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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:
19 Other Special Clauses:
21 Utah Code Sections Affected:
23 3-1-1, Utah Code Annotated 1953
24 3-1-9, as last amended by Laws of Utah 2007, Chapter 306
25 3-1-11, as last amended by Laws of Utah 2005, Chapter 110
26 3-1-13.8, as enacted by Laws of Utah 1994, Chapter 204
27 3-1-14, Utah Code Annotated 1953
28 3-1-15, Utah Code Annotated 1953
29 3-1-15.1, as enacted by Laws of Utah 1994, Chapter 204
30 3-1-17, as last amended by Laws of Utah 2007, Chapter 306
31 3-1-22, Utah Code Annotated 1953
32 3-1-26, Utah Code Annotated 1953
33 3-1-35, as last amended by Laws of Utah 1994, Chapter 203
34 3-1-37, as last amended by Laws of Utah 1994, Chapter 203
35 4-1-7, as enacted by Laws of Utah 1979, Chapter 2
36 4-2-8.7, as last amended by Laws of Utah 2009, Chapter 368
37 4-2-15, as enacted by Laws of Utah 1985, Chapter 104
38 4-5-5, as last amended by Laws of Utah 1990, Chapter 157
39 4-5-7, as last amended by Laws of Utah 2007, Chapter 179
40 4-5-8, as last amended by Laws of Utah 1990, Chapter 157
41 4-5-9, as last amended by Laws of Utah 2008, Chapter 382
42 4-5-15, as last amended by Laws of Utah 2007, Chapter 179
43 4-5-18, as last amended by Laws of Utah 1990, Chapter 157
44 4-7-8, as last amended by Laws of Utah 2003, Chapter 84
45 4-7-11, as last amended by Laws of Utah 1995, Chapter 41
46 4-9-15, as last amended by Laws of Utah 2008, Chapter 382
47 4-14-3, as last amended by Laws of Utah 2009, Chapter 183
48 4-15-2, as enacted by Laws of Utah 1981, Chapter 126
49 4-15-10, as enacted by Laws of Utah 1981, Chapter 126
50 4-17-7, as last amended by Laws of Utah 2009, Chapter 388
51 4-22-3, as last amended by Laws of Utah 1996, Chapter 243
52 4-22-6, as last amended by Laws of Utah 1999, Chapter 301
53 4-23-5, as last amended by Laws of Utah 2008, Chapter 382
54 4-23-6, as enacted by Laws of Utah 1979, Chapter 2
55 4-23-8, as last amended by Laws of Utah 2004, Chapter 128
56 4-24-2, as last amended by Laws of Utah 1997, Chapter 302
57 4-24-12, as last amended by Laws of Utah 2007, Chapter 240
58 4-24-20, as last amended by Laws of Utah 1997, Chapter 302
59 4-26-5, as enacted by Laws of Utah 1979, Chapter 2
60 4-29-2, as enacted by Laws of Utah 1979, Chapter 2
61 4-30-7.6, as enacted by Laws of Utah 1999, Chapter 298
62 4-31-16, as last amended by Laws of Utah 2007, Chapter 179
63 4-31-16.5, as last amended by Laws of Utah 2008, Chapter 382
64 4-32-3, as last amended by Laws of Utah 2007, Chapter 179
65 4-32-7, as last amended by Laws of Utah 2008, Chapter 382
66 4-32-16, as enacted by Laws of Utah 1979, Chapter 2
67 4-32-22, as last amended by Laws of Utah 2007, Chapter 179
68 4-35-7, as last amended by Laws of Utah 1990, Chapter 157
69 4-37-102, as renumbered and amended by Laws of Utah 1994, Chapter 153
70 4-37-109, as last amended by Laws of Utah 2008, Chapter 382
71 4-37-110, as enacted by Laws of Utah 1994, Chapter 153
72 4-37-202, as enacted by Laws of Utah 1994, Chapter 153
73 4-37-203, as enacted by Laws of Utah 1994, Chapter 153
74 4-37-204, as last amended by Laws of Utah 2008, Chapter 69
75 4-37-302, as enacted by Laws of Utah 1994, Chapter 153
76 4-37-303, as enacted by Laws of Utah 1994, Chapter 153
77 4-37-305, as enacted by Laws of Utah 1994, Chapter 153
78 4-37-402, as enacted by Laws of Utah 1994, Chapter 153
79 4-37-502, as last amended by Laws of Utah 2007, Chapter 191
80 4-37-503, as last amended by Laws of Utah 2008, Chapter 69
81 4-39-201, as enacted by Laws of Utah 1997, Chapter 302
82 4-39-205, as enacted by Laws of Utah 1997, Chapter 302
83 4-39-206, as enacted by Laws of Utah 1997, Chapter 302
84 4-39-302, as enacted by Laws of Utah 1997, Chapter 302
85 4-39-304, as enacted by Laws of Utah 1997, Chapter 302
86 4-39-305, as enacted by Laws of Utah 1997, Chapter 302
87 4-39-306, as enacted by Laws of Utah 1997, Chapter 302
88 6-1-3, Utah Code Annotated 1953
89 6-1-9, Utah Code Annotated 1953
