      with the issuance of such contracts will not render its operation hazardous to the public or its
             2686      policyholders in this state. In this connection, the commissioner shall consider among other
             2687      things:
             2688          (i) the history and financial condition of the company;
             2689          (ii) the character, responsibility, and fitness of the officers and directors of the
             2690      company; and
             2691          (iii) (A) the law and regulation under which the company is authorized in the state of
             2692      domicile to issue variable contracts[.]; and
             2693          (B) the state of entry of an alien company shall be considered its place of domicile for


             2694      the purposes of Subsection (5)(a)(iii)(A).
             2695          (b) If the company is a subsidiary of an admitted life insurance company, or affiliated
             2696      with such a company through common management or ownership, it may be considered by the
             2697      commissioner to have met the provisions of this section if either it or the parent or the affiliated
             2698      company meets the requirements of this section.
             2699          (6) Notwithstanding any other provision of law, the commissioner shall have sole
             2700      authority to regulate the issuance and sale of variable contracts, and to make rules necessary
             2701      and appropriate to carry out the purposes and provisions of this chapter.
             2702          (7) (a) Except for Sections 31A-22-402 , 31A-22-407 , and 31A-22-409 , in the case of a
             2703      variable annuity contract and Sections 31A-22-402 , 31A-22-407 , and 31A-22-408 in the case
             2704      of a variable life insurance policy, and except as otherwise provided in this chapter, all
             2705      pertinent provisions of this title apply to separate accounts and contracts relating to the separate
             2706      accounts. Any individual variable life insurance contract, delivered or issued for delivery in
             2707      this state shall contain grace, reinstatement, and nonforfeiture provisions appropriate to the
             2708      contract.
             2709          (b) The reserve liability for variable contracts shall be established in accordance with
             2710      actuarial procedures that recognize the variable nature of the benefits provided and any
             2711      mortality guarantees.
             2712          Section 58. Section 31A-8-103 is amended to read:
             2713           31A-8-103. Applicability to other provisions of law.
             2714          (1) (a) Except for exemptions specifically granted under this title, an organization is
             2715      subject to regulation under all of the provisions of this title.
             2716          (b) Notwithstanding any provision of this title, an organization licensed under this
             2717      chapter:
             2718          (i) is wholly exempt from:
             2719          (A) Chapter 7, Nonprofit Health Service Insurance Corporations;
             2720          (B) Chapter 9, Insurance Fraternals;
             2721          (C) Chapter 10, Annuities;
             2722          (D) Chapter 11, Motor Clubs;
             2723          (E) Chapter 12, State Risk Management Fund;
             2724          (F) Chapter 13, Employee Welfare Funds and Plans;


             2725          (G) Chapter 19a, Utah Rate Regulation Act; and
             2726          (H) Chapter 28, Guaranty Associations; and
             2727          (ii) is not subject to:
             2728          (A) Chapter 3, Department Funding, Fees, and Taxes, except for Part 1, Funding the
             2729      Insurance Department;
             2730          (B) Section 31A-4-107 ;
             2731          (C) Chapter 5, Domestic Stock and Mutual Insurance Corporations, except for
             2732      provisions specifically made applicable by this chapter;
             2733          (D) Chapter 14, Foreign Insurers, except for provisions specifically made applicable by
             2734      this chapter;
             2735          (E) Chapter 17, Determination of Financial Condition, except:
             2736          (I) [Parts 2 and 6] Part 2, Qualified Assets, and Part 6, Risk-Based Capital; or
             2737          (II) as made applicable by the commissioner by rule consistent with this chapter;
             2738          (F) Chapter 18, Investments, except as made applicable by the commissioner by rule
             2739      consistent with this chapter; and
             2740          (G) Chapter 22, Contracts in Specific Lines, except for [Parts 6, 7, and 12] Part 6,
             2741      Accident and Health Insurance, Part 7, Group Accident and Health Insurance, and Part 12,
             2742      Reinsurance.
             2743          (2) The commissioner may by rule waive other specific provisions of this title that the
             2744      commissioner considers inapplicable to health maintenance organizations or limited health
             2745      plans, upon a finding that the waiver will not endanger the interests of:
             2746          (a) enrollees;
             2747          (b) investors; or
             2748          (c) the public.
             2749          (3) Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, and Title 16,
             2750      Chapter 10a, Utah Revised Business Corporation Act, do not apply to an organization except as
             2751      specifically made applicable by:
             2752          (a) this chapter;
             2753          (b) a provision referenced under this chapter; or
             2754          (c) a rule adopted by the commissioner to deal with corporate law issues of health
             2755      maintenance organizations that are not settled under this chapter.


