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H.B. 186 Enrolled

             1     

UTAH CODE TECHNICAL AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Brad J. Galvez

             5     
Senate Sponsor: Stuart C. Reid

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill replaces the terms "monies" and "moneys" with the term "money" throughout
             10      the Utah Code.
             11      Highlighted Provisions:
             12          This bill:
             13          .    replaces the terms "monies" and "moneys" with the term "money" throughout the
             14      Utah Code; and
             15          .    makes technical changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          None
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          4-2-8.5, as last amended by Laws of Utah 2008, Chapter 382
             23          4-20-3, as last amended by Laws of Utah 2010, Chapter 278
             24          9-3-606, as enacted by Laws of Utah 2010, Chapter 152
             25          9-4-630, as renumbered and amended by Laws of Utah 1992, Chapter 241
             26          9-4-704, as last amended by Laws of Utah 2010, Chapter 279
             27          9-4-707, as last amended by Laws of Utah 2003, Chapter 95
             28          9-4-708, as last amended by Laws of Utah 2008, Chapter 381
             29          9-4-914, as last amended by Laws of Utah 2010, Chapter 378


             30          9-4-1409, as last amended by Laws of Utah 2009, Chapter 385
             31          9-6-503, as renumbered and amended by Laws of Utah 1992, Chapter 241
             32          9-6-506, as renumbered and amended by Laws of Utah 1992, Chapter 241
             33          9-8-706, as enacted by Laws of Utah 1991, Chapter 121
             34          9-8-707, as enacted by Laws of Utah 1991, Chapter 121
             35          11-25-20, as enacted by Laws of Utah 1977, Chapter 276
             36          11-27-3, as last amended by Laws of Utah 2005, Chapter 105
             37          24-1-19, as last amended by Laws of Utah 2008, Chapter 382
             38          24-1-20, as enacted by Laws of Utah 2004, Chapter 296
             39          31A-23a-204, as last amended by Laws of Utah 2009, Chapter 349
             40          31A-23a-409, as last amended by Laws of Utah 2009, Chapter 349
             41          31A-28-113, as last amended by Laws of Utah 2001, Chapter 161
             42          31A-38-104, as last amended by Laws of Utah 2005, Chapter 221
             43          31A-41-304, as enacted by Laws of Utah 2008, Chapter 220
             44          34A-2-202.5, as last amended by Laws of Utah 2009, Chapter 85
             45          34A-2-704, as last amended by Laws of Utah 2009, Chapter 288
             46          35A-3-116, as last amended by Laws of Utah 2009, Chapter 116
             47          35A-3-205, as last amended by Laws of Utah 2010, Chapter 286
             48          35A-3-206, as last amended by Laws of Utah 2003, Chapter 13
             49          35A-4-107, as last amended by Laws of Utah 1997, Chapter 375
             50          35A-4-303, as last amended by Laws of Utah 2008, Chapter 110
             51          35A-4-507, as last amended by Laws of Utah 2010, Chapters 277 and 278
             52          36-24-101, as enacted by Laws of Utah 2000, Chapter 82
             53          38-11-102, as last amended by Laws of Utah 2007, Chapter 84
             54          40-6-14.5, as last amended by Laws of Utah 2009, Chapter 183
             55          40-10-25.1, as last amended by Laws of Utah 2002, Chapter 256
             56          40-10-27, as last amended by Laws of Utah 2009, Chapters 344 and 388
             57          41-1a-422, as last amended by Laws of Utah 2010, Chapters 139, 166, 369, and 379


             58          41-12a-803, as last amended by Laws of Utah 2008, Chapters 166 and 382
             59          51-7-3, as last amended by Laws of Utah 2008, Chapter 360
             60          51-7a-101, as enacted by Laws of Utah 2006, Chapter 277
             61          51-8-102, as last amended by Laws of Utah 2009, Chapter 182
             62          51-9-402, as last amended by Laws of Utah 2010, Chapter 402
             63          51-9-404, as last amended by Laws of Utah 2008, Chapter 339 and renumbered and
             64      amended by Laws of Utah 2008, Chapter 382
             65          51-9-411, as last amended by Laws of Utah 2008, Chapter 216 and renumbered and
             66      amended by Laws of Utah 2008, Chapter 382
             67          51-9-504, as last amended by Laws of Utah 2010, Chapter 176
             68          51-9-602, as last amended by Laws of Utah 2009, First Special Session, Chapter 4
             69          52-5-102, as renumbered and amended by Laws of Utah 2008, Chapter 382
             70          53-1-117, as last amended by Laws of Utah 2008, Chapter 382
             71          53-2-109, as enacted by Laws of Utah 1997, Chapter 281
             72          53-2-403, as last amended by Laws of Utah 2010, Chapter 370
             73          53-2-404, as last amended by Laws of Utah 2010, Chapter 370
             74          53-2-405, as last amended by Laws of Utah 2009, Chapter 77
             75          53A-1-612, as last amended by Laws of Utah 2008, Chapter 382
             76          53A-1-708, as enacted by Laws of Utah 2004, Chapter 265
             77          53A-1-903, as enacted by Laws of Utah 2005, First Special Session, Chapter 2
             78          53A-1a-108, as last amended by Laws of Utah 2008, Chapters 157, 178, and 332
             79          53A-1a-601, as last amended by Laws of Utah 2008, Chapter 382
             80          53A-1a-706, as enacted by Laws of Utah 2005, Chapter 35
             81          53A-1a-806, as enacted by Laws of Utah 2007, Chapter 30
             82          53A-4-205, as last amended by Laws of Utah 2008, Chapter 310
             83          53A-16-107.1, as last amended by Laws of Utah 2010, Chapter 160
             84          53A-17a-105, as repealed and reenacted by Laws of Utah 2010, Chapter 399
             85          53A-17a-111, as last amended by Laws of Utah 2010, Chapter 3


             86          53A-17a-121, as last amended by Laws of Utah 2010, Chapter 3
             87          53A-17a-123.5, as last amended by Laws of Utah 2010, Chapter 3
             88          53A-17a-134, as last amended by Laws of Utah 2010, Chapter 399
             89          53A-17a-144, as last amended by Laws of Utah 2003, Chapters 88 and 221
             90          53A-17a-150, as enacted by Laws of Utah 2004, Chapter 305
             91          53A-28-301, as enacted by Laws of Utah 1996, Chapter 62
             92          53A-28-302, as last amended by Laws of Utah 2005, Chapter 105
             93          53A-28-401, as last amended by Laws of Utah 2007, Chapter 306
             94          53A-28-402, as enacted by Laws of Utah 1996, Chapter 62
             95          53B-8a-103, as last amended by Laws of Utah 2010, Chapter 6
             96          53B-13-107, as enacted by Laws of Utah 1987, Chapter 167
             97          53B-21-105, as last amended by Laws of Utah 1992, Chapter 271
             98          53C-3-202, as last amended by Laws of Utah 2010, Chapter 79
             99          54-4-15.2, as enacted by Laws of Utah 1973, Chapter 118
             100          54-7-17, as last amended by Laws of Utah 2009, Chapter 388
             101          54-8b-10, as last amended by Laws of Utah 2008, Chapter 382
             102          54-9-106, as last amended by Laws of Utah 2005, Chapter 105
             103          58-63-103, as enacted by Laws of Utah 2003, Chapter 308
             104          59-2-1365, as repealed and reenacted by Laws of Utah 1997, Chapter 54
             105          59-9-102.5, as last amended by Laws of Utah 2009, Chapter 85
             106          59-12-103, as last amended by Laws of Utah 2010, Chapter 412
             107          59-21-1, as last amended by Laws of Utah 2008, Chapter 360
             108          59-21-2, as last amended by Laws of Utah 2010, Chapter 278
             109          61-2e-203, as enacted by Laws of Utah 2009, Chapter 269
             110          62A-1-119, as enacted by Laws of Utah 2009, Chapter 359
             111          62A-15-102, as last amended by Laws of Utah 2009, Chapter 75
             112          63A-8-301, as last amended by Laws of Utah 2006, Chapter 65
             113          63B-1b-402, as renumbered and amended by Laws of Utah 2008, Chapter 382


             114          63B-2-111, as enacted by Laws of Utah 1993, Chapter 304
             115          63B-2-211, as enacted by Laws of Utah 1993, Chapter 304
             116          63B-3-111, as enacted by Laws of Utah 1994, Chapter 300
             117          63B-3-211, as enacted by Laws of Utah 1994, Chapter 300
             118          63B-4-111, as enacted by Laws of Utah 1995, Chapter 329
             119          63B-5-111, as enacted by Laws of Utah 1996, Chapter 335
             120          63B-6-111, as enacted by Laws of Utah 1997, Chapter 391
             121          63B-6-211, as enacted by Laws of Utah 1997, Chapter 270
             122          63B-6-304, as enacted by Laws of Utah 1997, Chapter 270
             123          63B-6-411, as enacted by Laws of Utah 1997, Chapter 391
             124          63B-7-111, as enacted by Laws of Utah 1998, Chapter 67
             125          63B-7-211, as enacted by Laws of Utah 1998, Chapter 316
             126          63B-7-304, as enacted by Laws of Utah 1998, Chapter 316
             127          63B-7-411, as enacted by Laws of Utah 1998, Chapter 67
             128          63B-8-111, as enacted by Laws of Utah 1999, Chapter 309
             129          63B-8-211, as enacted by Laws of Utah 1999, Chapter 331
             130          63B-8-304, as enacted by Laws of Utah 1999, Chapter 331
             131          63B-8-411, as enacted by Laws of Utah 1999, Chapter 309
             132          63B-10-111, as enacted by Laws of Utah 2001, Chapter 321
             133          63B-10-204, as enacted by Laws of Utah 2001, Chapter 321
             134          63B-11-111, as enacted by Laws of Utah 2002, Chapter 199
             135          63B-11-211, as enacted by Laws of Utah 2002, Chapter 252
             136          63B-11-311, as enacted by Laws of Utah 2002, Chapter 278
             137          63B-11-404, as enacted by Laws of Utah 2002, Chapter 278
             138          63B-11-511, as enacted by Laws of Utah 2002, Chapter 266
             139          63B-11-604, as enacted by Laws of Utah 2002, Chapter 266
             140          63C-6-104, as last amended by Laws of Utah 2007, Chapter 66
             141          63C-11-301, as repealed and reenacted by Laws of Utah 2009, Chapter 369


             142          63C-11-304, as repealed and reenacted by Laws of Utah 2009, Chapter 369
             143          63E-2-110, as enacted by Laws of Utah 2001, Chapter 201
             144          63G-1-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
             145          63J-1-104, as last amended by Laws of Utah 2010, Chapters 278 and 391
             146          63J-1-206, as last amended by Laws of Utah 2010, Chapter 3
             147          63J-1-210, as renumbered and amended by Laws of Utah 2009, Chapter 183
             148          63J-1-312, as renumbered and amended by Laws of Utah 2009, Chapter 183
             149          63J-1-602.5, as enacted by Laws of Utah 2010, Chapter 265
             150          63J-3-205, as renumbered and amended by Laws of Utah 2008, Chapter 382
             151          63M-1-303, as last amended by Laws of Utah 2008, Chapter 378 and renumbered and
             152      amended by Laws of Utah 2008, Chapter 382
             153          63M-1-1207, as last amended by Laws of Utah 2008, Chapter 18 and renumbered and
             154      amended by Laws of Utah 2008, Chapter 382
             155          63M-1-1218, as last amended by Laws of Utah 2009, Chapter 143
             156          63M-1-1406, as last amended by Laws of Utah 2009, Chapter 394
             157          63M-7-511, as last amended by Laws of Utah 2008, Chapter 339 and renumbered and
             158      amended by Laws of Utah 2008, Chapter 382
             159          63M-7-514, as last amended by Laws of Utah 2008, Chapter 339 and renumbered and
             160      amended by Laws of Utah 2008, Chapter 382
             161          65A-8-103, as renumbered and amended by Laws of Utah 2007, Chapter 136
             162          65A-8-205, as renumbered and amended by Laws of Utah 2007, Chapter 136
             163          67-3-1, as last amended by Laws of Utah 2008, Chapters 360 and 382
             164          67-4-11, as last amended by Laws of Utah 1998, Chapter 14
             165          67-5-1, as last amended by Laws of Utah 2007, Chapter 48
             166          67-19d-201, as enacted by Laws of Utah 2007, Chapter 99
             167          70D-3-402, as enacted by Laws of Utah 2009, Chapter 72
             168          72-2-117, as last amended by Laws of Utah 2008, Chapter 382
             169          72-2-117.5, as last amended by Laws of Utah 2010, Chapter 263


             170          72-2-121.2, as last amended by Laws of Utah 2010, Chapter 263
             171          72-2-122, as last amended by Laws of Utah 2008, Chapter 382
             172          72-2-205, as renumbered and amended by Laws of Utah 1998, Chapter 270
             173          73-10-8, as last amended by Laws of Utah 1999, Chapter 365
             174          73-10-30, as last amended by Laws of Utah 1988, Chapter 169
             175          73-10c-5, as last amended by Laws of Utah 2007, Chapter 142
             176          73-26-302, as last amended by Laws of Utah 2006, Chapter 84
             177          73-28-202, as enacted by Laws of Utah 2006, Chapter 216
             178          73-28-404, as last amended by Laws of Utah 2009, Chapter 183
             179          76-8-401, as last amended by Laws of Utah 1999, Chapter 106
             180          77-18-1.1, as last amended by Laws of Utah 2009, Chapter 337
             181          77-28-1, as enacted by Laws of Utah 1980, Chapter 15
             182          79-5-503, as renumbered and amended by Laws of Utah 2009, Chapter 344
             183     
             184      Be it enacted by the Legislature of the state of Utah:
             185          Section 1. Section 4-2-8.5 is amended to read:
             186           4-2-8.5. Salinity Offset Fund.
             187          (1) As used in this section, "Colorado River Salinity Offset Program" means a
             188      program, administered by the Division of Water Quality, allowing oil, gas, or mining
             189      companies and other entities to provide funds to finance salinity reduction projects in the
             190      Colorado River Basin by purchasing salinity credits as offsets against discharges made by the
             191      company under permits issued by the Division of Water Quality.
             192          (2) (a) There is created a restricted special revenue fund known as the "Salinity Offset
             193      Fund."
             194          (b) The fund shall consist of:
             195          (i) [monies] money received from the Division of Water Quality that [have] has been
             196      collected as part of the Colorado River Salinity Offset Program;
             197          (ii) grants from local governments, the state, or the federal government;