90 6-1-15, Utah Code Annotated 1953
91 7-1-303, as enacted by Laws of Utah 1981, Chapter 16
92 7-1-309, as enacted by Laws of Utah 1981, Chapter 16
93 7-1-607, as enacted by Laws of Utah 1981, Chapter 16
94 7-1-612, as enacted by Laws of Utah 1981, Chapter 16
95 7-1-806, as enacted by Laws of Utah 1981, Chapter 16
96 7-2-9, as last amended by Laws of Utah 2008, Chapter 382
97 7-2-10, as last amended by Laws of Utah 1989, Chapter 267
98 7-2-12, as last amended by Laws of Utah 1989, Chapter 267
99 7-5-2, as last amended by Laws of Utah 2000, Chapter 300
100 7-5-4, as last amended by Laws of Utah 1982, Chapter 6
101 7-5-7, as last amended by Laws of Utah 2004, Chapter 89
102 7-5-8, as last amended by Laws of Utah 1982, Chapter 6
103 7-5-11, as last amended by Laws of Utah 1982, Chapter 6
104 7-7-2, as last amended by Laws of Utah 1995, Chapter 49
105 7-7-4, as last amended by Laws of Utah 1994, Chapter 200
106 7-7-7, as last amended by Laws of Utah 1994, Chapter 200
107 7-7-14, as last amended by Laws of Utah 1994, Chapter 200
108 7-7-15, as last amended by Laws of Utah 1989, Chapter 267
109 7-7-17, as enacted by Laws of Utah 1981, Chapter 16
110 7-7-19, as last amended by Laws of Utah 1994, Chapter 200
111 7-7-21, as last amended by Laws of Utah 1997, Chapter 111
112 7-7-26, as last amended by Laws of Utah 1995, Chapters 20 and 198
113 7-7-29, as last amended by Laws of Utah 1983, Chapter 8
114 7-7-30, as last amended by Laws of Utah 1983, Chapter 8
115 7-7-32, as last amended by Laws of Utah 1994, Chapter 200
116 7-7-33, as last amended by Laws of Utah 1994, Chapter 200
117 7-7-43, as enacted by Laws of Utah 1981, Chapter 16
118 7-9-5, as last amended by Laws of Utah 2003, Chapter 327
119 7-9-19, as enacted by Laws of Utah 1981, Chapter 16
120 7-9-32, as enacted by Laws of Utah 1981, Chapter 16
121 7-14-5, as enacted by Laws of Utah 1981, Chapter 16
122 7-17-4, as last amended by Laws of Utah 2002, Chapter 264
123 7-17-6, as enacted by Laws of Utah 1979, Chapter 124
124 7-17-8, as enacted by Laws of Utah 1979, Chapter 124
125 7-17-9, as enacted by Laws of Utah 1979, Chapter 124
126 7-18a-301, as enacted by Laws of Utah 1996, Chapter 63
127 8-3-1, Utah Code Annotated 1953
128 9-3-407, as last amended by Laws of Utah 2001, Chapter 151
129 9-4-301, as renumbered and amended by Laws of Utah 1992, Chapter 241
130 9-4-602, as last amended by Laws of Utah 2002, Chapter 185
131 9-4-703, as last amended by Laws of Utah 2006, Chapter 14
132 9-4-914, as last amended by Laws of Utah 2001, Chapter 319
133 9-4-924, as last amended by Laws of Utah 2001, Chapter 319
134 9-6-203, as renumbered and amended by Laws of Utah 1992, Chapter 241
135 9-6-405, as renumbered and amended by Laws of Utah 1992, Chapter 241
136 9-6-504, as last amended by Laws of Utah 2008, Chapter 382
137 9-7-213, as last amended by Laws of Utah 2008, Chapter 382
138 9-7-504, as last amended by Laws of Utah 2003, Chapter 47
139 9-12-103, as last amended by Laws of Utah 2008, Chapter 382
140 9-12-201, as renumbered and amended by Laws of Utah 1998, Chapter 336
141 10-1-105, as enacted by Laws of Utah 1977, Chapter 48
142 10-1-108, as last amended by Laws of Utah 1993, Chapter 4
143 10-1-109, as enacted by Laws of Utah 1977, Chapter 48
144 10-1-112, as enacted by Laws of Utah 1977, Chapter 48
145 10-1-113, as enacted by Laws of Utah 1977, Chapter 48
146 10-2-109, as last amended by Laws of Utah 2008, Chapter 16
147 10-2-303, as last amended by Laws of Utah 2008, Chapter 19
148 10-2-403, as last amended by Laws of Utah 2009, Chapters 205 and 273
149 10-2-510, as last amended by Laws of Utah 1997, Chapter 389
150 10-2-614, as enacted by Laws of Utah 1977, Chapter 48
151 10-3-508, as enacted by Laws of Utah 1977, Chapter 48
152 10-3-608, as last amended by Laws of Utah 1993, Chapter 4
153 10-3-702, as enacted by Laws of Utah 1977, Chapter 48
154 10-3-704, as enacted by Laws of Utah 1977, Chapter 48
155 10-3-717, as enacted by Laws of Utah 1977, Chapter 48