             2756          (4) (a) Whenever in this chapter, Chapter 5, Domestic Stock and Mutual Insurance
             2757      Corporations, or Chapter 14, Foreign Insurers, is made applicable to an organization, the
             2758      application is:
             2759          (i) of those provisions that apply to a mutual corporation if the organization is
             2760      nonprofit; and
             2761          (ii) of those that apply to a stock corporation if the organization is for profit.
             2762          (b) When Chapter 5, Domestic Stock and Mutual Insurance Corporations, or Chapter
             2763      14, Foreign Insurers, is made applicable to an organization under this chapter, "mutual" means
             2764      nonprofit organization.
             2765          (5) Solicitation of enrollees by an organization is not a violation of any provision of
             2766      law relating to solicitation or advertising by health professionals if that solicitation is made in
             2767      accordance with:
             2768          (a) this chapter; and
             2769          (b) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
             2770      Reinsurance Intermediaries.
             2771          (6) This title does not prohibit any health maintenance organization from meeting the
             2772      requirements of any federal law that enables the health maintenance organization to:
             2773          (a) receive federal funds; or
             2774          (b) obtain or maintain federal qualification status.
             2775          (7) Except as provided in Section 31A-8-501 , an organization is exempt from statutes
             2776      in this title or department rules that restrict or limit the organization's freedom of choice in
             2777      contracting with or selecting health care providers, including Section 31A-22-618 .
             2778          (8) An organization is exempt from the assessment or payment of premium taxes
             2779      imposed by Sections 59-9-101 through 59-9-104 .
             2780          Section 59. Section 31A-15-202 is amended to read:
             2781           31A-15-202. Definitions.
             2782          As used in this part:
             2783          (1) "Completed operations liability" means liability, including liability for activities
             2784      which are completed or abandoned before the date of the occurrence giving rise to the liability,
             2785      arising out of the installation, maintenance, or repair of any product at a site which is not
             2786      owned or controlled by:


             2787          (a) any person who performs that work; or
             2788          (b) any person who hires an independent contractor to perform that work.
             2789          (2) "Domicile," for purposes of determining the state in which a purchasing group is
             2790      domiciled, means:
             2791          (a) for a corporation, the state in which the purchasing group is incorporated; and
             2792          (b) for an unincorporated entity, the state of its principal place of business.
             2793          (3) "Hazardous financial condition" means that a risk retention group, based on its
             2794      present or reasonably anticipated financial condition, although not yet financially impaired or
             2795      insolvent, is unlikely to be able:
             2796          (a) to meet obligations to policyholders with respect to known claims and reasonably
             2797      anticipated claims; or
             2798          (b) to pay other obligations in the normal course of business.
             2799          (4) "Insurance" means primary insurance, excess insurance, reinsurance, surplus lines
             2800      insurance, and any other arrangement for shifting and distributing risk which is determined to
             2801      be insurance under the laws of this state.
             2802          (5) (a) "Liability" means legal liability for damages, including costs of defense, legal
             2803      costs and fees, and other claims expenses because of injuries to other persons, damage to their
             2804      property, or other damage or loss to other persons, resulting from or arising out of:
             2805          (i) any profit or nonprofit business, trade, product, professional or other services,
             2806      premises, or operations; or
             2807          (ii) any activity of any state or local government or any agency or political subdivision
             2808      of any state or local government.
             2809          (b) "Liability" does not include personal risk liability and an employer's liability with
             2810      respect to its employees other than legal liability under the federal Employers' Liability Act.
             2811          (6) "NAIC" means the National Association of Insurance Commissioners.
             2812          (7) "Personal risk liability" means liability for damages because of injury to any person,
             2813      damage to property, or other loss or damage resulting from any personal, familial, or household
             2814      responsibilities or activities rather than from responsibilities or activities referred to in
             2815      Subsection (5).
             2816          (8) "Plan of operation or a feasibility study" means an analysis which presents the
             2817      expected activities and results of a risk retention group, including:


             2818          (a) information sufficient to verify that its members are engaged in businesses or
             2819      activities similar or related with respect to the liability to which members are exposed by virtue
             2820      of any related, similar or common business, trade, product, services, premises or operations;
             2821          (b) for each state in which it intends to operate, the coverages, deductibles, coverage
             2822      limits, rates, and rating classification systems for each line of insurance the group intends to
             2823      offer;
             2824          (c) historical and expected loss experience of the proposed members and national
             2825      experience of similar exposures to the extent that this experience is reasonably available;
             2826          (d) pro forma financial statements and projections;
             2827          (e) appropriate opinions by a qualified, independent casualty actuary, including a
             2828      determination of minimum premium or participation levels required to commence operations
             2829      and to prevent a hazardous financial condition;
             2830          (f) identification of management, underwriting and claims procedures, marketing
             2831      methods, managerial oversight methods, investment policies, and reinsurance agreements;
             2832          (g) identification of each state in which the risk retention group has obtained, or sought
             2833      to obtain, a charter and license, and a description of its status in each such state; and
             2834          (h) any other matters required by the commissioner of the state in which the risk
             2835      retention group is chartered for liability insurance companies authorized by the insurance laws
             2836      of that state.
             2837          (9) (a) "Product liability" means liability for damages because of any personal injury,
             2838      death, emotional harm, consequential economic damage, or property damage, including
             2839      damages resulting from the loss of use of property, if the liability arises out of the manufacture,
             2840      design, importation, distribution, packaging, labeling, lease, or sale of a product.
             2841          (b) "Product liability" does not include the liability of any person for those damages
             2842      described in Subsection (9)(a) if the product involved was in the possession of the person when
             2843      the incident giving rise to the claim occurred.
             2844          (10) "Purchasing group" means any group which:
             2845          (a) has as one of its purposes the purchase of liability insurance on a group basis;
             2846          (b) purchases liability insurance only for its group members and only to cover their
             2847      similar or related liability exposure, as described in Subsection (10)(c);
             2848          (c) is composed of members whose businesses or activities are similar or related with


             2849      respect to the liability to which members are exposed by virtue of any related, similar, or
             2850      common business, trade, products, services, premises, or operations; and
             2851          (d) is domiciled in any state.
             2852          (11) "Risk retention group" means any corporation or other limited liability
             2853      association:
             2854          (a) whose primary activity consists of assuming and spreading all, or any portion of,
             2855      the liability exposure of its group members;
             2856          (b) which is organized for the primary purpose of conducting the activity described
             2857      under Subsection (11)(a);
             2858          (c) which:
             2859          (i) is chartered and licensed as a liability insurance company and authorized to engage
             2860      in the business of insurance under the laws of any state; or
             2861          (ii) (A) before January 1, 1985, was chartered or licensed and authorized to engage in
             2862      the business of insurance under the laws of Bermuda or the Cayman Islands and, before
             2863      January 1, 1985, had certified to the insurance commissioner of at least one state that it
             2864      satisfied the capitalization requirements of that state;
             2865          (B) however, any such group as described in Subsection (11)(c)(ii)(A) shall be
             2866      considered to be a risk retention group only if it has been engaged in business continuously
             2867      since January 1, 1985, and only for the purpose of continuing to provide insurance to cover
             2868      product liability or completed operations liability, as these terms were defined in the Product
             2869      Liability Risk Retention Act of 1981 before the date of the enactment of the Liability Risk
             2870      Retention Act of 1986;
             2871          (d) which does not exclude any person from membership in the group solely to provide
             2872      for members of the group a competitive advantage over the excluded person;
             2873          (e) which:
             2874          (i) has as its owners only persons who comprise the membership of the risk retention
             2875      group and who are provided insurance by the group; or
             2876          (ii) has as its sole owner an organization which:
             2877          (A) has as its members only persons who comprise the membership of the risk
             2878      retention group; and
             2879          (B) has as its owners only persons who comprise the membership of the risk retention