             198          (iii) grants from private entities; and
             199          (iv) interest on fund [monies] money.
             200          (3) Any unallocated balance in the fund at the end of a fiscal year is nonlapsing.
             201          (4) (a) The department shall:
             202          (i) subject to the rules established under Subsection (4)(a)(ii), distribute fund [monies]
             203      money to farmers, ranchers, mutual irrigation companies, and other entities in the state to assist
             204      in financing irrigation, rangeland, and watershed improvement projects that will, in accordance
             205      with the Colorado River Salinity Offset Program, reduce salinity in the Colorado River; and
             206          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             207      make rules establishing:
             208          (A) a project funding application process;
             209          (B) project funding requirements;
             210          (C) project approval criteria; and
             211          (D) standards for evaluating the effectiveness of funded projects in reducing salinity in
             212      the Colorado River.
             213          (b) The department may require entities seeking fund [monies] money to provide
             214      matching funds.
             215          (c) The department shall submit to the Water Quality Board's executive secretary
             216      proposed funding projects for the executive secretary's review and approval.
             217          (5) The department may use fund [monies] money for the administration of the fund,
             218      but this amount may not exceed 10% of the annual receipts to the fund.
             219          Section 2. Section 4-20-3 is amended to read:
             220           4-20-3. Rangeland Improvement Account distribution.
             221          (1) The department shall distribute restricted account money as provided in this
             222      section.
             223          (a) The department shall:
             224          (i) distribute pro rata to each school district the [monies] money received by the state
             225      under Subsection 4-20-2 (1)(b)(i) from the sale or lease of public lands based upon the amount


             226      of revenue generated from the sale or lease of public lands within the district; and
             227          (ii) ensure that all [monies] money generated from the sale or lease of public lands
             228      within a school district [are] is credited and deposited to the general school fund of that school
             229      district.
             230          (b) (i) After the commissioner approves a request from a regional board, the
             231      department shall distribute pro rata to each regional board [monies] money received by the
             232      state under Subsection 4-20-2 (1)(b)(i) from fees based upon the amount of revenue generated
             233      from the imposition of fees within that grazing district.
             234          (ii) The regional board shall expend [monies] money received in accordance with
             235      Subsection (2).
             236          (c) (i) The department shall distribute or expend [monies] money received by the state
             237      under Subsections 4-20-2 (1)(b)(ii) through (iv) for the purposes outlined in Subsection (2).
             238          (ii) The department may require entities seeking funding from sources outlined in
             239      Subsections 4-20-2 (1)(b)(ii) through (iv) to provide matching funds.
             240          (2) The department shall ensure that restricted account distributions or expenditures
             241      under Subsections (1)(b) and (c) are used for:
             242          (a) range improvement and maintenance;
             243          (b) the control of predatory and depredating animals;
             244          (c) the control, management, or extermination of invading species, range damaging
             245      organisms, and poisonous or noxious weeds;
             246          (d) the purchase or lease of lands for the benefit of a grazing district;
             247          (e) watershed protection, development, distribution, and improvement; and
             248          (f) the general welfare of livestock grazing within a grazing district.
             249          Section 3. Section 9-3-606 is amended to read:
             250           9-3-606. Authority -- Powers.
             251          (1) The authority shall:
             252          (a) facilitate or operate and maintain a scenic and historic railroad in and around Weber
             253      and Box Elder Counties;


             254          (b) facilitate or operate and maintain one or more railroad history museums in and
             255      around Weber and Box Elder Counties;
             256          (c) facilitate the restoration, preservation, and public display of railroad artifacts and
             257      heritage in and around Weber and Box Elder Counties; and
             258          (d) facilitate the restoration, preservation, and operation of historically significant
             259      railroad related properties in and around Weber and Box Elder Counties for public benefit.
             260          (2) The authority has perpetual succession as a body politic and corporate and may:
             261          (a) adopt, amend, and repeal policies and procedures for the regulation of its affairs and
             262      the conduct of its business;
             263          (b) sue and be sued in its own name;
             264          (c) maintain an office at a place or places it designates within the state;
             265          (d) adopt, amend, and repeal bylaws and rules, consistent with this part, to carry into
             266      effect the powers and purposes of the authority and the conduct of its business;
             267          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;
             268          (f) employ experts and other professionals it considers necessary;
             269          (g) employ and retain independent legal counsel;
             270          (h) make and execute contracts and all other instruments necessary or convenient for
             271      the performance of its duties under this part as described in Subsection (1);
             272          (i) procure insurance for liability and against any loss in connection with its property
             273      and other assets in amounts and from insurers it considers desirable;
             274          (j) receive appropriations from the Legislature and receive other public [moneys]
             275      money and accept aid or contributions from any source of money, property, labor, or other
             276      things of value to be held, used, and applied to carry out the purposes of this part, subject to the
             277      conditions upon which the grants and contributions are made, including gifts or grants from a
             278      department, agency, or instrumentality of the United States or of this state for any purpose
             279      consistent with this part;
             280          (k) enter into agreements with a department, agency, or instrumentality of the United
             281      States or this state for the purpose of providing for the operation and maintenance of a scenic


             282      railway in and around Weber and Box Elder Counties; and
             283          (l) do any act necessary or convenient to the exercise of the powers granted to the
             284      authority by this part.
             285          (3) (a) All [monies] money received by the authority under Subsection (2)(j) and from
             286      any other source [are] is for the exclusive use of the authority in the performance and exercise
             287      of its duties under this part as described in Subsection (1).
             288          (b) [Monies] Money received by the authority may not be used for any other purpose or
             289      by any other entity.
             290          Section 4. Section 9-4-630 is amended to read:
             291           9-4-630. Investment in authority authorized.
             292          (1) The state, public officers, political subdivisions, public bodies, banks, bankers, trust
             293      companies, savings banks and institutions, building and loan associations, savings and loan
             294      associations, investment companies, insurance companies, insurance associations, other
             295      persons carrying on a banking or insurance business, executors, administrators, guardians,
             296      trustees, and other fiduciaries may legally invest money or funds belonging to them or within
             297      their control in any bonds or other obligations issued by a housing authority created under this
             298      part or issued by any public housing authority or agency in the United States, any of its
             299      territories, the District of Columbia, Puerto Rico, Guam, or the Virgin Islands.
             300          (2) These bonds or other obligations shall be secured by a pledge of annual
             301      contributions or other financial assistance to be paid by the United States government or any of
             302      its agencies, or by an agreement between the United States government or any of its agencies
             303      and the public housing authority or agency in which the United States government or its agency
             304      agrees to lend to the public housing authority or agency, prior to the maturity of the bonds or
             305      other obligations, [moneys] money in an amount which, together with any other [moneys]
             306      money irrevocably committed to the payment of interest on the bonds or other obligations, will
             307      suffice to pay the principal of the bonds or other obligations with interest to maturity.
             308          (3) [These moneys] The money, under the terms of the agreement, shall be required to
             309      be used for this purpose, and the bonds and other obligations shall be authorized security for all


             310      public deposits and shall be fully negotiable in this state.
             311          (4) Nothing contained in this section may be construed to relieve any person, firm, or
             312      corporation from any duty of exercising reasonable care in selecting securities.
             313          (5) The provisions of this section apply notwithstanding any restrictions on
             314      investments contained in other laws.
             315          Section 5. Section 9-4-704 is amended to read:
             316           9-4-704. Distribution of fund money.
             317          (1) The executive director shall:
             318          (a) make grants and loans from the fund for any of the activities authorized by Section
             319      9-4-705 , as directed by the board;
             320          (b) establish the criteria with the approval of the board by which loans and grants will
             321      be made; and
             322          (c) determine with the approval of the board the order in which projects will be funded.
             323          (2) The executive director shall distribute, as directed by the board, any federal
             324      [moneys] money contained in the fund according to the procedures, conditions, and restrictions
             325      placed upon the use of [those moneys] the money by the federal government.
             326          (3) (a) The executive director shall distribute, as directed by the board, any funds
             327      received pursuant to Section 17C-1-412 to pay the costs of providing income targeted housing
             328      within the community that created the community development and renewal agency under Title
             329      17C, Limited Purpose Local Government Entities - Community Development and Renewal
             330      Agencies Act.
             331          (b) As used in Subsection (3)(a):
             332          (i) "Community" has the meaning as defined in Section 17C-1-102 .
             333          (ii) "Income targeted housing" has the meaning as defined in Section 17C-1-102 .
             334          (4) Except federal money and money received under Section 17C-1-412 , the executive
             335      director shall distribute, as directed by the board, all other [moneys] money from the fund
             336      according to the following requirements:
             337          (a) Not less than 30% of all fund [moneys] money shall be distributed to rural areas of


             338      the state.
             339          (b) At least 50% of the [moneys] money in the fund shall be distributed as loans to be
             340      repaid to the fund by the entity receiving them.
             341          (i) (A) Of the fund [moneys] money distributed as loans, at least 50% shall be
             342      distributed to benefit persons whose annual income is at or below 50% of the median family
             343      income for the state.
             344          (B) The remaining loan [moneys] money shall be distributed to benefit persons whose
             345      annual income is at or below 80% of the median family income for the state.
             346          (ii) The executive director or the executive director's designee shall lend [moneys]
             347      money in accordance with this Subsection (4) at a rate based upon the borrower's ability to pay.
             348          (c) Any fund [moneys] money not distributed as loans shall be distributed as grants.
             349          (i) At least 90% of the fund [moneys] money distributed as grants shall be distributed
             350      to benefit persons whose annual income is at or below 50% of the median family income for
             351      the state.
             352          (ii) The remaining fund [moneys] money distributed as grants may be used by the
             353      executive director to obtain federal matching funds or for other uses consistent with the intent
             354      of this part, including the payment of reasonable loan servicing costs, but no more than 3% of
             355      the revenues of the fund may be used to offset other department or board administrative
             356      expenses.
             357          (5) The executive director may with the approval of the board:
             358          (a) enact rules to establish procedures for the grant and loan process by following the
             359      procedures and requirements of Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             360      and
             361          (b) service or contract, pursuant to Title 63G, Chapter 6, Utah Procurement Code, for
             362      the servicing of loans made by the fund.
             363          Section 6. Section 9-4-707 is amended to read:
             364           9-4-707. Application process and priorities.
             365          (1) (a) In each calendar year that [moneys are] money is available from the fund for


             366      distribution by the executive director under the direction of the board, the director shall, at least
             367      once in that year, announce a grant and loan application period by sending notice to interested
             368      persons.
             369          (b) The executive director shall accept applications which are received in a timely
             370      manner.
             371          (2) The executive director shall give first priority to applications for projects and
             372      activities that use existing privately owned housing stock, including privately owned housing
             373      stock purchased by nonprofit public development authorities.
             374          (3) Preference shall be given to applications that demonstrate the following:
             375          (a) a high degree of leverage with other sources of financing;
             376          (b) high recipient contributions to total project costs, including allied contributions
             377      from other sources such as professional, craft and trade services, and lender interest rate
             378      subsidies;
             379          (c) high local government project contributions in the form of infrastructure
             380      improvements, or other assistance;
             381          (d) projects that encourage ownership, management, and other project-related
             382      responsibility opportunities;
             383          (e) projects that demonstrate a strong probability of serving the original target group or
             384      income level for a period of at least 15 years;
             385          (f) projects where the applicant has demonstrated the ability, stability, and resources to
             386      complete the project;
             387          (g) projects that appear to serve the greatest need;
             388          (h) projects that provide housing for persons and families with the lowest income;
             389          (i) projects that promote economic development benefits;
             390          (j) projects that allow integration into a local government housing plan; and
             391          (k) projects that would mitigate or correct existing health, safety, or welfare problems.
             392          (4) Consideration may be given to projects that increase the supply of accessible
             393      housing.


             394          Section 7. Section 9-4-708 is amended to read:
             395           9-4-708. Annual accounting.
             396          (1) The executive director shall monitor the activities of recipients of grants and loans
             397      issued under this part on a yearly basis to ensure compliance with the terms and conditions
             398      imposed on the recipient by the director with the approval of the board or by this part.
             399          (2) The entities receiving grants or loans shall provide the executive director with an
             400      annual accounting of how the [moneys] money they received from the fund [have] has been
             401      spent.
             402          (3) The executive director shall make an annual report to the board accounting for the
             403      expenditures authorized by the board.
             404          (4) The board shall submit an annual written report to the Workforce Services and
             405      Community and Economic Development Interim Committee before December 1 of each year:
             406          (a) accounting for expenditures authorized by the board; and
             407          (b) evaluating the effectiveness of the program.
             408          Section 8. Section 9-4-914 is amended to read:
             409           9-4-914. Capital reserve funds -- Capital reserve fund requirement --
             410      Establishment of other funds.
             411          (1) (a) (i) The corporation may create and establish one or more reserve funds, herein
             412      referred to as "capital reserve funds," from:
             413          (A) any proceeds of sale of notes or bonds, to the extent provided in the resolution or
             414      resolutions of the corporation authorizing the issuance thereof;
             415          (B) any [monies] money appropriated and made available by the state for the purpose
             416      of the funds;
             417          (C) any [monies] money directed by the corporation to be transferred to the funds; and
             418          (D) any other [monies] money which may be made available to the corporation for the
             419      purpose of the funds from any other source or sources.
             420          (ii) All [monies] money held in any capital reserve fund shall be used, as required,
             421      solely for the payment of the principal of bonds or of the sinking fund payments with respect to


             422      the bonds, the purchase or redemption of bonds, the payment of interest on bonds, or the
             423      payment of any redemption premium required to be paid when the bonds are redeemed prior to
             424      maturity.
             425          (b) (i) [Monies] Money in any capital reserve fund may not be withdrawn from the
             426      fund at any time in an amount as would reduce the level of [monies] money in the fund to less
             427      than the capital reserve fund requirement, except for the purpose of paying principal and
             428      redemption price of and interest on bonds and the sinking fund payments, as the payments
             429      become due and for the payment of which other [monies] money of the corporation [are] is not
             430      available.
             431          (ii) Any income or interest earned by the investment of [monies] money held in any
             432      fund may be transferred by the corporation to other funds or accounts of the corporation to the
             433      extent that the transfer does not reduce the amount of the fund to below the capital reserve fund
             434      requirement.
             435          (c) The corporation may provide by resolution or resolutions that it may not issue
             436      bonds under a resolution or resolutions at any time if upon issuance the amount in the capital
             437      reserve fund which will secure the bonds shall be less than the capital reserve fund
             438      requirement, unless the corporation at the time of issuance of the bonds shall deposit in the
             439      fund from the proceeds of the bonds to be so issued, or other sources, an amount which,
             440      together with the amount then in the fund, may not be less than the capital reserve fund
             441      requirement.
             442          (d) In computing the amount of the capital reserve funds for the purpose of this part,
             443      securities in which all or a portion of the funds shall be invested shall be valued at par, cost, or
             444      by other method of valuation as the corporation may provide by resolution.
             445          (e) (i) "Capital reserve fund requirement" means, as of any particular date of
             446      computation, and with respect to any particular issue of bonds, an amount as the corporation
             447      may provide, or may have previously provided, by resolution, which amount may be in the
             448      form of a sum certain or a formula.
             449          (ii) In establishing reserves and setting capital reserve fund requirements, the


             450      corporation shall consider the following:
             451          (A) the qualifications for obtaining an investment grade rating from one or more
             452      nationally recognized bond rating agencies;
             453          (B) the economic feasibility and marketability of the bonds being issued, taking into
             454      account all security for the bonds, including the capital reserve fund; and
             455          (C) applicable requirements pertaining to reserve funds under federal and state income
             456      tax laws and regulations.
             457          (f) (i) To assure the continued operation and solvency of the corporation for carrying
             458      out of its corporate purposes, provision is made in Subsection (1)(b) for the accumulation in
             459      the capital reserve funds of an amount equal to the maximum capital reserve fund requirement.
             460          (ii) The president of the corporation shall annually, on or before December first, certify
             461      to the governor and to the director of finance the amount, if any, required to restore the capital
             462      reserve funds to the capital reserve fund requirement.
             463          (iii) The governor may request from the Legislature an appropriation of the certified
             464      amount to restore the capital reserve funds to the capital reserve fund requirement.
             465          (g) Amounts appropriated, if any, shall be repaid to the General Fund of the state, from
             466      any [monies] money in excess of the amounts which the corporation determines will keep it
             467      self-supporting.
             468          (2) The corporation may create and establish any other funds as may be necessary or
             469      desirable for its corporate purposes.
             470          Section 9. Section 9-4-1409 is amended to read:
             471           9-4-1409. Qualified Emergency Food Agencies Fund -- Expenditure of revenues.
             472          (1) As used in this section:
             473          (a) "Association of governments" means the following created under the authority of
             474      Title 11, Chapter 13, Interlocal Cooperation Act:
             475          (i) an association of governments; or
             476          (ii) a regional council that acts as an association of governments.
             477          (b) "Food and food ingredients" is as defined in Section 59-12-102 .