156 10-3-905, as enacted by Laws of Utah 1977, Chapter 48
157 10-3-907, as enacted by Laws of Utah 1977, Chapter 48
158 10-3-912, as last amended by Laws of Utah 1991, Chapter 221
159 10-3-1004, as last amended by Laws of Utah 1977, Chapter 39
160 10-3-1011, as enacted by Laws of Utah 1977, Chapter 48
161 10-3-1012.5, as enacted by Laws of Utah 1991, Chapter 221
162 10-3-1306, as last amended by Laws of Utah 1989, Chapter 147
163 10-5-103, as enacted by Laws of Utah 1983, Chapter 34
164 10-5-107, as last amended by Laws of Utah 2006, Chapter 178
165 10-5-114, as enacted by Laws of Utah 1983, Chapter 34
166 10-5-115, as enacted by Laws of Utah 1983, Chapter 34
167 10-6-111, as last amended by Laws of Utah 2009, Chapter 350
168 10-6-116, as last amended by Laws of Utah 1999, Chapter 300
169 10-6-123, as enacted by Laws of Utah 1979, Chapter 26
170 10-6-159, as last amended by Laws of Utah 1993, Chapter 4
171 10-7-4, as last amended by Laws of Utah 2004, Chapter 207
172 10-7-5, Utah Code Annotated 1953
173 10-7-18, as last amended by Laws of Utah 2002, Chapter 90
174 10-7-32, Utah Code Annotated 1953
175 10-7-71, Utah Code Annotated 1953
176 10-7-72, Utah Code Annotated 1953
177 10-7-73, Utah Code Annotated 1953
178 10-7-85, as enacted by Laws of Utah 1977, Chapter 36
179 10-8-15, Utah Code Annotated 1953
180 10-8-16, Utah Code Annotated 1953
181 10-8-17, Utah Code Annotated 1953
182 10-8-33, Utah Code Annotated 1953
183 10-8-36, Utah Code Annotated 1953
184 10-8-58.5, as last amended by Laws of Utah 2008, Chapter 382
185 10-9a-403, as last amended by Laws of Utah 2008, Chapter 168
186 10-9a-509.5, as last amended by Laws of Utah 2008, Chapter 112
187 10-9a-514, as renumbered and amended by Laws of Utah 2005, Chapter 254
188 10-9a-519, as renumbered and amended by Laws of Utah 2005, Chapter 254
189 10-11-2, Utah Code Annotated 1953
190 10-15-4, as last amended by Laws of Utah 2008, Chapter 360
191 11-8-1, as enacted by Laws of Utah 1957, Chapter 30
192 11-13-309, as renumbered and amended by Laws of Utah 2002, Chapter 286
193 11-13-311, as last amended by Laws of Utah 2003, Chapter 21
194 11-14-302, as last amended by Laws of Utah 2006, Chapter 83
195 11-14-308, as last amended by Laws of Utah 2007, Chapter 303
196 11-14-313, as last amended by Laws of Utah 2006, Chapter 83
197 11-14-315, as last amended by Laws of Utah 2009, Chapter 388
198 11-17-1.5, as last amended by Laws of Utah 2005, Chapter 148
199 11-17-2, as last amended by Laws of Utah 2009, Chapter 92
200 11-17-4, as last amended by Laws of Utah 1986, Chapter 206
201 11-17-5, as last amended by Laws of Utah 1986, Chapter 206
202 11-17-7, as last amended by Laws of Utah 1986, Chapter 206
203 11-17-10, as last amended by Laws of Utah 1987, Chapter 2
204 11-25-9, as enacted by Laws of Utah 1977, Chapter 276
205 11-25-11, as last amended by Laws of Utah 2006, Chapter 359
206 11-27-5, as last amended by Laws of Utah 2009, Chapter 388
207 11-30-2, as last amended by Laws of Utah 2007, Chapter 329
208 11-31-2, as last amended by Laws of Utah 2007, Chapter 329
209 11-32-7, as enacted by Laws of Utah 1987, Chapter 143
210 11-34-1, as last amended by Laws of Utah 2007, Chapter 329
211 11-34-2, as enacted by Laws of Utah 1987, Chapter 200
212 11-36-401, as last amended by Laws of Utah 2009, Chapter 181
213 13-1-1, as enacted by Laws of Utah 1983, Chapter 322
214 13-1a-6, as last amended by Laws of Utah 2008, Chapter 382
215 13-2-6, as last amended by Laws of Utah 2008, Chapter 382
216 13-5-3, as last amended by Laws of Utah 1993, Chapter 4
217 13-5-12, as last amended by Laws of Utah 1997, Chapter 10
218 13-5-16, Utah Code Annotated 1953
219 13-7-1, as last amended by Laws of Utah 1973, Chapter 18
220 13-7-2, as last amended by Laws of Utah 1987, Chapter 92
221 13-11-6, as last amended by Laws of Utah 1991, Chapter 268
222 13-11-19, as last amended by Laws of Utah 1995, Chapter 198
223 13-11-20, as last amended by Laws of Utah 1992, Chapter 30
