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H.B. 274

             1     

STATUTORY CONSTRUCTION COMPLIANCE

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Rebecca D. Lockhart

             6     
Senate Sponsor: Stephen H. Urquhart

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


             28          3-1-15, Utah Code Annotated 1953
             29          3-1-15.1, as enacted by Laws of Utah 1994, Chapter 204
             30          3-1-17, as last amended by Laws of Utah 2007, Chapter 306
             31          3-1-22, Utah Code Annotated 1953
             32          3-1-26, Utah Code Annotated 1953
             33          3-1-35, as last amended by Laws of Utah 1994, Chapter 203
             34          3-1-37, as last amended by Laws of Utah 1994, Chapter 203
             35          4-1-7, as enacted by Laws of Utah 1979, Chapter 2
             36          4-2-8.7, as last amended by Laws of Utah 2009, Chapter 368
             37          4-2-15, as enacted by Laws of Utah 1985, Chapter 104
             38          4-5-5, as last amended by Laws of Utah 1990, Chapter 157
             39          4-5-7, as last amended by Laws of Utah 2007, Chapter 179
             40          4-5-8, as last amended by Laws of Utah 1990, Chapter 157
             41          4-5-9, as last amended by Laws of Utah 2008, Chapter 382
             42          4-5-15, as last amended by Laws of Utah 2007, Chapter 179
             43          4-5-18, as last amended by Laws of Utah 1990, Chapter 157
             44          4-7-8, as last amended by Laws of Utah 2003, Chapter 84
             45          4-7-11, as last amended by Laws of Utah 1995, Chapter 41
             46          4-9-15, as last amended by Laws of Utah 2008, Chapter 382
             47          4-14-3, as last amended by Laws of Utah 2009, Chapter 183
             48          4-15-2, as enacted by Laws of Utah 1981, Chapter 126
             49          4-15-10, as enacted by Laws of Utah 1981, Chapter 126
             50          4-17-7, as last amended by Laws of Utah 2009, Chapter 388
             51          4-22-3, as last amended by Laws of Utah 1996, Chapter 243
             52          4-22-6, as last amended by Laws of Utah 1999, Chapter 301
             53          4-23-5, as last amended by Laws of Utah 2008, Chapter 382
             54          4-23-6, as enacted by Laws of Utah 1979, Chapter 2
             55          4-23-8, as last amended by Laws of Utah 2004, Chapter 128
             56          4-24-2, as last amended by Laws of Utah 1997, Chapter 302
             57          4-24-12, as last amended by Laws of Utah 2007, Chapter 240
             58          4-24-20, as last amended by Laws of Utah 1997, Chapter 302


             59          4-26-5, as enacted by Laws of Utah 1979, Chapter 2
             60          4-29-2, as enacted by Laws of Utah 1979, Chapter 2
             61          4-30-7.6, as enacted by Laws of Utah 1999, Chapter 298
             62          4-31-16, as last amended by Laws of Utah 2007, Chapter 179
             63          4-31-16.5, as last amended by Laws of Utah 2008, Chapter 382
             64          4-32-3, as last amended by Laws of Utah 2007, Chapter 179
             65          4-32-7, as last amended by Laws of Utah 2008, Chapter 382
             66          4-32-16, as enacted by Laws of Utah 1979, Chapter 2
             67          4-32-22, as last amended by Laws of Utah 2007, Chapter 179
             68          4-35-7, as last amended by Laws of Utah 1990, Chapter 157
             69          4-37-102, as renumbered and amended by Laws of Utah 1994, Chapter 153
             70          4-37-109, as last amended by Laws of Utah 2008, Chapter 382
             71          4-37-110, as enacted by Laws of Utah 1994, Chapter 153
             72          4-37-202, as enacted by Laws of Utah 1994, Chapter 153
             73          4-37-203, as enacted by Laws of Utah 1994, Chapter 153
             74          4-37-204, as last amended by Laws of Utah 2008, Chapter 69
             75          4-37-302, as enacted by Laws of Utah 1994, Chapter 153
             76          4-37-303, as enacted by Laws of Utah 1994, Chapter 153
             77          4-37-305, as enacted by Laws of Utah 1994, Chapter 153
             78          4-37-402, as enacted by Laws of Utah 1994, Chapter 153
             79          4-37-502, as last amended by Laws of Utah 2007, Chapter 191
             80          4-37-503, as last amended by Laws of Utah 2008, Chapter 69
             81          4-39-201, as enacted by Laws of Utah 1997, Chapter 302
             82          4-39-205, as enacted by Laws of Utah 1997, Chapter 302
             83          4-39-206, as enacted by Laws of Utah 1997, Chapter 302
             84          4-39-302, as enacted by Laws of Utah 1997, Chapter 302
             85          4-39-304, as enacted by Laws of Utah 1997, Chapter 302
             86          4-39-305, as enacted by Laws of Utah 1997, Chapter 302
             87          4-39-306, as enacted by Laws of Utah 1997, Chapter 302
             88          6-1-3, Utah Code Annotated 1953
             89          6-1-9, Utah Code Annotated 1953


             90          6-1-15, Utah Code Annotated 1953
             91          7-1-303, as enacted by Laws of Utah 1981, Chapter 16
             92          7-1-309, as enacted by Laws of Utah 1981, Chapter 16
             93          7-1-607, as enacted by Laws of Utah 1981, Chapter 16
             94          7-1-612, as enacted by Laws of Utah 1981, Chapter 16
             95          7-1-806, as enacted by Laws of Utah 1981, Chapter 16
             96          7-2-9, as last amended by Laws of Utah 2008, Chapter 382
             97          7-2-10, as last amended by Laws of Utah 1989, Chapter 267
             98          7-2-12, as last amended by Laws of Utah 1989, Chapter 267
             99          7-5-2, as last amended by Laws of Utah 2000, Chapter 300
             100          7-5-4, as last amended by Laws of Utah 1982, Chapter 6
             101          7-5-7, as last amended by Laws of Utah 2004, Chapter 89
             102          7-5-8, as last amended by Laws of Utah 1982, Chapter 6
             103          7-5-11, as last amended by Laws of Utah 1982, Chapter 6
             104          7-7-2, as last amended by Laws of Utah 1995, Chapter 49
             105          7-7-4, as last amended by Laws of Utah 1994, Chapter 200
             106          7-7-7, as last amended by Laws of Utah 1994, Chapter 200
             107          7-7-14, as last amended by Laws of Utah 1994, Chapter 200
             108          7-7-15, as last amended by Laws of Utah 1989, Chapter 267
             109          7-7-17, as enacted by Laws of Utah 1981, Chapter 16
             110          7-7-19, as last amended by Laws of Utah 1994, Chapter 200
             111          7-7-21, as last amended by Laws of Utah 1997, Chapter 111
             112          7-7-26, as last amended by Laws of Utah 1995, Chapters 20 and 198
             113          7-7-29, as last amended by Laws of Utah 1983, Chapter 8
             114          7-7-30, as last amended by Laws of Utah 1983, Chapter 8
             115          7-7-32, as last amended by Laws of Utah 1994, Chapter 200
             116          7-7-33, as last amended by Laws of Utah 1994, Chapter 200
             117          7-7-43, as enacted by Laws of Utah 1981, Chapter 16
             118          7-9-5, as last amended by Laws of Utah 2003, Chapter 327
             119          7-9-19, as enacted by Laws of Utah 1981, Chapter 16
             120          7-9-32, as enacted by Laws of Utah 1981, Chapter 16


             121          7-14-5, as enacted by Laws of Utah 1981, Chapter 16
             122          7-17-4, as last amended by Laws of Utah 2002, Chapter 264
             123          7-17-6, as enacted by Laws of Utah 1979, Chapter 124
             124          7-17-8, as enacted by Laws of Utah 1979, Chapter 124
             125          7-17-9, as enacted by Laws of Utah 1979, Chapter 124
             126          7-18a-301, as enacted by Laws of Utah 1996, Chapter 63
             127          8-3-1, Utah Code Annotated 1953
             128          9-3-407, as last amended by Laws of Utah 2001, Chapter 151
             129          9-4-301, as renumbered and amended by Laws of Utah 1992, Chapter 241
             130          9-4-602, as last amended by Laws of Utah 2002, Chapter 185
             131          9-4-703, as last amended by Laws of Utah 2006, Chapter 14
             132          9-4-914, as last amended by Laws of Utah 2001, Chapter 319
             133          9-4-924, as last amended by Laws of Utah 2001, Chapter 319
             134          9-6-203, as renumbered and amended by Laws of Utah 1992, Chapter 241
             135          9-6-405, as renumbered and amended by Laws of Utah 1992, Chapter 241
             136          9-6-504, as last amended by Laws of Utah 2008, Chapter 382
             137          9-7-213, as last amended by Laws of Utah 2008, Chapter 382
             138          9-7-504, as last amended by Laws of Utah 2003, Chapter 47
             139          9-12-103, as last amended by Laws of Utah 2008, Chapter 382
             140          9-12-201, as renumbered and amended by Laws of Utah 1998, Chapter 336
             141          10-1-105, as enacted by Laws of Utah 1977, Chapter 48
             142          10-1-108, as last amended by Laws of Utah 1993, Chapter 4
             143          10-1-109, as enacted by Laws of Utah 1977, Chapter 48
             144          10-1-112, as enacted by Laws of Utah 1977, Chapter 48
             145          10-1-113, as enacted by Laws of Utah 1977, Chapter 48
             146          10-2-109, as last amended by Laws of Utah 2008, Chapter 16
             147          10-2-303, as last amended by Laws of Utah 2008, Chapter 19
             148          10-2-403, as last amended by Laws of Utah 2009, Chapters 205 and 273
             149          10-2-510, as last amended by Laws of Utah 1997, Chapter 389
             150          10-2-614, as enacted by Laws of Utah 1977, Chapter 48
             151          10-3-508, as enacted by Laws of Utah 1977, Chapter 48


             152          10-3-608, as last amended by Laws of Utah 1993, Chapter 4
             153          10-3-702, as enacted by Laws of Utah 1977, Chapter 48
             154          10-3-704, as enacted by Laws of Utah 1977, Chapter 48
             155          10-3-717, as enacted by Laws of Utah 1977, Chapter 48
             156          10-3-905, as enacted by Laws of Utah 1977, Chapter 48
             157          10-3-907, as enacted by Laws of Utah 1977, Chapter 48
             158          10-3-912, as last amended by Laws of Utah 1991, Chapter 221
             159          10-3-1004, as last amended by Laws of Utah 1977, Chapter 39
             160          10-3-1011, as enacted by Laws of Utah 1977, Chapter 48
             161          10-3-1012.5, as enacted by Laws of Utah 1991, Chapter 221
             162          10-3-1306, as last amended by Laws of Utah 1989, Chapter 147
             163          10-5-103, as enacted by Laws of Utah 1983, Chapter 34
             164          10-5-107, as last amended by Laws of Utah 2006, Chapter 178
             165          10-5-114, as enacted by Laws of Utah 1983, Chapter 34
             166          10-5-115, as enacted by Laws of Utah 1983, Chapter 34
             167          10-6-111, as last amended by Laws of Utah 2009, Chapter 350
             168          10-6-116, as last amended by Laws of Utah 1999, Chapter 300
             169          10-6-123, as enacted by Laws of Utah 1979, Chapter 26
             170          10-6-159, as last amended by Laws of Utah 1993, Chapter 4
             171          10-7-4, as last amended by Laws of Utah 2004, Chapter 207
             172          10-7-5, Utah Code Annotated 1953
             173          10-7-18, as last amended by Laws of Utah 2002, Chapter 90
             174          10-7-32, Utah Code Annotated 1953
             175          10-7-71, Utah Code Annotated 1953
             176          10-7-72, Utah Code Annotated 1953
             177          10-7-73, Utah Code Annotated 1953
             178          10-7-85, as enacted by Laws of Utah 1977, Chapter 36
             179          10-8-15, Utah Code Annotated 1953
             180          10-8-16, Utah Code Annotated 1953
             181          10-8-17, Utah Code Annotated 1953
             182          10-8-33, Utah Code Annotated 1953


             183          10-8-36, Utah Code Annotated 1953
             184          10-8-58.5, as last amended by Laws of Utah 2008, Chapter 382
             185          10-9a-403, as last amended by Laws of Utah 2008, Chapter 168
             186          10-9a-509.5, as last amended by Laws of Utah 2008, Chapter 112
             187          10-9a-514, as renumbered and amended by Laws of Utah 2005, Chapter 254
             188          10-9a-519, as renumbered and amended by Laws of Utah 2005, Chapter 254
             189          10-11-2, Utah Code Annotated 1953
             190          10-15-4, as last amended by Laws of Utah 2008, Chapter 360
             191          11-8-1, as enacted by Laws of Utah 1957, Chapter 30
             192          11-13-309, as renumbered and amended by Laws of Utah 2002, Chapter 286
             193          11-13-311, as last amended by Laws of Utah 2003, Chapter 21
             194          11-14-302, as last amended by Laws of Utah 2006, Chapter 83
             195          11-14-308, as last amended by Laws of Utah 2007, Chapter 303
             196          11-14-313, as last amended by Laws of Utah 2006, Chapter 83
             197          11-14-315, as last amended by Laws of Utah 2009, Chapter 388
             198          11-17-1.5, as last amended by Laws of Utah 2005, Chapter 148
             199          11-17-2, as last amended by Laws of Utah 2009, Chapter 92
             200          11-17-4, as last amended by Laws of Utah 1986, Chapter 206
             201          11-17-5, as last amended by Laws of Utah 1986, Chapter 206
             202          11-17-7, as last amended by Laws of Utah 1986, Chapter 206
             203          11-17-10, as last amended by Laws of Utah 1987, Chapter 2
             204          11-25-9, as enacted by Laws of Utah 1977, Chapter 276
             205          11-25-11, as last amended by Laws of Utah 2006, Chapter 359
             206          11-27-5, as last amended by Laws of Utah 2009, Chapter 388
             207          11-30-2, as last amended by Laws of Utah 2007, Chapter 329
             208          11-31-2, as last amended by Laws of Utah 2007, Chapter 329
             209          11-32-7, as enacted by Laws of Utah 1987, Chapter 143
             210          11-34-1, as last amended by Laws of Utah 2007, Chapter 329
             211          11-34-2, as enacted by Laws of Utah 1987, Chapter 200
             212          11-36-401, as last amended by Laws of Utah 2009, Chapter 181
             213          13-1-1, as enacted by Laws of Utah 1983, Chapter 322


             214          13-1a-6, as last amended by Laws of Utah 2008, Chapter 382
             215          13-2-6, as last amended by Laws of Utah 2008, Chapter 382
             216          13-5-3, as last amended by Laws of Utah 1993, Chapter 4
             217          13-5-12, as last amended by Laws of Utah 1997, Chapter 10
             218          13-5-16, Utah Code Annotated 1953
             219          13-7-1, as last amended by Laws of Utah 1973, Chapter 18
             220          13-7-2, as last amended by Laws of Utah 1987, Chapter 92
             221          13-11-6, as last amended by Laws of Utah 1991, Chapter 268
             222          13-11-19, as last amended by Laws of Utah 1995, Chapter 198
             223          13-11-20, as last amended by Laws of Utah 1992, Chapter 30
             224          13-11a-3, as last amended by Laws of Utah 2009, Chapter 133
             225          13-12-3, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
             226          13-12-4, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
             227          13-12-7, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
             228          13-13-4, as enacted by Laws of Utah 1979, Chapter 147
             229          13-14b-103, as enacted by Laws of Utah 2003, Chapter 225
             230          13-15-4, as last amended by Laws of Utah 2009, Chapter 183
             231          13-15-5, as last amended by Laws of Utah 1987, Chapter 92
             232          13-32-103, as enacted by Laws of Utah 1999, Chapter 68
             233          13-32-104, as enacted by Laws of Utah 1999, Chapter 68
             234          13-32-107, as enacted by Laws of Utah 1999, Chapter 68
             235          13-32a-109.8, as last amended by Laws of Utah 2009, Chapter 272
             236          13-34-104, as last amended by Laws of Utah 2008, Chapter 382
             237          13-34-105, as last amended by Laws of Utah 2009, Chapter 372
             238          13-34-107, as last amended by Laws of Utah 2009, Chapter 183
             239          13-41-102, as last amended by Laws of Utah 2008, Chapter 382
             240          13-42-105, as last amended by Laws of Utah 2009, Chapters 183 and 229
             241          13-42-106, as enacted by Laws of Utah 2006, Chapter 154
             242          13-42-111, as last amended by Laws of Utah 2009, Chapters 183 and 229
             243          13-42-113, as enacted by Laws of Utah 2006, Chapter 154
             244          13-42-117, as last amended by Laws of Utah 2009, Chapter 229


             245          13-42-118, as last amended by Laws of Utah 2009, Chapter 229
             246          13-42-119, as last amended by Laws of Utah 2009, Chapter 229
             247          13-42-120, as last amended by Laws of Utah 2009, Chapter 229
             248          13-42-121, as enacted by Laws of Utah 2006, Chapter 154
             249          13-42-122, as last amended by Laws of Utah 2009, Chapter 229
             250          13-42-132, as last amended by Laws of Utah 2009, Chapter 183
             251          13-42-137, as enacted by Laws of Utah 2006, Chapter 154
             252          13-42-138, as enacted by Laws of Utah 2006, Chapter 154
             253          14-1-20, as last amended by Laws of Utah 2005, Chapter 64
             254          14-2-5, as last amended by Laws of Utah 2005, Chapter 64
             255          15-2-5, as enacted by Laws of Utah 1971, Chapter 20
             256          15-3-4, Utah Code Annotated 1953
             257          15-4-2, Utah Code Annotated 1953
             258          15-4-4, Utah Code Annotated 1953
             259          15-4-7, Utah Code Annotated 1953
             260          15-9-105, as last amended by Laws of Utah 2008, Chapter 382
             261          15-9-106, as last amended by Laws of Utah 2008, Chapter 382
             262          15-9-109, as last amended by Laws of Utah 2009, Chapter 183
             263          15-9-110, as enacted by Laws of Utah 2001, Chapter 237
             264          15-9-118, as enacted by Laws of Utah 2001, Chapter 237
             265          16-6a-709, as last amended by Laws of Utah 2007, Chapter 315
             266          16-6a-808, as last amended by Laws of Utah 2001, Chapter 127
             267          16-6a-1419, as enacted by Laws of Utah 2000, Chapter 300
             268          16-7-10, Utah Code Annotated 1953
             269          16-10a-103, as last amended by Laws of Utah 2009, Chapter 388
             270          16-10a-120, as last amended by Laws of Utah 2008, Chapter 364
             271          16-10a-201, as enacted by Laws of Utah 1992, Chapter 277
             272          16-10a-202, as last amended by Laws of Utah 2008, Chapter 364
             273          16-10a-401, as last amended by Laws of Utah 2002, Chapter 222
             274          16-10a-601, as enacted by Laws of Utah 1992, Chapter 277
             275          16-10a-602, as enacted by Laws of Utah 1992, Chapter 277


             276          16-10a-603, as enacted by Laws of Utah 1992, Chapter 277
             277          16-10a-604, as enacted by Laws of Utah 1992, Chapter 277
             278          16-10a-620, as enacted by Laws of Utah 1992, Chapter 277
             279          16-10a-621, as enacted by Laws of Utah 1992, Chapter 277
             280          16-10a-625, as enacted by Laws of Utah 1992, Chapter 277
             281          16-10a-704, as last amended by Laws of Utah 1993, Chapter 184
             282          16-10a-705, as enacted by Laws of Utah 1992, Chapter 277
             283          16-10a-706, as enacted by Laws of Utah 1992, Chapter 277
             284          16-10a-707, as enacted by Laws of Utah 1992, Chapter 277
             285          16-10a-720, as last amended by Laws of Utah 2008, Chapter 364
             286          16-10a-722, as last amended by Laws of Utah 2001, Chapter 218
             287          16-10a-723, as enacted by Laws of Utah 1992, Chapter 277
             288          16-10a-725, as enacted by Laws of Utah 1992, Chapter 277
             289          16-10a-727, as enacted by Laws of Utah 1992, Chapter 277
             290          16-10a-730, as enacted by Laws of Utah 1992, Chapter 277
             291          16-10a-732, as enacted by Laws of Utah 1992, Chapter 277
             292          16-10a-801, as enacted by Laws of Utah 1992, Chapter 277
             293          16-10a-803, as enacted by Laws of Utah 1992, Chapter 277
             294          16-10a-808, as enacted by Laws of Utah 1992, Chapter 277
             295          16-10a-822, as enacted by Laws of Utah 1992, Chapter 277
             296          16-10a-823, as enacted by Laws of Utah 1992, Chapter 277
             297          16-10a-825, as enacted by Laws of Utah 1992, Chapter 277
             298          16-10a-904, as enacted by Laws of Utah 1992, Chapter 277
             299          16-10a-1003, as enacted by Laws of Utah 1992, Chapter 277
             300          16-10a-1007, as enacted by Laws of Utah 1992, Chapter 277
             301          16-10a-1022, as enacted by Laws of Utah 1992, Chapter 277
             302          16-10a-1023, as enacted by Laws of Utah 2007, Chapter 85
             303          16-10a-1101, as enacted by Laws of Utah 1992, Chapter 277
             304          16-10a-1102, as enacted by Laws of Utah 1992, Chapter 277
             305          16-10a-1103, as last amended by Laws of Utah 1993, Chapter 184
             306          16-10a-1202, as enacted by Laws of Utah 1992, Chapter 277


             307          16-10a-1303, as enacted by Laws of Utah 1992, Chapter 277
             308          16-10a-1320, as enacted by Laws of Utah 1992, Chapter 277
             309          16-10a-1321, as enacted by Laws of Utah 1992, Chapter 277
             310          16-10a-1322, as enacted by Laws of Utah 1992, Chapter 277
             311          16-10a-1323, as enacted by Laws of Utah 1992, Chapter 277
             312          16-10a-1325, as enacted by Laws of Utah 1992, Chapter 277
             313          16-10a-1330, as last amended by Laws of Utah 2008, Chapter 364
             314          16-10a-1402, as enacted by Laws of Utah 1992, Chapter 277
             315          16-10a-1404, as enacted by Laws of Utah 1992, Chapter 277
             316          16-10a-1406, as enacted by Laws of Utah 1992, Chapter 277
             317          16-10a-1407, as last amended by Laws of Utah 2009, Chapter 388
             318          16-10a-1434, as enacted by Laws of Utah 1992, Chapter 277
             319          16-10a-1506, as enacted by Laws of Utah 1992, Chapter 277
             320          16-10a-1507, as enacted by Laws of Utah 1992, Chapter 277
             321          16-10a-1510, as enacted by Laws of Utah 1992, Chapter 277
             322          16-10a-1533, as enacted by Laws of Utah 1994, Chapter 31
             323          16-10a-1607, as last amended by Laws of Utah 2008, Chapter 364
             324          16-11-6, as enacted by Laws of Utah 1963, Chapter 20
             325          16-11-8, as last amended by Laws of Utah 2000, Chapters 71 and 261
             326          16-11-15, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
             327          16-11-16, as last amended by Laws of Utah 2002, Chapter 222
             328          16-12-5, as enacted by Laws of Utah 1965, Chapter 114
             329          16-12-6, as enacted by Laws of Utah 1965, Chapter 114
             330          16-13-4, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
             331          16-13-5, as last amended by Laws of Utah 1979, Chapter 55
             332          16-13-9, as last amended by Laws of Utah 1979, Chapter 55
             333          16-13-11, as enacted by Laws of Utah 1965, Chapter 27
             334          16-16-111, as enacted by Laws of Utah 2008, Chapter 363
             335          16-16-112, as enacted by Laws of Utah 2008, Chapter 363
             336          16-16-113, as enacted by Laws of Utah 2008, Chapter 363
             337          16-16-114, as enacted by Laws of Utah 2008, Chapter 363