             478          (c) "Pounds of food donated" means the aggregate number of pounds of food and food
             479      ingredients that are donated:
             480          (i) to a qualified emergency food agency; and
             481          (ii) by a person, other than an organization that as part of its activities operates a
             482      program that has as the program's primary purpose to:
             483          (A) warehouse and distribute food to other agencies and organizations providing food
             484      and food ingredients to low-income persons; or
             485          (B) provide food and food ingredients directly to low-income persons.
             486          (d) "Qualified emergency food agency" means an organization that:
             487          (i) is:
             488          (A) exempt from federal income taxation under Section 501(c)(3), Internal Revenue
             489      Code; or
             490          (B) an association of governments;
             491          (ii) as part of its activities operates a program that has as the program's primary purpose
             492      to:
             493          (A) warehouse and distribute food to other agencies and organizations providing food
             494      and food ingredients to low-income persons; or
             495          (B) provide food and food ingredients directly to low-income persons; and
             496          (iii) the office determines to be a qualified emergency food agency.
             497          (2) There is created a restricted special revenue fund known as the Qualified
             498      Emergency Food Agencies Fund.
             499          (3) (a) The Qualified Emergency Food Agencies Fund shall be funded by the sales and
             500      use tax revenues described in:
             501          (i) Section 59-12-103 ;
             502          (ii) Section 59-12-204 ; and
             503          (iii) Section 59-12-1102 .
             504          (b) Any interest earned on the Qualified Emergency Food Agencies Fund shall be
             505      deposited into the General Fund.


             506          (4) The office shall for a fiscal year distribute [monies] money deposited into the
             507      Qualified Emergency Food Agencies Fund to qualified emergency food agencies within the
             508      state as provided in this section.
             509          (5) A qualified emergency food agency shall file an application with the office before
             510      the qualified emergency food agency may receive a distribution under this section.
             511          (6) Except as provided in Subsection (7), the office shall for a fiscal year distribute to a
             512      qualified emergency food agency an amount equal to the product of:
             513          (a) the pounds of food donated to the qualified emergency food agency during that
             514      fiscal year; and
             515          (b) $.12.
             516          (7) If the [monies] money deposited into the Qualified Emergency Food Agencies Fund
             517      [are] is insufficient to make the distributions required by Subsection (6), the office shall make
             518      distributions to qualified emergency food agencies in the order that the office receives
             519      applications from the qualified emergency food agencies until all of the [monies] money
             520      deposited into the Qualified Emergency Food Agencies Fund for the fiscal year [are] is
             521      expended.
             522          (8) A qualified emergency food agency may expend a distribution received in
             523      accordance with this section only for a purpose related to:
             524          (a) warehousing and distributing food and food ingredients to other agencies and
             525      organizations providing food and food ingredients to low-income persons; or
             526          (b) providing food and food ingredients directly to low-income persons.
             527          (9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             528      Division of Housing and Community Development may make rules providing procedures for
             529      implementing the distributions required by this section, including:
             530          (a) standards for determining and verifying the amount of a distribution that a qualified
             531      emergency food agency may receive;
             532          (b) procedures for a qualified emergency food agency to apply for a distribution,
             533      including the frequency with which a qualified emergency food agency may apply for a


             534      distribution; and
             535          (c) consistent with Subsection (1)(d), determining whether an entity is a qualified
             536      emergency food agency.
             537          Section 10. Section 9-6-503 is amended to read:
             538           9-6-503. Arts organization endowment funds.
             539          (1) Any Utah nonprofit arts organization may create an endowment fund into which
             540      there may be deposited [moneys] money from the state fund. The principal of each endowment
             541      fund may not be expended by the qualifying organization and shall be held in perpetuity solely
             542      by the qualifying organization or by the council on behalf of the qualifying organization. Only
             543      interest income earned on the amount in each endowment fund may be expended by the
             544      qualifying organization. The principal of each endowment fund shall be invested in accordance
             545      with Title 51, Chapter 7, State Money Management Act [of 1974].
             546          (2) If a qualifying organization receives $50,000 or more from the state fund, [these
             547      moneys] the money shall be administered in accordance with generally accepted accounting
             548      principles by the qualifying organization's professional management. Amounts less than
             549      $50,000 shall be placed in a state trust and agency fund invested by the state treasurer, who
             550      shall allocate interest income to the qualifying organization.
             551          (3) If an endowment fund is invested by the state treasurer the costs for this
             552      administration shall be deducted from the interest income before allocations of interest income
             553      may be made to the qualifying organization.
             554          Section 11. Section 9-6-506 is amended to read:
             555           9-6-506. Unallocated money.
             556          [Moneys] Money in the state fund that [are] is unallocated shall be reallocated by the
             557      board on a proportionate basis to qualifying organizations that raise 100% of their required
             558      match by the date determined under Subsection 9-6-505 (5)(a).
             559          Section 12. Section 9-8-706 is amended to read:
             560           9-8-706. Unallocated money.
             561          [Monies] Money in the state fund that [are] is unallocated shall be reallocated by the


             562      division on a proportionate basis, not exceeding existing match, to qualifying organizations that
             563      raise more than 100% of their required match by the date determined by the board.
             564          Section 13. Section 9-8-707 is amended to read:
             565           9-8-707. Spending restrictions -- Return of endowment.
             566          (1) A qualifying organization, once it has received its endowment money from the state
             567      fund, may not expend any of [those monies] the money or the required matching [monies]
             568      money in its endowment fund, but may expend only the interest income earned on the [monies]
             569      money in its endowment fund.
             570          (2) If a qualifying organization expends any amount of the endowment money received
             571      from the state fund or any amount of the required matching [monies] money, the qualifying
             572      organization shall return the amount it received from the state fund. The division shall
             573      reallocate any such returned [monies] money to qualifying organizations in the manner as
             574      provided in Section 9-8-706 .
             575          Section 14. Section 11-25-20 is amended to read:
             576           11-25-20. Money received as trust funds -- Depository as trustee.
             577          All [moneys] money received pursuant to the provisions of this part, whether proceeds
             578      from the sale of bonds or revenues, shall be deemed to be trust funds to be held and applied
             579      solely as provided in this part. Any bank or trust company in which [these moneys are] the
             580      money is deposited shall act as trustee of the [moneys] money and shall hold and apply the
             581      same for the purposes specified in this part, subject to the terms of the resolution authorizing
             582      the bonds.
             583          Section 15. Section 11-27-3 is amended to read:
             584           11-27-3. Action by resolution of governing body -- Purposes for bond issue --
             585      Exchange or sale -- Interest rate limitations inapplicable -- Principal amount --
             586      Investment of proceeds -- Safekeeping and application of proceeds -- Computing
             587      indebtedness -- Payment of bonds -- Combination issues -- Laws applicable to issuance --
             588      Payment from taxes or pledged revenues.
             589          (1) Any formal action taken by the governing body of a public body under the authority


             590      of this chapter may be taken by resolution of that governing body.
             591          (2) (a) The governing body of any public body may by resolution provide for the
             592      issuance of refunding bonds to refund outstanding bonds issued by the public body or its
             593      predecessor, either prior to or after the effective date of this chapter, only:
             594          (i) to pay or discharge all or any part of any outstanding series or issue of bonds,
             595      including applicable interest, in arrears or about to become due and for which sufficient funds
             596      are not available;
             597          (ii) to achieve a savings; or
             598          (iii) to achieve another objective that the governing body finds to be beneficial to the
             599      public body.
             600          (b) Any refunding bonds may be delivered in exchange for the outstanding bonds being
             601      refunded or may be sold in a manner, at terms, with details, and at a price above, at, or below
             602      par as the governing body determines advisable. The refunding bonds may be issued without
             603      an election, unless an election is required by the Utah Constitution.
             604          (c) It is the express intention of the Legislature that interest rate limitations elsewhere
             605      appearing in the laws of the state not apply to nor limit the rates of interest borne by refunding
             606      bonds.
             607          (3) Advance refunding bonds may be issued in a principal amount in excess of the
             608      principal amount of the bonds to be refunded as determined by the governing body. This
             609      amount may be equal to the full amount required to pay the principal of, interest on, and
             610      redemption premiums, if any, due in connection with the bonds to be refunded to and including
             611      their dates of maturity or redemption in accordance with the advance refunding plan adopted by
             612      the governing body, together with all costs incurred in accomplishing this refunding. The
             613      principal amount of refunding bonds may be less than or the same as the principal amount of
             614      the bonds being refunded so long as provision is duly and sufficiently made for the retirement
             615      or redemption of the bonds to be refunded. Any reserves held or taxes levied or collected to
             616      secure the bonds to be refunded may be applied to the redemption or retirement of the bonds,
             617      or otherwise, as the governing body may determine.


             618          (4) Prior to the application of the proceeds derived from the sale of advance refunding
             619      bonds to the purposes for which the bonds have been issued, these proceeds, together with any
             620      other legally available funds, including reserve funds, may be invested and reinvested only in
             621      government obligations maturing at such times as may be required to provide funds sufficient
             622      to pay principal of, interest on, and redemption premiums, if any, due in connection with the
             623      bonds to be refunded or the advance refunding bonds, or both, in accordance with the advance
             624      refunding plan. To the extent incidental expenses have been capitalized, these bond proceeds
             625      may be used to defray these expenses.
             626          (5) The governing body may contract regarding the safekeeping and application of the
             627      proceeds of sale of advance refunding bonds and other funds included with them and the
             628      income from them, including the right to appoint a trustee, which may be any trust company or
             629      state or national bank having powers of a trust company inside or outside the state. The
             630      governing body may provide in the advance refunding plan that until such [monies are] money
             631      is required to redeem or retire the bonds to be refunded, the advance refunding bond proceeds
             632      and other funds, and the income from them, shall be used to pay and secure payment of
             633      principal of, interest on, and redemption premiums, if any, due in connection with all or a
             634      portion of the advance refunding bonds or the bonds being refunded, or both.
             635          (6) In computing indebtedness for the purpose of any applicable constitutional or
             636      statutory debt limitation, there shall be deducted from the amount of outstanding indebtedness
             637      the principal amount of outstanding general obligation bonds for the payment of which there
             638      has been dedicated and deposited in escrow government obligations, the principal of or interest
             639      on which, or both, will be sufficient to provide for the payment of these general obligation
             640      bonds as to principal, interest, and redemption premiums, if any, when due at maturity or upon
             641      some earlier date upon which the bonds have been called for redemption in accordance with
             642      their terms.
             643          (7) When a public body has irrevocably set aside for and pledged to the payment of
             644      bonds to be refunded proceeds of advance refunding bonds and other [monies] money in
             645      amounts which, together with known earned income from their investment, will be sufficient in


             646      amount to pay the principal of, interest on, and any redemption premiums due on the bonds to
             647      be refunded as the same become due and to accomplish the refunding as scheduled, the
             648      refunded bonds shall be considered duly paid and discharged for the purpose of any applicable
             649      constitutional or statutory debt limitation.
             650          (8) Refunding bonds and bonds issued for any other purpose may be issued separately
             651      or issued in combination in one or more series or issues by the same issuer.
             652          (9) Except as specifically provided in this section, refunding bonds issued under this
             653      chapter shall be issued in accordance with the provisions of law applicable to the type of bonds
             654      of the issuer being refunded in effect either at the time of the issuance of the refunding bonds
             655      or at the time of issuance of the bonds to be refunded. Refunding bonds and coupons, if any,
             656      pertaining to them may bear facsimile signatures as provided in Section 11-14-304 .
             657          (10) Refunding bonds may be made payable from any taxes or pledged revenues, or
             658      both, or any assessments, special improvement guaranty funds, or other funds which might be
             659      legally pledged for the payment of the bonds to be refunded at the time of the issuance of the
             660      refunding bonds or at the time of the issuance of the bonds to be refunded, as the governing
             661      body may determine.
             662          Section 16. Section 24-1-19 is amended to read:
             663           24-1-19. Crime Reduction Assistance Program.
             664          (1) There is created the Crime Reduction Assistance Program.
             665          (2) The program shall fund crime prevention and law enforcement activities that have
             666      the purpose of:
             667          (a) deterring crime by depriving criminals of the profits and proceeds of their illegal
             668      activities;
             669          (b) weakening criminal enterprises by removing the instrumentalities of crime;
             670          (c) reducing crimes involving substance abuse by supporting the creation,
             671      administration, or operation of drug court programs throughout the state;
             672          (d) encouraging cooperation between local, state, and multijurisdictional law
             673      enforcement agencies;


             674          (e) allowing the costs and expenses of law enforcement to be defrayed by the forfeited
             675      proceeds of crime; and
             676          (f) increasing the equitability and accountability of the use of forfeited property used to
             677      assist law enforcement in reducing and preventing crime.
             678          (3) (a) When property is forfeited under this chapter and transferred to the fund, the
             679      Commission on Criminal and Juvenile Justice shall make awards of [monies] money from the
             680      fund to state, local, or multijurisdictional law enforcement agencies or political subdivisions of
             681      the state in compliance with this section and to further the program purposes under Subsection
             682      (2).
             683          (b) In granting the awards, the Commission on Criminal and Juvenile Justice shall
             684      ensure that the amount of each award takes into consideration:
             685          (i) the demonstrated needs of the agency;
             686          (ii) the demonstrated ability of the agency to appropriately use the award;
             687          (iii) the degree to which the agency's need is offset through the agency's participation in
             688      federal equitable sharing or through other federal and state grant programs; and
             689          (iv) the agency's cooperation with other state and local agencies and task forces.
             690          (4) Agencies or political subdivisions shall apply for program awards by completing
             691      and submitting forms specified by the Commission on Criminal and Juvenile Justice.
             692          (5) Applying agencies or political subdivisions shall demonstrate compliance with all
             693      reporting and policy requirements applicable under this chapter and under Title 63M, Chapter
             694      7, Criminal Justice and Substance Abuse, in order to qualify as a potential award recipient.
             695          (6) Recipient law enforcement agencies may only use program award [monies] money
             696      after approval or appropriation by the agency's legislative body, and the award [monies are]
             697      money is nonlapsing.
             698          (7) A recipient law enforcement agency or political subdivision shall use program
             699      awards only for law enforcement or controlled substance law enforcement purposes as
             700      described in Subsection (8), and only as these purposes are specified by the agency or political
             701      subdivision in its application for the award.