224 13-11a-3, as last amended by Laws of Utah 2009, Chapter 133
225 13-12-3, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
226 13-12-4, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
227 13-12-7, as enacted by Laws of Utah 1975, First Special Session, Chapter 6
228 13-13-4, as enacted by Laws of Utah 1979, Chapter 147
229 13-14b-103, as enacted by Laws of Utah 2003, Chapter 225
230 13-15-4, as last amended by Laws of Utah 2009, Chapter 183
231 13-15-5, as last amended by Laws of Utah 1987, Chapter 92
232 13-32-103, as enacted by Laws of Utah 1999, Chapter 68
233 13-32-104, as enacted by Laws of Utah 1999, Chapter 68
234 13-32-107, as enacted by Laws of Utah 1999, Chapter 68
235 13-32a-109.8, as last amended by Laws of Utah 2009, Chapter 272
236 13-34-104, as last amended by Laws of Utah 2008, Chapter 382
237 13-34-105, as last amended by Laws of Utah 2009, Chapter 372
238 13-34-107, as last amended by Laws of Utah 2009, Chapter 183
239 13-41-102, as last amended by Laws of Utah 2008, Chapter 382
240 13-42-105, as last amended by Laws of Utah 2009, Chapters 183 and 229
241 13-42-106, as enacted by Laws of Utah 2006, Chapter 154
242 13-42-111, as last amended by Laws of Utah 2009, Chapters 183 and 229
243 13-42-113, as enacted by Laws of Utah 2006, Chapter 154
244 13-42-117, as last amended by Laws of Utah 2009, Chapter 229
245 13-42-118, as last amended by Laws of Utah 2009, Chapter 229
246 13-42-119, as last amended by Laws of Utah 2009, Chapter 229
247 13-42-120, as last amended by Laws of Utah 2009, Chapter 229
248 13-42-121, as enacted by Laws of Utah 2006, Chapter 154
249 13-42-122, as last amended by Laws of Utah 2009, Chapter 229
250 13-42-132, as last amended by Laws of Utah 2009, Chapter 183
251 13-42-137, as enacted by Laws of Utah 2006, Chapter 154
252 13-42-138, as enacted by Laws of Utah 2006, Chapter 154
253 14-1-20, as last amended by Laws of Utah 2005, Chapter 64
254 14-2-5, as last amended by Laws of Utah 2005, Chapter 64
255 15-2-5, as enacted by Laws of Utah 1971, Chapter 20
256 15-3-4, Utah Code Annotated 1953
257 15-4-2, Utah Code Annotated 1953
258 15-4-4, Utah Code Annotated 1953
259 15-4-7, Utah Code Annotated 1953
260 15-9-105, as last amended by Laws of Utah 2008, Chapter 382
261 15-9-106, as last amended by Laws of Utah 2008, Chapter 382
262 15-9-109, as last amended by Laws of Utah 2009, Chapter 183
263 15-9-110, as enacted by Laws of Utah 2001, Chapter 237
264 15-9-118, as enacted by Laws of Utah 2001, Chapter 237
265 16-6a-709, as last amended by Laws of Utah 2007, Chapter 315
266 16-6a-808, as last amended by Laws of Utah 2001, Chapter 127
267 16-6a-1419, as enacted by Laws of Utah 2000, Chapter 300
268 16-7-10, Utah Code Annotated 1953
269 16-10a-103, as last amended by Laws of Utah 2009, Chapter 388
270 16-10a-120, as last amended by Laws of Utah 2008, Chapter 364
271 16-10a-201, as enacted by Laws of Utah 1992, Chapter 277
272 16-10a-202, as last amended by Laws of Utah 2008, Chapter 364
273 16-10a-401, as last amended by Laws of Utah 2002, Chapter 222
274 16-10a-601, as enacted by Laws of Utah 1992, Chapter 277
275 16-10a-602, as enacted by Laws of Utah 1992, Chapter 277
276 16-10a-603, as enacted by Laws of Utah 1992, Chapter 277
277 16-10a-604, as enacted by Laws of Utah 1992, Chapter 277
278 16-10a-620, as enacted by Laws of Utah 1992, Chapter 277
279 16-10a-621, as enacted by Laws of Utah 1992, Chapter 277
280 16-10a-625, as enacted by Laws of Utah 1992, Chapter 277
281 16-10a-704, as last amended by Laws of Utah 1993, Chapter 184
282 16-10a-705, as enacted by Laws of Utah 1992, Chapter 277
283 16-10a-706, as enacted by Laws of Utah 1992, Chapter 277
284 16-10a-707, as enacted by Laws of Utah 1992, Chapter 277
285 16-10a-720, as last amended by Laws of Utah 2008, Chapter 364
286 16-10a-722, as last amended by Laws of Utah 2001, Chapter 218
287 16-10a-723, as enacted by Laws of Utah 1992, Chapter 277
288 16-10a-725, as enacted by Laws of Utah 1992, Chapter 277