             338          16-16-117, as enacted by Laws of Utah 2008, Chapter 363
             339          16-16-118, as enacted by Laws of Utah 2008, Chapter 363
             340          16-16-119, as enacted by Laws of Utah 2008, Chapter 363
             341          16-16-201, as enacted by Laws of Utah 2008, Chapter 363
             342          16-16-203, as enacted by Laws of Utah 2008, Chapter 363
             343          16-16-204, as enacted by Laws of Utah 2008, Chapter 363
             344          16-16-207, as enacted by Laws of Utah 2008, Chapter 363
             345          16-16-301, as enacted by Laws of Utah 2008, Chapter 363
             346          16-16-302, as enacted by Laws of Utah 2008, Chapter 363
             347          16-16-304, as enacted by Laws of Utah 2008, Chapter 363
             348          16-16-402, as enacted by Laws of Utah 2008, Chapter 363
             349          16-16-403, as enacted by Laws of Utah 2008, Chapter 363
             350          16-16-404, as enacted by Laws of Utah 2008, Chapter 363
             351          16-16-405, as enacted by Laws of Utah 2008, Chapter 363
             352          16-16-407, as enacted by Laws of Utah 2008, Chapter 363
             353          16-16-501, as enacted by Laws of Utah 2008, Chapter 363
             354          16-16-507, as enacted by Laws of Utah 2008, Chapter 363
             355          16-16-508, as enacted by Laws of Utah 2008, Chapter 363
             356          16-16-603, as enacted by Laws of Utah 2008, Chapter 363
             357          16-16-801, as enacted by Laws of Utah 2008, Chapter 363
             358          16-16-803, as enacted by Laws of Utah 2008, Chapter 363
             359          16-16-804, as enacted by Laws of Utah 2008, Chapter 363
             360          16-16-809, as enacted by Laws of Utah 2008, Chapter 363
             361          16-16-813, as enacted by Laws of Utah 2008, Chapter 363
             362          16-16-1001, as enacted by Laws of Utah 2008, Chapter 363
             363          16-16-1002, as enacted by Laws of Utah 2008, Chapter 363
             364          16-16-1004, as enacted by Laws of Utah 2008, Chapter 363
             365          16-16-1202, as enacted by Laws of Utah 2008, Chapter 363
             366          16-16-1205, as enacted by Laws of Utah 2008, Chapter 363
             367          16-16-1208, as enacted by Laws of Utah 2008, Chapter 363
             368          16-16-1209, as last amended by Laws of Utah 2009, Chapter 388


             369          16-16-1212, as enacted by Laws of Utah 2008, Chapter 363
             370          16-16-1213, as enacted by Laws of Utah 2008, Chapter 363
             371          16-16-1303, as enacted by Laws of Utah 2008, Chapter 363
             372          16-16-1402, as enacted by Laws of Utah 2008, Chapter 363
             373          16-16-1405, as enacted by Laws of Utah 2008, Chapter 363
             374          16-16-1406, as enacted by Laws of Utah 2008, Chapter 363
             375          16-16-1407, as enacted by Laws of Utah 2008, Chapter 363
             376          16-16-1503, as enacted by Laws of Utah 2008, Chapter 363
             377          16-16-1504, as enacted by Laws of Utah 2008, Chapter 363
             378          16-16-1602, as enacted by Laws of Utah 2008, Chapter 363
             379          16-16-1603, as enacted by Laws of Utah 2008, Chapter 363
             380          16-16-1604, as enacted by Laws of Utah 2008, Chapter 363
             381          16-16-1606, as enacted by Laws of Utah 2008, Chapter 363
             382          16-16-1607, as enacted by Laws of Utah 2008, Chapter 363
             383          16-16-1608, as enacted by Laws of Utah 2008, Chapter 363
             384          16-16-1609, as enacted by Laws of Utah 2008, Chapter 363
             385          16-16-1701, as enacted by Laws of Utah 2008, Chapter 363
             386          16-17-202, as enacted by Laws of Utah 2008, Chapter 364
             387          16-17-203, as enacted by Laws of Utah 2008, Chapter 364
             388          16-17-204, as enacted by Laws of Utah 2008, Chapter 364
             389          16-17-210, as enacted by Laws of Utah 2008, Chapter 364
             390          16-17-301, as enacted by Laws of Utah 2008, Chapter 364
             391          16-17-402, as enacted by Laws of Utah 2008, Chapter 364
             392     
             393      Be it enacted by the Legislature of the state of Utah:
             394          Section 1. Section 3-1-1 is amended to read:
             395           3-1-1. Declaration of policy.
             396          It is the declared policy of this state, as one means of improving the economic position
             397      of agriculture, to encourage the organization of producers of agricultural products into effective
             398      associations under the control of such producers, and to that end this act [should] shall be
             399      liberally construed.


             400          Section 2. Section 3-1-9 is amended to read:
             401           3-1-9. Powers.
             402          (1) An association formed under this act, or an association which might be formed
             403      under this act and which existed at the time this act took effect, shall have power and capacity
             404      to act possessed by natural persons and may do each and everything necessary, suitable, or
             405      proper for the accomplishment of any one or more of the purposes, or the attainment of any one
             406      or more of the objects herein enumerated or conducive to or expedient for the interests or
             407      benefit of the association, and may exercise all powers, rights, and privileges necessary or
             408      incident thereto, including the exercise of any rights, powers, and privileges granted by the
             409      laws of this state to corporations generally, excepting such as are inconsistent with the express
             410      provisions of this act.
             411          (2) Without limiting or enlarging the grant of authority contained in Subsection (1), it
             412      is hereby specifically provided that every such association shall have authority:
             413          (a) to act as agent, broker, or attorney in fact for its members and other producers, and
             414      for any subsidiary or affiliated association, and otherwise to assist or join with associations
             415      engaged in any one or more of the activities authorized by its articles, and to hold title for its
             416      members and other producers, and for subsidiary and affiliated association to property handled
             417      or managed by the association on their behalf;
             418          (b) to make contracts and to exercise by its board or duly authorized officers or agents,
             419      all such incidental powers as may be necessary, suitable or proper for the accomplishment of
             420      the purposes of the association and not inconsistent with law or its articles, and that may be
             421      conducive to or expedient for the interest or benefit of the association;
             422          (c) to make loans or advances to members or producer-patrons or to the members of an
             423      association which is itself a member or subsidiary thereof; to purchase, or otherwise acquire,
             424      endorse, discount, or sell any evidence of debt, obligation or security;
             425          (d) to establish and accumulate reasonable reserves and surplus funds and to abolish
             426      the same; also to create, maintain, and terminate revolving funds or other similar funds which
             427      may be provided for in the bylaws of the association;
             428          (e) to own and hold membership in or shares of the stock of other associations and
             429      corporations and the bonds or other obligations thereof, engaged in any related activity; or, in
             430      producing, warehousing or marketing any of the products handled by the association; or, in


             431      financing its activities; and while the owner thereof, to exercise all the rights of ownership,
             432      including the right to vote thereon;
             433          (f) to acquire, hold, sell, dispose of, pledge, or mortgage, any property which its
             434      purposes may require;
             435          (g) to borrow money without limitation as to amount, and to give its notes, bonds, or
             436      other obligations therefor and secure the payment thereof by mortgage or pledge;
             437          (h) to deal in products of, and handle machinery, equipment, supplies and perform
             438      services for nonmembers to an amount not greater in annual value than such as are dealt in,
             439      handled or performed for or on behalf of its members, but the value of the annual purchases
             440      made for persons who are neither members nor producers [shall not] may not exceed 15 per
             441      centum of the value of all its purchases. Business transacted by an association for or on behalf
             442      of the United States or any agency or instrumentality thereof, shall be disregarded in
             443      determining the volume or value of member and nonmember business transacted by such
             444      association;
             445          (i) if engaged in marketing the products of its members, to hedge its operations;
             446          (j) to have a corporate seal and to alter the same at pleasure;
             447          (k) to continue as a corporation for the time limited in its articles, and if no time limit
             448      is specified then perpetually;
             449          (l) to sue and be sued in its corporate name;
             450          (m) to conduct business in this state and elsewhere as may be permitted by law; and
             451          (n) to dissolve and wind up.
             452          Section 3. Section 3-1-11 is amended to read:
             453           3-1-11. Certificates of and termination of membership -- Dividends and
             454      distribution of reserves -- Preferred stock -- Certificates of interest -- Unclaimed credits.
             455          (1) No certificate for membership or stock shall be issued until fully paid for, but
             456      bylaws may provide that a member may vote and hold office prior to payment in full for his
             457      membership or stock.
             458          (2) Dividends in excess of eight per centum per annum on the actual cash value of the
             459      consideration received by the association [shall not] may not be paid on common stock or
             460      membership capital, but dividends may be cumulative if so provided in the articles or bylaws.
             461          (3) (a) Savings in excess of dividends and additions to reserves and surplus shall be


             462      distributed on the basis of patronage.
             463          (b) The bylaws may provide that any distribution to a nonmember, who is eligible for
             464      membership, may be credited to that nonmember until the amount of the distribution equals the
             465      value of a membership certificate, or a share of the association's common stock.
             466          (c) The distribution credited to the account of the nonmember may be transferred to the
             467      membership fund at the option of the board, if, after two years, the amount is less than the
             468      value of the membership certificate or a share of common stock.
             469          (4) (a) The bylaws shall provide the time and manner of settlement of membership
             470      interests with members who withdraw from the association or whose membership is otherwise
             471      terminated.
             472          (b) Provisions for forfeiture of membership interests may be made in the bylaws.
             473          (c) After the termination of the membership, for whatever cause, the withdrawing
             474      member shall exercise no further control over the facilities, assets, or activities of the
             475      association. The withdrawing member may not claim or receive any assets of the association
             476      except as follows:
             477          (i) undistributed patronage allocated to the withdrawing member may be paid to the
             478      withdrawing member pursuant to the association's bylaws;
             479          (ii) the withdrawing member may be reimbursed for the par value of membership or
             480      stock in the association pursuant to the association's articles, bylaws, and membership
             481      agreement; and
             482          (iii) the withdrawing member shall receive any distributions to which the member is
             483      entitled pursuant to Subsection 3-1-20 (3)(d).
             484          (5) (a) An association may issue preferred stock to members and nonmembers.
             485          (b) Preferred stock may be redeemed or retired by the association on the terms and
             486      conditions as are provided in the articles or bylaws and printed on the stock certificates.
             487          (c) Preferred stockholders [shall not be entitled to] may not vote, but no change in their
             488      priority or preference rights shall be effective until the written consent of the holders of a
             489      majority of the preferred stock has been obtained.
             490          (d) Payment for preferred stock may be made in cash, services, or property on the basis
             491      of the fair value of the stock, services, and property, as determined by the board.
             492          (6) (a) The association may issue to each member a certificate of interest evidencing


             493      the member's interest in any fund, capital investment, or other assets of the association.
             494          (b) Those certificates may be transferred only to the association, or to other purchasers,
             495      as approved by the board of directors, under the terms and conditions provided for in the
             496      bylaws.
             497          (7) (a) As used in this Subsection (7), "reasonable effort" means:
             498          (i) a letter to a member's or former member's last-known address, a listing of
             499      unclaimed credits in an association publication, and the posting of a list of unclaimed credits at
             500      the association's principal place of business; and
             501          (ii) publishing a list of the unclaimed credits exceeding $25 each, or greater, in a
             502      newspaper of general circulation in the area where the association's principal offices are
             503      located.
             504          (b) The association may retain revolving certificates of interest described in this
             505      Subsection (7) as an exception to the provisions of Title 67, Chapter 4a, Unclaimed Property
             506      Act, if:
             507          (i) the board of directors of the association determines to revolve the certificates and
             508      the certificates remain unclaimed by the association's members or former members for five
             509      years after the credit is declared;
             510          (ii) the association is authorized to retain those credits by its bylaws;
             511          (iii) the board of directors of the association approves the retention; and
             512          (iv) before retaining the credits, the association makes a reasonable effort to locate and
             513      communicate the issuance of the credits to the members or former members.
             514          (c) (i) The board of directors may either add the unclaimed credits as a contribution to
             515      the capital fund, or use them to establish an agricultural educational program as described in
             516      Subsection (7)(c)(ii).
             517          (ii) If the board of directors chooses to use the unclaimed credits to establish an
             518      agricultural educational program, it shall establish an agricultural educational program to:
             519          (A) provide scholarships for low income and worthy students to colleges and
             520      universities;
             521          (B) provide funding for director training and education;
             522          (C) provide funds for cooperative education programs in secondary or higher education
             523      institutions; or


             524          (D) provide other educational opportunities.
             525          (iii) The board of directors may not distribute unclaimed credits to current patrons of
             526      the association.
             527          (iv) Upon dissolution of an association, the board of directors shall report and remit
             528      unclaimed credits to the Division of Unclaimed Property.
             529          (d) (i) Each association that applies credits under Subsection (7)(c) during a calendar
             530      year shall file an annual report with the State Treasurer by April 15 of the following year.
             531          (ii) The report shall specify:
             532          (A) the dollar amount of credits applied during the year;
             533          (B) the dollar amount of credit paid to claimants during the year; and
             534          (C) the aggregate dollar amount of credits applied since January 1, 1996.
             535          (e) At any time after the association retains credits under this Subsection (7), the
             536      association shall pay the members, former members, or their successors in interest, the value of
             537      the credit, without interest, if the members, former members, or their successors in interest:
             538          (i) file a written claim for payment with the association; and
             539          (ii) surrender the certificate issued by the association that evidences the credit.
             540          Section 4. Section 3-1-13.8 is amended to read:
             541           3-1-13.8. Director committees.
             542          (1) (a) Unless otherwise provided by the articles of incorporation or bylaws, a board of
             543      directors may create one or more committees and appoint members of the board of directors to
             544      serve on them.
             545          (b) Each committee [must] shall have two or more members who serve at the
             546      discretion of the board of directors.
             547          (2) The creation of a committee and appointment of members to it [must] shall be
             548      approved by the greater of:
             549          (a) a majority of all the directors in office when the action is taken; or
             550          (b) the number of directors required by the articles of incorporation or bylaws to take
             551      action under Section 3-1-13.6 .
             552          (3) Sections 3-1-13.2 and 3-1-13.6 shall apply to committees and their members.
             553          (4) The board of directors, the articles of incorporation, or the bylaws may provide the
             554      scope of the authority that each committee may exercise.


             555          (5) The creation of, delegation of authority to, or action by a committee does not alone
             556      constitute compliance by a director with the standards of conduct described in Section
             557      3-1-13.3 .
             558          Section 5. Section 3-1-14 is amended to read:
             559           3-1-14. Removal of director.
             560          Any member may ask for the removal of a director by filing charges with the secretary
             561      or president of the association, together with a petition signed by 10 per centum of the
             562      members requesting the removal of the director in question. The removal shall be voted upon at
             563      the next meeting of the members, and the association may remove the director by a majority
             564      vote of the members voting thereon. The director whose removal is requested shall be served
             565      with a copy of the charges not less than 10 days prior to the meeting and shall have an
             566      opportunity at the meeting to be heard in person and by counsel and to present evidence; and
             567      the persons requesting the removal shall have the same opportunity. In case the bylaws provide
             568      for election of directors by districts, then the petition for removal of a director [must] shall be
             569      signed by 20 per centum of the members residing in the district from which he was elected. The
             570      board [must] shall call a special meeting of the members residing in that district to consider the
             571      removal of the director; and by a majority vote of the members of that district voting thereon
             572      the director in question shall be removed from office.
             573          Section 6. Section 3-1-15 is amended to read:
             574           3-1-15. Officers.
             575          The board shall elect a president, a secretary and a treasurer, and may elect one or more
             576      vice-presidents, and such other officers as may be authorized in the bylaws. Unless the articles
             577      otherwise specifically provide, the president and at least one of the vice-presidents [must] shall
             578      be directors, but a vice-president who is not a director cannot succeed to or fill the office of
             579      president. Any two of the offices of vice-president, secretary and treasurer may be combined in
             580      one person.
             581          Section 7. Section 3-1-15.1 is amended to read:
             582           3-1-15.1. Duties of officers.
             583          Each officer has the authority and [should] shall perform the duties set forth in the
             584      bylaws, or, to the extent consistent with the bylaws, the duties prescribed by the directors or by
             585      the officer authorized by the board of directors to prescribe the duties of other officers.


             586          Section 8. Section 3-1-17 is amended to read:
             587           3-1-17. Contracts with association.
             588          (1) (a) The bylaws may require members to execute contracts with the association in
             589      which the members agree to patronize the facilities created by the association, and to sell all or
             590      a specified part of their products to or through it, or to buy all or a specified part of their
             591      supplies from or through the association or any facilities created by it.
             592          (b) If the members contract to sell through the association, the fact that for certain
             593      purposes the relation between the association and its members may be one of agency [shall not]
             594      does not prevent the passage from the member to the association of absolute and exclusive title
             595      to the products which are the subject matter of the contract.
             596          (c) Such title shall pass to the association upon delivery of the product, or at any other
             597      time specified in the contract.
             598          (d) If the period of the contract exceeds three years, the bylaws and the contracts
             599      executed thereunder shall specify a reasonable period, not less than 10 days in each year, after
             600      the third year, during which the member, by giving to the association such reasonable notice as
             601      the association may prescribe, may withdraw from the association; provided, that if the bylaws
             602      or contracts executed hereunder so specify, a member may not withdraw from the association
             603      while indebted thereto.
             604          (e) In the absence of such a withdrawal provision, a member may withdraw at any time
             605      after three years.
             606          (2) The contract may fix, as liquidated damages, which [shall not] may not be regarded
             607      as penalties, specific sums to be paid by the members to the association upon the breach of any
             608      provision of the contract regarding the use of any facilities of the association or the sale,
             609      delivery, handling, or withholding of products; and may further provide that the member who
             610      breaks his contract shall pay all costs, including premiums for bonds, and reasonable attorney's
             611      fees, to be fixed by the court, in case the association prevails in any action upon the contract.
             612          (3) (a) A court of competent jurisdiction may grant an injunction to prevent the breach
             613      or further breach of the contract by a member and may decree specific performance thereof.
             614          (b) Pending the adjudication of such an action and upon filing a verified complaint
             615      showing the breach or threatened breach, and a bond in such form and amount as may be
             616      approved by the court, the court may grant a temporary restraining order or preliminary


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


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


             679      delegates to vote at annual or special meetings of the association or noncooperative
             680      corporation, these procedures shall be followed, and the vote of the delegates at the meeting
             681      where the plan of merger or consolidation is voted on shall be counted in the same way and
             682      entitled to the same weight as a vote of the delegates at any other meeting of the association or
             683      noncooperative corporation.
             684          (b) Members of cooperative parties may vote in person or by signed ballot, if voting by
             685      ballot is allowed in the association's bylaws.
             686          (c) Shareholders or their delegates of noncooperative parties may vote in person or by
             687      written proxy.
             688          (3) The plan of merger or consolidation [must] shall be approved by a 2/3 majority of:
             689          (a) the voting members of cooperative parties; and
             690          (b) holders or delegates of holders of the outstanding shares of noncooperative parties.
             691          (4) After approval by a vote of the members and shareholders of each party to the
             692      merger or consolidation and prior to the filing of the articles of merger or consolidation, the
             693      merger or consolidation may be abandoned pursuant to provisions set forth in the plan of
             694      merger or consolidation.
             695          Section 12. Section 3-1-37 is amended to read:
             696           3-1-37. Effect of merger or consolidation.
             697          (1) After the certificate of merger or consolidation is issued by the Division of
             698      Corporations and Commercial Code, the merger or consolidation shall be effected.
             699          (2) When the merger or consolidation has been effected:
             700          (a) The associations or corporations which are parties to the plan of merger or
             701      consolidation shall be a single corporation designated in the plan of merger or consolidation as
             702      the surviving or new corporation.
             703          (b) The separate existence of all associations and corporations which are parties to the
             704      merger or consolidation, except the surviving or new corporation, shall cease.
             705          (c) The surviving or new corporation shall have all of the rights, privileges,
             706      immunities, and powers and be subject to all the duties and liabilities of a corporation
             707      organized under this chapter or under the Utah Nonprofit Corporation and Cooperative
             708      Association Act, whichever act or chapter is specified in the plan of merger or consolidation.
             709          (d) (i) The surviving or new corporation shall possess all rights, privileges, immunities,


             710      and franchises of each of the merging associations and corporations.
             711          (ii) All property, debts due, including subscriptions to shares, all other choses in action,
             712      and all interests of each of the associations and corporations merged or consolidated, shall be
             713      taken, transferred to, and vested in the single corporation immediately.
             714          (iii) The title to or interest in any real estate vested in any of the associations or
             715      corporations [shall not] may not revert or be in any way impaired by the merger or
             716      consolidation.
             717          (e) (i) The surviving or new corporation shall be responsible and liable for all the
             718      liabilities and obligations of each of the associations and corporations which merged or
             719      consolidated.
             720          (ii) Any claim existing or action or proceeding pending by or against any of the
             721      associations and corporations may be prosecuted as if the merger or consolidation had not
             722      taken place, or the surviving or new corporation may be substituted in its place.
             723          (iii) The rights of creditors or any liens upon the property of any association or
             724      corporation [shall not] may not be impaired by the merger or consolidation.
             725          (f) The articles of incorporation of the surviving or new corporation may be amended,
             726      if changes in the articles of incorporation are stated in the plan of merger or consolidation.
             727          Section 13. Section 4-1-7 is amended to read:
             728           4-1-7. Severability clause.
             729          If any provision of this code or the application of any such provision to any person or
             730      circumstance is held invalid, the invalidity [shall not] does not affect other provisions or
             731      applications of this code which can be given effect without the invalid provision or application,
             732      and to this end the provisions of this code are declared to be severable.
             733          Section 14. Section 4-2-8.7 is amended to read:
             734           4-2-8.7. Invasive Species Mitigation Fund created.
             735          (1) As used in this section, "project" means an undertaking that prevents catastrophic
             736      wildland fire through land restoration in a watershed that:
             737          (a) is impacted by cheatgrass or other invasive species; or
             738          (b) has a fuel load that may contribute to a catastrophic wildland fire.
             739          (2) (a) There is created a general fund restricted account known as the "Invasive
             740      Species Mitigation Fund."


             741          (b) The fund shall consist of:
             742          (i) money appropriated by the Legislature;
             743          (ii) grants from the federal government; and
             744          (iii) grants or donations from a person.
             745          (3) Any unallocated balance in the fund at the end of the year is nonlapsing.
             746          (4) (a) After consulting with the Department of Natural Resources and the
             747      Conservation Commission, the department may expend fund monies:
             748          (i) on a project implemented by:
             749          (A) the department; or
             750          (B) the Conservation Commission; or
             751          (ii) by giving a grant for a project to:
             752          (A) a state agency;
             753          (B) a federal agency; or
             754          (C) a federal, state, tribal, or private landowner.
             755          (b) A grant to a federal landowner [must] shall be matched with at least an equal
             756      amount of money by the federal landowner.
             757          (c) In expending the fund monies authorized by Subsection (4)(a)(i), the department
             758      shall use existing infrastructure and employees to plan and implement the project.
             759          (5) In giving a grant, the department shall consider the effectiveness of a project in
             760      preventing:
             761          (a) first, the risk to public safety and health from:
             762          (i) air pollution;
             763          (ii) flooding; and
             764          (iii) reduced visibility on a highway;
             765          (b) second, damage to the environment, including:
             766          (i) soil erosion;
             767          (ii) degraded water quality; and
             768          (iii) release of carbon; and
             769          (c) third, damage to:
             770          (i) a local economy; and
             771          (ii) habitat for wildlife or livestock.