             702          (8) Permissible law enforcement purposes for which award [monies] money may be
             703      used include:
             704          (a) controlled substance interdiction and enforcement activities;
             705          (b) drug court programs;
             706          (c) activities calculated to enhance future investigations;
             707          (d) law enforcement training that includes:
             708          (i) implementation of the Fourth Amendment of the federal constitution and Utah
             709      Constitution Article I, Section 7, and addresses the protection of the individual's rights of due
             710      process;
             711          (ii) protection of the rights of innocent property holders; and
             712          (iii) the Tenth Amendment of the federal constitution regarding states' sovereignty and
             713      the states' reserved rights;
             714          (e) law enforcement or detention facilities;
             715          (f) law enforcement operations or equipment which are not routine costs or operational
             716      expenses;
             717          (g) drug, gang, or crime prevention education programs which are sponsored in whole
             718      or in part by the law enforcement agency or its legislative body; and
             719          (h) matching funds for other state or federal law enforcement grants.
             720          (9) Law enforcement purposes for which award [monies] money may not be granted or
             721      used include:
             722          (a) payment of salaries, retirement benefits, or bonuses to any person;
             723          (b) payment of enforcement expenses not related to law enforcement;
             724          (c) uses not specified in the agency's award application;
             725          (d) uses not approved or appropriated by the agency's legislative body;
             726          (e) payments, transfers, or pass-through funding to entities other than law enforcement
             727      agencies; or
             728          (f) uses, payments, or expenses that are not within the scope of the agency's functions.
             729          (10) For each fiscal year, any state, local, or multijurisdictional agency or political


             730      subdivision that received a program award shall prepare, and file with the Utah Commission on
             731      Criminal and Juvenile Justice and the state auditor, a report in a form specified by the Utah
             732      Commission on Criminal and Juvenile Justice. The report shall include the following
             733      regarding each award:
             734          (a) the agency's name;
             735          (b) the amount of the award;
             736          (c) the date of the award;
             737          (d) how the award has been used; and
             738          (e) a statement signed by both the agency's or political subdivision's executive officer
             739      or designee and by the agency's legal counsel, that:
             740          (i) the agency or political subdivision has complied with all inventory, policy, and
             741      reporting requirements of this chapter;
             742          (ii) all program awards were used for crime reduction or law enforcement purposes as
             743      specified in the application; and
             744          (iii) and only upon approval or appropriation by the agency's or political subdivision's
             745      legislative body.
             746          (11) The Utah Commission on Criminal and Juvenile Justice shall report in writing to
             747      the legislative Law Enforcement and Criminal Justice Interim Committee annually regarding
             748      the forfeited property transferred to the fund, awards made by the program, uses of program
             749      awards, and any equitable share of property forfeited by the federal government as reported by
             750      agencies pursuant to Subsection 24-1-15 (3).
             751          Section 17. Section 24-1-20 is amended to read:
             752           24-1-20. State Law Enforcement Forfeiture Account created -- Revenue sources --
             753      Use of account designated.
             754          (1) (a) There is created in the General Fund a restricted account called the State Law
             755      Enforcement Forfeiture Account.
             756          (b) All [monies] money awarded to the Department of Public Safety or the Department
             757      of Corrections, or any division or agency within either department, through the Crime


             758      Reduction Assistance Program created in Section 24-1-19 shall be deposited into the State Law
             759      Enforcement Forfeiture Account.
             760          (c) All [monies] money previously deposited, or currently held in the Drug Forfeiture
             761      Account created in Section 58-37-20 , and that [were] was in that account when it was repealed
             762      by Initiative B, which passed in 2000, and which became effective March 29, 2001, shall be
             763      transferred to and deposited in the State Law Enforcement Forfeiture Account created in this
             764      Subsection (1).
             765          (2) The Department of Public Safety and the Department of Corrections may expend
             766      amounts as appropriated by the Legislature from the State Law Enforcement Forfeiture
             767      Account for law enforcement purposes or controlled substance law enforcement purposes as
             768      specified in Section 24-1-19 .
             769          (3) That portion of funds forfeited or that are required to be disbursed to other
             770      governmental entities under existing contractual agreements or Utah statutory requirements are
             771      exempt from this section.
             772          (4) Funds forfeited as a result of the Salt Lake Airport Drug Program operated by the
             773      Department of Public Safety, not to exceed the Department of Public Safety's expenditure to
             774      that program, are exempt from this section.
             775          (5) The Department of Public Safety and the Department of Corrections, as part of the
             776      annual legislative budget hearings, shall provide to the legislative Executive Offices and
             777      Criminal Justice Appropriations Subcommittee a complete accounting of expenditures and
             778      revenues from the funds received under this section.
             779          (6) The Legislature may annually provide, in an appropriations act, legislative direction
             780      for anticipated expenditures of the [monies] money received under this section.
             781          Section 18. Section 31A-23a-204 is amended to read:
             782           31A-23a-204. Special requirements for title insurance producers and agencies.
             783          A title insurance producer, including an agency, shall be licensed in accordance with
             784      this chapter, with the additional requirements listed in this section.
             785          (1) (a) A person that receives a new license under this title as a title insurance agency,


             786      shall at the time of licensure be owned or managed by one or more individuals who are
             787      licensed for at least three of the five years immediately proceeding the date on which the title
             788      insurance agency applies for a license with both:
             789          (i) a search line of authority; and
             790          (ii) an escrow line of authority.
             791          (b) A title insurance agency subject to Subsection (1)(a) may comply with Subsection
             792      (1)(a) by having the title insurance agency owned or managed by:
             793          (i) one or more individuals who are licensed with the search line of authority for the
             794      time period provided in Subsection (1)(a); and
             795          (ii) one or more individuals who are licensed with the escrow line of authority for the
             796      time period provided in Subsection (1)(a).
             797          (c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404 ,
             798      exempt an attorney with real estate experience from the experience requirements in Subsection
             799      (1)(a).
             800          (2) (a) A title insurance agency or producer appointed by an insurer shall maintain:
             801          (i) a fidelity bond;
             802          (ii) a professional liability insurance policy; or
             803          (iii) a financial protection:
             804          (A) equivalent to that described in Subsection (2)(a)(i) or (ii); and
             805          (B) that the commissioner considers adequate.
             806          (b) The bond, insurance, or financial protection required by this Subsection (2):
             807          (i) shall be supplied under a contract approved by the commissioner to provide
             808      protection against the improper performance of any service in conjunction with the issuance of
             809      a contract or policy of title insurance; and
             810          (ii) be in a face amount no less than $50,000.
             811          (c) The Title and Escrow Commission may by rule, subject to Section 31A-2-404 ,
             812      exempt title insurance producers from the requirements of this Subsection (2) upon a finding
             813      that, and only so long as, the required policy or bond is generally unavailable at reasonable


             814      rates.
             815          (3) A title insurance agency or producer appointed by an insurer may maintain a
             816      reserve fund to the extent [monies were] money was deposited before July 1, 2008, and not
             817      withdrawn to the income of the title insurance producer.
             818          (4) An examination for licensure shall include questions regarding the search and
             819      examination of title to real property.
             820          (5) A title insurance producer may not perform the functions of escrow unless the title
             821      insurance producer has been examined on the fiduciary duties and procedures involved in those
             822      functions.
             823          (6) The Title and Escrow Commission shall adopt rules, subject to Section 31A-2-404 ,
             824      after consulting with the department and the department's test administrator, establishing an
             825      examination for a license that will satisfy this section.
             826          (7) A license may be issued to a title insurance producer who has qualified:
             827          (a) to perform only searches and examinations of title as specified in Subsection (4);
             828          (b) to handle only escrow arrangements as specified in Subsection (5); or
             829          (c) to act as a title marketing representative.
             830          (8) (a) A person licensed to practice law in Utah is exempt from the requirements of
             831      Subsections (2) and (3) if that person issues 12 or less policies in any 12-month period.
             832          (b) In determining the number of policies issued by a person licensed to practice law in
             833      Utah for purposes of Subsection (8)(a), if the person licensed to practice law in Utah issues a
             834      policy to more than one party to the same closing, the person is considered to have issued only
             835      one policy.
             836          (9) A person licensed to practice law in Utah, whether exempt under Subsection (8) or
             837      not, shall maintain a trust account separate from a law firm trust account for all title and real
             838      estate escrow transactions.
             839          Section 19. Section 31A-23a-409 is amended to read:
             840           31A-23a-409. Trust obligation for money collected.
             841          (1) (a) Subject to Subsection (7), a licensee is a trustee for [monies] money received or


             842      collected for forwarding to insurers or to insureds.
             843          (b) (i) Except as provided in Subsection (1)(b)(ii), a licensee may not commingle trust
             844      funds with:
             845          (A) the licensee's own [monies] money; or
             846          (B) [monies] money held in any other capacity.
             847          (ii) This Subsection (1)(b) does not apply to:
             848          (A) amounts necessary to pay bank charges; and
             849          (B) [monies] money paid by insureds and belonging in part to the licensee as a fee or
             850      commission.
             851          (c) Except as provided under Subsection (4), a licensee owes to insureds and insurers
             852      the fiduciary duties of a trustee with respect to money to be forwarded to insurers or insureds
             853      through the licensee.
             854          (d) (i) Unless [monies are] money is sent to the appropriate payee by the close of the
             855      next business day after their receipt, the licensee shall deposit them in an account authorized
             856      under Subsection (2).
             857          (ii) [Monies] Money deposited under this Subsection (1)(d) shall remain in an account
             858      authorized under Subsection (2) until sent to the appropriate payee.
             859          (2) [Monies] Money required to be deposited under Subsection (1) shall be deposited:
             860          (a) in a federally insured trust account in a depository institution, as defined in Section
             861      7-1-103 , which:
             862          (i) has an office in this state, if the licensee depositing the [monies] money is a resident
             863      licensee;
             864          (ii) has federal deposit insurance; and
             865          (iii) is authorized by its primary regulator to engage in the trust business, as defined by
             866      Section 7-5-1 , in this state; or
             867          (b) in some other account, approved by the commissioner by rule or order, providing
             868      safety comparable to federally insured trust accounts.
             869          (3) It is not a violation of Subsection (2)(a) if the amounts in the accounts exceed the


             870      amount of the federal insurance on the accounts.
             871          (4) A trust account into which [monies are] money is deposited may be interest
             872      bearing. The interest accrued on the account may be paid to the licensee, so long as the
             873      licensee otherwise complies with this section and with the contract with the insurer.
             874          (5) A depository institution or other organization holding trust funds under this section
             875      may not offset or impound trust account funds against debts and obligations incurred by the
             876      licensee.
             877          (6) A licensee who, not being lawfully entitled to do so, diverts or appropriates any
             878      portion of the [monies] money held under Subsection (1) to the licensee's own use, is guilty of
             879      theft under Title 76, Chapter 6, Part 4, Theft. Section 76-6-412 applies in determining the
             880      classification of the offense. Sanctions under Section 31A-2-308 also apply.
             881          (7) A nonresident licensee:
             882          (a) shall comply with Subsection (1)(a) by complying with the trust account
             883      requirements of the nonresident licensee's home state; and
             884          (b) is not required to comply with the other provisions of this section.
             885          Section 20. Section 31A-28-113 is amended to read:
             886           31A-28-113. Credit for assessments paid.
             887          (1) (a) A member insurer may offset against its premium tax liability to this state an
             888      assessment described in Subsection 31A-28-109 (2)(b) to the extent of 20% of the amount of
             889      the assessment for each of the five calendar years following the year in which the assessment
             890      was paid.
             891          (b) To the extent that the offsets described in Subsection (1)(a) exceed premium tax
             892      liability, the offsets may be carried forward and used to offset premium tax liability in future
             893      years.
             894          (c) If a member insurer ceases doing business, all uncredited assessments may be
             895      credited against its premium tax liability for the year it ceases doing business.
             896          (2) (a) [Monies] Money shall be paid by the insurers to the state in a manner required by
             897      the State Tax Commission if the [monies] money:


             898          (i) [are] is acquired by refund in accordance with Subsection 31A-28-109 (6) from the
             899      association by member insurers; and
             900          (ii) [have] has been offset against premium taxes as provided in Subsection (1).
             901          (b) The association shall notify the commissioner that the refunds described in
             902      Subsection (2)(a) have been made.
             903          Section 21. Section 31A-38-104 is amended to read:
             904           31A-38-104. Authorization -- Money transferred for reserves.
             905          (1) The Department of Workforce Services may:
             906          (a) convert the bridge program to the state program through any of the following, or
             907      combination of the following, that the Department of Workforce Services considers best serves
             908      the needs of qualified participants:
             909          (i) a contract with a licensed insurance company authorized to do business in the state;
             910          (ii) through any other arrangement acceptable under the Trade Reform Act; or
             911          (iii) a self-insurance program through a third party administrator as provided in
             912      Subsection 31A-38-103(3)(b)(ii);
             913          (b) (i) in cooperation with the Division of Finance, establish an appropriate state fund
             914      for the purpose of operation of the state program; and
             915          (ii) transfer the balance of any [monies] money received under the bridge program into
             916      this fund; and
             917          (c) obligate up to $2,000,000 of the Workforce Services Special Administrative
             918      Expense Fund as reserves for the state program.
             919          (2) The [monies] money in the fund created under Subsection (1)(b) [are] is:
             920          (a) nonlapsing; and
             921          (b) restricted to the purposes of the state program established under this chapter.
             922          (3) The [monies] money in Subsection (1)(c) may be:
             923          (a) used until the reserves in the state program become adequate; and
             924          (b) transferred into or out of any fund created under Subsection (1)(b).
             925          Section 22. Section 31A-41-304 is amended to read:


             926           31A-41-304. Insufficient funds to satisfy judgment.
             927          If the [monies] money in the fund [are] is insufficient to satisfy a claim ordered to be
             928      paid under Section 31A-41-303 , when sufficient money is in the fund, the department shall pay
             929      a person with an unpaid claim:
             930          (1) in the order that petitions related to unpaid claims are originally served on the
             931      department; and
             932          (2) an amount equal to the sum of:
             933          (a) the unpaid claim; and
             934          (b) interest on the unpaid claim at a rate of 5% per annum from the date the court
             935      orders payment from the fund until the day on which the claim is paid.
             936          Section 23. Section 34A-2-202.5 is amended to read:
             937           34A-2-202.5. Offset for occupational health and safety related donations.
             938          (1) As used in this section:
             939          (a) "Occupational health and safety center" means the Rocky Mountain Center for
             940      Occupational and Environmental Health created in Title 53B, Chapter 17, Part 8, Rocky
             941      Mountain Center for Occupational and Environmental Health.
             942          (b) "Qualified donation" means a donation that is:
             943          (i) cash;
             944          (ii) given directly to an occupational health and safety center; and
             945          (iii) given exclusively for the purpose of:
             946          (A) supporting graduate level education and training in fields of:
             947          (I) safety and ergonomics;
             948          (II) industrial hygiene;
             949          (III) occupational health nursing; and
             950          (IV) occupational medicine;
             951          (B) providing continuing education programs for employers designed to promote
             952      workplace safety; and
             953          (C) paying reasonable administrative, personnel, equipment, and overhead costs of the


             954      occupational health and safety center.
             955          (c) "Self-insured employer" is a self-insured employer as defined in Section
             956      34A-2-201.5 that is required to pay the assessment imposed under Section 34A-2-202 .
             957          (2) (a) A self-insured employer may offset against the assessment imposed under
             958      Section 34A-2-202 an amount equal to the lesser of:
             959          (i) the total of qualified donations made by the self-insured employer in the calendar
             960      year for which the assessment is calculated; and
             961          (ii) .10% of the self-insured employer's total calculated premium calculated under
             962      Subsection 34A-2-202 (1)(d) for the calendar year for which the assessment is calculated.
             963          (b) The offset provided under this Subsection (2) shall be allocated in proportion to the
             964      percentages provided in Subsection 59-9-101 (2)(c).
             965          (3) An occupational health and safety center shall:
             966          (a) provide a self-insured employer a receipt for any qualified donation made by the
             967      self-insured employer to the occupational health and safety center;
             968          (b) expend [monies] money received by a qualified donation:
             969          (i) for the purposes described in Subsection (1)(b)(iii); and
             970          (ii) in a manner that can be audited to ensure that the [monies are] money is expended
             971      for the purposes described in Subsection (1)(b)(iii); and
             972          (c) in conjunction with the report required by Section 59-9-102.5 , report to the
             973      Legislature through the Office of the Legislative Fiscal Analyst by no later than July 1 of each
             974      year:
             975          (i) the qualified donations received by the occupational health and safety center in the
             976      previous calendar year; and
             977          (ii) the expenditures during the previous calendar year of qualified donations received
             978      by the occupational health and safety center.
             979          Section 24. Section 34A-2-704 is amended to read:
             980           34A-2-704. Uninsured Employers' Fund.
             981          (1) (a) There is created an Uninsured Employers' Fund. The Uninsured Employers'


             982      Fund has the purpose of assisting in the payment of workers' compensation benefits to a person
             983      entitled to the benefits, if:
             984          (i) that person's employer:
             985          (A) is individually, jointly, or severally liable to pay the benefits; and
             986          (B) (I) becomes or is insolvent;
             987          (II) appoints or has appointed a receiver; or
             988          (III) otherwise does not have sufficient funds, insurance, sureties, or other security to
             989      cover workers' compensation liabilities; and
             990          (ii) the employment relationship between that person and the person's employer is
             991      localized within the state as provided in Subsection (20).
             992          (b) The Uninsured Employers' Fund succeeds to [monies] money previously held in the
             993      Default Indemnity Fund.
             994          (c) If it becomes necessary to pay benefits, the Uninsured Employers' Fund is liable for
             995      the obligations of the employer set forth in this chapter and Chapter 3, Utah Occupational
             996      Disease Act, with the exception of a penalty on those obligations.
             997          (2) (a) [Monies] Money for the Uninsured Employers' Fund shall be deposited into the
             998      Uninsured Employers' Fund in accordance with this chapter and Subsection 59-9-101 (2).
             999          (b) The commissioner shall appoint an administrator of the Uninsured Employers'
             1000      Fund.
             1001          (c) (i) The state treasurer is the custodian of the Uninsured Employers' Fund.
             1002          (ii) The administrator shall make provisions for and direct distribution from the
             1003      Uninsured Employers' Fund.
             1004          (3) Reasonable costs of administering the Uninsured Employers' Fund or other fees
             1005      required to be paid by the Uninsured Employers' Fund may be paid from the Uninsured
             1006      Employers' Fund.
             1007          (4) The state treasurer shall:
             1008          (a) receive workers' compensation premium assessments from the State Tax
             1009      Commission; and


             1010          (b) invest the Uninsured Employers' Fund to ensure maximum investment return for
             1011      both long and short term investments in accordance with Section 51-7-12.5 .
             1012          (5) (a) The administrator may employ, retain, or appoint counsel to represent the
             1013      Uninsured Employers' Fund in a proceeding brought to enforce a claim against or on behalf of
             1014      the Uninsured Employers' Fund.
             1015          (b) If requested by the commission, the following shall aid in the representation of the
             1016      Uninsured Employers' Fund:
             1017          (i) the attorney general; or
             1018          (ii) the city attorney, or county attorney of the locality in which:
             1019          (A) an investigation, hearing, or trial under this chapter or Chapter 3, Utah
             1020      Occupational Disease Act, is pending;
             1021          (B) the employee resides; or
             1022          (C) an employer:
             1023          (I) resides; or
             1024          (II) is doing business.
             1025          (c) (i) Notwithstanding Title 63A, Chapter 8, Office of State Debt Collection, the
             1026      administrator shall provide for the collection of [monies] money required to be deposited in the
             1027      Uninsured Employers' Fund under this chapter and Chapter 3, Utah Occupational Disease Act.
             1028          (ii) To comply with Subsection (5)(c)(i), the administrator may:
             1029          (A) take appropriate action, including docketing an award in a manner consistent with
             1030      Section 34A-2-212 ; and
             1031          (B) employ counsel and other personnel necessary to collect the [monies] money
             1032      described in Subsection (5)(c)(i).
             1033          (6) To the extent of the compensation and other benefits paid or payable to or on behalf
             1034      of an employee or the employee's dependents from the Uninsured Employers' Fund, the
             1035      Uninsured Employers' Fund, by subrogation, has the rights, powers, and benefits of the
             1036      employee or the employee's dependents against the employer failing to make the compensation
             1037      payments.


             1038          (7) (a) The receiver, trustee, liquidator, or statutory successor of an employer meeting a
             1039      condition listed in Subsection (1)(a)(i)(B) is bound by a settlement of a covered claim by the
             1040      Uninsured Employers' Fund.
             1041          (b) A court with jurisdiction shall grant a payment made under this section a priority
             1042      equal to that to which the claimant would have been entitled in the absence of this section
             1043      against the assets of the employer meeting a condition listed in Subsection (1)(a)(i)(B).
             1044          (c) The expenses of the Uninsured Employers' Fund in handling a claim shall be
             1045      accorded the same priority as the liquidator's expenses.
             1046          (8) (a) The administrator shall periodically file the information described in Subsection
             1047      (8)(b) with the receiver, trustee, or liquidator of:
             1048          (i) an employer that meets a condition listed in Subsection (1)(a)(i)(B);
             1049          (ii) a public agency insurance mutual, as defined in Section 31A-1-103 , that meets a
             1050      condition listed in Subsection (1)(a)(i)(B); or
             1051          (iii) an insolvent insurance carrier.
             1052          (b) The information required to be filed under Subsection (8)(a) is:
             1053          (i) a statement of the covered claims paid by the Uninsured Employers' Fund; and
             1054          (ii) an estimate of anticipated claims against the Uninsured Employers' Fund.
             1055          (c) A filing under this Subsection (8) preserves the rights of the Uninsured Employers'
             1056      Fund for claims against the assets of the employer that meets a condition listed in Subsection
             1057      (1)(a)(i)(B).
             1058          (9) When an injury or death for which compensation is payable from the Uninsured
             1059      Employers' Fund has been caused by the wrongful act or neglect of another person not in the
             1060      same employment, the Uninsured Employers' Fund has the same rights as allowed under
             1061      Section 34A-2-106 .
             1062          (10) The Uninsured Employers' Fund, subject to approval of the administrator, shall
             1063      discharge its obligations by:
             1064          (a) adjusting its own claims; or
             1065          (b) contracting with an adjusting company, risk management company, insurance


             1066      company, or other company that has expertise and capabilities in adjusting and paying workers'
             1067      compensation claims.
             1068          (11) (a) For the purpose of maintaining the Uninsured Employers' Fund, an
             1069      administrative law judge, upon rendering a decision with respect to a claim for workers'
             1070      compensation benefits in which an employer that meets a condition listed in Subsection
             1071      (1)(a)(i)(B) is duly joined as a party, shall:
             1072          (i) order the employer that meets a condition listed in Subsection (1)(a)(i)(B) to
             1073      reimburse the Uninsured Employers' Fund for the benefits paid to or on behalf of an injured
             1074      employee by the Uninsured Employers' Fund along with interest, costs, and attorney fees; and
             1075          (ii) impose a penalty against the employer that meets a condition listed in Subsection
             1076      (1)(a)(i)(B):
             1077          (A) of 15% of the value of the total award in connection with the claim; and
             1078          (B) that shall be deposited into the Uninsured Employers' Fund.
             1079          (b) An award under this Subsection (11) shall be collected by the administrator in
             1080      accordance with Subsection (5)(c).
             1081          (12) The state, the commission, and the state treasurer, with respect to payment of
             1082      compensation benefits, expenses, fees, or disbursement properly chargeable against the
             1083      Uninsured Employers' Fund:
             1084          (a) are liable only to the assets in the Uninsured Employers' Fund; and
             1085          (b) are not otherwise in any way liable for the making of a payment.
             1086          (13) The commission may make reasonable rules for the processing and payment of a
             1087      claim for compensation from the Uninsured Employers' Fund.
             1088          (14) (a) (i) If it becomes necessary for the Uninsured Employers' Fund to pay benefits
             1089      under this section to an employee described in Subsection (14)(a)(ii), the Uninsured Employers'
             1090      Fund may assess all other self-insured employers amounts necessary to pay:
             1091          (A) the obligations of the Uninsured Employers' Fund subsequent to a condition listed
             1092      in Subsection (1)(a)(i)(B) occurring;
             1093          (B) the expenses of handling covered a claim subsequent to a condition listed in


             1094      Subsection (1)(a)(i)(B) occurring;
             1095          (C) the cost of an examination under Subsection (15); and
             1096          (D) other expenses authorized by this section.
             1097          (ii) This Subsection (14) applies to benefits paid to an employee of:
             1098          (A) a self-insured employer, as defined in Section 34A-2-201.5 , that meets a condition
             1099      listed in Subsection (1)(a)(i)(B); or
             1100          (B) if the self-insured employer that meets a condition described in Subsection
             1101      (1)(a)(i)(B) is a public agency insurance mutual, a member of the public agency insurance
             1102      mutual.
             1103          (b) The assessments of a self-insured employer shall be in the proportion that the
             1104      manual premium of the self-insured employer for the preceding calendar year bears to the
             1105      manual premium of all self-insured employers for the preceding calendar year.
             1106          (c) A self-insured employer shall be notified of the self-insured employer's assessment
             1107      not later than 30 days before the day on which the assessment is due.
             1108          (d) (i) A self-insured employer may not be assessed in any year an amount greater than
             1109      2% of that self-insured employer's manual premium for the preceding calendar year.
             1110          (ii) If the maximum assessment does not provide in a year an amount sufficient to
             1111      make all necessary payments from the Uninsured Employers' Fund for one or more self-insured
             1112      employers that meet a condition listed in Subsection (1)(a)(i)(B), the unpaid portion shall be
             1113      paid as soon as [monies become] money becomes available.
             1114          (e) A self-insured employer is liable under this section for a period not to exceed three
             1115      years after the day on which the Uninsured Employers' Fund first pays benefits to an employee
             1116      described in Subsection (14)(a)(ii) for the self-insured employer that meets a condition listed in
             1117      Subsection (1)(a)(i)(B).
             1118          (f) This Subsection (14) does not apply to a claim made against a self-insured employer
             1119      that meets a condition listed in Subsection (1)(a)(i)(B) if the condition listed in Subsection
             1120      (1)(a)(i)(B) occurred before July 1, 1986.
             1121          (15) (a) The following shall notify the division of any information indicating that any


             1122      of the following may be insolvent or in a financial condition hazardous to its employees or the
             1123      public:
             1124          (i) a self-insured employer; or
             1125          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
             1126      public agency insurance mutual.
             1127          (b) Upon receipt of the notification described in Subsection (15)(a) and with good
             1128      cause appearing, the division may order an examination of:
             1129          (i) that self-insured employer; or
             1130          (ii) if the self-insured employer is a public agency insurance mutual, a member of the
             1131      public agency mutual.
             1132          (c) The cost of the examination ordered under Subsection (15)(b) shall be assessed
             1133      against all self-insured employers as provided in Subsection (14).
             1134          (d) The results of the examination ordered under Subsection (15)(b) shall be kept
             1135      confidential.
             1136          (16) (a) In a claim against an employer by the Uninsured Employers' Fund, or by or on
             1137      behalf of the employee to whom or to whose dependents compensation and other benefits are
             1138      paid or payable from the Uninsured Employers' Fund, the burden of proof is on the employer or
             1139      other party in interest objecting to the claim.
             1140          (b) A claim described in Subsection (16)(a) is presumed to be valid up to the full
             1141      amount of workers' compensation benefits claimed by the employee or the employee's
             1142      dependents.
             1143          (c) This Subsection (16) applies whether the claim is filed in court or in an adjudicative
             1144      proceeding under the authority of the commission.
             1145          (17) A partner in a partnership or an owner of a sole proprietorship may not recover
             1146      compensation or other benefits from the Uninsured Employers' Fund if:
             1147          (a) the person is not included as an employee under Subsection 34A-2-104 (3); or
             1148          (b) the person is included as an employee under Subsection 34A-2-104 (3), but:
             1149          (i) the person's employer fails to insure or otherwise provide adequate payment of