289 16-10a-727, as enacted by Laws of Utah 1992, Chapter 277
290 16-10a-730, as enacted by Laws of Utah 1992, Chapter 277
291 16-10a-732, as enacted by Laws of Utah 1992, Chapter 277
292 16-10a-801, as enacted by Laws of Utah 1992, Chapter 277
293 16-10a-803, as enacted by Laws of Utah 1992, Chapter 277
294 16-10a-808, as enacted by Laws of Utah 1992, Chapter 277
295 16-10a-822, as enacted by Laws of Utah 1992, Chapter 277
296 16-10a-823, as enacted by Laws of Utah 1992, Chapter 277
297 16-10a-825, as enacted by Laws of Utah 1992, Chapter 277
298 16-10a-904, as enacted by Laws of Utah 1992, Chapter 277
299 16-10a-1003, as enacted by Laws of Utah 1992, Chapter 277
300 16-10a-1007, as enacted by Laws of Utah 1992, Chapter 277
301 16-10a-1022, as enacted by Laws of Utah 1992, Chapter 277
302 16-10a-1023, as enacted by Laws of Utah 2007, Chapter 85
303 16-10a-1101, as enacted by Laws of Utah 1992, Chapter 277
304 16-10a-1102, as enacted by Laws of Utah 1992, Chapter 277
305 16-10a-1103, as last amended by Laws of Utah 1993, Chapter 184
306 16-10a-1202, as enacted by Laws of Utah 1992, Chapter 277
307 16-10a-1303, as enacted by Laws of Utah 1992, Chapter 277
308 16-10a-1320, as enacted by Laws of Utah 1992, Chapter 277
309 16-10a-1321, as enacted by Laws of Utah 1992, Chapter 277
310 16-10a-1322, as enacted by Laws of Utah 1992, Chapter 277
311 16-10a-1323, as enacted by Laws of Utah 1992, Chapter 277
312 16-10a-1325, as enacted by Laws of Utah 1992, Chapter 277
313 16-10a-1330, as last amended by Laws of Utah 2008, Chapter 364
314 16-10a-1402, as enacted by Laws of Utah 1992, Chapter 277
315 16-10a-1404, as enacted by Laws of Utah 1992, Chapter 277
316 16-10a-1406, as enacted by Laws of Utah 1992, Chapter 277
317 16-10a-1407, as last amended by Laws of Utah 2009, Chapter 388
318 16-10a-1434, as enacted by Laws of Utah 1992, Chapter 277
319 16-10a-1506, as enacted by Laws of Utah 1992, Chapter 277
320 16-10a-1507, as enacted by Laws of Utah 1992, Chapter 277
321 16-10a-1510, as enacted by Laws of Utah 1992, Chapter 277
322 16-10a-1533, as enacted by Laws of Utah 1994, Chapter 31
323 16-10a-1607, as last amended by Laws of Utah 2008, Chapter 364
324 16-11-6, as enacted by Laws of Utah 1963, Chapter 20
325 16-11-8, as last amended by Laws of Utah 2000, Chapters 71 and 261
326 16-11-15, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
327 16-11-16, as last amended by Laws of Utah 2002, Chapter 222
328 16-12-5, as enacted by Laws of Utah 1965, Chapter 114
329 16-12-6, as enacted by Laws of Utah 1965, Chapter 114
330 16-13-4, as last amended by Laws of Utah 1992, Third Special Session, Chapter 6
331 16-13-5, as last amended by Laws of Utah 1979, Chapter 55
332 16-13-9, as last amended by Laws of Utah 1979, Chapter 55
333 16-13-11, as enacted by Laws of Utah 1965, Chapter 27
334 16-16-111, as enacted by Laws of Utah 2008, Chapter 363
335 16-16-112, as enacted by Laws of Utah 2008, Chapter 363
336 16-16-113, as enacted by Laws of Utah 2008, Chapter 363
337 16-16-114, as enacted by Laws of Utah 2008, Chapter 363
338 16-16-117, as enacted by Laws of Utah 2008, Chapter 363
339 16-16-118, as enacted by Laws of Utah 2008, Chapter 363
340 16-16-119, as enacted by Laws of Utah 2008, Chapter 363
341 16-16-201, as enacted by Laws of Utah 2008, Chapter 363
342 16-16-203, as enacted by Laws of Utah 2008, Chapter 363
343 16-16-204, as enacted by Laws of Utah 2008, Chapter 363
344 16-16-207, as enacted by Laws of Utah 2008, Chapter 363
345 16-16-301, as enacted by Laws of Utah 2008, Chapter 363
346 16-16-302, as enacted by Laws of Utah 2008, Chapter 363
347 16-16-304, as enacted by Laws of Utah 2008, Chapter 363
348 16-16-402, as enacted by Laws of Utah 2008, Chapter 363
349 16-16-403, as enacted by Laws of Utah 2008, Chapter 363
350 16-16-404, as enacted by Laws of Utah 2008, Chapter 363
351 16-16-405, as enacted by Laws of Utah 2008, Chapter 363
352 16-16-407, as enacted by Laws of Utah 2008, Chapter 363
353 16-16-501, as enacted by Laws of Utah 2008, Chapter 363