             772          Section 15. Section 4-2-15 is amended to read:
             773           4-2-15. Civil and criminal penalties -- Costs -- Civil liability.
             774          (1) Except as otherwise provided by this title, any person, or the officers or employees
             775      of any person, who violates this title or any lawful notice or order issued pursuant to this title
             776      shall be assessed a penalty not to exceed $5,000 per violation in a civil proceeding, and in a
             777      criminal proceeding is guilty of a class B misdemeanor. A subsequent criminal violation
             778      within two years is a class A misdemeanor.
             779          (2) Any person, or the officers or employees of any person, shall be liable for any
             780      expenses incurred by the department in abating any violation of this title.
             781          (3) A penalty assessment or criminal conviction under this title [shall not] does not
             782      relieve the person assessed or convicted from civil liability for claims arising out of any act
             783      which was also a violation.
             784          Section 16. Section 4-5-5 is amended to read:
             785           4-5-5. Adulterated or misbranded articles -- Tagging -- Detention or embargo --
             786      Court proceedings for condemnation -- Perishable food.
             787          (1) (a) When an authorized agent of the department finds or has probable cause to
             788      believe that any food is adulterated, or so misbranded as to be dangerous or fraudulent within
             789      the meaning of this chapter, he shall affix to the food a tag or other appropriate marking,
             790      giving notice that:
             791          (i) the food is, or is suspected of being, adulterated or misbranded;
             792          (ii) the food has been detained or embargoed; and
             793          (iii) removal of the food is prohibited as provided in Subsection (1)(b).
             794          (b) No person may remove or dispose of detained or embargoed food by sale or
             795      otherwise until permission for removal or disposal is given by an agent of the department or the
             796      court.
             797          (2) When food detained or embargoed under Subsection (1) has been found by an agent
             798      to be adulterated or misbranded, the department shall petition the district court in whose
             799      jurisdiction the food is detained or embargoed for an order of condemnation of the food. When
             800      the agent has found that food so detained or embargoed is not adulterated or misbranded, the
             801      department shall remove the tag or other marking.
             802          (3) (a) If the court finds that detained or embargoed food is adulterated or misbranded,


             803      the food [must] shall, after entry of the decree, be destroyed under the supervision of the agent.
             804          (b) If the adulteration or misbranding can be corrected by proper labeling or processing
             805      of the food, the court may by order direct that the food be delivered to the claimant for labeling
             806      or processing after:
             807          (i) entry of the decree;
             808          (ii) all costs, fees, and expenses have been paid; and
             809          (iii) a sufficient bond, conditioned that the food [must] shall be properly labeled and
             810      processed, has been executed.
             811          (c) An agent of the department shall supervise, at the claimant's expense, the labeling
             812      or processing of the food.
             813          (d) The bond shall be returned to the claimant of the food upon:
             814          (i) representation to the court by the department that the food is no longer in violation
             815      of this chapter; and
             816          (ii) the expenses of supervision have been paid.
             817          (4) If an authorized agent of the department finds in any building or vehicle any
             818      perishable food which is unsound, contains any filthy, decomposed, or putrid substance, or may
             819      be poisonous, deleterious to health, or otherwise unsafe, the commissioner or his authorized
             820      agent shall condemn or destroy the food or render it unsalable as human food.
             821          Section 17. Section 4-5-7 is amended to read:
             822           4-5-7. Adulterated food specified.
             823          A food is adulterated:
             824          (1) (a) if it bears or contains any poisonous or deleterious substance that may render it
             825      injurious to health; but in case the substance is not an added substance the food [shall not] may
             826      not be considered adulterated under this Subsection (1)(a) if the quantity of the substance in
             827      such food does not ordinarily render it injurious to health;
             828          (b) (i) if it bears or contains any added poisonous or added deleterious substance other
             829      than one that is:
             830          (A) a pesticide chemical in or on a raw agricultural commodity;
             831          (B) a food additive; or
             832          (C) a color additive that is unsafe within the meaning of Subsection 4-5-11 (1); or
             833          (ii) if it is a raw agricultural commodity and it bears or contains a pesticide chemical


             834      that is unsafe within the meaning of 21 U.S.C. Sec. 346a; or
             835          (iii) if it is or it bears or contains any food additive that is unsafe within the meaning of
             836      21 U.S.C. Sec. 348; provided that where a pesticide chemical has been used in or on a raw
             837      agricultural commodity in conformity with an exemption granted or tolerance prescribed under
             838      21 U.S.C. 346a and the raw agricultural commodity has been subjected to processing such as
             839      canning, cooking, freezing, dehydrating, or milling the residue of such pesticide chemical
             840      remaining in or on such processed food shall, notwithstanding the provisions of Section 4-5-11
             841      and this Subsection (1)(b)(iii), not be considered unsafe if such residue in or on the raw
             842      agricultural commodity has been removed to the extent possible in good manufacturing
             843      practice, and the concentration of such residue in the processed food when ready to eat is not
             844      greater than the tolerance prescribed for the raw agricultural commodity;
             845          (c) if it consists in whole or in part of a diseased, contaminated, filthy, putrid, or
             846      decomposed substance, or if it is otherwise unfit for food;
             847          (d) if it has been produced, prepared, packed, or held under unsanitary conditions
             848      whereby it may have become contaminated with filth, or whereby it may have been rendered
             849      diseased, unwholesome, or injurious to health;
             850          (e) if it is, in whole or in part, the product of a diseased animal or an animal that has
             851      died otherwise than by slaughter, or of an animal that has been fed upon the uncooked offal
             852      from a slaughterhouse;
             853          (f) if its container is composed, in whole or in part, of any poisonous or deleterious
             854      substance that may render the contents injurious to health;
             855          (g) if it has been intentionally subjected to radiation, unless the use of the radiation was
             856      in conformity with a rule or exemption in effect pursuant to Section 4-5-11 , or 21 U.S.C. Sec.
             857      348; or
             858          (h) in meat or meat products are adulterated:
             859          (i) if such products are in casings, packages, or wrappers through which any part of
             860      their contents can be seen and which, or the markings of which, are colored red or any other
             861      color so as to be misleading or deceptive with respect to the color, quality, or kind of such
             862      products to which they are applied; or
             863          (ii) if such products contain or bear any color additive;
             864          (2) (a) if any valuable constituent has been in whole or in part omitted or abstracted


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


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


             927          (6) If a food is represented as a food for which a standard of quality has been
             928      prescribed by federal regulations or department rules as provided by Section 4-5-6 , and its
             929      quality falls below the standard, its label [must] shall bear, in the manner and form as the
             930      regulations or rules specify, a statement indicating that it falls below the standards.
             931          (7) If a food is represented as a food for which a standard of fill of container has been
             932      prescribed by federal regulations or department rules as provided by Section 4-5-6 , and it falls
             933      below the applicable standard of fill, its label [must] shall bear, in the manner and form as the
             934      regulations or rules specify, a statement indicating that it falls below the standard.
             935          (8) (a) Any food for which neither a definition nor standard of identity has been
             936      prescribed by federal regulations or department rules as provided by Section 4-5-6 [must] shall
             937      bear labeling clearly giving:
             938          (i) the common or usual name of the food, if any; and
             939          (ii) in case it is fabricated from two or more ingredients, the common or usual name of
             940      each ingredient, except that spices, flavorings, and colorings, other than those sold as such,
             941      may be designated as spices, flavorings, and colorings without naming each.
             942          (b) To the extent that compliance with the requirements of Subsection (8)(a)(ii) is
             943      impractical or results in deception or unfair competition, exemptions shall be established by
             944      rules made by the department.
             945          (9) If a food is represented as a food for special dietary uses, its label [must] shall bear
             946      the information concerning its vitamin, mineral, and other dietary properties as the department
             947      by rule prescribes.
             948          (10) If a food bears or contains any artificial flavoring, artificial coloring, or chemical
             949      preservatives, its label [must] shall state that fact. If compliance with the requirements of this
             950      subsection is impracticable, exemptions shall be established by rules made by the department.
             951          (11) The shipping container of any raw agricultural commodity bearing or containing a
             952      pesticide chemical applied after harvest [must] shall bear labeling which declares the presence
             953      of the chemical in or on the commodity and the common or usual name and function of the
             954      chemical. The declaration is not required while the commodity, having been removed from
             955      the shipping container, is being held or displaced for sale at retail out of the container in
             956      accordance with the custom of the trade.
             957          (12) A product intended as an ingredient of another food, when used according to the


             958      directions of the purveyor, may not result in the final food product being adulterated or
             959      misbranded.
             960          (13) The packaging and labeling of a color additive [must] shall be in conformity with
             961      the packaging and labeling requirements applicable to the color additive prescribed under the
             962      federal act.
             963          (14) Subsections (5), (8), and (10) with respect to artificial coloring do not apply to
             964      butter, cheese, or ice cream. Subsection (10) with respect to chemical preservatives does not
             965      apply to a pesticide chemical when used in or on a raw agricultural commodity.
             966          Section 19. Section 4-5-9 is amended to read:
             967           4-5-9. Registration of food establishments -- Fee -- Suspension and reinstatement
             968      of registration -- Inspection for compliance.
             969          (1) (a) Pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             970      department shall establish rules providing for the registration of food establishments to protect
             971      public health and ensure a safe food supply.
             972          (b) The owner or operator of a food establishment shall register with the department
             973      before operating a food establishment.
             974          (c) Prior to granting a registration to the owner or operator of a food establishment, the
             975      department shall inspect and assess the food establishment to determine whether it complies
             976      with the rules established under Subsection (1)(a).
             977          (d) An applicant shall register with the department, in writing, using forms required by
             978      the department.
             979          (e) The department shall issue a registration to an applicant, if the department
             980      determines that the applicant meets the qualifications of registration established under
             981      Subsection (1)(a).
             982          (f) If the applicant does not meet the qualifications of registration, the department shall
             983      notify the applicant, in writing, that the applicant's registration is denied.
             984          (g) (i) If an applicant submits an incomplete application, a written notice of conditional
             985      denial of registration shall be provided to an applicant.
             986          (ii) The applicant [must] shall correct the deficiencies within the time period specified
             987      in the notice to receive a registration.
             988          (h) (i) The department may, as provided under Subsection 4-2-2 (2), charge the food


             989      establishment a registration fee.
             990          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             991      administer the registration of food establishments.
             992          (2) (a) A registration, issued under this section, shall be valid from the date the
             993      department issues the registration, to December 31 of the year the registration is issued.
             994          (b) A registration may be renewed for the following year by applying for renewal by
             995      December 31 of the year the registration expires.
             996          (3) A registration, issued under this section, shall specify:
             997          (a) the name and address of the food establishment;
             998          (b) the name of the owner or operator of the food establishment; and
             999          (c) the registration issuance and expiration date.
             1000          (4) (a) The department may immediately suspend a registration, issued under this
             1001      section, if any of the conditions of registration have been violated.
             1002          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for the
             1003      reinstatement of a registration.
             1004          (ii) If the department determines that all registration requirements have been met, the
             1005      department shall reinstate the registration.
             1006          (5) (a) A food establishment, registered under this section, shall allow the department
             1007      to have access to the food establishment to determine if the food establishment is complying
             1008      with the registration requirements.
             1009          (b) If a food establishment denies access for an inspection required under Subsection
             1010      (5)(a), the department may suspend the food establishment's registration until the department is
             1011      allowed access to the food establishment's premises.
             1012          Section 20. Section 4-5-15 is amended to read:
             1013           4-5-15. Consumer commodities -- Labeling and packaging.
             1014          (1) All labels of consumer commodities, as defined by this chapter, shall conform with
             1015      the requirements for the declaration of net quantity of contents of 15 U.S.C. Sec. 1453 and the
             1016      regulations promulgated pursuant thereto: provided, that consumer commodities exempted
             1017      from 15 U.S.C. Sec. 1453(4) shall also be exempt from this Subsection (1).
             1018          (2) The label of any package of a consumer commodity that bears a representation as to
             1019      the number of servings of the commodity contained in the package shall bear a statement of the


             1020      net quantity in terms of weight, measure, or numerical count for each serving.
             1021          (3) (a) No person shall distribute or cause to be distributed in commerce any packaged
             1022      consumer commodity if any qualifying words or phrases appear in conjunction with the
             1023      separate statement of the net quantity of contents required by Subsection (1), but nothing in this
             1024      section shall prohibit supplemental statements, at other places on the package, describing in
             1025      nondeceptive terms the net quantity of contents.
             1026          (b) Supplemental statements of net quantity of contents may not include any term
             1027      qualifying a unit of weight, measure, or count that tends to exaggerate the amount of the
             1028      commodity contained in the package.
             1029          (4) (a) Whenever the department determines that rules other than those prescribed by
             1030      Subsection(1) are necessary to prevent the deception of consumers or to facilitate value
             1031      comparisons as to any consumer commodity, the department shall promulgate rules effective
             1032      to:
             1033          (i) establish and define standards for the characterization of the size of a package
             1034      enclosing any consumer commodity, which may be used to supplement the label statement of
             1035      net quantity of contents of packages containing the commodity, but this Subsection (4) [shall
             1036      not be construed as authorizing] does not authorize any limitation on the size, shape, weight,
             1037      dimensions, or number of packages that may be used to enclose any commodity;
             1038          (ii) regulate the placement upon any package containing any commodity, or upon any
             1039      label affixed to a commodity, of any printed matter stating or representing by implication that
             1040      the commodity is offered for retail sale at a price lower than the ordinary and customary retail
             1041      sale price or that a retail sale price advantage is accorded to purchasers by reason of the size of
             1042      that package or the quantity of its contents;
             1043          (iii) require that the label on each package of a consumer commodity bear:
             1044          (A) the common or usual name of such consumer commodity, if any; and
             1045          (B) if the consumer commodity consists of two or more ingredients, the common or
             1046      usual name of each such ingredient listed in order of decreasing predominance, but nothing in
             1047      this Subsection (4) shall be considered to require that any trade secret be divulged; or
             1048          (iv) prevent the nonfunctional slack-fill of packages containing consumer
             1049      commodities.
             1050          (b) For the purposes of Subsection (4)(a)(iv), a package is nonfunctionally slack-filled


             1051      if it is filled to substantially less than its capacity for reasons other than:
             1052          (i) protection of the contents of such package; or
             1053          (ii) the requirements of machines used for enclosing the contents in such package;
             1054      provided, that the department may adopt any rules promulgated according to the Fair Packaging
             1055      and Labeling Act, 15 U.S.C. Sec. 1453.
             1056          Section 21. Section 4-5-18 is amended to read:
             1057           4-5-18. Inspection of premises and records -- Authority to take samples --
             1058      Inspection results reported.
             1059          (1) An authorized agent of the department upon presenting appropriate credentials to
             1060      the owner, operator, or agent in charge, may:
             1061          (a) enter at reasonable times any factory, warehouse, or establishment in which food is
             1062      manufactured, processed, packed, or held for introduction into commerce or after introduction
             1063      into commerce;
             1064          (b) enter any vehicle being used to transport or hold food in commerce;
             1065          (c) inspect at reasonable times and within reasonable limits and in a reasonable manner
             1066      any factory, warehouse, establishment, or vehicle and all pertinent equipment, finished and
             1067      unfinished materials, containers, and labeling located within it;
             1068          (d) obtain samples necessary for the enforcement of this chapter so long as the
             1069      department pays the posted price for the sample if requested to do so and receives a signed
             1070      receipt from the person from whom the sample is taken;
             1071          (e) have access to and copy all records of carriers in commerce showing:
             1072          (i) the movement in commerce of any food;
             1073          (ii) the holding of food during or after movement in commerce; and
             1074          (iii) the quantity, shipper, and consignee of food.
             1075          (2) Evidence obtained under this section may not be used in a criminal prosecution of
             1076      the person from whom the evidence was obtained.
             1077          (3) Carriers may not be subject to the other provisions of this chapter by reason of their
             1078      receipt, carriage, holding, or delivery of food in the usual course of business as carriers.
             1079          (4) Upon completion of the inspection of a factory, warehouse, consulting laboratory,
             1080      or other establishment and prior to leaving the premises, the authorized agent making the
             1081      inspection shall give to the owner, operator, or agent in charge a report in writing setting forth


             1082      any conditions or practices observed by him which in his judgment indicate that any food in the
             1083      establishment:
             1084          (a) consists in whole or in part of any filthy, putrid, or decomposed substance; or
             1085          (b) has been prepared, packed, or held under unsanitary conditions whereby it may
             1086      have become contaminated with filth or whereby it may have been rendered injurious to health.
             1087          (5) A copy of the report [must] shall be sent promptly to the department.
             1088          (6) If the authorized agent making the inspection of a factory, warehouse, or other
             1089      establishment has obtained any sample in the course of the inspection, the agent shall give to
             1090      the owner, operator, or agent in charge a receipt describing the samples obtained.
             1091          (7) When in the course of the inspection the officer or employee making the inspection
             1092      obtains a sample of any food and an analysis is made of the sample for the purpose of
             1093      ascertaining whether the food consists in whole or in part of any filthy, putrid, or decomposed
             1094      substance or is otherwise unfit for food, a copy of the results of the analysis [must] shall be
             1095      furnished promptly to the owner, operator, or agent in charge.
             1096          Section 22. Section 4-7-8 is amended to read:
             1097           4-7-8. Applicant for dealer's license to post security -- Increase in amount of
             1098      security posted -- Action on security authorized -- Duties of commissioner -- Option to
             1099      require posting new security if action filed -- Effect of failure to post new security --
             1100      Commissioner's authority to call bond if not renewed.
             1101          (1) (a) Before a license is issued to a dealer, the applicant [must] shall post a corporate
             1102      surety bond, irrevocable letter of credit, trust fund agreement, or any other security agreement
             1103      considered reasonable in an amount not less than $10,000 nor more than $200,000, as
             1104      determined by the commissioner or as required by the Packers and Stockyards Act, 1921, 7
             1105      U.S.C. Section 181 et seq.
             1106          (b) Any bond shall be written by a surety licensed under the laws of Utah and name the
             1107      state, as obligee, for the use and benefit of producers.
             1108          (c) The bond or other security posted shall be conditioned upon:
             1109          (i) the faithful performance of contracts and the faithful accounting for and handling of
             1110      any product of agriculture consigned to the dealer;
             1111          (ii) the performance of the obligations imposed under this chapter; and
             1112          (iii) the payment of court costs and attorney's fees to the prevailing party incident to


             1113      any suit upon the bond or other security posted.
             1114          (2) (a) The commissioner may require a dealer who is issued a license to increase the
             1115      amount of the bond or other security posted under Subsection (1)(a) if the commissioner
             1116      determines the bond or other security posted is inadequate to secure performance of the dealer's
             1117      obligations.
             1118          (b) The commissioner shall notify the Packers and Stockyards Administration of an
             1119      increase made under Subsection (2)(a).
             1120          (c) The commissioner may suspend a dealer's license for failure to comply with
             1121      Subsection (2)(a) within 10 days after notice is given to the dealer.
             1122          (3) A consignor claiming damages, as a result of fraud, deceit, or willful negligence by
             1123      a dealer or as a result of the dealer's failure to comply with this chapter, may bring an action
             1124      upon the bond or other security posted for damages against both the principal and surety.
             1125          (4) (a) If it is reported to the department by a consignor that a dealer has failed to pay
             1126      in a timely manner for any product of agriculture received for sale, the commissioner shall:
             1127          (i) ascertain the name and address of each consignor who is a creditor of the dealer;
             1128      and
             1129          (ii) request a verified written statement setting forth the amount claimed due from the
             1130      dealer.
             1131          (b) Upon receipt of the verified statements, the commissioner shall bring an action
             1132      upon the bond or other security posted on behalf of the consignors who claim amounts due
             1133      from the dealer.
             1134          (5) (a) If an action is filed upon the bond or other security posted, the commissioner
             1135      may require the filing of new security.
             1136          (b) Immediately upon recovery in the action, the commissioner shall require the dealer
             1137      to file a new bond or other security.
             1138          (c) Failure, in either case, to file the bond or other security within 10 days after demand
             1139      is cause for suspension of the license until a new bond or other security is filed.
             1140          (d) If the bond or other security posted under this section is not renewed within 10 days
             1141      of its expiration date, unless the commissioner states in writing that this is unnecessary, the
             1142      commissioner may obtain, after a hearing, the full amount of the bond or other security before
             1143      it expires.


             1144          Section 23. Section 4-7-11 is amended to read:
             1145           4-7-11. Department authority -- Examination and investigation of transactions --
             1146      Notice of agency action upon probable cause -- Settlement of disputes -- Cease and desist
             1147      order -- Enforcement -- Review.
             1148          (1) For the purpose of enforcing this chapter the department may, upon its own motion,
             1149      or shall, upon the verified complaint of an interested consignor, investigate, examine, or
             1150      inspect any transaction involving:
             1151          (a) the solicitation, receipt, sale, or attempted sale of any product of agriculture by a
             1152      dealer or person assuming to act as a dealer;
             1153          (b) the failure to make a correct account of sales;
             1154          (c) the intentional making of a false statement about market conditions or the condition
             1155      or quantity of any product of agriculture consigned;
             1156          (d) the failure to remit payment in a timely manner to the consignor as required by
             1157      contract or by this chapter;
             1158          (e) any other consignment transaction alleged to have resulted in damage to the
             1159      consignor; or
             1160          (f) any dealer or agent with an unsatisfied judgment by a civil court related to an
             1161      activity for which licensing is required by this chapter.
             1162          (2) (a) After investigation upon its own motion, if the department determines that
             1163      probable cause exists to believe that a dealer has engaged or is engaging in acts that violate this
             1164      chapter, it shall issue a notice of agency action.
             1165          (b) (i) Upon the receipt of a verified complaint, the department shall undertake to effect
             1166      a settlement between the consignor and the dealer.
             1167          (ii) If a settlement cannot be effected, the department shall treat the verified complaint
             1168      as a request for agency action.
             1169          (3) (a) In a hearing upon a verified complaint, if the commissioner, or hearing officer
             1170      designated by the commissioner, determines by a preponderance of the evidence that the person
             1171      complained of has violated this chapter and that the violation has resulted in damage to the
             1172      complainant, the officer shall:
             1173          (i) prepare written findings of fact detailing the findings and fixing the amount of
             1174      damage suffered; and


             1175          (ii) order the defendant to pay damages.
             1176          (b) In a hearing initiated upon the department's own motion, if the commissioner or
             1177      hearing officer determines by a preponderance of the evidence that the person complained of by
             1178      the department has engaged in, or is engaging in, acts that violate this chapter, the
             1179      commissioner or officer shall prepare written findings of fact and an order requiring the person
             1180      to cease and desist from the activity.
             1181          (4) The department may petition any court having jurisdiction in the county where the
             1182      action complained of occurred to enforce its order.
             1183          (5) Any dealer aggrieved by an order issued under this section may obtain judicial
             1184      review of the order.
             1185          (6) (a) The department may not act upon a verified complaint submitted to the
             1186      department more than six months after the consignor allegedly suffered damage.
             1187          (b) A livestock claim [must] shall be made in writing within 120 days from the date of
             1188      the transaction.
             1189          Section 24. Section 4-9-15 is amended to read:
             1190           4-9-15. Registration of commercial establishments using weights and measures --
             1191      Approved weights and measures inspectors -- Application -- Fee -- Expiration -- Renewal.
             1192          (1) (a) Pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1193      department shall establish rules providing for the registration of weights and measures users
             1194      and issuance of certification of weights and measures devices to ensure the use of correct
             1195      weights and measures in commerce or trade.
             1196          (b) The division may:
             1197          (i) determine whether weights and measures are correct through:
             1198          (A) inspection and testing by department employees; or
             1199          (B) acceptance of an inspection and testing report prepared by a registered weights and
             1200      measures service person;
             1201          (ii) establish standards and qualifications for registered weights and measures service
             1202      persons; and
             1203          (iii) determine the form and content of an inspection and testing report.
             1204          (c) A weights and measures user shall register with the department.
             1205          (d) Prior to granting a registration to a weights and measures user, the department shall


             1206      determine whether the weights and measures user complies with the rules established under
             1207      Subsection (1)(a).
             1208          (e) An applicant shall register with the department, in writing, using forms required by
             1209      the department.
             1210          (f) The department shall issue a registration to an applicant, if the department
             1211      determines that the applicant meets the qualifications of registration established under
             1212      Subsection (1)(a).
             1213          (g) If the applicant does not meet the qualifications of registration, the department shall
             1214      notify the applicant, in writing, that the applicant's registration is denied.
             1215          (h) (i) If an applicant submits an incomplete application, a written notice of conditional
             1216      denial of registration shall be provided to an applicant.
             1217          (ii) The applicant [must] shall correct the deficiencies within the time period specified
             1218      in the notice to receive a registration.
             1219          (i) (i) The department may, as provided under Subsection 4-2-2 (2), charge the weights
             1220      and measures user a registration fee.
             1221          (ii) The department shall retain the fees as dedicated credits and shall use the fees to
             1222      administer the registration of weights and measures users.
             1223          (2) (a) A registration, issued under this section, shall be valid from the date the
             1224      department issues the registration, to December 31 of the year the registration is issued.
             1225          (b) A registration may be renewed for the following year by applying for renewal by
             1226      December 31 of the year the registration expires.
             1227          (3) A registration, issued under this section, shall specify:
             1228          (a) the name and address of the weights and measures user;
             1229          (b) the registration issuance and expiration date; and
             1230          (c) the number and type of weights and measures devices to be certified.
             1231          (4) (a) The department may immediately suspend a registration, issued under this
             1232      section, if any of the requirements of Section 4-9-12 are violated.
             1233          (b) (i) The holder of a registration suspended under Subsection (4)(a) may apply for the
             1234      reinstatement of a registration.
             1235          (ii) If the department determines that all requirements under Section 4-9-12 are being
             1236      met, the department shall reinstate the registration.