             1150      direct compensation; and
             1151          (ii) the failure described in Subsection (17)(b)(i) is attributable to an act or omission
             1152      over which the person had or shared control or responsibility.
             1153          (18) A director or officer of a corporation may not recover compensation or other
             1154      benefits from the Uninsured Employers' Fund if the director or officer is excluded from
             1155      coverage under Subsection 34A-2-104 (4).
             1156          (19) The Uninsured Employers' Fund:
             1157          (a) shall be:
             1158          (i) used in accordance with this section only for:
             1159          (A) the purpose of assisting in the payment of workers' compensation benefits in
             1160      accordance with Subsection (1); and
             1161          (B) in accordance with Subsection (3), payment of:
             1162          (I) reasonable costs of administering the Uninsured Employers' Fund; or
             1163          (II) fees required to be paid by the Uninsured Employers' Fund; and
             1164          (ii) expended according to processes that can be verified by audit; and
             1165          (b) may not be used for:
             1166          (i) administrative costs unrelated to the Uninsured Employers' Fund; or
             1167          (ii) an activity of the commission other than an activity described in Subsection (19)(a).
             1168          (20) (a) For purposes of Subsection (1), an employment relationship is localized in the
             1169      state if:
             1170          (i) (A) the employer who is liable for the benefits has a business premise in the state;
             1171      and
             1172          (B) (I) the contract for hire is entered into in the state; or
             1173          (II) the employee regularly performs work duties in the state for the employer who is
             1174      liable for the benefits; or
             1175          (ii) the employee is:
             1176          (A) a resident of the state; and
             1177          (B) regularly performs work duties in the state for the employer who is liable for the


             1178      benefits.
             1179          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             1180      commission shall by rule define what constitutes regularly performing work duties in the state.
             1181          Section 25. Section 35A-3-116 is amended to read:
             1182           35A-3-116. Restricted special revenue fund -- Use of money -- Committee and
             1183      director duties -- Restrictions.
             1184          (1) There is created a restricted special revenue fund, known as the "Refugee Services
             1185      Fund," hereafter referred to in this section as "the fund."
             1186          (2) The director or the director's designee, hereafter referred to in this section as the
             1187      director, shall administer the fund with input from the Department of Community and Culture,
             1188      including any advisory committees within the Department of Community and Culture that deal
             1189      with refugee services issues.
             1190          (3) (a) Money shall be deposited into the fund from numerous sources, including
             1191      federal grants, private foundations, and individual donors.
             1192          (b) The director shall encourage a refugee who receives services from activities funded
             1193      under Subsection (8) to become a donor to the fund once the refugee's financial situation
             1194      improves to the point where the refugee is capable of making a donation.
             1195          (4) The director may not expend [monies] money in the fund that [are] is not restricted
             1196      to a specific use under federal law or by donors without input from the Department of
             1197      Community and Culture, either directly or through an advisory committee identified in
             1198      Subsection (2).
             1199          (5) The state treasurer shall invest the [monies] money in the fund under Title 51,
             1200      Chapter 7, State Money Management Act, and all interest or other earnings derived from the
             1201      fund [monies] money shall be deposited in the fund.
             1202          (6) The [monies] money in the fund may not be used by the director for administrative
             1203      expenses.
             1204          (7) If the Department of Community and Culture establishes a refugee services
             1205      advisory committee referred to in Subsection (2), that committee may:


             1206          (a) advise the director on refugee services needs in the state and on relevant operational
             1207      aspects of any grant or revenue collection program established under this part;
             1208          (b) recommend specific refugee projects to the director;
             1209          (c) recommend policies and procedures for administering the fund;
             1210          (d) make recommendations on grants made from the fund for any of the refugee
             1211      services activities authorized under this section;
             1212          (e) advise the director on the criteria by which grants shall be made from the fund;
             1213          (f) recommend the order in which approved projects would be funded;
             1214          (g) make recommendations regarding the distribution of money from the fund in
             1215      accordance with the procedures, conditions, and restrictions placed upon [monies] money in
             1216      the fund by donors; and
             1217          (h) have joint responsibility to solicit public and private funding for the fund.
             1218          (8) The director may use fund [monies] money to:
             1219          (a) train an existing refugee organization to develop its capacity to operate
             1220      professionally and effectively and to become an independent, viable organization; or
             1221          (b) provide grants to an existing refugee organization and other entities identified in
             1222      Subsection (9) to assist them:
             1223          (i) with case management;
             1224          (ii) in meeting emergency housing needs for refugees;
             1225          (iii) in providing English language services;
             1226          (iv) in providing interpretive services;
             1227          (v) in finding and maintaining employment for refugees;
             1228          (vi) in collaborating with the state's public education system to improve the
             1229      involvement of refugee parents in assimilating their children into public schools;
             1230          (vii) in meeting the health and mental health needs of refugees;
             1231          (viii) in providing or arranging for child care services; or
             1232          (ix) in administering refugee services.
             1233          (9) In addition to Subsection (8), the director with advice from the Department of


             1234      Community and Culture or its refugee services advisory committee, if one is created, may grant
             1235      fund money for refugee services outlined in Subsection (8) through a request for proposal
             1236      process to:
             1237          (a) local governments;
             1238          (b) nonprofit community, charitable, or neighborhood-based organizations or private
             1239      for profit organizations that deal solely or in part with providing or arranging for the provision
             1240      of refugee services; or
             1241          (c) regional or statewide nonprofit organizations.
             1242          (10) The director shall enter into a written agreement with each successful grant
             1243      applicant that has specific terms for each grant consistent with the provisions of this section
             1244      that includes the structure, amount, and nature of the grant.
             1245          (11) The director shall monitor the activities of the recipients of grants issued from the
             1246      fund on an annual basis to ensure compliance with the terms and conditions imposed on the
             1247      recipient by the fund.
             1248          (12) An entity receiving a grant shall provide the director with periodic accounting of
             1249      how the [monies] money it received from the fund [were] was spent.
             1250          (13) By November 1 of each year the director shall make an annual report to the
             1251      Workforce Services and Community and Economic Development Interim Committee regarding
             1252      the status of the fund and the programs and services funded by the fund.
             1253          Section 26. Section 35A-3-205 is amended to read:
             1254           35A-3-205. Creation of committee.
             1255          (1) There is created a Child Care Advisory Committee.
             1256          (2) The committee shall counsel and advise the office in fulfilling its statutory
             1257      obligations to include:
             1258          (a) a review of and recommendations on the office's annual budget;
             1259          (b) recommendations on how the office might best respond to child care needs
             1260      throughout the state; and
             1261          (c) recommendations on the use of new [monies] money that [come] comes into the


             1262      office, including those for the Child Care Fund.
             1263          (3) The committee is composed of the following members, with special attention given
             1264      to insure diversity and representation from both urban and rural groups:
             1265          (a) one expert in early childhood development;
             1266          (b) one child care provider who operates a center;
             1267          (c) one child care provider who operates a family child care business;
             1268          (d) one parent who is representative of households receiving a child care subsidy from
             1269      the office;
             1270          (e) one representative from the public at-large;
             1271          (f) one representative of the State Office of Education;
             1272          (g) one representative of the Department of Health;
             1273          (h) one representative of the Department of Human Services;
             1274          (i) one representative of the Department of Community and Culture;
             1275          (j) two representatives from the corporate community, one who is a recent "Family
             1276      Friendly" award winner and who received the award because of efforts in the child care arena;
             1277          (k) two representatives from the small business community;
             1278          (l) one representative from child care advocacy groups;
             1279          (m) one representative of children with disabilities;
             1280          (n) one representative from the state Head Start Association appointed by the
             1281      association;
             1282          (o) one representative from each child care provider association; and
             1283          (p) one representative of a child care resource and referral center appointed by the
             1284      organization representing child care resource and referral agencies.
             1285          (4) (a) The executive director shall appoint the members designated in Subsections
             1286      (3)(a) through (e) and (j) through (n).
             1287          (b) The head of the respective departments shall appoint the members referred to in
             1288      Subsections (3)(f) through (i).
             1289          (c) Each child care provider association shall appoint its respective member referred to


             1290      in Subsection (3)(o).
             1291          (5) (a) Except as required by Subsection (5)(b), as terms of current committee members
             1292      expire, the appointing authority shall appoint each new member or reappointed member to a
             1293      four-year term.
             1294          (b) Notwithstanding the requirements of Subsection (5)(a), the appointing authority
             1295      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             1296      terms of committee members are staggered so that approximately half of the committee is
             1297      appointed every two years.
             1298          (6) When a vacancy occurs in the membership for any reason, including missing three
             1299      consecutive meetings where the member has not been excused by the chair prior to or during
             1300      the meeting, the replacement shall be appointed for the unexpired term.
             1301          (7) A majority of the members constitutes a quorum for the transaction of business.
             1302          (8) (a) The executive director shall select a chair from the committee membership.
             1303          (b) A chair may serve no more than two one-year terms as chair.
             1304          (9) A member may not receive compensation or benefits for the member's service, but
             1305      may receive per diem and travel expenses in accordance with:
             1306          (a) Section 63A-3-106 ;
             1307          (b) Section 63A-3-107 ; and
             1308          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             1309      63A-3-107 .
             1310          Section 27. Section 35A-3-206 is amended to read:
             1311           35A-3-206. Restricted special revenue fund -- Use of money -- Committee and
             1312      director duties -- Restrictions.
             1313          (1) There is created a restricted special revenue fund known as the "Child Care Fund."
             1314          (2) The director of the office shall administer the fund under the direction of the
             1315      committee.
             1316          (3) (a) The office may form nonprofit corporations or foundations controlled by the
             1317      director of the office and the committee to aid and assist the office in attaining its charitable,


             1318      research, and educational objectives.
             1319          (b) The nonprofit corporations or foundations may receive and administer Legislative
             1320      appropriations, government grants, contracts, and private gifts to carry out their public
             1321      purposes.
             1322          (c) [Monies] Money collected by the nonprofit corporation or foundation may be
             1323      deposited in the Child Care Fund.
             1324          (d) A nonprofit foundation controlled by the director of the office and the committee
             1325      shall submit to the Division of Finance, within 60 days after the close of the foundation's fiscal
             1326      year, a financial report summarizing the foundation's financial position and results of
             1327      operations of the most recent fiscal year.
             1328          (4) (a) There shall be deposited into the fund money from numerous sources, including,
             1329      grants, private foundations, and individual donors.
             1330          (b) The fund shall be used to accept [monies] money designated for child care
             1331      initiatives improving the quality, affordability, or accessibility of child care.
             1332          (5) The [monies] money in the fund that [are] is not restricted to a specific use under
             1333      federal law or by donors may not be expended without approval of the committee.
             1334          (6) The state treasurer shall invest the [monies] money in the fund under Title 51,
             1335      Chapter 7, State Money Management Act, except that all interest or other earnings derived
             1336      from the fund [monies] money shall be deposited in the fund.
             1337          (7) The [monies] money in the fund may not be used for administrative expenses of the
             1338      office normally provided for by legislative appropriation.
             1339          (8) The committee shall:
             1340          (a) advise the director of the office on child care needs in the state and on relevant
             1341      operational aspects of any grant, loan, or revenue collection program established under this
             1342      part;
             1343          (b) recommend specific child care projects to the director of the office;
             1344          (c) recommend policy and procedures for administering the fund;
             1345          (d) make recommendations on grants, loans, or contracts from the fund for any of the


             1346      child care activities authorized under this part;
             1347          (e) establish the criteria by which loans and grants will be made;
             1348          (f) determine the order in which approved child care projects will be funded;
             1349          (g) make recommendations regarding the distribution of money from the fund in
             1350      accordance with the procedures, conditions, and restrictions placed upon the [monies] money
             1351      by the donors; and
             1352          (h) have joint responsibility with the office to solicit public and private funding for the
             1353      fund.
             1354          (9) Fund [monies] money shall be used for any of the following activities:
             1355          (a) training of child care providers;
             1356          (b) scholarships and grants for child care providers' professional development;
             1357          (c) child care public awareness and consumer education services;
             1358          (d) child care provider recruitment;
             1359          (e) Office of Child Care sponsored activities;
             1360          (f) matching money for obtaining grants; or
             1361          (g) other activities that will assist in the improvement of child care quality,
             1362      affordability, or accessibility.
             1363          (10) The director of the office, with the consent of the committee and the executive
             1364      director, may grant, lend, or contract fund money for child care purposes to:
             1365          (a) local governments;
             1366          (b) nonprofit community, charitable, or neighborhood-based organizations;
             1367          (c) regional or statewide nonprofit organizations; or
             1368          (d) child care providers.
             1369          (11) Preference may be given but awards may not be limited to applicants for fund
             1370      [monies] money that demonstrate any of the following:
             1371          (a) programmatic or financial need;
             1372          (b) diversity of clientele or geographic location; and
             1373          (c) coordination with or enhancement of existing services.