354 16-16-507, as enacted by Laws of Utah 2008, Chapter 363
355 16-16-508, as enacted by Laws of Utah 2008, Chapter 363
356 16-16-603, as enacted by Laws of Utah 2008, Chapter 363
357 16-16-801, as enacted by Laws of Utah 2008, Chapter 363
358 16-16-803, as enacted by Laws of Utah 2008, Chapter 363
359 16-16-804, as enacted by Laws of Utah 2008, Chapter 363
360 16-16-809, as enacted by Laws of Utah 2008, Chapter 363
361 16-16-813, as enacted by Laws of Utah 2008, Chapter 363
362 16-16-1001, as enacted by Laws of Utah 2008, Chapter 363
363 16-16-1002, as enacted by Laws of Utah 2008, Chapter 363
364 16-16-1004, as enacted by Laws of Utah 2008, Chapter 363
365 16-16-1202, as enacted by Laws of Utah 2008, Chapter 363
366 16-16-1205, as enacted by Laws of Utah 2008, Chapter 363
367 16-16-1208, as enacted by Laws of Utah 2008, Chapter 363
368 16-16-1209, as last amended by Laws of Utah 2009, Chapter 388
369 16-16-1212, as enacted by Laws of Utah 2008, Chapter 363
370 16-16-1213, as enacted by Laws of Utah 2008, Chapter 363
371 16-16-1303, as enacted by Laws of Utah 2008, Chapter 363
372 16-16-1402, as enacted by Laws of Utah 2008, Chapter 363
373 16-16-1405, as enacted by Laws of Utah 2008, Chapter 363
374 16-16-1406, as enacted by Laws of Utah 2008, Chapter 363
375 16-16-1407, as enacted by Laws of Utah 2008, Chapter 363
376 16-16-1503, as enacted by Laws of Utah 2008, Chapter 363
377 16-16-1504, as enacted by Laws of Utah 2008, Chapter 363
378 16-16-1602, as enacted by Laws of Utah 2008, Chapter 363
379 16-16-1603, as enacted by Laws of Utah 2008, Chapter 363
380 16-16-1604, as enacted by Laws of Utah 2008, Chapter 363
381 16-16-1606, as enacted by Laws of Utah 2008, Chapter 363
382 16-16-1607, as enacted by Laws of Utah 2008, Chapter 363
383 16-16-1608, as enacted by Laws of Utah 2008, Chapter 363
384 16-16-1609, as enacted by Laws of Utah 2008, Chapter 363
385 16-16-1701, as enacted by Laws of Utah 2008, Chapter 363
386 16-17-202, as enacted by Laws of Utah 2008, Chapter 364
387 16-17-203, as enacted by Laws of Utah 2008, Chapter 364
388 16-17-204, as enacted by Laws of Utah 2008, Chapter 364
389 16-17-210, as enacted by Laws of Utah 2008, Chapter 364
390 16-17-301, as enacted by Laws of Utah 2008, Chapter 364
391 16-17-402, as enacted by Laws of Utah 2008, Chapter 364
393 Be it enacted by the Legislature of the state of Utah:
394 Section 1. Section 3-1-1 is amended to read:
395 3-1-1. Declaration of policy.
396 It is the declared policy of this state, as one means of improving the economic position
397 of agriculture, to encourage the organization of producers of agricultural products into effective
398 associations under the control of such producers, and to that end this act [
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 [
441 centum of the value of all its purchases. Business transacted by an association for or on behalf
442 of the United States or any agency or instrumentality thereof, shall be disregarded in
443 determining the volume or value of member and nonmember business transacted by such
445 (i) if engaged in marketing the products of its members, to hedge its operations;
446 (j) to have a corporate seal and to alter the same at pleasure;
447 (k) to continue as a corporation for the time limited in its articles, and if no time limit
448 is specified then perpetually;
449 (l) to sue and be sued in its corporate name;
450 (m) to conduct business in this state and elsewhere as may be permitted by law; and
451 (n) to dissolve and wind up.
452 Section 3. Section 3-1-11 is amended to read:
453 3-1-11. Certificates of and termination of membership -- Dividends and
454 distribution of reserves -- Preferred stock -- Certificates of interest -- Unclaimed credits.
455 (1) No certificate for membership or stock shall be issued until fully paid for, but
456 bylaws may provide that a member may vote and hold office prior to payment in full for his
457 membership or stock.