             1237          (5) (a) A weights and measures user, registered under this section, shall allow the
             1238      department access to the weights and measures user's place of business to determine if the
             1239      weights and measures user is complying with the registration requirements.
             1240          (b) If a weights and measures user denies access for an inspection required under
             1241      Subsection (5)(a), the department may suspend the weights and measures user's registration
             1242      until the department is allowed access to the weights and measures user's place of business.
             1243          Section 25. Section 4-14-3 is amended to read:
             1244           4-14-3. Registration required for distribution -- Application -- Fees -- Renewal --
             1245      Local needs registration -- Distributor or applicator license -- Fees -- Renewal.
             1246          (1) (a) No person may distribute a pesticide in this state that is not registered with the
             1247      department.
             1248          (b) Application for registration shall be made to the department upon forms prescribed
             1249      and furnished by it accompanied with an annual registration fee determined by the department
             1250      pursuant to Subsection 4-2-2 (2) for each pesticide registered.
             1251          (c) Upon receipt by the department of a proper application and payment of the
             1252      appropriate fee, the commissioner shall issue a registration to the applicant allowing
             1253      distribution of the registered pesticide in this state through June 30 of each year, subject to
             1254      suspension or revocation for cause.
             1255          (d) (i) Each registration is renewable for a period of one year upon the payment of an
             1256      annual registration renewal fee in an amount equal to the current applicable original
             1257      registration fee.
             1258          (ii) Each renewal fee shall be paid on or before June 30 of each year.
             1259          (2) The application shall include the following information:
             1260          (a) the name and address of the applicant and the name and address of the person
             1261      whose name will appear on the label, if other than the applicant's name;
             1262          (b) the name of the pesticide;
             1263          (c) a complete copy of the label which will appear on the pesticide; and
             1264          (d) any information prescribed by rule of the department considered necessary for the
             1265      safe and effective use of the pesticide.
             1266          (3) (a) Forms for the renewal of registration shall be mailed to registrants at least 30
             1267      days before their registration expires.


             1268          (b) A registration in effect on June 30 for which a renewal application has been filed
             1269      and the registration fee tendered shall continue in effect until the applicant is notified either
             1270      that the registration is renewed or that it is suspended or revoked pursuant to Section 4-14-8 .
             1271          (4) The department may, before approval of any registration, require the applicant to
             1272      submit the complete formula of any pesticide including active and inert ingredients and may
             1273      also, for any pesticide not registered according to 7 U.S.C. Sec. 136a or for any pesticide on
             1274      which restrictions are being considered, require a complete description of all tests and test
             1275      results that support the claims made by the applicant or the manufacturer of the pesticide.
             1276          (5) A registrant who desires to register a pesticide to meet special local needs
             1277      according to 7 U.S.C. Sec. 136v(c) shall, in addition to complying with Subsections (1) and
             1278      (2), satisfy the department that:
             1279          (a) a special local need exists;
             1280          (b) the pesticide warrants the claims made for it;
             1281          (c) the pesticide, if used in accordance with commonly accepted practices, will not
             1282      cause unreasonable adverse effects on the environment; and
             1283          (d) the proposed classification for use conforms with 7 U.S.C. Sec. 136a(d).
             1284          (6) No registration is required for a pesticide distributed in this state pursuant to an
             1285      experimental use permit issued by the EPA or under Section 4-14-5 .
             1286          (7) No pesticide dealer may distribute a restricted use pesticide in this state without a
             1287      license.
             1288          (8) A person [must] shall receive a license before applying:
             1289          (a) a restricted use pesticide; or
             1290          (b) a general use pesticide for hire or in exchange for compensation.
             1291          (9) (a) A license to engage in an activity listed in Subsection (7) or (8) may be obtained
             1292      by:
             1293          (i) submitting an application on a form provided by the department;
             1294          (ii) paying the license fee determined by the department according to Subsection
             1295      4-2-2 (2); and
             1296          (iii) complying with the rules adopted as authorized by this chapter.
             1297          (b) A person may apply for a license that expires on December 31:
             1298          (i) of the calendar year in which the license is issued; or


             1299          (ii) of the second calendar year after the calendar year in which the license is issued.
             1300          (c) (i) Notwithstanding Section 63J-1-504 , the department shall retain the fees as
             1301      dedicated credits and may only use the fees to administer and enforce this chapter.
             1302          (ii) The Legislature may annually designate the revenue generated from the fee as
             1303      nonlapsing in an appropriations act.
             1304          Section 26. Section 4-15-2 is amended to read:
             1305           4-15-2. Definitions.
             1306          As used in this chapter:
             1307          (1) "Balled and burlapped stock" means nursery stock which is removed from the
             1308      growing site with a ball of soil containing its root system intact and encased in burlap or other
             1309      material to hold the soil in place;
             1310          (2) "Bare-root stock" means nursery stock which is removed from the growing site
             1311      with the root system free of soil;
             1312          (3) "Container stock" means nursery stock which is transplanted in soil or in a potting
             1313      mixture contained within a metal, clay, plastic, or other rigid container for a period sufficient to
             1314      allow newly developed fibrous roots to form so that if the plant is removed from the container
             1315      its root-media ball will remain intact;
             1316          (4) "Etiolated growth" means bleached and unnatural growth resulting from the
             1317      exclusion of sunlight;
             1318          (5) "Minimum indices of vitality" mean standards adopted by the department to
             1319      determine the health and vigor of nursery stock offered for sale in this state;
             1320          (6) "Nonestablished container stock" means deciduous nursery stock which is
             1321      transplanted in soil or in a potting mixture contained within a metal, clay, plastic, or other rigid
             1322      container for a period insufficient to allow the formation of fibrous roots sufficient to form a
             1323      root-media ball;
             1324          (7) "Nursery" means any place where nursery stock is propagated and grown for sale or
             1325      distribution;
             1326          (8) "Nursery outlet" means any place or location where nursery stock is offered for
             1327      wholesale or retail sale;
             1328          (9) "Nursery stock" means all plants, whether field grown, container grown, or
             1329      collected native plants; trees, shrubs, vines, grass sod; seedlings, perennials, biennials; and


             1330      buds, cuttings, grafts, or scions grown or collected or kept for propagation, sale, or distribution;
             1331      except that it [shall not mean] does not include dormant bulbs, tubers, roots, corms, rhizomes,
             1332      pips; field, vegetable, or flower seeds; or bedding plants, annual plants, florists' greenhouse or
             1333      field-grown plants, flowers or cuttings;
             1334          (10) "Place of business" means each separate nursery, or nursery outlet, where nursery
             1335      stock is offered for sale, sold, or distributed;
             1336          (11) "Packaged stock" means bare-root stock which is packed either in bundles or in
             1337      single plants with the roots in some type of moisture-retaining material designed to retard
             1338      evaporation and hold the moisture-retaining material in place.
             1339          Section 27. Section 4-15-10 is amended to read:
             1340           4-15-10. Infested or diseased stock not to be offered for sale -- Identification of
             1341      "nonestablished container stock" -- Requirements for container stock -- Inspected and
             1342      certified stock only to be offered for sale -- Prohibition against coating aerial plant
             1343      surfaces.
             1344          (1) Nursery stock which is infested with plant pests, including noxious weeds, or
             1345      infected with disease or which does not meet minimum indices of vitality [shall not] may not
             1346      be offered for sale.
             1347          (2) All nonestablished container stock offered for sale shall be identified by the words
             1348      "nonestablished container stock" legibly printed on a water resistant tag which states the length
             1349      of time it has been planted or the date it was planted and [shall not] may not be offered for sale
             1350      in any manner which leads a purchaser to believe it is container stock.
             1351          (3) All container stock offered for sale shall be established with a root-media mass that
             1352      will retain its shape and hold together when removed from the container.
             1353          (4) No nursery stock other than officially inspected and certified stock shall be offered
             1354      for wholesale or retail sale in this state.
             1355          (5) Colored waxes or other materials which coat the aerial parts of a plant and change
             1356      the appearance of the plant surface are prohibited.
             1357          Section 28. Section 4-17-7 is amended to read:
             1358           4-17-7. Notice of noxious weeds to be published annually in county -- Notice to
             1359      particular property owners to control noxious weeds -- Methods of prevention or control
             1360      specified -- Failure to control noxious weeds considered public nuisance.


             1361          (1) Each county weed control board before May 1 of each year shall post a general
             1362      notice of the noxious weeds within the county in at least three public places within the county
             1363      and publish the same notice on:
             1364          (a) at least three occasions in a newspaper or other publication of general circulation
             1365      within the county; and
             1366          (b) as required in Section 45-1-101 .
             1367          (2) If the county weed control board determines that particular property within the
             1368      county requires prompt and definite attention to prevent or control noxious weeds, it shall serve
             1369      the owner or the person in possession of the property, personally or by certified mail, a notice
             1370      specifying when and what action [should] is required to be taken on the property. Methods of
             1371      prevention or control may include definite systems of tillage, cropping, use of chemicals, and
             1372      use of livestock.
             1373          (3) An owner or person in possession of property who fails to take action to control or
             1374      prevent the spread of noxious weeds as specified in the notice is maintaining a public nuisance.
             1375          Section 29. Section 4-22-3 is amended to read:
             1376           4-22-3. Commission -- Organization -- Quorum to transact business -- Vacancies
             1377      -- Ineligibility to serve -- Compensation.
             1378          (1) The members of the commission shall elect a chair, vice chair, and secretary from
             1379      among their number.
             1380          (2) Attendance of a simple majority of the commission members at a called meeting
             1381      shall constitute a quorum for the transaction of official business.
             1382          (3) The commission shall meet:
             1383          (a) at the time and place designated by the chair; and
             1384          (b) no less often than once every three months.
             1385          (4) Vacancies which occur on the commission for any reason shall be filled for the
             1386      unexpired term of the vacated member by appointment of a majority of the remaining
             1387      members.
             1388          (5) If a member moves from the district that he represents or ceases to act as a producer
             1389      during his term of office, he [must] shall resign from the commission within 30 days after
             1390      moving from the district or ceasing production.
             1391          (6) (a) (i) Members who are not government employees shall receive no compensation


             1392      or benefits for their services, but may receive per diem and expenses incurred in the
             1393      performance of the member's official duties at the rates established by the Division of Finance
             1394      under Sections 63A-3-106 and 63A-3-107 .
             1395          (ii) Members may decline to receive per diem and expenses for their service.
             1396          (b) (i) State government officer and employee members who do not receive salary, per
             1397      diem, or expenses from their agency for their service may receive per diem and expenses
             1398      incurred in the performance of their official duties from the commission at the rates established
             1399      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1400          (ii) State government officer and employee members may decline to receive per diem
             1401      and expenses for their service.
             1402          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             1403      from the entity that they represent for their service may receive per diem and expenses incurred
             1404      in the performance of their official duties from the committee at the rates established by the
             1405      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1406          (ii) Higher education members may decline to receive per diem and expenses for their
             1407      service.
             1408          Section 30. Section 4-22-6 is amended to read:
             1409           4-22-6. Commission to conduct elections -- Nomination of candidates -- Expenses
             1410      of election paid by commission.
             1411          (1) (a) The commissioner shall administer all commission elections.
             1412          (b) The commissioner shall mail a ballot to each producer within the district in which
             1413      an election is to be held by May 15 of each election year.
             1414          (c) The candidate who receives the highest number of votes cast in the candidate's
             1415      district shall be elected.
             1416          (d) The commissioner shall determine all questions of eligibility.
             1417          (e) A ballot [must] shall be postmarked by May 31 of an election year.
             1418          (f) (i) All ballots received by the commissioner shall be counted and tallied by June 15.
             1419          (ii) A member of the commission whose name appears on a ballot may not participate
             1420      in counting or tallying the ballots.
             1421          (2) (a) Candidates for election to the commission shall be nominated, not later than
             1422      April 15, by a petition signed by five or more producers who are residents of the district in


             1423      which the election is to be held.
             1424          (b) If two or more candidates are not nominated by petition, the commission shall
             1425      select a nominating committee composed of three producers who are residents of the district
             1426      who shall select the candidates not nominated by petition.
             1427          (3) The names of all nominees, whether nominated by petition or by a nominating
             1428      committee, shall be submitted to the commissioner on or before May 1 of each year in which
             1429      an election is held.
             1430          (4) All election expenses incurred by the commissioner shall be paid by the
             1431      commission.
             1432          Section 31. Section 4-23-5 is amended to read:
             1433           4-23-5. Board responsibilities -- Damage prevention policy -- Rules -- Methods to
             1434      control predators and depredating birds and animals.
             1435          (1) The board is responsible for the formulation of the agricultural and wildlife damage
             1436      prevention policy of the state and in conjunction with its responsibility may, consistent with
             1437      Title 63G, Chapter 3, Utah Administrative Rulemaking Act, adopt rules to implement its policy
             1438      which shall be administered by the department.
             1439          (2) In its policy deliberations the board shall:
             1440          (a) specify programs designed to prevent damage to livestock, poultry, and agricultural
             1441      crops; and
             1442          (b) specify methods for the prevention of damage and for the selective control of
             1443      predators and depredating birds and animals including[, but not limited to,] hunting, trapping,
             1444      chemical toxicants, and the use of aircraft.
             1445          (3) The board may also:
             1446          (a) specify bounties on designated predatory animals and recommend procedures for
             1447      the payment of bounty claims, recommend bounty districts, recommend persons not authorized
             1448      to receive bounty, and recommend to the department other actions it considers advisable for the
             1449      enforcement of its policies; and
             1450          (b) cooperate with federal, state, and local governments, educational institutions, and
             1451      private persons or organizations, through agreement or otherwise, to effectuate its policies.
             1452          Section 32. Section 4-23-6 is amended to read:
             1453           4-23-6. Department to issue licenses and permits -- Department to issue aircraft


             1454      use permits -- Reports.
             1455          The department is responsible for the issuance of permits and licenses for the purposes
             1456      of the federal Fish and Wildlife Act of 1956. No state agency or private person shall use any
             1457      aircraft for the prevention of damage without first obtaining a use permit from the department.
             1458      A state agency which contemplates the use of aircraft for the protection of agricultural crops,
             1459      livestock, poultry, or wildlife shall file an application with the department for an aircraft use
             1460      permit to enable the agency to issue licenses to personnel within the agency charged with the
             1461      responsibility to protect such resources. Persons who desire to use privately owned aircraft for
             1462      the protection of land, water, crops, wildlife, or livestock [shall not] may not engage in any
             1463      such protective activity without first obtaining an aircraft permit from the department.
             1464      Agencies and private persons which obtain aircraft use permits shall file such reports with the
             1465      department as it deems necessary in the administration of its licensing authority.
             1466          Section 33. Section 4-23-8 is amended to read:
             1467           4-23-8. Proceeds of sheep fee -- Refund of sheep fees -- Annual audit of books,
             1468      records, and accounts.
             1469          (1) (a) The commissioner may spend an amount not to exceed the equivalent of 16
             1470      cents per head each year from the proceeds collected from the fee imposed on sheep for the
             1471      promotion, advancement, and protection of the sheep interests of the state.
             1472          (b) All costs to promote or advance sheep interests shall be deducted from the total
             1473      revenue collected before calculating the annual budget request, which shall be made by the
             1474      Division of Wildlife Resources as specified in Section 4-23-9 .
             1475          (c) A sheep fee is refundable in an amount equal to that part of the fee used to promote,
             1476      advance, or protect sheep interests.
             1477          (d) A refund claim [must] shall be filed with the department on or before January 1 of
             1478      the year immediately succeeding the year for which the fee was paid.
             1479          (e) A refund claim [must] shall be certified by the department to the state treasurer for
             1480      payment from the Agricultural and Wildlife Damage Prevention Account created in Section
             1481      4-23-7.5 .
             1482          (2) Any expense incurred by the department in administering refunds shall be paid
             1483      from funds allocated for the promotion, advancement, and protection of the sheep interests of
             1484      the state.


             1485          (3) (a) The books, records, and accounts of the Utah Woolgrowers Association, or any
             1486      other organization which receives funds from the agricultural and wildlife damage prevention
             1487      account, for the purpose of promoting, advancing, or protecting the sheep interests of the state,
             1488      shall be audited at least once annually by a licensed accountant.
             1489          (b) The results of this audit shall be submitted to the commissioner.
             1490          Section 34. Section 4-24-2 is amended to read:
             1491           4-24-2. Definitions.
             1492          As used in this chapter:
             1493          (1) "Brand" means any identifiable mark applied to livestock which is intended to show
             1494      ownership.
             1495          (2) "Carcass" means any part of the body of an animal, including [but not limited to]
             1496      hides, entrails, and edible meats.
             1497          (3) "Domesticated elk" shall have the meaning as defined in Section 4-39-102 .
             1498          (4) "Hide" means any skins or wool removed from livestock.
             1499          (5) "Livestock" means cattle, calves, horses, mules, sheep, goats, hogs, or domesticated
             1500      elk.
             1501          (6) (a) "Livestock market" means a public market place consisting of pens or other
             1502      enclosures where cattle, calves, horses, or mules are received on consignment and kept for
             1503      subsequent sale, either through public auction or private sale.
             1504          (b) "Livestock market" does not mean:
             1505          (i) a place used solely for liquidation of livestock by a farmer, dairyman, livestock
             1506      breeder, or feeder who is going out of business; or
             1507          (ii) a place where an association of livestock breeders under its own management,
             1508      offers registered livestock or breeding sires for sale and assumes all responsibility for the sale,
             1509      guarantees title to the livestock or sires sold, and arranges with the department for brand
             1510      inspection of all animals sold.
             1511          (7) "Mark" means any dulap, waddle, or cutting and shaping of the ears or brisket area
             1512      of livestock which is intended to show ownership.
             1513          (8) "Slaughterhouse" means any building, plant, or establishment where animals are
             1514      killed, dressed, or processed and their meat or meat products offered for sale for human
             1515      consumption.


             1516          Section 35. Section 4-24-12 is amended to read:
             1517           4-24-12. Livestock -- Verification of ownership through brand inspection --
             1518      Issuance of certificate of brand inspection -- Brand inspector may demand evidence of
             1519      ownership-- Brand inspection of livestock seized by the federal government prohibited --
             1520      Exception.
             1521          (1) A brand inspector, as an agent of the department, shall verify livestock ownership
             1522      by conducting a brand inspection during daylight hours.
             1523          (2) After conducting the brand inspection, the brand inspector, if satisfied that the
             1524      livestock subject to inspection bears registered brands or marks owned by the owner of the
             1525      livestock, shall issue a brand inspection certificate to the owner or owner's agent.
             1526          (3) The brand inspector shall record the number, sex, breed, and brand or mark on each
             1527      animal inspected together with the owner's name.
             1528          (4) If any livestock subject to inspection bears a brand or mark other than that of the
             1529      owner or, if no brand or mark appears on such livestock, the brand inspector may demand
             1530      evidence of ownership such as a bill of sale or other evidence of ownership before issuing a
             1531      brand inspection certificate.
             1532          (5) A brand inspector [shall not] may not issue a brand inspection certificate for any
             1533      privately owned livestock seized by the federal government unless:
             1534          (a) the brand inspector receives consent from the livestock's owner;
             1535          (b) the owner is unknown; or
             1536          (c) the brand inspector receives a copy of a court order authorizing the seizure.
             1537          Section 36. Section 4-24-20 is amended to read:
             1538           4-24-20. Livestock sold at market to be brand inspected -- Proceeds of sale may
             1539      be withheld -- Distribution of withheld proceeds -- Effect of receipt of proceeds by
             1540      department -- Deposit of proceeds -- Use of proceeds if ownership not established.
             1541          (1) Livestock [shall not] may not be sold at any livestock market until after they have
             1542      been brand inspected by the department. Title to purchased livestock shall be furnished to the
             1543      buyer by the livestock market.
             1544          (2) Upon notice from the department that a question exists concerning the ownership of
             1545      consigned livestock, the operator of the livestock market or meat packing plant shall withhold
             1546      the proceeds from the sale of the livestock for 60 days to allow the consignor of the questioned


             1547      livestock to establish ownership. If the owner or consignor fails within 60 days to establish
             1548      ownership to the satisfaction of the department, the proceeds of the sale shall be transmitted to
             1549      the department. Receipt of the proceeds by the department shall relieve the livestock market or
             1550      meat packing plant from further responsibility for the proceeds.
             1551          (3) Proceeds withheld under Subsection (2) shall be deposited in the Utah Livestock
             1552      Brand and Anti-Theft Account created in Section 4-24-24 . If ownership is not satisfactorily
             1553      established within one year, the department shall use the proceeds for animal identification.
             1554          Section 37. Section 4-26-5 is amended to read:
             1555           4-26-5. Adjoining landowners -- Partition fences -- Contribution.
             1556          If two or more persons agree to a fence enclosure or to the construction of a partition
             1557      fence, the cost of construction and maintenance of the fence shall be apportioned between each
             1558      party to the agreement based upon the amount of land enclosed. A person who is a party to
             1559      such agreement and who fails to maintain such person's part of the fence is liable in a civil
             1560      action for any damage sustained by another party to the agreement as a result of the failure to
             1561      maintain the fence. If a person has enclosed land with a fence and the owner of adjoining land
             1562      desires to enclose land adjoining the fence so that the existing fence or any part of it will
             1563      become a partition fence between such tracts of land, the owner of the adjoining land shall
             1564      before making the enclosure pay to the owner of the existing fence one-half of the value of all
             1565      that part of the fence that will become a partition fence; and when one party ceases to improve
             1566      or cultivate his land or opens his enclosure he [must not] may not take away any part of the
             1567      partition fence belonging to him, if the owner or occupant of the adjoining enclosure within 30
             1568      days after notice, pays for the value of such fence; nor shall the partition fence be removed if
             1569      the crops enclosed by it will be exposed to injury.
             1570          Section 38. Section 4-29-2 is amended to read:
             1571           4-29-2. Restrictions on importation of chickens, turkeys, chicks, turkey poults,
             1572      and hatching eggs -- Certificate to accompany shipment -- Disposition of nonconforming
             1573      shipments.
             1574          (1) No chickens, turkeys, chicks, turkey poults, or hatching eggs to be used for breeding
             1575      purposes shall be imported to this state, or sold by hatcheries or others within this state unless
             1576      they originate from flocks participating in the pullorum control and eradication phase of the
             1577      National Poultry Improvement Plan, or the National Turkey Improvement Plan, or have passed