             2880      group and who are provided insurance by the group;
             2881          (f) whose members are engaged in businesses or activities similar or related with
             2882      respect to the liability to which the members are exposed by virtue of any related, similar, or
             2883      common business trade, products, services, premises or operations;
             2884          (g) whose activities do not include providing insurance other than:
             2885          (i) liability insurance for assuming and spreading all or any portion of the liability of its
             2886      group members; and
             2887          (ii) reinsurance with respect to the liability of any other risk retention group, or any
             2888      members of the other group, which is engaged in businesses or activities so that the group or
             2889      member meets the requirement described in Subsection (11)(f) for membership in the risk
             2890      retention group which provides the reinsurance; and
             2891          (h) the name of which includes the phrase "risk retention group."
             2892          Section 60. Section 31A-16-106 is amended to read:
             2893           31A-16-106. Standards and management of an insurer within a holding company
             2894      system.
             2895          (1) (a) Transactions within a holding company system to which an insurer subject to
             2896      registration is a party are subject to the following standards:
             2897          (i) the terms shall be fair and reasonable;
             2898          (ii) charges or fees for services performed shall be reasonable;
             2899          (iii) expenses incurred and payment received shall be allocated to the insurer in
             2900      conformity with customary insurance accounting practices consistently applied;
             2901          (iv) the books, accounts, and records of each party to all transactions shall be so
             2902      maintained as to clearly and accurately disclose the nature and details of the transactions,
             2903      including the accounting information necessary to support the reasonableness of the charges or
             2904      fees to the respective parties; and
             2905          (v) the insurer's surplus held for policyholders, following any dividends or distributions
             2906      to shareholder affiliates, shall be reasonable in relation to the insurer's outstanding liabilities
             2907      and shall be adequate to its financial needs.
             2908          (b) The following transactions involving a domestic insurer and any person in its
             2909      holding company system may not be entered into unless the insurer has notified the
             2910      commissioner in writing of its intention to enter into the transaction at least 30 days prior to


             2911      entering into the transaction, or within any shorter period the commissioner may permit, if the
             2912      commissioner has not disapproved the transaction within the period:
             2913          (i) sales, purchases, exchanges, loans or extensions of credit, guarantees, or
             2914      investments if the transactions are equal to, or exceed as of the next preceding December 31:
             2915          (A) for nonlife insurers, the lesser of 3% of the insurer's admitted assets or 25% of
             2916      surplus held for policyholders;
             2917          (B) for life insurers, 3% of the insurer's admitted assets;
             2918          (ii) loans or extensions of credit made to any person who is not an affiliate, if the
             2919      insurer makes the loans or extensions of credit with the agreement or understanding that the
             2920      proceeds of the transactions, in whole or in substantial part, are to be used to make loans or
             2921      extensions of credit to, to purchase assets of, or to make investments in, any affiliate of the
             2922      insurer making the loans or extensions of credit if the transactions are equal to, or exceed as of
             2923      the next preceding December 31:
             2924          (A) for nonlife insurers, the lesser of 3% of the insurer's admitted assets or 25% of
             2925      surplus held for policyholders;
             2926          (B) for life insurers, 3% of the insurer's admitted assets;
             2927          (iii) reinsurance agreements or modifications to reinsurance agreements in which the
             2928      reinsurance premium or a change in the insurer's liabilities equals or exceeds 5% of the
             2929      insurer's surplus held for policyholders, as of the next preceding December 31, including those
             2930      agreements which may require as consideration the transfer of assets from an insurer to a
             2931      nonaffiliate, if an agreement or understanding exists between the insurer and the nonaffiliate
             2932      that any portion of the assets will be transferred to one or more affiliates of the insurer;
             2933          (iv) all management agreements, service contracts, and all cost-sharing arrangements;
             2934          (v) any material transactions, specified by rule, which the commissioner determines
             2935      may adversely affect the interests of the insurer's policyholders; and
             2936          (vi) this subsection may not be interpreted to authorize or permit any transactions
             2937      which would be otherwise contrary to law in the case of an insurer not a member of the same
             2938      holding company system.
             2939          (c) A domestic insurer may not enter into transactions which are part of a plan or series
             2940      of like transactions with persons within the holding company system if the purpose of the
             2941      separate transactions is to avoid the statutory threshold amount and thus to avoid the review by