             1374          (12) The executive director or the executive director's designee shall monitor the
             1375      activities of the recipients of grants, loans, or contracts issued from the fund on an annual basis
             1376      to ensure compliance with the terms and conditions imposed on the recipient by the fund.
             1377          (13) The entities receiving grants, loans, or contracts shall provide the director of the
             1378      office with an annual accounting of how the [monies] money they received from the fund
             1379      [have] has been spent.
             1380          (14) (a) The director of the office shall make an annual report to the committee
             1381      regarding the status of the fund and the programs and services funded by the fund.
             1382          (b) The report shall be included as a component of the report to the Legislature
             1383      required under Subsection 35A-3-203 (11).
             1384          Section 28. Section 35A-4-107 is amended to read:
             1385           35A-4-107. Limit of liability -- State -- Department.
             1386          (1) Benefits shall be considered to be due and payable under this chapter only to the
             1387      extent provided in this chapter and to the extent that [moneys are] money is available to the
             1388      credit of the Unemployment Compensation Fund.
             1389          (2) The state, the department, or any division of the department may not be held liable
             1390      for any amount that exceeds the [monies] money available in the Unemployment
             1391      Compensation Fund.
             1392          Section 29. Section 35A-4-303 is amended to read:
             1393           35A-4-303. Determination of contribution rates.
             1394          (1) (a) An employer's basic contribution rate is the same as the employer's benefit ratio,
             1395      determined by dividing the total benefit costs charged back to an employer during the
             1396      immediately preceding four fiscal years by the total taxable wages of the employer for the same
             1397      time period, calculated to four decimal places, disregarding the remaining fraction, if any.
             1398          (b) In calculating the basic contribution rate under Subsection (1)(a):
             1399          (i) if four fiscal years of data are not available, the data of three fiscal years shall be
             1400      divided by the total taxable wages for the same time period;
             1401          (ii) if three fiscal years of data are not available, the data of two fiscal years shall be


             1402      divided by the total taxable wages for the same time period; or
             1403          (iii) if two fiscal years of data are not available, the data of one fiscal year shall be
             1404      divided by the total taxable wages for the same time period.
             1405          (2) (a) In calculating the social contribution rate under Subsection (2)(b) or (c):
             1406          (i) if four fiscal years of data are not available, the data of three fiscal years shall be
             1407      divided by the total taxable wages for the same time period; or
             1408          (ii) if three fiscal years of data are not available, the data of two fiscal years shall be
             1409      divided by the total taxable wages for the same time period.
             1410          (b) Beginning January 1, 2005, the division shall calculate the social contribution rate
             1411      by dividing all social costs as defined in Subsection 35A-4-307 (1) applicable to the preceding
             1412      four fiscal years by the total taxable wages of all employers subject to contributions for the
             1413      same period, calculated to four decimal places, disregarding any remaining fraction.
             1414          (c) Beginning January 1, 2009, the division shall calculate the social contribution rate
             1415      by dividing all social costs as defined in Subsection 35A-4-307 (1) applicable to the preceding
             1416      four fiscal years by the total taxable wages of all employers subject to contributions for the
             1417      same period, calculated to four decimal places, disregarding any remaining fraction, and
             1418      rounded to three decimal places, disregarding any further fraction, if the fourth decimal place is
             1419      .0004 or less, or rounding up to the next higher number, if the fourth decimal place is .0005 or
             1420      more.
             1421          (3) (a) Beginning January 1, 2000, the division shall by administrative decision set the
             1422      reserve factor at a rate that shall sustain an adequate reserve.
             1423          (b) For the purpose of setting the reserve factor:
             1424          (i) (A) the adequate reserve is defined as between 17 and 19 months of benefits at the
             1425      average of the five highest benefit cost rates in the last 25 years;
             1426          (B) beginning January 1, 2009, the adequate reserve is defined as between 18 and 24
             1427      months of benefits at the average of the five highest benefit cost rates in the last 25 years;
             1428          (ii) the reserve factor shall be 1.0000 if the actual reserve fund balance as of June 30
             1429      preceding the computation date is determined to be an adequate reserve;


             1430          (iii) the reserve factor will be set between 0.5000 and 1.0000 if the actual reserve fund
             1431      balance as of June 30 preceding the computation date is greater than the adequate reserve;
             1432          (iv) the reserve factor will be set between 1.0000 and 1.5000 if the actual reserve fund
             1433      balance as of June 30 prior to the computation date is less than the adequate reserve;
             1434          (v) if the actual reserve fund balance as of June 30 preceding the computation date is
             1435      insolvent or negative or if there is an outstanding loan from the Federal Unemployment
             1436      Account, the reserve factor will be set at 2.0000 until the actual reserve fund balance as of June
             1437      30 preceding the computation date is determined to be an adequate reserve;
             1438          (vi) the reserve factor will be set on or before January 1 of each year; and
             1439          (vii) [monies] money made available to the state under Section 903 of the Social
             1440      Security Act, as amended, which [are] is received on or after January 1, 2004, may not be
             1441      considered in establishing the reserve factor under this section for the rate year 2005 or any
             1442      subsequent rate year.
             1443          (4) (a) On or after January 1, 2004, an employer's overall contribution rate is the
             1444      employer's basic contribution rate multiplied by the reserve factor established according to
             1445      Subsection (3), calculated to four decimal places, disregarding the remaining fraction, plus the
             1446      social contribution rate established according to Subsection (2), and calculated to three decimal
             1447      places, disregarding the remaining fraction, but not more than a maximum overall contribution
             1448      rate of 9.0%, plus the applicable social contribution rate and not less than 1.1% for new
             1449      employers.
             1450          (b) Beginning January 1, 2009, an employer's overall contribution rate is the employer's
             1451      basic contribution rate multiplied by the reserve factor established according to Subsection
             1452      (3)(b), calculated to four decimal places, disregarding the remaining fraction, plus the social
             1453      contribution rate established according to Subsection (2), and calculated to three decimal
             1454      places, disregarding the remaining fraction, but not more than a maximum overall contribution
             1455      rate of 9%, plus the applicable social contribution rate and not less than 1.1% for new
             1456      employers.
             1457          (c) The overall contribution rate does not include the addition of any penalty applicable


             1458      to an employer as a result of delinquency in the payment of contributions as provided in
             1459      Subsection (9).
             1460          (d) The overall contribution rate does not include the addition of any penalty applicable
             1461      to an employer assessed a penalty rate under Subsection 35A-4-304 (5)(a).
             1462          (5) Except as provided in Subsection (9), each new employer shall pay a contribution
             1463      rate based on the average benefit cost rate experienced by employers of the major industry as
             1464      defined by department rule to which the new employer belongs, the basic contribution rate to
             1465      be determined as follows:
             1466          (a) Except as provided in Subsection (5)(b), by January 1 of each year, the basic
             1467      contribution rate to be used in computing the employer's overall contribution rate is the benefit
             1468      cost rate which is the greater of:
             1469          (i) the amount calculated by dividing the total benefit costs charged back to both active
             1470      and inactive employers of the same major industry for the last two fiscal years by the total
             1471      taxable wages paid by those employers that were paid during the same time period, computed
             1472      to four decimal places, disregarding the remaining fraction, if any; or
             1473          (ii) 1%.
             1474          (b) If the major industrial classification assigned to a new employer is an industry for
             1475      which a benefit cost rate does not exist because the industry has not operated in the state or has
             1476      not been covered under this chapter, the employer's basic contribution rate shall be 5.4%. This
             1477      basic contribution rate is used in computing the employer's overall contribution rate.
             1478          (6) Notwithstanding any other provision of this chapter, and except as provided in
             1479      Subsection (7), if an employing unit that moves into this state is declared to be a qualified
             1480      employer because it has sufficient payroll and benefit cost experience under another state, a
             1481      rate shall be computed on the same basis as a rate is computed for all other employers subject
             1482      to this chapter if that unit furnishes adequate records on which to compute the rate.
             1483          (7) An employer who begins to operate in this state after having operated in another
             1484      state shall be assigned the maximum overall contribution rate until the employer acquires
             1485      sufficient experience in this state to be considered a "qualified employer" if the employer is:


             1486          (a) regularly engaged as a contractor in the construction, improvement, or repair of
             1487      buildings, roads, or other structures on lands;
             1488          (b) generally regarded as being a construction contractor or a subcontractor specialized
             1489      in some aspect of construction; or
             1490          (c) required to have a contractor's license or similar qualification under Title 58,
             1491      Chapter 55, Utah Construction Trades Licensing Act, or the equivalent in laws of another state.
             1492          (8) (a) If an employer acquires the business or all or substantially all the assets of
             1493      another employer and the other employer had discontinued operations upon the acquisition or
             1494      transfers its trade or business, or a portion of its trade or business, under Subsection
             1495      35A-4-304 (3)(a):
             1496          (i) for purposes of determining and establishing the acquiring party's qualifications for
             1497      an experience rating classification, the payrolls of both employers during the qualifying period
             1498      shall be jointly considered in determining the period of liability with respect to:
             1499          (A) the filing of contribution reports;
             1500          (B) the payment of contributions; and
             1501          (C) after January 1, 1985, the benefit costs of both employers;
             1502          (ii) the transferring employer shall be divested of the transferring employer's
             1503      unemployment experience provided the transferring employer had discontinued operations, but
             1504      only to the extent as defined under Subsection 35A-4-304 (3)(c); and
             1505          (iii) if an employer transfers its trade or business, or a portion of its trade or business,
             1506      as defined under Subsection 35A-4-304 (3), the transferring employer may not be divested of its
             1507      employer's unemployment experience.
             1508          (b) An employing unit or prospective employing unit that acquires the unemployment
             1509      experience of an employer shall, for all purposes of this chapter, be an employer as of the date
             1510      of acquisition.
             1511          (c) Notwithstanding Section 35A-4-310 , when a transferring employer, as provided in
             1512      Subsection (8)(a), is divested of the employer's unemployment experience by transferring all of
             1513      the employer's business to another and by ceasing operations as of the date of the transfer, the


             1514      transferring employer shall cease to be an employer, as defined by this chapter, as of the date of
             1515      transfer.
             1516          (9) (a) A rate of less than 8% shall be effective January 1 of any contribution year on or
             1517      after January 1, 1985, but before January 1, 1988, and a rate of less than the maximum overall
             1518      contribution rate on or after January 1, 1988, only with respect to new employers and to those
             1519      qualified employers who, except for amounts due under division determinations that have not
             1520      become final, paid all contributions prescribed by the division with respect to the four
             1521      consecutive calendar quarters in the fiscal year immediately preceding the computation date on
             1522      or after January 1, 1985.
             1523          (b) Notwithstanding Subsections (1), (5), (6), and (8), on or after January 1, 1988, an
             1524      employer who fails to pay all contributions prescribed by the division with respect to the four
             1525      consecutive calendar quarters in the fiscal year immediately preceding the computation date,
             1526      except for amounts due under determinations that have not become final, shall pay a
             1527      contribution rate equal to the overall contribution rate determined under the experience rating
             1528      provisions of this chapter, plus a surcharge of 1% of wages.
             1529          (c) An employer who pays all required contributions shall, for the current contribution
             1530      year, be assigned a rate based upon the employer's own experience as provided under the
             1531      experience rating provisions of this chapter effective the first day of the calendar quarter in
             1532      which the payment was made.
             1533          (d) Delinquency in filing contribution reports shall not be the basis for denial of a rate
             1534      less than the maximum contribution rate.
             1535          Section 30. Section 35A-4-507 is amended to read:
             1536           35A-4-507. Authority to obtain money from state's account in federal
             1537      unemployment trust fund -- Use and deposit.
             1538          (1) Notwithstanding the provisions of Sections 35A-4-501 and 35A-4-506 , the
             1539      department may requisition and receive from the state's account in the unemployment trust
             1540      fund in the treasury of the United States the [moneys] money standing to the state's credit as
             1541      may, consistent with conditions for approval of this chapter under the Federal Unemployment


             1542      Tax Act, 26 U.S.C. 3301 et seq., be used for expenses of administering this chapter and to
             1543      expend [those moneys] the money for that purpose.
             1544          (2) [Moneys] Money requisitioned under Subsection (1) shall be deposited in the
             1545      Special Administrative Expense Account created by Section 35A-4-506 .
             1546          Section 31. Section 36-24-101 is amended to read:
             1547           36-24-101. Review of new programs and agencies.
             1548          (1) When legislation is passed that creates a new program or agency, the legislative
             1549      sponsor shall consider providing that the funding for the first fiscal year should be nonlapsing,
             1550      with the option of continuing [those] the nonlapsing [monies] money for an additional year.
             1551          (2) The legislative interim committee with oversight responsibility for the new program
             1552      or agency:
             1553          (a) shall hear the limited scope audit report prepared by the Office of Legislative
             1554      Auditor General as provided in Section 36-12-15 on or before the committee's November
             1555      meeting;
             1556          (b) shall review each new program or agency on which it receives a report to assure
             1557      that it is being implemented in a manner consistent with its statutory directive;
             1558          (c) shall determine whether the statutory directive is being followed and whether any
             1559      change in law is necessary and if a change in law is necessary, make that recommendation to
             1560      the Legislature; and
             1561          (d) may request the Office of Legislative Auditor General to conduct a more in-depth
             1562      review of the program or agency.
             1563          (3) The legislative appropriations subcommittee with oversight responsibility for the
             1564      new program or agency:
             1565          (a) shall hear the limited scope audit report prepared by the Office of Legislative
             1566      Auditor General as provided in Section 36-12-15 on or before the committee's November
             1567      meeting;
             1568          (b) shall review each new program or agency on which it receives a report to
             1569      determine whether the agency is appropriately using the funds provided; and


             1570          (c) may request the Office of Legislative Auditor General to conduct a more in-depth
             1571      review of the program or agency.
             1572          Section 32. Section 38-11-102 is amended to read:
             1573           38-11-102. Definitions.
             1574          (1) "Board" means the Residence Lien Recovery Fund Advisory Board established
             1575      under Section 38-11-104 .
             1576          (2) "Certificate of compliance" means an order issued by the director to the owner
             1577      finding that the owner is in compliance with the requirements of Subsections 38-11-204 (4)(a)
             1578      and (4)(b) and is entitled to protection under Section 38-11-107 .
             1579          (3) "Construction on an owner-occupied residence" means designing, engineering,
             1580      constructing, altering, remodeling, improving, repairing, or maintaining a new or existing
             1581      residence.
             1582          (4) "Department" means the Department of Commerce.
             1583          (5) "Director" means the director of the Division of Occupational and Professional
             1584      Licensing.
             1585          (6) "Division" means the Division of Occupational and Professional Licensing.
             1586          (7) "Duplex" means a single building having two separate living units.
             1587          (8) "Encumbered fund balance" means the aggregate amount of outstanding claims
             1588      against the fund. The remainder of [monies] the money in the fund [are] is unencumbered
             1589      funds.
             1590          (9) "Executive director" means the executive director of the Department of Commerce.
             1591          (10) "Factory built housing" is as defined in Section 58-56-3 .
             1592          (11) "Factory built housing retailer" means a person that sells factory built housing to
             1593      consumers.
             1594          (12) "Fund" means the Residence Lien Recovery Fund established under Section
             1595      38-11-201 .
             1596          (13) "Laborer" means a person who provides services at the site of the construction on
             1597      an owner-occupied residence as an employee of an original contractor or other qualified