             1578      a negative agglutination blood test for pullorum disease administered under the supervision of
             1579      the department within 12 months prior to the date of sale.
             1580          (2) Baby chicks, turkey poults, or hatching eggs to be used for purposes other than
             1581      breeding [shall not] may not be imported to this state, or sold by hatcheries or others within this
             1582      state unless they originate from flocks participating in the pullorum control and eradication
             1583      phase of the National Poultry Improvement Plan, or the National Turkey Improvement Plan, or
             1584      have passed a negative agglutination blood test for pullorum disease administered under
             1585      supervision of the department within 12 months prior to the date of sale.
             1586          (3) A certificate issued by the appropriate authority of the "state of origin" shall
             1587      accompany each shipment of hatching eggs, baby chicks, poults, started chicks, started poults,
             1588      or chicken or turkey breed stock imported to this state. The certificate shall specify that the
             1589      contents of the shipment is free of pullorum or other poultry disease, the name and address of
             1590      the consignee in this state, the name and address of the person who consigned the poultry for
             1591      shipment, the name of the certifying authority in the state of origin, and the date the test or
             1592      inspection for pullorum was performed by such authority.
             1593          (4) The department may seize and destroy any shipment of chickens, chicks, turkeys,
             1594      poults, or hatching eggs transported into this state in contravention of this section without
             1595      notice to the person who consigned the poultry for shipment to this state, or it may return the
             1596      contents of the shipment to such person at the latter's expense.
             1597          Section 39. Section 4-30-7.6 is amended to read:
             1598           4-30-7.6. Custodial accounts for trust funds.
             1599          (1) (a) Each payment that a livestock buyer makes to a livestock market selling on
             1600      commission is a trust fund.
             1601          (b) Funds deposited in custodial accounts are trust funds.
             1602          (2) Each livestock market engaged in selling livestock on a commission or agency
             1603      basis shall establish and maintain a separate bank account designated as "custodial account for
             1604      shippers' proceeds" or some similar identifying designation, to disclose that the depositor is
             1605      acting as a fiduciary and that the funds in the account are trust funds.
             1606          (3) (a) The livestock market shall deposit in its custodial account before the close of
             1607      the next business day after the livestock is sold:
             1608          (i) the proceeds from the sale of the livestock that have been collected; and


             1609          (ii) an amount equal to the proceeds receivable from the sale of livestock that are due
             1610      from:
             1611          (A) the livestock market;
             1612          (B) any owner, officer, or employee of the livestock market; and
             1613          (C) any buyer to whom the livestock market has extended credit.
             1614          (b) The livestock market shall thereafter deposit in the custodial account all proceeds
             1615      collected until the account has been reimbursed in full, and shall, before the close of the
             1616      seventh day following the sale of livestock, deposit an amount equal to all the remaining
             1617      proceeds receivable whether or not the proceeds have been collected by the livestock market.
             1618          (4) The custodial account shall be drawn on only for payment of:
             1619          (a) the net proceeds to the consignor or shipper, or to any person that the livestock
             1620      market knows is entitled to payment;
             1621          (b) to pay lawful charges against the consignment of livestock which the market agency
             1622      shall, in its capacity as agent, be required to pay; and
             1623          (c) to obtain any sums due the livestock market as compensation for its services.
             1624          (5) (a) Each livestock market shall keep accounts and records that will disclose at all
             1625      times the handling of funds in the custodial account.
             1626          (b) Accounts and records [must] shall at all times disclose the name of the consignors
             1627      and the amount due and payable to each from funds in the custodial account.
             1628          (6) The custodial account [must] shall be established and maintained in a bank whose
             1629      deposits are insured by the Federal Deposit Insurance Corporation.
             1630          Section 40. Section 4-31-16 is amended to read:
             1631           4-31-16. Contagious or infectious disease -- Duties of department.
             1632          (1) (a) The department shall investigate and may quarantine any reported case of
             1633      contagious or infectious disease, or any epidemic, or poisoning affecting domestic animals or
             1634      any animal or animals that it believes may jeopardize the health of animals within the state.
             1635          (b) The department shall make a prompt and thorough examination of all
             1636      circumstances surrounding the disease, epidemic, or poisoning and may order quarantine, care,
             1637      or any necessary remedies.
             1638          (c) The department may also order immunization or testing and sanitary measures to
             1639      prevent the spread of disease.


             1640          (d) Investigations involving fish or wildlife shall be conducted under a cooperative
             1641      agreement with the Division of Wildlife Resources.
             1642          (2) (a) If the owner or person in possession of such animals, after written notice from
             1643      the department, fails to take the action ordered, the commissioner is authorized to seize and
             1644      hold the animals and take action necessary to prevent the spread of disease, including [but not
             1645      limited to:] immunization[;], testing[;], dipping[;], or spraying.
             1646          (b) Animals seized for testing or treatment under this section shall be sold by the
             1647      commissioner at public sale to reimburse the department for all costs incurred in the seizure,
             1648      testing, treatment, maintenance, and sale of such animals unless the owner sooner tenders
             1649      payment for the costs incurred by the department.
             1650          (c) (i) No seized animal shall be sold, however, until the owner or person in possession
             1651      is served with a notice specifying the itemized costs incurred by the department and the time,
             1652      place, and purpose of sale and the number of animals to be sold.
             1653          (ii) The notice shall be served at least three days in advance of sale in the manner:
             1654          (A) prescribed for personal service in Rule 4(d)(1), Utah Rules of Civil Procedure; or
             1655          (B) if the owner cannot be found after due diligence, in the manner prescribed for
             1656      service by publication in Rule 4(d)(4), Utah Rules of Civil Procedure.
             1657          (3) Any amount realized from the sale of the animals over the total charges shall be
             1658      paid to the owner of the animals if the owner is known or can by reasonable diligence be found;
             1659      otherwise, the excess shall be paid to the tuberculosis and Bangs Disease Control Account.
             1660          Section 41. Section 4-31-16.5 is amended to read:
             1661           4-31-16.5. Brucellosis -- Vaccination required for certain cattle -- Testing
             1662      required to import certain cattle.
             1663          (1) As used in this section, "test-eligible" has the meaning defined in 9 C.F.R. Sec.
             1664      78.1.
             1665          (2) (a) Instate origin replacement cattle that are kept for breeding stock [must] shall be
             1666      official calfhood vaccinated for brucellosis.
             1667          (b) Female cattle from within the state that are not kept for breeding stock will not be
             1668      required to be vaccinated.
             1669          (c) For purposes of this Subsection (2), the department may make rules in accordance
             1670      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing non-legible


             1671      brucellosis tattoos and may accept brucellosis vaccination record forms as evidence that
             1672      brucellosis vaccinations were performed.
             1673          (3) All female beef-breed cattle imported into the state are required to be official
             1674      calfhood vaccinated for brucellosis except female cattle:
             1675          (a) less than four months of age;
             1676          (b) going directly to slaughter;
             1677          (c) going to a qualified feedlot; or
             1678          (d) going to an approved auction to be vaccinated on arrival or designated for slaughter
             1679      only.
             1680          (4) (a) Test-eligible cattle imported from states designated as brucellosis-free under 9
             1681      C.F.R. Sec. 78.43 that are acquired directly from the farm of origin are not required to be tested
             1682      for brucellosis before movement into the state.
             1683          (b) Test-eligible cattle imported from states designated as brucellosis-free under 9
             1684      C.F.R. Sec. 78.43 that are acquired through trading channels [must] shall test negative for
             1685      brucellosis within 30 days before movement into the state.
             1686          (5) Test-eligible cattle imported from states that have not been designated as
             1687      brucellosis-free under 9 C.F.R. Sec. 78.43 [must] shall test negative for brucellosis within 30
             1688      days before movement into the state.
             1689          (6) The department may investigate situations where fees for brucellosis vaccinations
             1690      are considered to be excessive.
             1691          (7) The department may make rules in accordance with Title 63G, Chapter 3, Utah
             1692      Administrative Rulemaking Act, for beef-breed cattle that are acquired for specialized breeding
             1693      purposes, and may exempt those cattle from brucellosis vaccination requirements.
             1694          (8) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             1695      Administrative Rulemaking Act, to implement this section.
             1696          Section 42. Section 4-32-3 is amended to read:
             1697           4-32-3. Definitions.
             1698          As used in this chapter:
             1699          (1) "Adulterated" means any livestock product or poultry product that:
             1700          (a) bears or contains any poisonous or deleterious substance that may render it
             1701      injurious to health, but, if the substance is not an added substance, the livestock product [shall


             1702      not be] is not considered adulterated under this subsection if the quantity of the substance in or
             1703      on the livestock product does not ordinarily render it injurious to health;
             1704          (b) bears or contains, by reason of the administration of any substance to the livestock
             1705      or poultry or otherwise, any added poisonous or added deleterious substance which in the
             1706      judgment of the commissioner makes the livestock product unfit for human food;
             1707          (c) contains, in whole or in part, a raw agricultural commodity and such commodity
             1708      bears or contains a pesticide chemical that is unsafe within the meaning of 21 U.S.C. Sec.
             1709      346a;
             1710          (d) bears or contains any food additive that is unsafe within the meaning of 21 U.S.C.
             1711      Sec. 348;
             1712          (e) bears or contains any color additive that is unsafe within the meaning of 21 U.S.C.
             1713      Sec. 379e; provided, that a livestock product which is not otherwise considered adulterated
             1714      under Subsections (1)(c), (d), or (e) of this section shall nevertheless be considered adulterated
             1715      if use of the pesticide chemical, food additive, or color additive is prohibited in official
             1716      establishments by rules of the department;
             1717          (f) consists, in whole or in part, of any filthy, putrid, or decomposed substance or is for
             1718      any other reason unsound, unhealthful, unwholesome, or otherwise unfit for human food;
             1719          (g) has been prepared, packaged, or held under unsanitary conditions if it may have
             1720      become contaminated with filth, or if it may have been rendered injurious to health;
             1721          (h) is in whole or in part the product of an animal that has died otherwise than by
             1722      slaughter;
             1723          (i) is contained in a container that is composed, in whole or in part, of any poisonous or
             1724      deleterious substance that may render the meat product injurious to health;
             1725          (j) has been intentionally subjected to radiation, unless the use of the radiation was in
             1726      conformity with a regulation or exemption in effect pursuant to 21 U.S.C. Sec. 348;
             1727          (k) has a valuable constituent in whole or in part omitted, abstracted, or substituted; or
             1728      if damage or inferiority is concealed in any manner; or if any substance has been added, mixed,
             1729      or packed with the meat product to increase its bulk or weight, or reduce its quality or strength,
             1730      or to make it appear better or of greater value; or
             1731          (l) is margarine containing animal fat and any of the raw material used in the margarine
             1732      consists in whole or in part of any filthy, putrid, or decomposed substance.


             1733          (2) "Animal food manufacturer" means any person engaged in the business of
             1734      preparing animal food derived from livestock carcasses or parts or products of such carcasses.
             1735          (3) "Broker" means any person engaged in the business of buying or selling livestock
             1736      or livestock products on commission, or otherwise negotiating purchases or sales of livestock
             1737      or livestock products other than for such person's own account.
             1738          (4) "Capable of use as human food" means any livestock carcass, or part or product of
             1739      a carcass, unless it is denatured or otherwise identified as required by rules of the department to
             1740      deter its use as human food, or unless it is naturally inedible by humans.
             1741          (5) "Container" or "package" means any box, can, tin, cloth, plastic, or other receptacle,
             1742      wrapper, or cover.
             1743          (6) "Director of meat inspection" means a licensed graduate veterinarian whose duties
             1744      and responsibilities are specified by the commissioner.
             1745          (7) "Domesticated elk" shall have the meaning as defined in Section 4-39-102 .
             1746          (8) "Farm custom slaughter" means custom slaughtering of livestock or poultry for an
             1747      owner without inspection.
             1748          (9) "Farm custom slaughter permit" means a permit issued by the department to allow
             1749      farm custom slaughter.
             1750          (10) "Farm custom slaughter tag" means a tag which specifies the animal's
             1751      identification and certifies its ownership which is issued by the department through a brand
             1752      inspector to the owner of the animal before it is slaughtered.
             1753          (11) "Federal Food, Drug and Cosmetic Act" means the act so entitled, approved June
             1754      25, 1938 (52 Stat. 1040) (21 U.S.C. 301 et seq.), and any amendments to it.
             1755          (12) "Federal Meat Inspection Act" means the act so entitled approved March 4, 1907
             1756      (34 Stat. 1260), as amended by the Wholesome Meat Act, 21 U.S.C. 601 et seq.; the term
             1757      "federal Poultry Products Inspection Act" means the act so entitled approved August 28, 1957
             1758      71 Stat. 441, as amended by the Wholesome Poultry Products Act, 82 Stat. 791 21 U.S.C. 451
             1759      et seq.; and the term "federal acts" means these two federal acts.
             1760          (13) "Immediate container" means any consumer package, or any other container in
             1761      which livestock products not consumer packaged, are packed.
             1762          (14) "Inspector" means a licensed veterinarian or competent lay person working under
             1763      the supervision of a licensed graduate veterinarian.


             1764          (15) "Label" means a display of printed, or graphic matter upon any livestock or
             1765      poultry product or the immediate container, not including package liners, of any such product.
             1766          (16) "Labeling" means all labels and other printed, or graphic matter:
             1767          (a) upon any livestock product or any of its containers or wrappers; or
             1768          (b) accompanying a livestock product.
             1769          (17) "Livestock" means any cattle, domesticated elk, sheep, swine, goats, horses, mules
             1770      or other equines, whether living or dead.
             1771          (18) "Livestock product" means any carcass, part of a carcass, meat, or meat food
             1772      product of any livestock.
             1773          (19) "Meat food product" means any product capable of use as human food that is
             1774      made wholly or in part from any meat or other part of the carcass of any cattle, sheep, swine, or
             1775      goats, excepting products that contain meat or other parts of such carcasses in relatively small
             1776      proportion or that historically have not been considered by consumers as products of the meat
             1777      food industry, and which are exempted from definition as a meat food product by the
             1778      commissioner. Meat food product as applied to food products of equines shall have a meaning
             1779      comparable to that provided in this subsection with respect to cattle, sheep, swine, and goats.
             1780          (20) "Misbranded" means any livestock product or poultry product that:
             1781          (a) bears a label that is false or misleading in any particular;
             1782          (b) is offered for sale under the name of another food;
             1783          (c) is an imitation of another food, unless the label bears, in type of uniform size and
             1784      prominence, the word "imitation" followed by the name of the food imitated;
             1785          (d) if its container is so made, formed, or filled as to be misleading;
             1786          (e) does not bear a label showing:
             1787          (i) the name and place of business of the manufacturer, packer, or distributor; and
             1788          (ii) an accurate statement of the quantity of the product in terms of weight, measure, or
             1789      numerical count; provided, that under this Subsection (20)(e), exemptions as to livestock
             1790      products not in containers may be established by rules of the department and that under this
             1791      Subsection (20)(e)(ii), reasonable variations may be permitted, and exemptions for small
             1792      packages may be established for livestock or poultry products by rule of the department;
             1793          (f) does not bear any word, statement, or other information required by or under
             1794      authority of this chapter to appear on the label or other labeling is not prominently placed with


             1795      such conspicuousness, as compared with other words, statements, designs, or devices, in the
             1796      labeling, and in such terms as to render it likely to be read and understood by the ordinary
             1797      individual under customary conditions of purchase and use;
             1798          (g) is a food for which a definition and standard of identity or composition has been
             1799      prescribed by rules of the department under Section 4-32-7 if the food does not conform to
             1800      such definition and standard and the label does not bear the name of the food and any other
             1801      information that is required by the rule;
             1802          (h) is a food for which a standard of fill has been prescribed by rule of the department
             1803      for the container and the actual fill of the container falls below that prescribed unless its label
             1804      bears, in such manner and form as such rules specify, a statement that it falls below such
             1805      standard;
             1806          (i) is a food for which no standard or definition of identity has been prescribed under
             1807      Subsection (20)(g) unless its label bears:
             1808          (i) the common or usual name of the food, if there be any; and
             1809          (ii) if it is fabricated from two or more ingredients, the common or usual name of each
             1810      such ingredient; except that spices, flavorings, and colorings may, when authorized by the
             1811      department, be designated as spices, flavorings, and colorings without naming each; provided,
             1812      that to the extent that compliance with the requirements of Subsection (20)(i)(ii) is
             1813      impracticable, or results in deception or unfair competition, exemptions shall be established by
             1814      rule;
             1815          (j) is a food that purports to be or is represented to be for special dietary uses, unless its
             1816      label bears such information concerning its vitamin, mineral, and other dietary properties as the
             1817      department, after consultation with the Secretary of Agriculture of the United States, prescribes
             1818      by rules as necessary to inform purchasers as to its value for such uses;
             1819          (k) bears or contains any artificial flavoring, artificial coloring, or chemical
             1820      preservative, unless it bears labeling stating that fact; provided, that to the extent that
             1821      compliance with the requirements of this subsection are impracticable, exemptions shall be
             1822      prescribed by rules of the department; or
             1823          (l) does not bear directly thereon and on its containers, as the department may prescribe
             1824      by rule, the official inspection legend and establishment number of the official establishment
             1825      where the product was prepared, and, unrestricted by any of the foregoing, such other


             1826      information as the department may require by rules to assure that it will not have false or
             1827      misleading labeling and that the public will be informed of the manner of handling required to
             1828      maintain it in a wholesome condition.
             1829          (21) "Official certificate" means any certificate prescribed by rules of the department
             1830      for issuance by an inspector or other person performing official functions under this chapter.
             1831          (22) "Official device" means any device prescribed or authorized by the commissioner
             1832      for use in applying any official mark.
             1833          (23) "Official establishment" means any establishment at which inspection of the
             1834      slaughter of livestock or the preparation of livestock products is maintained under the authority
             1835      of this chapter.
             1836          (24) "Official inspection legend" means any symbol prescribed by rules of the
             1837      department showing that a livestock product was inspected and passed in accordance with this
             1838      chapter.
             1839          (25) "Official mark" means the official legend or any other symbol prescribed by rules
             1840      of the department to identify the status of any livestock or livestock product under this chapter.
             1841          (26) "Permittee" means a person who holds a valid farm custom slaughter permit.
             1842          (27) "Pesticide chemical," "food additive," "color additive," and "raw agricultural
             1843      commodity," have the same meanings for purposes of this chapter as ascribed to them in the
             1844      Federal Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. 301 et seq.
             1845          (28) "Poultry" means any domesticated bird, whether living or dead.
             1846          (29) "Poultry product" means any product capable of use as human food that is made
             1847      wholly or in part from any poultry carcass, excepting products that contain poultry ingredients
             1848      in relatively small proportion or that historically have not been considered by consumers as
             1849      products of the poultry food industry, and that are exempted from definition as a poultry
             1850      product by the commissioner.
             1851          (30) "Prepared" means slaughtered, canned, salted, stuffed, rendered, boned, cut up, or
             1852      otherwise manufactured or processed.
             1853          (31) "Renderer" means any person engaged in the business of rendering livestock
             1854      carcasses, or parts or products of such carcasses, except rendering conducted under inspection
             1855      or exemption under this chapter.
             1856          (32) "Slaughter" means the killing of livestock or poultry in a humane manner


             1857      including skinning, dressing, or the process of performing any of the specified acts in preparing
             1858      livestock or poultry for human consumption.
             1859          (33) "Slaughterhouse" or "custom slaughterhouse" means any building, plant, or
             1860      establishment used for the purpose of killing, dressing, or processing, whether such dressing or
             1861      processing is in conjunction with a killing operation or is a separate business, livestock or
             1862      livestock products or poultry or poultry products offered for sale or to be used for human
             1863      consumption.
             1864          (34) "Slaughtering of livestock or poultry as a business" means the slaughtering of
             1865      livestock or poultry for the owner or caretaker of the livestock or poultry by a person who is
             1866      not a full-time employee of the owner or caretaker of such livestock or poultry.
             1867          Section 43. Section 4-32-7 is amended to read:
             1868           4-32-7. Mandatory functions, powers, and duties of department prescribed.
             1869          The department shall make rules pursuant to Title 63G, Chapter 3, Utah Administrative
             1870      Rulemaking Act, regarding the following functions, powers, and duties, in addition to those
             1871      specified in Title 4, Chapter 1, Utah Agricultural Code, for the administration and enforcement
             1872      of this chapter:
             1873          (1) The department shall require antemortem and postmortem inspections, quarantine,
             1874      segregation, and reinspections by inspectors appointed for those purposes with respect to the
             1875      slaughter of livestock and poultry and the preparation of livestock and poultry products at
             1876      official establishments, except as provided in Subsection 4-32-8 (13).
             1877          (2) The department shall require that:
             1878          (a) livestock and poultry be identified for inspection purposes;
             1879          (b) livestock or poultry products, or their containers be marked or labeled as:
             1880          (i) "Utah Inspected and Passed" if, upon inspection, the products are found to be
             1881      unadulterated; and
             1882          (ii) "Utah Inspected and Condemned" if, upon inspection, the products are found to be
             1883      adulterated; and
             1884          (c) condemned products, which otherwise would be used for human consumption, be
             1885      destroyed under the supervision of an inspector.
             1886          (3) The department shall prohibit or limit livestock products, poultry products, or other
             1887      materials not prepared under inspection procedures provided in this chapter, from being


             1888      brought into official establishments.
             1889          (4) The department shall require that labels and containers for livestock and poultry
             1890      products:
             1891          (a) bear all information required under Section 4-32-3 if the product leaves the official
             1892      establishment; and
             1893          (b) be approved prior to sale or transportation.
             1894          (5) For official establishments required to be inspected under Subsection (1), the
             1895      department shall:
             1896          (a) prescribe sanitary standards;
             1897          (b) require experts in sanitation or other competent investigators to investigate sanitary
             1898      conditions; and
             1899          (c) refuse to provide inspection service if the sanitary conditions allow adulteration of
             1900      any livestock or poultry product.
             1901          (6) (a) The department shall require that any person engaged in a business referred to in
             1902      Subsection (6)(b) shall:
             1903          (i) keep accurate records disclosing all pertinent business transactions;
             1904          (ii) allow inspection of the business premises at reasonable times and examination of
             1905      inventory, records, and facilities; and
             1906          (iii) allow inventory samples to be taken after payment of their fair market value.
             1907          (b) Subsection (6)(a) shall refer to any person who:
             1908          (i) slaughters livestock or poultry;
             1909          (ii) prepares, freezes, packages, labels, buys, sells, transports, or stores any livestock or
             1910      poultry products for human or animal consumption;
             1911          (iii) renders livestock or poultry; or
             1912          (iv) buys, sells, or transports any dead, dying, disabled, or diseased livestock or poultry,
             1913      or parts of their carcasses that died by a method other than slaughter.
             1914          (7) (a) The department shall:
             1915          (i) adopt by reference rules and regulations under federal acts with changes that the
             1916      commissioner considers appropriate to make the rules and regulations applicable to operations
             1917      and transactions subject to this chapter; and
             1918          (ii) promulgate any other rules considered necessary for the efficient execution of the