458 (2) Dividends in excess of eight per centum per annum on the actual cash value of the
459 consideration received by the association [
460 membership capital, but dividends may be cumulative if so provided in the articles or bylaws.
461 (3) (a) Savings in excess of dividends and additions to reserves and surplus shall be
462 distributed on the basis of patronage.
463 (b) The bylaws may provide that any distribution to a nonmember, who is eligible for
464 membership, may be credited to that nonmember until the amount of the distribution equals 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
472 (b) Provisions for forfeiture of membership interests may be made in the bylaws.
473 (c) After the termination of the membership, for whatever cause, the withdrawing
474 member shall exercise no further control over the facilities, assets, or activities of the
475 association. The withdrawing member may not claim or receive any assets of the association
476 except as follows:
477 (i) undistributed patronage allocated to the withdrawing member may be paid to the
478 withdrawing member pursuant to the association's bylaws;
479 (ii) the withdrawing member may be reimbursed for the par value of membership or
480 stock in the association pursuant to the association's articles, bylaws, and membership
481 agreement; and
482 (iii) the withdrawing member shall receive any distributions to which the member is
483 entitled pursuant to Subsection 3-1-20 (3)(d).
484 (5) (a) An association may issue preferred stock to members and nonmembers.
485 (b) Preferred stock may be redeemed or retired by the association on the terms and
486 conditions as are provided in the articles or bylaws and printed on the stock certificates.
487 (c) Preferred stockholders [
488 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
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
504 (b) The association may retain revolving certificates of interest described in this
505 Subsection (7) as an exception to the provisions of Title 67, Chapter 4a, Unclaimed Property
506 Act, if:
507 (i) the board of directors of the association determines to revolve the certificates and
508 the certificates remain unclaimed by the association's members or former members for five
509 years after the credit is declared;
510 (ii) the association is authorized to retain those credits by its bylaws;
511 (iii) the board of directors of the association approves the retention; and
512 (iv) before retaining the credits, the association makes a reasonable effort to locate and
513 communicate the issuance of the credits to the members or former members.
514 (c) (i) The board of directors may either add the unclaimed credits as a contribution to
515 the capital fund, or use them to establish an agricultural educational program as described in
516 Subsection (7)(c)(ii).
517 (ii) If the board of directors chooses to use the unclaimed credits to establish an
518 agricultural educational program, it shall establish an agricultural educational program to:
519 (A) provide scholarships for low income and worthy students to colleges and
521 (B) provide funding for director training and education;
522 (C) provide funds for cooperative education programs in secondary or higher 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 [
546 discretion of the board of directors.
547 (2) The creation of a committee and appointment of members to it [
548 approved by the greater of:
549 (a) a majority of all the directors in office when the action is taken; or
550 (b) the number of directors required by the articles of incorporation or bylaws to take
551 action under Section 3-1-13.6 .
552 (3) Sections 3-1-13.2 and 3-1-13.6 shall apply to committees and their members.
553 (4) The board of directors, the articles of incorporation, or the bylaws may provide the
554 scope of the authority that each committee may exercise.
555 (5) The creation of, delegation of authority to, or action by a committee does not alone
556 constitute compliance by a director with the standards of conduct described in Section
557 3-1-13.3 .
558 Section 5. Section 3-1-14 is amended to read:
559 3-1-14. Removal of director.
560 Any member may ask for the removal of a director by filing charges with the secretary
561 or president of the association, together with a petition signed by 10 per centum of the
562 members requesting the removal of the director in question. The removal shall be voted upon 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 [
569 signed by 20 per centum of the members residing in the district from which he was elected. The
570 board [
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 [
578 be directors, but a vice-president who is not a director cannot succeed to or fill the office of
579 president. Any two of the offices of vice-president, secretary and treasurer may be combined in
580 one person.
581 Section 7. Section 3-1-15.1 is amended to read:
582 3-1-15.1. Duties of officers.
583 Each officer has the authority and [
584 bylaws, or, to the extent consistent with the bylaws, the duties prescribed by the directors or by
585 the officer authorized by the board of directors to prescribe the duties of other officers.
586 Section 8. Section 3-1-17 is amended to read:
587 3-1-17. Contracts with association.
588 (1) (a) The bylaws may require members to execute contracts with the association in
589 which the members agree to patronize the facilities created by the association, and to sell all or
590 a specified part of their products to or through it, or to buy all or a specified part of their
591 supplies from or through the association or any facilities created by it.
592 (b) If the members contract to sell through the association, the fact that for certain
593 purposes the relation between the association and its members may be one of agency [
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 [
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
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 [
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 [
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 [
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 [
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
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 [
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 [
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 [
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
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 [
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
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 [
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 [
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 [
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
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) [
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)
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 [
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 [
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) [
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
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 [
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
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 [
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 [
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 [
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 [
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 [
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 [
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
960 (13) The packaging and labeling of a color additive [
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 [
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
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) [
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
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
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 [
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 [
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 [
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
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;
1129 (ii) request a verified written statement setting forth the amount claimed due from the
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 [
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 [
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
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
1288 (8) A person [
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
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
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 [
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
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 [
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 [
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 [
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
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 [
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
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 [
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
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[
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 [
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 [
1478 the year immediately succeeding the year for which the fee was paid.