             2942      the commissioner that would occur otherwise. If the commissioner determines that the
             2943      separate transactions were entered into over any 12 month period for such a purpose, he may
             2944      exercise his authority under Section 31A-16-110 .
             2945          (d) The commissioner, in reviewing transactions pursuant to Subsection (1)(b), shall
             2946      consider whether the transactions comply with the standards set forth in Subsection (1)(a) and
             2947      whether they may adversely affect the interests of policyholders.
             2948          (e) The commissioner shall be notified within 30 days of any investment of the
             2949      domestic insurer in any one corporation, if the total investment in the corporation by the
             2950      insurance holding company system exceeds 10% of the corporation's voting securities.
             2951          (2) (a) A domestic insurer may not pay any extraordinary dividend or make any other
             2952      extraordinary distribution to its shareholders until:
             2953          (i) 30 days after the commissioner has received notice of the declaration of the
             2954      dividend and has not within the 30-day period disapproved the payment; or
             2955          (ii) the commissioner has approved the payment within the 30-day period.
             2956          (b) For purposes of this subsection, an extraordinary dividend or distribution includes
             2957      any dividend or distribution of cash or other property, fair market value of which, together with
             2958      that of other dividends or distributions made within the preceding 12 months, exceeds the
             2959      lesser of:
             2960          (i) 10% of the insurer's surplus held for policyholders as of the next preceding
             2961      December 31; or
             2962          (ii) the net gain from operations of the insurer, if the insurer is a life insurer, or the net
             2963      income, if the insurer is not a life insurer, not including realized capital gains, for the 12-month
             2964      period ending the next preceding December 31;
             2965          (iii) an extraordinary dividend does not include pro rata distributions of any class of the
             2966      insurer's own securities.
             2967          (c) In determining whether a dividend or distribution is extraordinary, an insurer other
             2968      than a life insurer may carry forward net income from the previous two calendar years that has
             2969      not already been paid out as dividends. This carry-forward shall be computed by taking the net
             2970      income from the second and third preceding calendar years, not including realized capital
             2971      gains, less dividends paid in the second and immediate preceding calendar years.
             2972          (d) Notwithstanding any other provision of law, an insurer may declare an