             1919      provisions of this chapter, including rules of practice providing an opportunity for hearing in
             1920      connection with the issuance of orders under Subsection (5) or under Subsection 4-32-8 (1), (2),
             1921      or (3) and prescribing procedures for proceedings in these cases.
             1922          (b) These procedures [shall not] do not preclude requiring that a label or container be
             1923      withheld from use, or inspection be refused under Subsections (1) and (5), or Subsection
             1924      4-32-8 (3), pending issuance of a final order in the proceeding.
             1925          (8) (a) To prevent the inhumane slaughtering of livestock and poultry, inspectors shall
             1926      be appointed to examine and inspect methods of handling and slaughtering livestock and
             1927      poultry.
             1928          (b) Inspection of new slaughtering establishments may be refused or temporarily
             1929      suspended if livestock or poultry have been slaughtered or handled by any method not in
             1930      accordance with the Humane Methods of Slaughter Act of 1978, Public Law 95-445.
             1931          (9) (a) The department shall require all livestock and poultry showing symptoms of
             1932      disease during antemortem inspection, performed by an inspector appointed for that purpose, to
             1933      be set apart and slaughtered separately from other livestock and poultry.
             1934          (b) When slaughtered, the carcasses of livestock and poultry shall be subject to careful
             1935      examination and inspection in accordance with rules prescribed by the commissioner.
             1936          Section 44. Section 4-32-16 is amended to read:
             1937           4-32-16. Detention of animals or livestock or poultry products -- Removal of
             1938      official marks.
             1939          Whenever any livestock or poultry product or any product exempted from the definition
             1940      of a livestock or poultry product, or any dead, dying, disabled, or diseased livestock or poultry,
             1941      is found by any authorized representative of the commissioner, and there is reason to believe
             1942      that it is adulterated or misbranded and is capable of use as human food, or that it has not been
             1943      inspected and passed, or that it has been or is intended to be distributed in violation of this
             1944      chapter, it may be detained by such representative pending action under Section 4-32-17 , and
             1945      [shall not] may not be moved by any person from the place at which it is located when so
             1946      detained, until released by such representative. All official marks may be required by such
             1947      representative to be removed from such product or animal before it is released.
             1948          Section 45. Section 4-32-22 is amended to read:
             1949           4-32-22. Livestock or poultry slaughtered or the products of either not intended


             1950      for human use -- No inspection -- Products to be denatured or otherwise identified.
             1951          Inspection [shall not] may not be provided under this chapter at any establishment for
             1952      the slaughter of livestock or poultry or the preparation of any livestock products or poultry
             1953      products that are not intended for use as human food, but such products shall be denatured or
             1954      otherwise identified as prescribed by rules of the department prior to their offer for sale or
             1955      transportation.
             1956          Section 46. Section 4-35-7 is amended to read:
             1957           4-35-7. Notice to owner or occupant -- Corrective action required -- Directive
             1958      issued by department -- Costs -- Owner or occupant may prohibit spraying.
             1959          (1) The department or an authorized agent of the department shall notify the owner or
             1960      occupant of the problem and the available alternatives to remedy the problem. The owner or
             1961      occupant [must] shall take corrective action within 30 days.
             1962          (2) If the owner or occupant fails to take corrective action under Subsection (1), the
             1963      department may issue a directive for corrective action which [must] shall be taken within 15
             1964      days. If the owner or occupant fails to act within the required time, the department shall take
             1965      the necessary action. The department may recover costs incurred for controlling an insect
             1966      infestation emergency from the owner or occupant of the property on whose property corrective
             1967      action was taken.
             1968          (3) Owners or occupants of property may prohibit spraying by presenting an affidavit
             1969      from their attending physician to the department which states that the spraying as planned is a
             1970      danger to their health. The department shall provide the owner or occupant with alternatives to
             1971      spraying which will abate the infestation.
             1972          Section 47. Section 4-37-102 is amended to read:
             1973           4-37-102. Purpose statement -- Aquaculture considered a branch of agriculture.
             1974          (1) The Legislature declares that it is in the interest of the people of the state to
             1975      encourage the practice of aquaculture, while protecting the public fishery resource, in order to
             1976      augment food production, expand employment, promote economic development, and protect
             1977      and better utilize the land and water resources of the state.
             1978          (2) The Legislature further declares that aquaculture [should be] is considered a branch
             1979      of the agricultural industry of the state for purposes of any laws that apply to or provide for the
             1980      advancement, benefit, or protection of the agricultural industry within the state.


             1981          Section 48. Section 4-37-109 is amended to read:
             1982           4-37-109. Department to make rules.
             1983          (1) The department shall make rules in accordance with Title 63G, Chapter 3, Utah
             1984      Administrative Rulemaking Act:
             1985          (a) specifying procedures for the application and renewal of certificates of registration
             1986      for operating an aquaculture or fee fishing facility; and
             1987          (b) governing the disposal or removal of aquatic animals from an aquaculture or fee
             1988      fishing facility for which the certificate of registration has lapsed or been revoked.
             1989          (2) (a) The department may make other rules consistent with its responsibilities set
             1990      forth in Section 4-37-104 .
             1991          (b) Except as provided by this chapter, the rules authorized by Subsection (2)(a) [must]
             1992      shall be consistent with the suggested procedures for the detection and identification of
             1993      pathogens published by the American Fisheries Society's Fish Health Section.
             1994          Section 49. Section 4-37-110 is amended to read:
             1995           4-37-110. Inspection of records and facilities.
             1996          (1) The following records and information [must] shall be maintained by an
             1997      aquaculture or fee fishing facility for a period of two years and [must] shall be available for
             1998      inspection by a department representative during reasonable hours:
             1999          (a) records of purchase, acquisition, distribution, and production histories of aquatic
             2000      animals;
             2001          (b) certificate of registration; and
             2002          (c) valid identification of stocks, including origin of stocks.
             2003          (2) Department representatives may conduct pathological, fish culture, or physical
             2004      investigations at any aquaculture, public aquaculture, or fee fishing facility during reasonable
             2005      hours.
             2006          Section 50. Section 4-37-202 is amended to read:
             2007           4-37-202. Acquisition of aquatic animals for use in aquaculture facilities.
             2008          (1) Live aquatic animals intended for use in aquaculture facilities may be purchased or
             2009      acquired only from:
             2010          (a) aquaculture facilities within the state that have a certificate of registration and
             2011      health approval number;


             2012          (b) public aquaculture facilities within the state that have a health approval number; or
             2013          (c) sources outside the state that are health approved as provided in Part 5.
             2014          (2) A person holding a certificate of registration for an aquaculture facility [must] shall
             2015      submit annually to the department a record of each purchase of live aquatic animals and
             2016      transfer of live aquatic animals into the facility. This record [must] shall include the following
             2017      information:
             2018          (a) name, address, and health approval number of the source;
             2019          (b) date of transaction; and
             2020          (c) number and weight by species.
             2021          (3) The records required by Subsection (2) [must] shall be submitted to the department
             2022      before a certificate of registration is renewed or a subsequent certificate of registration is
             2023      issued.
             2024          Section 51. Section 4-37-203 is amended to read:
             2025           4-37-203. Transportation of aquatic animals to or from aquaculture facilities.
             2026          (1) Any person holding a certificate of registration for an aquaculture facility may
             2027      transport the live aquatic animals specified on the certificate of registration to the facility or to
             2028      any person who has been issued a certificate of registration to possess those aquatic animals.
             2029          (2) Each transfer or shipment of live aquatic animals from or to an aquaculture facility
             2030      within the state [must] shall be accompanied by documentation of the source and destination of
             2031      the fish, including:
             2032          (a) name, address, certificate of registration number and health approval number of the
             2033      source;
             2034          (b) number and weight being shipped, by species; and
             2035          (c) name, address, and certificate of registration number of the destination.
             2036          Section 52. Section 4-37-204 is amended to read:
             2037           4-37-204. Sale of aquatic animals from aquaculture facilities.
             2038          (1) (a) Except as provided by Subsection (1)(b), a person holding a certificate of
             2039      registration for an aquaculture facility may take an aquatic animal as approved on the certificate
             2040      of registration from the facility at any time and offer the aquatic animal for sale; however, live
             2041      aquatic animals may be sold within Utah only to a person who has been issued a certificate of
             2042      registration to possess the aquatic animal.


             2043          (b) A person who owns or operates an aquaculture facility may stock a live aquatic
             2044      animal in a private fish pond if the person:
             2045          (i) obtains a health approval number for the aquaculture facility;
             2046          (ii) provides the private fish pond's owner with a brochure published by the Division of
             2047      Wildlife Resources that summarizes the statutes and rules related to a private fish pond and the
             2048      possession of an aquatic animal;
             2049          (iii) inspects the private fish pond to verify that the private fish pond is in compliance
             2050      with Subsections 23-15-10 (2) and (3)(c); and
             2051          (iv) stocks the species, strain, and reproductive capability of aquatic animal authorized
             2052      by the Wildlife Board in accordance with Section 23-15-10 for stocking in the area where the
             2053      private fish pond is located.
             2054          (2) An aquatic animal sold or transferred by the owner or operator of an aquaculture
             2055      facility [must] shall be accompanied by the seller's receipt that contains the following
             2056      information:
             2057          (a) date of transaction;
             2058          (b) name, address, certificate of registration number, health approval number, and
             2059      signature of seller;
             2060          (c) number and weight of aquatic animal by:
             2061          (i) species;
             2062          (ii) strain; and
             2063          (iii) reproductive capability; and
             2064          (d) name and address of the receiver.
             2065          (3) (a) A person holding a certificate of registration for an aquaculture facility [must]
             2066      shall submit to the department an annual report of each sale of live aquatic animals or each
             2067      transfer of live aquatic animals to:
             2068          (i) another aquaculture facility; or
             2069          (ii) a fee fishing facility.
             2070          (b) The report [must] shall contain the following information:
             2071          (i) name, address, and certificate of registration number of the seller or supplier;
             2072          (ii) number and weight by species;
             2073          (iii) date of sale or transfer; and


             2074          (iv) name, address, phone number, and certificate of registration number of the
             2075      receiver.
             2076          (4) (a) A person who owns or operates an aquaculture facility shall submit to the
             2077      Division of Wildlife Resources an annual report of each sale or transfer of a live aquatic animal
             2078      to a private fish pond.
             2079          (b) The report shall contain:
             2080          (i) the name, address, and health approval number of the person;
             2081          (ii) the name, address, and phone number of the private fish pond's owner or operator;
             2082          (iii) the number and weight of aquatic animal by:
             2083          (A) species;
             2084          (B) strain; and
             2085          (C) reproductive capability;
             2086          (iv) date of sale or transfer;
             2087          (v) the private fish pond's location; and
             2088          (vi) verification that the private fish pond was inspected and is in compliance with
             2089      Subsections 23-15-10 (2) and (3)(c).
             2090          (5) The reports required by Subsections (3) and (4) [must] shall be submitted before:
             2091          (a) a certificate of registration is renewed or a subsequent certificate of registration is
             2092      issued for an aquaculture facility in the state; or
             2093          (b) a health approval number is issued for an out-of-state source.
             2094          Section 53. Section 4-37-302 is amended to read:
             2095           4-37-302. Acquisition of aquatic animals for use in fee fishing facilities.
             2096          (1) Live aquatic animals intended for use in fee fishing facilities may be purchased or
             2097      acquired only from:
             2098          (a) aquaculture facilities within the state that have a certificate of registration and
             2099      health approval number;
             2100          (b) public aquaculture facilities within the state that have a health approval number; or
             2101          (c) sources outside the state that are health approved pursuant to Part 5.
             2102          (2) (a) A person holding a certificate of registration for a fee fishing facility [must]
             2103      shall submit to the department an annual report of all live fish purchased or acquired.
             2104          (b) The report [must] shall contain the following information:


             2105          (i) name, address, and certificate of registration number of the seller or supplier;
             2106          (ii) number and weight by species;
             2107          (iii) date of purchase or transfer; and
             2108          (iv) name, address, and certificate of registration number of the receiver.
             2109          (c) The report [must] shall be submitted to the department before a certificate of
             2110      registration is renewed or subsequent certificate of registration is issued.
             2111          Section 54. Section 4-37-303 is amended to read:
             2112           4-37-303. Transportation of live aquatic animals to fee fishing facilities.
             2113          (1) Any person holding a certificate of registration for a fee fishing facility may
             2114      transport the live aquatic animals specified on the certificate of registration to the facility.
             2115          (2) Each transfer or shipment of live aquatic animals to a fee fishing facility within the
             2116      state [must] shall be accompanied by documentation of the source and destination of the fish,
             2117      including:
             2118          (a) name, address, certificate of registration number and health approval number of the
             2119      source;
             2120          (b) number and weight being shipped by species; and
             2121          (c) name, address, and certificate of registration number of the destination.
             2122          Section 55. Section 4-37-305 is amended to read:
             2123           4-37-305. Fishing license not required to fish at fee fishing facilities --
             2124      Transportation of dead fish.
             2125          (1) A fishing license is not required to take fish from fee fishing facilities.
             2126          (2) To transport dead fish from fee fishing facilities the fish [must] shall be
             2127      accompanied by the seller's receipt containing the following information:
             2128          (a) species and number of fish;
             2129          (b) date caught;
             2130          (c) certificate of registration number of the fee fishing facility; and
             2131          (d) name, address, and telephone number of the seller.
             2132          Section 56. Section 4-37-402 is amended to read:
             2133           4-37-402. Documentation required to import aquatic animals.
             2134          Any aquatic animals classified as controlled species by rules of the Wildlife Board that
             2135      are imported into the state for use in aquaculture or fee fishing facilities [must] shall be


             2136      accompanied by documentation indicating the following:
             2137          (1) the health approval number assigned by the department to the source facility;
             2138          (2) common or scientific names of the imported animals;
             2139          (3) name and address of the consignor and consignee;
             2140          (4) origin of shipment;
             2141          (5) final destination;
             2142          (6) number or pounds shipped;
             2143          (7) purpose for which shipped;
             2144          (8) method of transportation; and
             2145          (9) any other information required by the department.
             2146          Section 57. Section 4-37-502 is amended to read:
             2147           4-37-502. Inspections -- Health approval report -- Report for quarantine facility
             2148      -- Qualifications of inspectors -- Notification of department.
             2149          (1) (a) Except as provided by Subsection (1)(b), approval shall be based upon
             2150      inspections carried out in accordance with standards and rules of the Fish Health Policy Board
             2151      made pursuant to Section 4-37-503 .
             2152          (b) An owner or operator of an aquaculture facility that is under quarantine or whose
             2153      health approval has been canceled or denied prior to July 1, 2007 may seek health approval
             2154      without submitting or complying with a biosecurity plan required by rule by submitting a new
             2155      health inspection report to the department.
             2156          (2) (a) The inspections [must] shall be done by an individual who has received
             2157      certification from the American Fisheries Society as a fish health inspector.
             2158          (b) An inspection of an aquaculture facility may not be done by an inspector who is
             2159      employed by, or has pecuniary interest in, the facility being inspected.
             2160          (c) The department shall post on its website a current list of:
             2161          (i) certified fish health inspectors; and
             2162          (ii) approved laboratories to which a fish health inspector may send the samples
             2163      collected during the inspections required by this section.
             2164          (d) (i) If the fish health inspector conducting the inspection is not an employee of the
             2165      department, the owner or operator of the aquaculture facility shall notify the department of the
             2166      date and time of the inspection at least five business days before the date on which the


             2167      inspection will occur.
             2168          (ii) The department may be present for the inspection.
             2169          (3) To receive a health approval number, inspection reports and other evidence of the
             2170      disease status of a source facility [must] shall be submitted to the agency responsible for
             2171      certifying the source as health approved pursuant to Section 4-37-501 .
             2172          Section 58. Section 4-37-503 is amended to read:
             2173           4-37-503. Fish Health Policy Board.
             2174          (1) There is created within the department the Fish Health Policy Board which shall
             2175      establish policies designed to prevent the outbreak of, control the spread of, and eradicate
             2176      pathogens that cause disease in aquatic animals.
             2177          (2) The Fish Health Policy Board shall:
             2178          (a) in accordance with Subsection (6)(b), determine procedures and requirements for
             2179      certifying a source of aquatic animals as health approved, including:
             2180          (i) the pathogens for which inspection is required to receive health approval;
             2181          (ii) the pathogens that may not be present to receive health approval; and
             2182          (iii) standards and procedures required for the inspection of aquatic animals;
             2183          (b) establish procedures for the timely reporting of the presence of a pathogen and
             2184      disease threat;
             2185          (c) create policies and procedures for, and appoint, an emergency response team to:
             2186          (i) investigate a serious disease threat;
             2187          (ii) develop and monitor a plan of action; and
             2188          (iii) report to:
             2189          (A) the commissioner of agriculture and food;
             2190          (B) the director of the Division of Wildlife Resources; and
             2191          (C) the chair of the Fish Health Policy Board; and
             2192          (d) develop a unified statewide aquaculture disease control plan.
             2193          (3) The Fish Health Policy Board shall advise the commissioner of agriculture and
             2194      food and the executive director of the Department of Natural Resources regarding:
             2195          (a) educational programs and information systems to educate and inform the public
             2196      about practices that the public may employ to prevent the spread of disease; and
             2197          (b) communication and interaction between the department and the Division of


             2198      Wildlife Resources regarding fish health policies and procedures.
             2199          (4) (a) (i) The governor shall appoint the following seven members to the Fish Health
             2200      Policy Board:
             2201          (A) one member from names submitted by the Department of Natural Resources;
             2202          (B) one member from names submitted by the Department of Agriculture and Food;
             2203          (C) one member from names submitted by a nonprofit corporation that promotes sport
             2204      fishing;
             2205          (D) one member from names submitted by a nonprofit corporation that promotes the
             2206      aquaculture industry;
             2207          (E) one member from names submitted by the Department of Natural Resources and
             2208      the Department of Agriculture and Food;
             2209          (F) one member from names submitted by a nonprofit corporation that promotes sport
             2210      fishing; and
             2211          (G) one member from names submitted by a nonprofit corporation that promotes the
             2212      aquaculture industry.
             2213          (ii) The members appointed under Subsections (4)(a)(i)(E) through (G) shall be:
             2214          (A) (I) faculty members of an institution of higher education; or
             2215          (II) qualified professionals; and
             2216          (B) have education and knowledge in:
             2217          (I) fish pathology;
             2218          (II) business;
             2219          (III) ecology; or
             2220          (IV) parasitology.
             2221          (iii) At least one member appointed under Subsections (4)(a)(i)(E) through (G) shall
             2222      have education and knowledge about fish pathology.
             2223          (iv) (A) A nominating person shall submit at least three names to the governor.
             2224          (B) If the governor rejects all the names submitted for a member, the recommending
             2225      person shall submit additional names.
             2226          (b) Except as required by Subsection (4)(c), the term of office of board members shall
             2227      be four years.
             2228          (c) Notwithstanding the requirements of Subsection (4)(b), the governor shall, at the


             2229      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             2230      board members are staggered so that approximately half of the board is appointed every two
             2231      years.
             2232          (d) When a vacancy occurs in the membership for any reason, the replacement shall be
             2233      appointed for the unexpired term.
             2234          (e) The board members shall elect a chair of the board from the board's membership.
             2235          (f) The board shall meet upon the call of the chair or a majority of the board members.
             2236          (g) An action of the board shall be adopted upon approval of the majority of voting
             2237      members.
             2238          (5) (a) (i) A member who is not a government employee may not receive compensation
             2239      or benefits for the member's service, but may receive per diem and expenses incurred in the
             2240      performance of the member's official duties at the rates established by the Division of Finance
             2241      under Sections 63A-3-106 and 63A-3-107 .
             2242          (ii) A member may decline to receive per diem and expenses for the member's service.
             2243          (b) (i) A state government officer and employee member who does not receive salary,
             2244      per diem, or expenses from the agency the member represents for the member's service may
             2245      receive per diem and expenses incurred in the performance of the member's official duties at
             2246      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2247          (ii) A state government officer and employee member may decline to receive per diem
             2248      and expenses for the member's service.
             2249          (c) (i) A higher education member who does not receive salary, per diem, or expenses
             2250      from the entity that the member represents for the member's service may receive per diem and
             2251      expenses incurred in the performance of the member's official duties at the rates established by
             2252      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2253          (ii) A higher education member may decline to receive per diem and expenses for the
             2254      member's service.
             2255          (6) (a) The board shall make rules consistent with its responsibilities and duties
             2256      specified in this section.
             2257          (b) Except as provided by this chapter, all rules adopted by the Fish Health Policy
             2258      Board [must] shall be consistent with the suggested procedures for the detection and
             2259      identification of pathogens published by the American Fisheries Society's Fish Health Section.


             2260          (c) (i) Rules of the department and Fish Health Policy Board pertaining to the control
             2261      of disease shall remain in effect until the Fish Health Policy Board enacts rules to replace those
             2262      provisions.
             2263          (ii) The Fish Health Policy Board shall promptly amend rules that are inconsistent with
             2264      the current suggested procedures published by the American Fisheries Society.
             2265          (d) The Fish Health Policy Board may waive a requirement established by the Fish
             2266      Health Policy Board's rules if:
             2267          (i) the rule specifies the waiver criteria and procedures; and
             2268          (ii) the waiver will not threaten other aquaculture facilities or wild aquatic animal
             2269      populations.
             2270          Section 59. Section 4-39-201 is amended to read:
             2271           4-39-201. Fencing, posts, and gates.
             2272          (1) Each domesticated elk facility shall, at a minimum, meet the requirements of this
             2273      section and shall be constructed to prevent the movement of domesticated elk into or out of the
             2274      facility.
             2275          (2) (a) All perimeter fences and gates shall be:
             2276          (i) a minimum of eight feet above ground level; and
             2277          (ii) constructed of hi-tensile steel.
             2278          (b) At least the bottom four feet [must] shall be mesh with a maximum mesh size of 6"
             2279      x 6".
             2280          (c) The remaining four feet shall be mesh with a maximum mesh size of 12" x 6".
             2281          (3) The minimum wire gauge shall be 14-1/2 gauge for a 2 woven hi-tensile fence.
             2282          (4) All perimeter gates at the entrances of domesticated elk handling facilities shall be
             2283      locked, with consecutive or self-closing gates when animals are present.
             2284          (5) Posts shall be:
             2285          (a) (i) constructed of treated wood which is at least four inches in diameter; or
             2286          (ii) constructed of a material with the strength equivalent of Subsection (5)(a)(i);
             2287          (b) spaced no more than 30 feet apart if one stay is used, or 20 feet apart if no stays are
             2288      used; and
             2289          (c) at least eight feet above ground level and two feet below ground level.
             2290          (6) Stays, between the posts, shall be:


             2291          (a) constructed of treated wood or steel;
             2292          (b) spaced no more than 15 feet from any post; and
             2293          (c) at least eight feet above ground level, and two feet below ground level.
             2294          (7) Corner posts and gate posts shall be braced wood or its strength equivalent.
             2295          Section 60. Section 4-39-205 is amended to read:
             2296           4-39-205. License renewal.
             2297          (1) To renew a license, the licensee [must] shall submit to the department:
             2298          (a) an inspection certificate showing that:
             2299          (i) the domesticated elk, on the domesticated elk facility, have been inspected and
             2300      certified by the department for health, proof of ownership, and genetic purity; and
             2301          (ii) the facility has been properly maintained as provided in this chapter during the
             2302      immediately preceding 60-day period; and
             2303          (b) a record of each purchase of domesticated elk and transfer of domesticated elk into
             2304      the facility, which [must] shall include the following information:
             2305          (i) name, address, and health approval number of the source;
             2306          (ii) date of transaction; and
             2307          (iii) number and sex.
             2308          (2) (a) If the application for renewal is not received on or before April 30, a late fee
             2309      will be charged.
             2310          (b) A license may not be renewed until the fee is paid.
             2311          (3) If the application and fee for renewal are not received on or before July 1, the
             2312      license may not be renewed, and a new license shall be required.
             2313          Section 61. Section 4-39-206 is amended to read:
             2314           4-39-206. Records to be maintained.
             2315          (1) The following records and information [must] shall be maintained by a
             2316      domesticated elk facility for a period of five years:
             2317          (a) records of purchase, acquisition, distribution, and production histories of
             2318      domesticated elk;
             2319          (b) records documenting antler harvesting, production, and distribution; and
             2320          (c) health certificates and genetic purity records.
             2321          (2) For purposes of carrying out the provisions of this chapter and rules promulgated


             2322      under this chapter and, at any reasonable time during regular business hours, the department
             2323      shall have free and unimpeded access to inspect all records required to be kept.
             2324          (3) The department may make copies of the records referred to in this section.
             2325          Section 62. Section 4-39-302 is amended to read:
             2326           4-39-302. Acquisition of domesticated elk for use in domesticated elk facilities.
             2327          Domesticated elk intended for use in domesticated elk facilities [must] shall meet all
             2328      health and genetic requirements of this chapter.
             2329          Section 63. Section 4-39-304 is amended to read:
             2330           4-39-304. Marking domesticated elk.
             2331          (1) Each domesticated elk, not previously tattooed, [must] shall be marked by either a
             2332      tattoo, as provided in Subsection (2), or by a microchip, as provided in Subsection (3):
             2333          (a) within 30 days of a change of ownership; or
             2334          (b) in the case of newborn calves, within 15 days after being weaned, but in any case,
             2335      no later than September 15.
             2336          (2) If a domesticated elk is identified with a tattoo, the tattoo shall:
             2337          (a) be placed peri-anally or inside the right ear; and
             2338          (b) consist of a four-digit herd number assigned by the department over a three-digit
             2339      individual animal number assigned by the owner.
             2340          (3) If a domesticated elk is identified with a microchip, it [must] shall be placed in the
             2341      right ear.
             2342          Section 64. Section 4-39-305 is amended to read:
             2343           4-39-305. Transportation of domesticated elk to or from domesticated elk
             2344      facilities.
             2345          Any domesticated elk transferred to or from a domesticated elk facility within the state
             2346      [must] shall be:
             2347          (1) accompanied by a brand inspection certificate specifying the following:
             2348          (a) the name, address, and facility license number of the source;
             2349          (b) number, sex, and individual identification number; and
             2350          (c) name, address, and facility license number of the destination;
             2351          (2) accompanied by proof of genetic purity as provided in Section 4-39-301 ; and
             2352          (3) inspected by the department as provided in Section 4-39-306 .