1479 (e) A refund claim [
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
1495 (2) "Carcass" means any part of the body of an animal, including [
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
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
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 --
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 [
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 [
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 [
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
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 [
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
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 [
1627 and the amount due and payable to each from funds in the custodial account.
1628 (6) The custodial account [
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 [
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.
1665 (2) (a) Instate origin replacement cattle that are kept for breeding stock [
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
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 [
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 [
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 [
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.
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
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
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
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
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
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
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 [
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
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
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 [
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
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 [
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 [
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 [
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) [
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 [
1997 aquaculture or fee fishing facility for a period of two years and [
1998 inspection by a department representative during reasonable hours:
1999 (a) records of purchase, acquisition, distribution, and production histories of aquatic
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
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 [
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 [
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) [
2022 before a certificate of registration is renewed or a subsequent certificate of registration is
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 [
2031 the fish, including:
2032 (a) name, address, certificate of registration number and health approval number of the
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 [
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 [
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 [
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
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) [
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 [
2103 shall submit to the department an annual report of all live fish purchased or acquired.
2104 (b) The report [
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 [
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 [
2118 (a) name, address, certificate of registration number and health approval number of the
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 [
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 [
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 [
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 [
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
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
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
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 [
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
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
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
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 [
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 [
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 [
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 [
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 [
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, [
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 [
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
2345 Any domesticated elk transferred to or from a domesticated elk facility within the state
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 [
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 [
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
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 [
2389 within said time and allowed by the court, unless the court has extended the time for filing such
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, [
2396 (1) mutual exchange of financial information as to depositors, borrowers, and other
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 [
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 [
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 [
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 [
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 [
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
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
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 [
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 [
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
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;
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 [
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 [
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 [
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
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, [
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 [
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 [
2738 be permitted to use and [
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 [
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 [
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 [
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
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 [
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
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 [
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
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
2917 (b) Upon the issuance to an applicant of a certificate of conversion, the corporate
2918 existence of the converting applicant [
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 [
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
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 [
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
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 association and shall thereafter be a federal association.
3000 (d) Upon completion of a conversion to a federal association, the corporate existence
3001 of the converting association [
3002 continuation of the entity so converted. All property of the converting association, including its
3003 rights, titles, and interests in and to all property of whatever kind, whether real, personal, or
3004 mixed, things in action, and every right, privilege, interest, and asset of any conceivable value
3005 or benefit then existing, or pertaining to it, or which would inure to it, immediately, by
3006 operation of law and without any conveyance or transfer and without any further act or deed,
3007 shall vest in and remain the property of the converted association, and the same shall have,
3008 hold, and enjoy that property in its own right as fully and to the same extent as that property
3009 was possessed, held, and enjoyed by the converting association, and the converted association
3010 shall continue to have and succeed to all the rights, obligations, and relations of the converting
3011 association. All pending actions and other judicial proceedings to which the converting
3012 association is a party [
3013 but may be prosecuted to final judgment, order, or decree in the same manner as if the
3014 conversion had not been made, and the converted association may continue the actions in its
3015 new corporate name. Any judgment, order, or decree may be rendered for or against it which
3016 might have been rendered for or against the converting association before the conversion
3017 involved in the proceedings.
3018 (e) Upon the completion of a conversion to a federal association, the converted
3019 association shall cease to be supervised by the commissioner or by this state except as a federal
3021 Section 85. Section 7-7-14 is amended to read:
3022 7-7-14. Bonding of directors, officers, employees, and collection agents.
3023 Each director, officer, and employee of an association shall, before entering upon the
3024 performance of any duty, execute an individual bond with adequate corporate surety payable to
3025 the association as an indemnity for any loss the association may sustain of money or other
3026 property by or through any fraud, dishonesty, forgery or alteration, larceny, theft,
3027 embezzlement, robbery, burglary, hold-up, wrongful or unlawful abstraction, misapplication,
3028 misplacement, destruction or misappropriation, or any other dishonest or criminal act or
3029 omission by the director, officer, employee, or agent. An association which employs collection
3030 agents, who for any reason are not covered by a bond as hereinabove required, shall provide for
3031 the bonding of each such agent in an amount equal to at least twice the average monthly
3032 collection of the agent. No bond coverage will be required of any agent which is a financial
3033 institution insured by the Federal Deposit Insurance Corporation or other federal deposit
3034 insurance agency. In lieu of individual bonds, a blanket bond, protecting the association from
3035 loss through any such act or acts on the part of any such director, officer, or employee, may be
3036 obtained. A true copy of every such indemnity bond shall be on file at all times with the
3037 supervisor. Each bond shall provide that a cancellation of the bond either by the surety or by