             2973      extraordinary dividend or distribution, which is conditioned upon the commissioner's approval
             2974      of the dividend or distribution, and the declaration shall confer no rights upon shareholders
             2975      until:
             2976          (i) the commissioner has approved the payment of the dividend or distribution; or
             2977          (ii) the commissioner has not disapproved the payment within the 30-day period
             2978      referred to in Subsection (2)(a).
             2979          (3) (a) Notwithstanding the control of a domestic insurer by any person, the officers
             2980      and directors of the insurer may not be relieved of any obligation or liability to which they
             2981      would otherwise be subject by law, and the insurer shall be managed so as to assure its separate
             2982      operating identity consistent with this chapter.
             2983          (b) Nothing in this section precludes a domestic insurer from having or sharing a
             2984      common management or cooperative or joint use of personnel, property, or services with one or
             2985      more other persons under arrangements meeting the standards of Subsection (1)(a).
             2986          Section 61. Section 31A-17-506 is amended to read:
             2987           31A-17-506. Computation of minimum standard by calendar year of issue.
             2988          (1) Applicability of Section 31A-17-506 : The interest rates used in determining the
             2989      minimum standard for the valuation shall be the calendar year statutory valuation interest rates
             2990      as defined in this section for:
             2991          (a) all life insurance policies issued in a particular calendar year, on or after the
             2992      operative date of Subsection 31A-22-408 (6)(d);
             2993          (b) all individual annuity and pure endowment contracts issued in a particular calendar
             2994      year on or after January 1, 1982;
             2995          (c) all annuities and pure endowments purchased in a particular calendar year on or
             2996      after January 1, 1982, under group annuity and pure endowment contracts; and
             2997          (d) the net increase, if any, in a particular calendar year after January 1, 1982, in
             2998      amounts held under guaranteed interest contracts.
             2999          (2) Calendar year statutory valuation interest rates:
             3000          (a) The calendar year statutory valuation interest rates, "I," shall be determined as
             3001      follows and the results rounded to the nearer 1/4 of 1%:
             3002          (i) for life insurance:
             3003          I = .03 + W(R1 - .03) + (W/2)(R2 - .09);


             3004          (ii) for single premium immediate annuities and for annuity benefits involving life
             3005      contingencies arising from other annuities with cash settlement options and from guaranteed
             3006      interest contracts with cash settlement options:
             3007          I = .03 + W(R - .03),
             3008          where R1 is the lesser of R and .09,
             3009          R2 is the greater of R and .09,
             3010          R is the reference interest rate defined in Subsection (4), and
             3011          W is the weighting factor defined in this section;
             3012          (iii) for other annuities with cash settlement options and guaranteed interest contracts
             3013      with cash settlement options, valued on an issue year basis, except as stated in Subsection
             3014      (2)(a)(ii), the formula for life insurance stated in Subsection (2)(a)(i) shall apply to annuities
             3015      and guaranteed interest contracts with guarantee durations in excess of 10 years, and the
             3016      formula for single premium immediate annuities stated in Subsection (2)(a)(ii) shall apply to
             3017      annuities and guaranteed interest contracts with guarantee duration of 10 years or less;
             3018          (iv) for other annuities with no cash settlement options and for guaranteed interest
             3019      contracts with no cash settlement options, the formula for single premium immediate annuities
             3020      stated in Subsection (2)(a)(ii) shall apply[.]; and
             3021          (v) for other annuities with cash settlement options and guaranteed interest contracts
             3022      with cash settlement options, valued on a change in fund basis, the formula for single premium
             3023      immediate annuities stated in Subsection (2)(a)(ii) shall apply.
             3024          (b) However, if the calendar year statutory valuation interest rate for any life insurance
             3025      policies issued in any calendar year determined without reference to this sentence differs from
             3026      the corresponding actual rate for similar policies issued in the immediately preceding calendar
             3027      year by less than 1/2 of 1% the calendar year statutory valuation interest rate for such life
             3028      insurance policies shall be equal to the corresponding actual rate for the immediately preceding
             3029      calendar year. For purposes of applying the immediately preceding sentence, the calendar year
             3030      statutory valuation interest rate for life insurance policies issued in a calendar year shall be
             3031      determined for 1980, using the reference interest rate defined in 1979, and shall be determined
             3032      for each subsequent calendar year regardless of when Subsection 31A-22-408 (6)(d) becomes
             3033      operative.
             3034          (3) Weighting factors:


             3035          (a) The weighting factors referred to in the formulas stated in Subsection (2) are given
             3036      in the following tables:
             3037          (i) (A) Weighting factors for life insurance:
             3038