             2353          Section 65. Section 4-39-306 is amended to read:
             2354           4-39-306. Inspection prior to movement, sale, removal of antlers, or slaughter.
             2355          (1) Each domesticated elk facility licensee shall have the domesticated elk inspected by
             2356      the department prior to any transportation, sale, removal of antlers, or slaughter.
             2357          (2) Any person transporting or possessing domesticated elk or domesticated elk
             2358      products [must] shall have the appropriate brand inspection certificate in his or her possession.
             2359          Section 66. Section 6-1-3 is amended to read:
             2360           6-1-3. Assignment to be written -- Contents -- Recording.
             2361          Every such assignment shall be by an instrument in writing, setting forth the name of
             2362      the assignor, his residence and business, the name of the assignee and his residence and
             2363      business, and in a general way describing the property assigned with its location, and stating
             2364      the purpose of the assignment. It shall be executed and acknowledged in the manner prescribed
             2365      for the execution and acknowledgment of deeds, and recorded in the office of the recorder of
             2366      the county where the property assigned is located. The assignor shall annex to such instrument
             2367      an inventory, under oath, of his estate, real and personal, according to the best of his
             2368      knowledge, and a list of his creditors and the amount of their respective demands; but such
             2369      inventory [shall not be] is not conclusive as to the amount of the debtor's estate, and such
             2370      assignment shall vest in the assignee the title to any other property belonging to the debtor at
             2371      the time of making the assignment, except property exempt from execution and insurance upon
             2372      the life of the assignor, unless the instrument mentions such exempt property and insurance and
             2373      declares an intention of the assignor that they shall pass thereby. As soon as such instrument is
             2374      recorded it shall be filed, with the inventory and list of creditors, in the office of the clerk of the
             2375      district court of the county in which the property so assigned is located; as shall all subsequent
             2376      papers connected with such proceedings.
             2377          Section 67. Section 6-1-9 is amended to read:
             2378           6-1-9. Taxes to be paid.
             2379          In all assignments of property for the benefit of creditors, assessments and taxes levied
             2380      thereon either under the laws of the state or ordinances of municipal corporations shall be
             2381      entitled to priority, and paid in full by the assignee, and claims therefor need not be filed with
             2382      him.
             2383          Section 68. Section 6-1-15 is amended to read:


             2384           6-1-15. Debts not matured -- Delay in filing claims.
             2385          Any creditor may claim debts to become due as well as debts due, but on debts not due
             2386      a reasonable rebate shall be made when the same are not drawing interest. Creditors who [shall
             2387      not] do not file their claims within three months from the publication of notice as aforesaid
             2388      [shall not] may not participate in dividends until after payment in full of all claims presented
             2389      within said time and allowed by the court, unless the court has extended the time for filing such
             2390      claims.
             2391          Section 69. Section 7-1-303 is amended to read:
             2392           7-1-303. Joint operations and information exchange by institutions.
             2393          The commissioner may authorize institutions subject to the jurisdiction of the
             2394      department to engage in such joint and cooperative actions as the commissioner finds will be in
             2395      the public interest, [such as, but not limited to] including:
             2396          (1) mutual exchange of financial information as to depositors, borrowers, and other
             2397      customers;
             2398          (2) joint use of facilities;
             2399          (3) joint operation of clearing houses and other facilities for payment of checks, drafts,
             2400      or other instruments drawn on or issued by various classes of depository institutions;
             2401          (4) joint participation in lending programs to promote the public welfare;
             2402          (5) joint risk management services; and
             2403          (6) joint ownership, operation, or furnishing of electronic funds transfer services.
             2404          Section 70. Section 7-1-309 is amended to read:
             2405           7-1-309. Hearings by commissioner -- Discretion of commissioner -- Procedure --
             2406      Judicial review.
             2407          The commissioner may conduct or cause to be conducted hearings relating to matters
             2408      within his supervisory jurisdiction and shall establish rules for discovery and other procedures
             2409      applicable to the hearings consistent with the provisions of the Utah Rules of Civil Procedure.
             2410      The decision whether or not to hold a formal hearing on any matter coming before the
             2411      commissioner under this title shall be solely within the discretion of the commissioner. His
             2412      failure or refusal to hold a formal hearing [shall not be] is not a ground for reversal of any
             2413      decision or order of the commissioner unless the reviewing court finds that such failure or
             2414      refusal has deprived an interested party of due process of law, or that a formal hearing is


             2415      required by the provisions of this title.
             2416          Section 71. Section 7-1-607 is amended to read:
             2417           7-1-607. Lost or destroyed account book or certificate.
             2418          If the holder of record of an account as shown by the books of a depository institution,
             2419      or his legal representative, files with the institution an affidavit to the effect that the account
             2420      book or certificate has been lost or destroyed and has not been pledged or assigned in whole or
             2421      in part, the institution shall issue a new account book or certificate in the name of the holder of
             2422      record. The new account book or certificate shall state that it is issued in lieu of the one lost or
             2423      destroyed. The institution [shall not be] is not liable thereafter on the original account book or
             2424      certificate. However, the board of directors of the institution shall, if in its judgment it is
             2425      necessary, require a bond in an amount it considers sufficient to indemnify the institution
             2426      against any loss which might result from the issuance of the new account book or certificate.
             2427          Section 72. Section 7-1-612 is amended to read:
             2428           7-1-612. Pledge or hypothecation of joint savings accounts.
             2429          The pledge or hypothecation to any depository institution of all or part of a savings
             2430      account in joint tenancy signed by any tenant or tenants whether minor or adult, upon whose
             2431      signature or signatures withdrawals may be made from the account shall, unless the terms of
             2432      the savings account provide specifically to the contrary, be a valid pledge and transfer to the
             2433      institution of that part of the account pledged or hypothecated, and [shall not] does not operate
             2434      to sever or terminate the joint and survivorship ownership of all or any part of the account.
             2435          Section 73. Section 7-1-806 is amended to read:
             2436           7-1-806. Money market funds arranging with bank to honor two-party
             2437      instruments -- Discouraging payment of interest to two persons on funds in transit --
             2438      Pyramiding and similar schemes as misdemeanors.
             2439          Nothing in this act shall be construed to prevent money market funds from making
             2440      arrangements with banks to honor two party checks, drafts, or other instruments.
             2441          The commissioner shall exert his influence to discourage banks, money market funds
             2442      and other programs in Utah and throughout the United States from paying interest to two
             2443      persons at the same time on funds in the process of transfer.
             2444          The process or the practice referred to as pyramiding or any similar process or practice
             2445      as defined by the commissioner, and such definition is approved by the governor, shall be


             2446      prohibited within this state and persons found guilty of these schemes shall be found guilty of a
             2447      class C misdemeanor. This [shall not] does not preclude more serious punishment under
             2448      federal law.
             2449          Money market funds, similar funds and bank regulated institutions shall cooperate with
             2450      the commissioner to stop these practices.
             2451          Section 74. Section 7-2-9 is amended to read:
             2452           7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointment
             2453      of receiver -- Review of actions.
             2454          (1) Upon taking possession of the institution, the commissioner may appoint a receiver
             2455      to perform the duties of the commissioner. Subject to any limitations, conditions, or
             2456      requirements specified by the commissioner and approved by the court, a receiver shall have all
             2457      the powers and duties of the commissioner under this chapter and the laws of this state to act as
             2458      a conservator, receiver, or liquidator of the institution. Actions of the commissioner in
             2459      appointing a receiver shall be subject to review only as provided in Section 7-2-2 .
             2460          (2) (a) If the deposits of the institution are to any extent insured by a federal deposit
             2461      insurance agency, the commissioner may appoint that agency as receiver. After receiving
             2462      notice in writing of the acceptance of the appointment, the commissioner shall file a certificate
             2463      of appointment in the commissioner's office and with the clerk of the district court. After the
             2464      filing of the certificate, the possession of all assets, business, and property of the institution is
             2465      considered transferred from the institution and the commissioner to the agency, and title to all
             2466      assets, business, and property of the institution is vested in the agency without the execution of
             2467      any instruments of conveyance, assignment, transfer, or endorsement.
             2468          (b) If a federal deposit insurance agency accepts an appointment as receiver, it has all
             2469      the powers and privileges provided by the laws of this state and the United States with respect
             2470      to the conservatorship, receivership, or liquidation of an institution and the rights of its
             2471      depositors, and other creditors, including authority to make an agreement for the purchase of
             2472      assets and assumption of deposit and other liabilities by another depository institution or take
             2473      other action authorized by Title 12 of the United States Code to maintain the stability of the
             2474      banking system. Such action by a federal deposit insurance agency may be taken upon
             2475      approval by the court, with or without prior notice. Such actions or agreements may be
             2476      disapproved, amended, or rescinded only upon a finding by the court that the decisions or


             2477      actions of the receiver are arbitrary, capricious, fraudulent, or contrary to law. In the event of
             2478      any conflict between state and federal law, including provisions for adjudicating claims against
             2479      the institution or receiver, the receiver shall comply with the federal law and any resulting
             2480      violation of state law [shall not] does not by itself constitute grounds for the court to
             2481      disapprove the actions of the receiver or impose any penalty for such violation.
             2482          (c) The commissioner or any receiver appointed by him shall possess all the rights and
             2483      claims of the institution against any person whose breach of fiduciary duty or violations of the
             2484      laws of this state or the United States applicable to depository institutions may have caused or
             2485      contributed to a condition which resulted in any loss incurred by the institution or to its assets
             2486      in the possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary
             2487      duty includes those duties and standards applicable under statutes and laws of this state and the
             2488      United States to a director, officer, or other party employed by or rendering professional
             2489      services to a depository institution whose deposits are insured by a federal deposit insurance
             2490      agency. Upon taking possession of an institution, no person other than the commissioner or
             2491      receiver shall have standing to assert any such right or claim of the institution, including its
             2492      depositors, creditors, or shareholders unless the right or claim has been abandoned by the
             2493      commissioner or receiver with approval of the court. Any judgment based on the rights and
             2494      claims of the commissioner or receiver shall have priority in payment from the assets of the
             2495      judgment debtors.
             2496          (d) For the purposes of this section, the term "federal deposit insurance agency" shall
             2497      include the Federal Deposit Insurance Corporation, the National Credit Union Administration
             2498      and any departments thereof or successors thereto, and any other federal agency authorized by
             2499      federal law to act as a conservator, receiver, and liquidator of a federally insured depository
             2500      institution, including the Resolution Trust Corporation and any department thereof or successor
             2501      thereto.
             2502          (3) The receiver may employ assistants, agents, accountants, and legal counsel. If the
             2503      receiver is not a federal deposit insurance agency, the compensation to be paid such assistants,
             2504      agents, accountants, and legal counsel shall be approved by the commissioner. All expenses
             2505      incident to the receivership shall be paid out of the assets of the institution. If a receiver is not
             2506      a federal deposit insurance agency, the receiver and any assistants and agents shall provide
             2507      bond or other security specified by the commissioner and approved by the court for the faithful


             2508      discharge of all duties and responsibilities in connection with the receivership including the
             2509      accounting for money received and paid. The cost of the bond shall be paid from the assets of
             2510      the institution. Suit may be maintained on the bond by the commissioner or by any person
             2511      injured by a breach of the condition of the bond.
             2512          (4) (a) Upon the appointment of a receiver for an institution in possession pursuant to
             2513      this chapter, the commissioner and the department are exempt from liability or damages for any
             2514      act or omission of any receiver appointed pursuant to this section.
             2515          (b) This section does not limit the right of the commissioner to prescribe and enforce
             2516      rules regulating a receiver in carrying out its duties with respect to an institution subject to the
             2517      jurisdiction of the department.
             2518          (c) Any act or omission of the commissioner or of any federal deposit insurance agency
             2519      as a receiver appointed by him while acting pursuant to this chapter shall be deemed to be the
             2520      exercise of a discretionary function within the meaning of Section 63G-7-301 of the laws of
             2521      this state or Section 28 U.S.C. 2680(a) of the laws of the United States.
             2522          (5) Actions, decisions, or agreements of a receiver under this chapter, other than
             2523      allowance or disallowance of claims under Section 7-2-6 , shall be subject to judicial review
             2524      only as follows:
             2525          (a) A petition for review shall be filed with the court having jurisdiction under Section
             2526      7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or
             2527      its terms are filed with the court.
             2528          (b) The petition shall state in simple, concise, and direct terms the facts and principles
             2529      of law upon which the petitioner claims the act, decision, or agreement of the receiver was or
             2530      would be arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may
             2531      be damaged thereby. The court shall dismiss any petition which fails to allege that the
             2532      petitioner would be directly injured or damaged by the act, decision, or agreement which is the
             2533      subject of the petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties
             2534      with respect to the allegations set forth in a petition or response.
             2535          (c) The receiver shall have 30 days after service of the petition within which to
             2536      respond.
             2537          (d) All further proceedings are to be conducted in accordance with the Utah Rules of
             2538      Civil Procedure.


             2539          (6) All notices required under this section shall be made in accordance with the Utah
             2540      Rules of Civil Procedure and served upon the attorney general of the state of Utah, the
             2541      commissioner of financial institutions, the receiver of the institution appointed under this
             2542      chapter, and upon the designated representative of any party in interest who requests in writing
             2543      such notice.
             2544          Section 75. Section 7-2-10 is amended to read:
             2545           7-2-10. Inventory of assets -- Listings of claims -- Report of proceedings -- Filing
             2546      -- Inspection.
             2547          As soon as is practical after taking possession of an institution the commissioner, or any
             2548      receiver or liquidator appointed by him, shall make or cause to be made in duplicate an
             2549      inventory of its assets, one copy to be filed in his office and one with the clerk of the district
             2550      court. Upon the expiration of the time fixed for presentation of claims the commissioner, or
             2551      any receiver or liquidator appointed by him, shall make in duplicate a full and complete list of
             2552      the claims presented, including and specifying claims disallowed by him, of which one copy
             2553      shall be filed in his office and one copy in the office of the clerk of the district court. The
             2554      commissioner, or any receiver or liquidator appointed by him, shall in like manner make and
             2555      file supplemental lists showing all claims presented after the filing of the first list. The
             2556      supplemental lists shall be filed every six months and at least 15 days before the declaration of
             2557      any dividend. At the time of the order for final distribution the commissioner, or any receiver
             2558      or liquidator appointed by him, shall make a report in duplicate of the proceeding, showing the
             2559      disposition of the assets and liabilities of the institution, one copy to be filed in his office and
             2560      one with the clerk of the district court. The accounting, inventory, and lists of claims shall be
             2561      open at all reasonable times for inspection. Any objection to any report or accounting [must]
             2562      shall be filed with the clerk of the district court within 30 days after the report of accounting
             2563      has been filed by the commissioner, or any receiver or liquidator appointed by him, and shall
             2564      be subject to judicial review only as provided in Section 7-2-9 .
             2565          Section 76. Section 7-2-12 is amended to read:
             2566           7-2-12. Powers of commissioner in possession -- Sale of assets -- Postpossession
             2567      financing -- New deposit instruments -- Executory contracts -- Transfer of property --
             2568      Avoidance of transfers -- Avoidable preferences -- Setoff.
             2569          (1) Upon taking possession of the institution, the commissioner may do all things


             2570      necessary to preserve its assets and business, and shall rehabilitate, reorganize, or liquidate the
             2571      affairs of the institution in a manner he determines to be in the best interests of the institution's
             2572      depositors and creditors. Any such determination by the commissioner may not be overruled
             2573      by a reviewing court unless it is found to be arbitrary, capricious, fraudulent, or contrary to law.
             2574      In the event of a liquidation, he shall collect all debts due and claims belonging to it, and may
             2575      compromise all bad or doubtful debts. He may sell, upon terms he may determine, any or all of
             2576      the property of the institution for cash or other consideration. The commissioner shall give
             2577      such notice as the court may direct to the institution of the time and place of hearing upon an
             2578      application to the court for approval of the sale. The commissioner shall execute and deliver to
             2579      the purchaser of any property of the institution sold by him those deeds or instruments
             2580      necessary to evidence the passing of title.
             2581          (2) With approval of the court and upon terms and with priority determined by the
             2582      court, the commissioner may borrow money and issue evidence of indebtedness. To secure
             2583      repayment of the indebtedness, he may mortgage, pledge, transfer in trust, or hypothecate any
             2584      or all of the property of the institution superior to any charge on the property for expenses of
             2585      the proceeding as provided in Section 7-2-14 . These loans may be obtained for the purpose of
             2586      facilitating liquidation, protecting or preserving the assets in the charge of the commissioner,
             2587      expediting the making of distributions to depositors and other claimants, aiding in the
             2588      reopening or reorganization of the institution or its merger or consolidation with another
             2589      institution, or the sale of all of its assets. Neither the commissioner nor any special deputy or
             2590      other person lawfully in charge of the affairs of the institution is under any personal obligation
             2591      to repay those loans. The commissioner may take any action necessary or proper to
             2592      consummate the loan and to provide for its repayment and to give bond when required for the
             2593      faithful performance of all undertakings in connection with it. The commissioner or special
             2594      deputy shall make application to the court for approval of any loan proposed under this section.
             2595      Notice of hearing upon the application shall be given as the court directs. At the hearing upon
             2596      the application any stockholder or shareholder of the institution or any depositor or other
             2597      creditor of the institution may appear and be heard on the application. Prior to the obtaining of
             2598      a court order, the commissioner or special deputy in charge of the affairs of the institution may
             2599      make application or negotiate for the loan or loans subject to the obtaining of the court order.
             2600          (3) With the approval of the court pursuant to a plan of reorganization or liquidation


             2601      under Section 7-2-18 , the commissioner may provide for depositors to receive new deposit
             2602      instruments from a depository institution that purchases or receives some or all of the assets of
             2603      the institution in the possession of the commissioner. All new deposit instruments issued by
             2604      the acquiring depository institution may, in accordance with the terms of the plan of
             2605      reorganization or liquidation, be subject to different amounts, terms, and interest rates than the
             2606      original deposit instruments of the institution in the possession of the commissioner. All
             2607      deposit instruments issued by the acquiring institution shall be considered new deposit
             2608      obligations of the acquiring institution. The original deposit instruments issued by the
             2609      institution in the possession of the commissioner are not liabilities of the acquiring institution,
             2610      unless assumed by the acquiring institution. Unpaid claims of depositors against the institution
             2611      in the possession of the commissioner continue, and may be provided for in the plan of
             2612      reorganization or liquidation.
             2613          (4) The commissioner, after taking possession of any institution or other person subject
             2614      to the jurisdiction of the department, may terminate any executory contract, including standby
             2615      letters of credit, unexpired leases and unexpired employment contracts, to which the institution
             2616      or other person is a party. If the termination of an executory contract or unexpired lease
             2617      constitutes a breach of the contract or lease, the date of the breach is the date on which the
             2618      commissioner took possession of the institution. Claims for damages for breach of an
             2619      executory contract [must] shall be filed within 30 days of receipt of notice of the termination,
             2620      and if allowed, shall be paid in the same manner as all other allowable claims of the same
             2621      priority out of the assets of the institution available to pay claims.
             2622          (5) With approval of the court and upon a showing by the commissioner that it is in the
             2623      best interests of the depositors and creditors, the commissioner may transfer property on
             2624      account of an indebtedness incurred by the institution prior to the date of the taking.
             2625          (6) (a) The commissioner may avoid any transfer of any interest of the institution in
             2626      property or any obligation incurred by the institution that is void or voidable by a creditor under
             2627      Title 25, Chapter 6.
             2628          (b) The commissioner may avoid any transfer of any interest in real property of the
             2629      institution that is void as against or voidable by a subsequent purchaser in good faith and for a
             2630      valuable consideration of the same real property or any portion thereof who has duly recorded
             2631      his conveyance at the time possession of the institution is taken, whether or not such a


             2632      purchaser exists.
             2633          (c) The commissioner may avoid any transfer of any interest in property of the
             2634      institution or any obligation incurred by the institution that is invalid or void as against, or is
             2635      voidable by a creditor that extends credit to the institution at the time possession of the
             2636      institution is taken by the commissioner, and that obtains, at such time and with respect to such
             2637      credit, a judgment lien or a lien by attachment, levy, execution, garnishment, or other judicial
             2638      lien on the property involved, whether or not such a creditor exists.
             2639          (d) The right of the commissioner under Subsections (6)(b) and (c) to avoid any
             2640      transfer of any interest in property of the institution shall be unaffected by and without regard
             2641      to any knowledge of the commissioner or of any creditor of the institution.
             2642          (e) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary
             2643      or involuntary, or disposing of or parting with property or with an interest in property,
             2644      including retention of title as a security interest.
             2645          (f) The commissioner may avoid and recover any payment or other transfer of any
             2646      interest in property of the institution to or for the benefit of a creditor, for or on account of an
             2647      antecedent debt owed by the institution before the transfer was made if the creditor at the time
             2648      of such transfer had reasonable cause to believe that the institution was insolvent, and if the
             2649      payment or other transfer will allow the creditor to obtain a greater percentage of his debt than
             2650      he would be entitled to under the provisions of Section 7-2-15 . For the purposes of this
             2651      subsection:
             2652          (i) antecedent debt does not include earned wages and salaries and other operating
             2653      expenses incurred and paid in the normal course of business;
             2654          (ii) a transfer of any interest in real property is deemed to have been made or suffered
             2655      when it became so far perfected that a subsequent good faith purchaser of the property from the
             2656      institution for a valuable consideration could not acquire an interest superior to the transferee;
             2657      and
             2658          (iii) a transfer of property other than real property is deemed to have been made or
             2659      suffered when it became so far perfected that a creditor on a simple contract could not acquire a
             2660      lien by attachment, levy, execution, garnishment, or other judicial lien superior to the interest
             2661      of the transferee.
             2662          (g) For purposes of this section, "date of possession" means the earlier of the date the


             2663      commissioner takes possession of a financial institution under Title 7, Chapter 2, or the date
             2664      when the commissioner enters an order suspending payments to depositors and other creditors
             2665      under Section 7-2-19 .
             2666          (7) (a) With or without the prior approval of the court, the commissioner or any federal
             2667      deposit insurance agency appointed by him as receiver or liquidator of a depository institution
             2668      closed by the commissioner under the provisions of this chapter may setoff against the deposits
             2669      or other liabilities of the institution any debts or other obligations of the depositor or claimant
             2670      due and owing to the institution. The amount of any setoff against the liabilities of the
             2671      institution shall be no greater than the amount the depositor or claimant would receive pursuant
             2672      to Section 7-2-15 after final liquidation of the institution. When the liquidation value of a
             2673      depositor's or claimant's claim against the institution will or may be less than the full amount of
             2674      the claim, setoff may be made prior to final liquidation if the commissioner or any receiver or
             2675      liquidator appointed by him can reasonably estimate the liquidation value of the claim, and the
             2676      court, after notice and opportunity for hearing, approves the estimate for purposes of making
             2677      the setoff. If the right of setoff is exercised, the commissioner or any receiver or liquidator
             2678      appointed by him shall give written notice to the depositor or claimant of the amount setoff.
             2679          (b) The existence and amount of a debtor or creditor relationship or both, between the
             2680      institution and its depositor or claimant and the right to the proceeds in a deposit account shall
             2681      be determined solely by the books and records of the institution.
             2682          (c) Any contract purporting to affect the right of setoff [must] shall be in writing and
             2683      signed by the depositor-debtor and an authorized officer of the institution and be maintained as
             2684      a part of the records of the institution.
             2685          (d) Any claim that a deposit account is a special account not subject to setoff because it
             2686      was maintained for a specific purpose or to satisfy a particular obligation other than satisfaction
             2687      of or as security for an indebtedness to the institution or that the right to the deposit actually
             2688      belongs to a third party [shall not] does not affect the right to setoff of the commissioner or any
             2689      receiver or liquidator appointed by him unless the special nature of the account is clearly
             2690      shown in the books and records of the institution.
             2691          (e) In the absence of any other instrument in writing, the terms and provisions of the
             2692      signature card applicable to a particular account in effect at the time the commissioner takes
             2693      possession of the institution shall be determinative of the right of setoff by the commissioner or


             2694      any receiver or liquidator appointed by him.
             2695          (f) Knowledge of the institution or of any director, officer, or employee of the
             2696      institution that the nature of the account is other than as shown in the books and records of the
             2697      institution [shall not] does not affect the right of setoff by the commissioner or any receiver or
             2698      liquidator appointed by him.
             2699          (g) The liability of the commissioner or any receiver or liquidator appointed by him for
             2700      exercising a right of setoff other than as authorized by this section shall be only to a person
             2701      who establishes by the procedure set forth in Section 7-2-6 that his interest in the account is
             2702      superior to that of the person whose debt to the institution was setoff against the account. The
             2703      amount of any such liability shall be no greater than the amount of the setoff and neither the
             2704      commissioner or any receiver or liquidator appointed by him shall be liable for any action taken
             2705      under this section unless the action taken is determined by the court to be arbitrary or
             2706      capricious.
             2707          Section 77. Section 7-5-2 is amended to read:
             2708           7-5-2. Permit required to engage in trust business -- Exceptions.
             2709          (1) No trust company shall accept any appointment to act in any agency or fiduciary
             2710      capacity, [such as but not limited to] including that of personal representative, executor,
             2711      administrator, conservator, guardian, assignee, receiver, depositary, or trustee under order or
             2712      judgment of any court or by authority of any law of this state or as trustee for any purpose
             2713      permitted by law or otherwise engage in the trust business in this state, unless and until it has
             2714      obtained from the commissioner a permit to act under this chapter. This provision [shall not]
             2715      does not apply to any bank or other corporation authorized to engage and lawfully engaged in
             2716      the trust business in this state before July 1, 1981.
             2717          (2) Nothing in this chapter prohibits:
             2718          (a) any corporation organized under Title 16, Chapter 6a or 10a, from acting as trustee
             2719      of any employee benefit trust established for the employees of the corporation or the employees
             2720      of one or more other corporations affiliated with the corporation;
             2721          (b) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit
             2722      Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or
             2723      religious organization from acting as a trustee for that organization or members of that
             2724      organization but not offering trust services to the general public;


             2725          (c) any corporation organized under Title 16, Chapter 6a or 10a, from holding in a
             2726      fiduciary capacity the controlling shares of another corporation but not offering trust services to
             2727      the general public; or
             2728          (d) any depository institution from holding in an agency or fiduciary capacity individual
             2729      retirement accounts or Keogh plan accounts established under Section 401(a) or 408(a) of Title
             2730      26 of the United States Code.
             2731          Section 78. Section 7-5-4 is amended to read:
             2732           7-5-4. Withdrawal from trust business.
             2733          Any trust company which desires to withdraw from and discontinue doing a trust
             2734      business shall furnish to the commissioner satisfactory evidence of its release and discharge
             2735      from all the obligations and trusts undertaken by it, and after the company has furnished that
             2736      evidence the commissioner shall revoke his certificate of authority to do a trust business
             2737      previously issued to that trust company, and thereafter that trust company [shall not] may not
             2738      be permitted to use and [shall not] may not use the word "trust" in its corporate name or in
             2739      connection with its business, nor undertake the administration of any trust business.
             2740          Section 79. Section 7-5-7 is amended to read:
             2741           7-5-7. Management and investment of trust funds.
             2742          (1) Funds received or held by any trust company as agent or fiduciary, whether for
             2743      investment or distribution, shall be invested or distributed as soon as practicable as authorized
             2744      under the instrument creating the account and [shall not] may not be held uninvested any
             2745      longer than is reasonably necessary.
             2746          (2) If the instrument creating an agency or fiduciary account contains provisions
             2747      authorizing the trust company, its officers, or its directors to exercise their discretion in the
             2748      matter of investments, funds held in the trust account under that instrument may be invested
             2749      only in those classes of securities which are approved by the directors of the trust company or a
             2750      committee of directors appointed for that purpose. If a trust company acts in any agency or
             2751      fiduciary capacity under appointment by a court of competent jurisdiction, it shall make and
             2752      account for all investments according to the provisions of Title 75, Utah Uniform Probate
             2753      Code, unless the underlying instrument provides otherwise.
             2754          (3) (a) Funds received or held as agent or fiduciary by any trust company which is also
             2755      a depository institution, whether for investment or distribution, may be deposited in the


             2756      commercial department or savings department of that trust company to the credit of its trust
             2757      department. Whenever the funds so deposited in a fiduciary or managing agency account
             2758      exceed the amount of federal deposit insurance applicable to that account, the trust company
             2759      shall deliver to the trust department or put under its control collateral security as outlined in
             2760      Regulation 9.10 of the Comptroller of the Currency or in Regulation 550.8 of the Office of
             2761      Thrift Supervision, as amended. However, if the instrument creating such a fiduciary or
             2762      managing agency account expressly provides that funds may be deposited to the commercial or
             2763      savings department of the trust company, then the funds may be so deposited without setting
             2764      aside collateral securities as required under this section and the deposits in the event of
             2765      insolvency of any such trust company shall be treated as other general deposits are treated. A
             2766      trust company which deposits trust funds in its commercial or savings department shall be
             2767      liable for interest on the deposits only at the rates, if any, paid by the trust company on deposits
             2768      of like kind not made to the credit of its trust department.
             2769          (b) Funds received or held as agent or fiduciary by a trust company, whether for
             2770      investment or distribution, may be deposited in an affiliated depository institution. Whenever
             2771      the funds so deposited in a fiduciary or managing agency account exceed the amount of federal
             2772      deposit insurance applicable to that account, the depository institution shall deliver to the trust
             2773      company or put under its control collateral security as outlined in Regulation 9.10 of the
             2774      Comptroller of the Currency or in Regulation 550.8 of the Office of Thrift Supervision as
             2775      amended. However, if the instrument creating the fiduciary or managing agency account
             2776      expressly permits funds to be deposited in the affiliated depository institution, the funds may be
             2777      so deposited without setting aside collateral securities as required under this section and
             2778      deposits in the event of insolvency of the depository institution shall be treated as other general
             2779      deposits are treated. A trust company which deposits trust funds in an affiliated depository
             2780      institution is liable for interest on the deposits only at the rates, if any, paid by the depository
             2781      institution on deposits of like kind.
             2782          (4) In carrying out all aspects of its trust business, a trust company shall have all the
             2783      powers, privileges, and duties as set forth in Sections 75-7-813 and 75-7-814 with respect to
             2784      trustees, whether or not the trust company is acting as a trustee as defined in Title 75.
             2785          (5) Nothing in this section may alter, amend, or limit the powers of a trust company
             2786      acting in a fiduciary capacity as specified in the particular instrument or order creating the


             2787      fiduciary relationship.
             2788          Section 80. Section 7-5-8 is amended to read:
             2789           7-5-8. Segregation of trust assets -- Books and records required -- Examination --
             2790      Trust property not subject to claims or debts against trust company.
             2791          A trust company exercising the powers to act as an agent or fiduciary under this chapter
             2792      shall segregate all assets held in any agency or fiduciary capacity from the general assets of the
             2793      company and shall keep a separate set of books and records showing in proper detail all
             2794      transactions engaged in under authority of this chapter. These books and records shall be open
             2795      to inspection by the commissioner and shall be examined by him or by examiners appointed by
             2796      him as provided in Chapter 1 or examined by other appropriate regulating agencies or both.
             2797      Property held in an agency or fiduciary capacity by a trust company [shall not be] is not subject
             2798      to claims or debts against the trust company.
             2799          Section 81. Section 7-5-11 is amended to read:
             2800           7-5-11. Self-dealing with trust property -- Own stock as trust property -- Policies
             2801      for dealing with trust securities.
             2802          (1) Except as provided in Section 7-5-7 , in Title 75, or as authorized under the
             2803      instrument creating the relationship, a trust company [shall not] may not invest funds held as an
             2804      agent or fiduciary in stock or obligations of, or with such funds acquire property from, the trust
             2805      company or any of its directors, officers or employees, nor shall a trust company sell property
             2806      held as an agent or fiduciary to the company or to any of its directors, officers, or employees.
             2807          (2) A trust company may retain and vote stock of the trust company or of any of its
             2808      affiliates received by it as assets of any trust account or in any other fiduciary relationship of
             2809      which it is appointed agent or fiduciary, unless the instrument creating the relationship
             2810      otherwise provides.
             2811          (3) Every trust company shall adopt written policies and procedures regarding
             2812      decisions or recommendations to purchase or sell any security to facilitate compliance with
             2813      federal and state securities laws. These policies and procedures, in particular, shall prohibit the
             2814      trust company from using material inside information in connection with any decision or
             2815      recommendation to purchase or sell any security.
             2816          Section 82. Section 7-7-2 is amended to read:
             2817           7-7-2. Definitions.


             2818          As used in this chapter:
             2819          (1) "Association" means a mutual or capital stock savings association, a savings and
             2820      loan association, a mutual or capital stock savings bank, or a building and loan association
             2821      subject to the provisions of this chapter, including all out-of-state associations qualified to do
             2822      business in this state.
             2823          (2) "Federal association" means a savings association, a savings and loan association,
             2824      or a savings bank, chartered by the Office of Thrift Supervision or successor federal agency.
             2825          (3) "Impaired condition" means a condition in which the assets of an association in the
             2826      aggregate do not have a fair value equal to the aggregate amount of liabilities of the association
             2827      to its creditors, including the holders of its savings accounts and all other persons.
             2828          (4) "Insured association" means an association the deposit accounts of which are
             2829      insured by the Federal Deposit Insurance Corporation or any successor agency of the federal
             2830      government.
             2831          (5) "Liquid assets" means cash on hand and cash on deposit in federal home loan
             2832      banks, federal reserve banks, state banks performing similar reserve functions, or in
             2833      commercial banks, which cash is withdrawable upon not more than 30 days notice and which is
             2834      not pledged as security for indebtedness. Any deposits in a financial institution under the
             2835      control or in the possession of any supervisory authority [shall not] may not be considered as
             2836      liquid assets. Liquid assets also means obligations of, or obligations that are fully guaranteed
             2837      as to principal and interest by, the United States, the Federal National Mortgage Association,
             2838      the Government National Mortgage Association, any federal home loan bank, or this state,
             2839      which obligations will mature in five years or less, and any other assets readily convertible into
             2840      cash.
             2841          (6) "Out-of-state association" means an association whose home state is not Utah.
             2842          (7) "Real estate loan" means any loan or other obligation secured by a lien on real
             2843      estate in any state held in fee or in a leasehold, and any transaction out of which a lien or its
             2844      equivalent is created against real estate, including the purchase of real estate in fee by an
             2845      association and the concurrent or immediate sale of the real estate on installment contract.
             2846          (8) "Savings liability" means the aggregate amount of savings accounts of depositors,
             2847      including earnings credited to those accounts, less redemptions and withdrawals.
             2848          (9) "Service organization" means an organization substantially all the activities of


             2849      which consist of originating, purchasing, selling, or servicing loans and participating interests
             2850      therein, or clerical, bookkeeping, accounting, statistical, or other similar functions or any
             2851      combination thereof performed primarily for financial institutions, plus such other activities as
             2852      the commissioner may approve.
             2853          (10) "Supervisor" means the supervisor of savings and loan associations.
             2854          (11) "Surplus" means the aggregate amount of the undistributed net income of an
             2855      association held as undivided profits or unallocated reserves for general corporate purposes,
             2856      and any paid-in surplus held by an association.
             2857          (12) "Withdrawal value" means the amount credited to a savings account less lawful
             2858      deductions, as shown by the records of the association.
             2859          Section 83. Section 7-7-4 is amended to read:
             2860           7-7-4. Mutual association -- Chair of incorporators -- Surety bond or escrow --
             2861      Capital requirements -- Expense fund -- Organization meeting.
             2862          (1) The incorporators of a mutual association shall appoint one of their number as chair
             2863      of the incorporators. This chair shall procure from a surety company or other surety
             2864      acceptable to the commissioner, a surety bond in an amount at least equal to the amount
             2865      subscribed by the incorporators plus the expense fund described in Subsection (2). This bond
             2866      shall name the commissioner as obligee and shall be delivered to him. It shall assure the
             2867      safekeeping of the funds described, their delivery to the association after the issuance of the
             2868      certificate of authority and after the bonding of the officers, and, in the event of the failure to
             2869      complete organization, the return of the amounts collected to the respective subscribers or their
             2870      assigns, less reasonable expense which shall be deducted from the expense fund. The required
             2871      surety may be waived by the commissioner if the funds are held in escrow so as to provide
             2872      similar assurance with regard to the funds. Before a certificate of authority is issued, the
             2873      incorporators shall pay in cash, to the chairman, as subscriptions to the savings accounts of the
             2874      proposed association, including that part of the original subscription paid by the chairman. The
             2875      minimum required capital shall be prescribed by the commissioner by rule. These capital
             2876      requirements may not be greater than those required by the Office of Thrift Supervision or
             2877      successor agency for the formation of a federally chartered mutual association.
             2878          (2) The incorporators, in addition to their subscriptions to savings accounts, shall
             2879      create an expense fund in an amount not less than 25% of the minimum amount of savings


             2880      account subscriptions required to be paid under this chapter. From this expense fund the
             2881      expense of organizing the association and its operating expenses may be paid until such time as
             2882      its net income is sufficient to pay such earnings as may be declared and paid or credited to its
             2883      savings account holders from sources available for payment of earnings. The incorporators and
             2884      others, before a certificate of authority is issued, shall deposit to the credit of the chairman of
             2885      the incorporators in cash the amount of the expense fund. The amounts contributed to the
             2886      expense fund by the incorporators and others [shall not] do not constitute a liability of the
             2887      association except as provided by this chapter.
             2888          (3) Contributions made by the incorporators and others to the expense fund may be
             2889      repaid pro rata to the contributors from the net income of the association after provision for
             2890      statutory reserves and declaration of earnings of not less than 2% on savings accounts. If an
             2891      association is liquidated before contributions to the expense fund have been repaid, any
             2892      contributions to the expense fund remaining unexpended, after the payment of expenses of
             2893      liquidation, all creditors, and the withdrawal value of all savings accounts, shall be repaid to
             2894      the contributors pro rata. The books of the association shall reflect the expense fund.
             2895      Contributors to the expense fund shall at the times earnings regularly are distributed to savings
             2896      account holders be paid earnings on the amounts paid in by them and for that purpose the
             2897      contributions shall in all respects be considered as savings accounts of the association.
             2898          (4) Within 90 days after the corporate existence of an association begins, the directors
             2899      of the association shall hold an organization meeting and shall adopt bylaws and elect officers
             2900      under this chapter. At the organization meeting the directors shall take such other action as is
             2901      appropriate in connection with beginning the transaction of business by the association. The
             2902      commissioner may extend by order the time within which the organization meeting shall be
             2903      held.
             2904          Section 84. Section 7-7-7 is amended to read:
             2905           7-7-7. Conversion of associations.
             2906          (1) Any state or federal mutual association and any federal capital stock association
             2907      may convert to a state capital stock association, and any state or federal capital stock
             2908      association and any federal mutual association may convert to a state mutual association upon
             2909      an equitable basis subject to the laws and rules governing the converting association, the
             2910      approval of the commissioner, the approval of the members or stockholders of the converting


             2911      association, and any rules adopted by the commissioner under this subsection.
             2912          (a) Upon receipt of the approval of a proposed conversion from the commissioner, a
             2913      converting association may, under the supervision of the supervisor, carry out the plan of
             2914      conversion. A record of all acts and proceedings taken by the board of directors of the
             2915      converting association in carrying out the proposed conversion shall be filed with the
             2916      supervisor.
             2917          (b) Upon the issuance to an applicant of a certificate of conversion, the corporate
             2918      existence of the converting applicant [shall not] does not terminate, but the applicant shall be a
             2919      continuation of the entity so converted. All property of the converting applicant, including its
             2920      rights, titles, and interests in and to all property of whatever kind, whether real, personal, or
             2921      mixed, things in action, and every right, privilege, interest and asset of any conceivable value
             2922      or benefit then existing, or pertaining to it, or which would inure to it, immediately, by
             2923      operation of law and without any conveyance or transfer and without any further act or deed,
             2924      shall vest in and remain the property of the converted applicant, and the same shall have, hold,
             2925      and enjoy that property in its own right as fully and to the same extent as that property was
             2926      possessed, held, and enjoyed by the converting applicant before the conversion, and the
             2927      converted applicant, upon issuance of the certificate of the conversion, shall continue to have
             2928      and succeed to all the rights, obligations, and relations of the converting applicant. Pending
             2929      actions and other judicial proceedings to which the converting applicant is a party [shall not be]
             2930      are not abated or discontinued by reason of the conversion, but may be prosecuted to final
             2931      judgment, order, or decree in the same manner as if conversion had not occurred, and the
             2932      converted applicant may continue the actions in its new corporate name. Any judgment, order,
             2933      or decree may be rendered for or against it which might have been rendered for or against the
             2934      converting applicant involved before the conversion in the proceedings.
             2935          (c) A conversion carried out under this Subsection (1) is effective on the date that all
             2936      provisions of this chapter and the rules adopted under it have been complied with and a
             2937      certificate of conversion has been issued by the commissioner.
             2938          (d) In adopting rules or issuing orders in connection with the conversion of an
             2939      association, the commissioner shall ensure that:
             2940          (i) accurate and adequate disclosure of the terms and effects of plans of conversion are
             2941      provided to purchasers of capital stock in resulting associations, including account holders of


             2942      converting mutual associations;
             2943          (ii) adjustments are made in plans of conversion to be effected by way of merger or
             2944      holding company acquisition necessary or appropriate to accomplish the purposes of this
             2945      section;
             2946          (iii) plans of conversion and proxy statements, offering circulars and related
             2947      instruments and actions implementing those plans are subject to review and approval by the
             2948      appropriate supervisory authorities;
             2949          (iv) the capital stock issued as a part of conversion is fairly and independently valued
             2950      and priced;
             2951          (v) the capital stock is allocated and distributed fairly and without employment of
             2952      manipulative or deceptive devices;
             2953          (vi) appropriate provision is made regarding fractional share interest and minimum
             2954      capital stock purchase requirements; and
             2955          (vii) plans of conversion are adopted and implemented in such form and manner that
             2956      stability and continuity of management are encouraged and that the stability, safety, and
             2957      soundness of associations and other financial institutions are not impaired. In no event shall
             2958      any rule or order issued by the commissioner regarding the conversion of an association make
             2959      it more difficult for an association subject to those rules or orders to implement conversion
             2960      than for an association subject only to federal laws and regulations.
             2961          (e) A conversion proposed by a domestic association shall, after approval by the
             2962      commissioner, be submitted to the members or stockholders at an annual meeting or at a
             2963      special meeting called to consider that action. The conversion [must] shall have the approval
             2964      of a majority of the total votes eligible to be cast by members or stockholders at the meeting.
             2965      Notice shall be given of any meeting at which a conversion is to be considered. The notice
             2966      shall expressly state that a proposed conversion will be submitted for approval or disapproval,
             2967      include a full and accurate description of the plan of conversion and all other matters to be
             2968      brought before the meeting, state that a proxy for the meeting given previously is revocable,
             2969      and state the time, date, and place of the meeting. The notice shall be mailed at least 20 days
             2970      prior to the date of the meeting to each voting member or stockholder of the converting
             2971      association addressed to his address shown on the records of the association and to the
             2972      supervisor or commissioner.


             2973          (f) If the commissioner finds that a conversion proceeding has been completed in
             2974      accordance with the requirements of this section and any other applicable law and rules, he
             2975      shall issue to the applicant a certificate of conversion, attaching as a part of the certificate a
             2976      copy of the charter, articles of incorporation, articles of association, or similar instrument. The
             2977      commissioner shall also cause the same to be filed with the Division of Corporations and
             2978      Commercial Code.
             2979          (2) Any state mutual or state capital stock association eligible under federal law or
             2980      regulations to become a federal association may convert to a federal association by following
             2981      the procedure outlined in this Subsection (2).
             2982          (a) At any regular meeting or at any special meeting of the members or stockholders of
             2983      the association called to consider the action and held in accordance with the laws governing the
             2984      association, the members or stockholders by majority vote of those present or voting by proxy
             2985      may declare by resolution the determination to convert the association into a federal
             2986      association.
             2987          (b) A copy of the minutes of the meeting of the members or shareholders verified by
             2988      the affidavit of the president or vice president and the secretary of the meeting shall be, within
             2989      10 days after the meeting, filed with the commissioner. This verified copy of the minutes of
             2990      the meeting, when so filed, shall be presumptive evidence of the holding of the meeting and of
             2991      the action there taken by the members or stockholders.
             2992          (c) Within a reasonable time and without any unnecessary delay after the adjournment
             2993      of the meeting of shareholders, the association shall take such action as may be necessary under
             2994      requirements of the Office of Thrift Supervision or other federal agency to make it a federal
             2995      association, and within 10 days after receipt of the federal charter there shall be filed with the
             2996      commissioner a copy of the charter or a certificate showing the organization of the association
             2997      as a federal association, certified by or on behalf of the Office of Thrift Supervision or other
             2998      federal agency. Upon the filing of these instruments the association shall cease to be a state
             2999      ass