             1598      beneficiary performing qualified services on the residence.
             1599          (14) "Licensee" means any holder of a license issued under Title 58, Chapters 3a,
             1600      Architects Licensing Act, 22, Professional Engineers and Professional Land Surveyors
             1601      Licensing Act, 53, Landscape Architects Licensing Act, and 55, Utah Construction Trades
             1602      Licensing Act.
             1603          (15) "Nonpaying party" means the original contractor, subcontractor, or real estate
             1604      developer who has failed to pay the qualified beneficiary making a claim against the fund.
             1605          (16) "Original contractor" means a person who contracts with the owner of real
             1606      property or the owner's agent to provide services, labor, or material for the construction of an
             1607      owner-occupied residence.
             1608          (17) "Owner" means a person who:
             1609          (a) contracts with a person who is licensed as a contractor or is exempt from licensure
             1610      under Title 58, Chapter 55, Utah Construction Trades Licensing Act, for the construction on an
             1611      owner-occupied residence upon real property owned by that person;
             1612          (b) contracts with a real estate developer to buy a residence upon completion of the
             1613      construction on the owner-occupied residence; or
             1614          (c) buys a residence from a real estate developer after completion of the construction
             1615      on the owner-occupied residence.
             1616          (18) "Owner-occupied residence" means a residence that is, or after completion of the
             1617      construction on the residence will be, occupied by the owner or the owner's tenant or lessee as a
             1618      primary or secondary residence within 180 days from the date of the completion of the
             1619      construction on the residence.
             1620          (19) "Qualified beneficiary" means a person who:
             1621          (a) provides qualified services;
             1622          (b) pays necessary fees or assessments required under this chapter; and
             1623          (c) registers with the division:
             1624          (i) as a licensed contractor under Subsection 38-11-301 (1) or (2), if that person seeks
             1625      recovery from the fund as a licensed contractor; or


             1626          (ii) as a person providing qualified services other than as a licensed contractor under
             1627      Subsection 38-11-301 (3) if the person seeks recovery from the fund in a capacity other than as
             1628      a licensed contractor.
             1629          (20) (a) "Qualified services" means the following performed in construction on an
             1630      owner-occupied residence:
             1631          (i) contractor services provided by a contractor licensed or exempt from licensure
             1632      under Title 58, Chapter 55, Utah Construction Trades Licensing Act;
             1633          (ii) architectural services provided by an architect licensed under Title 58, Chapter 3a,
             1634      Architects Licensing Act;
             1635          (iii) engineering and land surveying services provided by a professional engineer or
             1636      land surveyor licensed or exempt from licensure under Title 58, Chapter 22, Professional
             1637      Engineers and Professional Land Surveyors Licensing Act;
             1638          (iv) landscape architectural services by a landscape architect licensed or exempt from
             1639      licensure under Title 58, Chapter 53, Landscape Architects Licensing Act;
             1640          (v) design and specification services of mechanical or other systems;
             1641          (vi) other services related to the design, drawing, surveying, specification, cost
             1642      estimation, or other like professional services;
             1643          (vii) providing materials, supplies, components, or similar products;
             1644          (viii) renting equipment or materials;
             1645          (ix) labor at the site of the construction on the owner-occupied residence; and
             1646          (x) site preparation, set up, and installation of factory built housing.
             1647          (b) "Qualified services" do not include the construction of factory built housing in the
             1648      factory.
             1649          (21) "Real estate developer" means a person having an ownership interest in real
             1650      property who:
             1651          (a) contracts with a person who is licensed as a contractor or is exempt from licensure
             1652      under Title 58, Chapter 55, Utah Construction Trades Licensing Act, for the construction of a
             1653      residence that is offered for sale to the public; or


             1654          (b) is a licensed contractor under Title 58, Chapter 55, Utah Construction Trades
             1655      Licensing Act, who engages in the construction of a residence that is offered for sale to the
             1656      public.
             1657          (22) (a) "Residence" means an improvement to real property used or occupied, to be
             1658      used or occupied as, or in conjunction with:
             1659          (i) a primary or secondary detached single-family dwelling; or
             1660          (ii) a multifamily dwelling up to and including duplexes.
             1661          (b) "Residence" includes factory built housing.
             1662          (23) "Subsequent owner" means a person who purchases a residence from an owner
             1663      within 180 days from the date the construction on the residence is completed.
             1664          Section 33. Section 40-6-14.5 is amended to read:
             1665           40-6-14.5. Oil and Gas Conservation Account created -- Contents -- Use of
             1666      account money.
             1667          (1) There is created within the General Fund a restricted account known as the Oil and
             1668      Gas Conservation Account.
             1669          (2) The contents of the account shall consist of:
             1670          (a) revenues from the fee levied under Section 40-6-14 , including any penalties or
             1671      interest charged for delinquent payments; and
             1672          (b) interest and earnings on account [monies] money.
             1673          (3) Account [monies] money shall be used to pay for the:
             1674          (a) administration of this chapter; and
             1675          (b) plugging and reclamation of abandoned oil or gas wells or bore, core, or
             1676      exploratory holes for which:
             1677          (i) there is no reclamation surety; or
             1678          (ii) the forfeited surety is insufficient for plugging and reclamation.
             1679          (4) Priority in the use of the [monies] money shall be given to paying for the
             1680      administration of this chapter.
             1681          (5) Appropriations for plugging and reclamation of abandoned oil or gas wells or bore,


             1682      core, or exploratory holes shall be nonlapsing.
             1683          (6) The balance of the Oil and Gas Conservation Account at the end of a fiscal year
             1684      may not exceed $750,000. Any excess [monies] money shall be transferred to the General
             1685      Fund.
             1686          (7) (a) As used in this Subsection (7), "excess fee revenue" means revenue collected in
             1687      fiscal year 1999-2000 from the fee levied under Section 40-6-14 that exceeds the fee revenue
             1688      appropriated to the Division of Oil, Gas, and Mining in fiscal year 1999-2000.
             1689          (b) If there is a General Fund surplus for fiscal year 1999-2000, the Division of Finance
             1690      shall transfer General Fund surplus [monies] money to the Oil and Gas Conservation Account
             1691      in an amount up to the excess fee revenue.
             1692          (c) The transfer provided in Subsection (7)(b) shall be made after General Fund surplus
             1693      [monies are] money is transferred to the General Fund Budget Reserve Account pursuant to
             1694      Section 63J-1-312 .
             1695          Section 34. Section 40-10-25.1 is amended to read:
             1696           40-10-25.1. Abandoned Mine Reclamation Fund created -- Contents -- Use of
             1697      money.
             1698          (1) (a) There is created a restricted special revenue fund known as the "Abandoned
             1699      Mine Reclamation Fund."
             1700          (b) (i) The fund shall consist of the [monies] money specified in Subsections (2) and
             1701      (3).
             1702          (ii) The [monies] money of Subsection (2) shall be segregated from the [monies]
             1703      money of Subsection (3).
             1704          (2) (a) [Monies] Money received by the state from the following sources shall be
             1705      deposited into the Abandoned Mine Reclamation Fund:
             1706          (i) recovered liens filed against privately owned land as provided by Section 40-10-28 ;
             1707          (ii) fees for the use of reclaimed lands as provided by Section 40-10-28 ;
             1708          (iii) fines collected for violations of this chapter or any rule or order issued under this
             1709      chapter;


             1710          (iv) donations designated for reclamation of abandoned mines; and
             1711          (v) interest credited to the fund pursuant to Subsection (2)(b).
             1712          (b) [Monies] Money received under Subsection (2)(a) shall be invested by the state
             1713      treasurer and the income earned shall be credited to the Abandoned Mine Reclamation Fund,
             1714      except interest income earned over $19,000 per year shall be credited to the General Fund.
             1715          (c) The division may at any time expend [monies] money deposited into the fund under
             1716      Subsection (2)(a) to accomplish the purposes of the abandoned mine reclamation program.
             1717          (3) (a) (i) [Monies] Money received by the state from the secretary of the United States
             1718      Department of Interior, which [are] is granted as special state set-aside [monies] money in
             1719      accordance with 30 U.S.C. Sec. 1232 et seq. shall be deposited in the Abandoned Mine
             1720      Reclamation Fund.
             1721          (ii) [Monies] Money deposited into the fund under Subsection (3)(a)(i) shall be
             1722      invested by the state treasurer and the income earned shall be credited to the Abandoned Mine
             1723      Reclamation Fund.
             1724          (b) After August 3, 1992, the division shall use the [monies] money deposited into the
             1725      Abandoned Mine Reclamation Fund under this Subsection (3) to accomplish the purposes set
             1726      forth in Sections 40-10-25 through 40-10-28.1 .
             1727          (c) Except as provided in Subsection (3)(d), the [monies] money deposited into the
             1728      Abandoned Mine Reclamation Fund under this Subsection (3) shall be made available to the
             1729      division through legislative appropriations.
             1730          (d) The director of the division with the concurrence of the board may at any time
             1731      expend [monies] money deposited into the Abandoned Mine Reclamation Fund under
             1732      Subsection (3)(a) for any emergency requiring immediate reclamation.
             1733          Section 35. Section 40-10-27 is amended to read:
             1734           40-10-27. Entry upon land adversely affected by past coal mining practices --
             1735      Conducting of studies or exploratory work -- State acquisition of land -- Lien -- Waste
             1736      disposal fund -- Water pollution control and treatment plants.
             1737          (1) (a) If the board, after notice and hearing, makes a finding of fact as provided in


             1738      Subsection (1)(b), the agents, employees, or contractors of the division shall have the right to
             1739      enter property adversely affected by past coal mining practices and any other property to have
             1740      access to property adversely affected by past coal mining practices to do whatever is necessary
             1741      or expedient to restore, reclaim, abate, control, or prevent the adverse effects.
             1742          (b) The board shall find that:
             1743          (i) land or water resources have been adversely affected by past coal mining practices;
             1744          (ii) the adverse effects are at a stage where, in the public interest, action to restore,
             1745      reclaim, abate, control, or prevent should be taken; and
             1746          (iii) the owners of the land or water resources where entry must be made to restore,
             1747      reclaim, abate, control, or prevent the adverse effects of past coal mining practices:
             1748          (A) are not known;
             1749          (B) are not readily available; or
             1750          (C) will not give permission for the state or its political subdivisions, their agents,
             1751      employees, or contractors to enter upon the property to restore, reclaim, abate, control, or
             1752      prevent the adverse effects of past coal mining practices.
             1753          (c) Notice of the division's right to enter the property shall be:
             1754          (i) if the owners are known, given by mail; and
             1755          (ii) if the owners are not known:
             1756          (A) posted upon the premises; and
             1757          (B) advertised:
             1758          (I) once in a newspaper of general circulation in the county in which the land lies; and
             1759          (II) as required in Section 45-1-101 .
             1760          (d) This entry shall be construed as an exercise of the police power for the protection of
             1761      public health, safety, and general welfare and may not be construed as an act of condemnation
             1762      of property nor of trespass on it.
             1763          (e) The [monies] money expended for this work and the benefits accruing to the
             1764      premises entered upon shall be chargeable against the land and shall mitigate or offset any
             1765      claim in or any action brought by any owner of any interest in these premises for any alleged


             1766      damages by virtue of the entry.
             1767          (f) This Subsection (1) is not intended to create new rights of action or eliminate
             1768      existing immunities.
             1769          (2) (a) The agents, employees, or contractors of the division may enter upon any
             1770      property for the purpose of conducting studies or exploratory work to determine the existence
             1771      of adverse effects of past coal mining practices and to determine the feasibility of restoration,
             1772      reclamation, abatement, control, or prevention of these adverse effects.
             1773          (b) This entry shall be construed as an exercise of the police power for the protection of
             1774      public health, safety, and general welfare and may not be construed as an act of condemnation
             1775      of property or trespass on it.
             1776          (3) The state may acquire any land by purchase, donation, or condemnation which is
             1777      adversely affected by past coal mining practices if the board, after notice and hearing,
             1778      determines that acquisition of this land is necessary to successful reclamation and that:
             1779          (a) the acquired land, after restoration, reclamation, abatement, control, or prevention
             1780      of the adverse effects of past coal mining practices, will serve recreation and historic purposes,
             1781      conservation and reclamation purposes, or provide open space benefits; and
             1782          (b) (i) permanent facilities such as a treatment plant or a relocated stream channel will
             1783      be constructed on the land for the restoration, reclamation, abatement, control, or prevention of
             1784      the adverse effects of past coal mining practices; or
             1785          (ii) acquisitions of coal refuse disposal sites and all coal refuse on the sites will serve
             1786      the purposes of this chapter or that public ownership is desirable to meet emergency situations
             1787      and prevent recurrences of the adverse effects of past coal mining practices.
             1788          (4) (a) Title to all lands acquired under this section shall be in the name of the state.
             1789          (b) The price paid for land acquired under this section shall reflect the market value of
             1790      the land as adversely affected by past coal mining practices.
             1791          (5) (a) If land acquired under this section is considered suitable for industrial,
             1792      commercial, residential, or recreational development, the division, in conjunction with the
             1793      Division of Forestry, Fire, and State Lands, may sell this land by public sale under a system of


             1794      competitive bidding, at not less than fair market value, and under any other rules promulgated
             1795      to insure that the land is put to proper use consistent with local and state land use plans.
             1796          (b) (i) The state, when requested after appropriate public notice, shall hold a public
             1797      hearing with the appropriate notice, in the counties or appropriate political subdivisions of the
             1798      state in which lands acquired under this section are located.
             1799          (ii) The hearing shall be held at a time which shall afford local citizens and
             1800      governments the maximum opportunity to participate in the decision concerning the use or
             1801      disposition of the lands after restoration, reclamation, abatement, control, or prevention of the
             1802      adverse effects of past coal mining practices.
             1803          (6) (a) The state, through the division and the Division of Forestry, Fire, and State
             1804      Lands, shall have the authority to accept lands acquired and reclaimed by the Secretary of the
             1805      Interior pursuant to Section 407(h) of Public Law 95-87.
             1806          (b) The division has the authority to accept grants from the Secretary to carry out the
             1807      purposes of Section 407(h) of Public Law 95-87.
             1808          (7) (a) Within six months after the completion of projects to restore, reclaim, abate,
             1809      control, or prevent adverse effects of past coal mining practices on privately owned land, the
             1810      division shall itemize the [monies] money expended and may file a statement of those expenses
             1811      in the office of the county recorder of the county in which the land lies, together with a
             1812      notarized appraisal by an independent appraiser of the value of the land before the restoration,
             1813      reclamation, abatement, control, or prevention of adverse effects of past coal mining practices
             1814      if the [monies] money expended [result] results in a significant increase in property value.
             1815          (b) This statement shall constitute a lien upon the land described in it.
             1816          (c) The lien may not exceed the amount determined by the appraisal to be the increase
             1817      in the market value of the land as a result of the restoration, reclamation, abatement, control, or
             1818      prevention of the adverse effects of past coal mining practices.
             1819          (d) A lien may not be filed against the property of any person, in accordance with this
             1820      subsection who owned the surface prior to May 2, 1977, and who neither consented to nor
             1821      participated in nor exercised control over the mining operation which necessitated the


             1822      reclamation performed.
             1823          (8) (a) The landowner may proceed to petition within 60 days after the filing of the lien
             1824      to determine the increase in the market value of the land as a result of the restoration,
             1825      reclamation, abatement, control, or prevention of the adverse effects of past coal mining
             1826      practices.
             1827          (b) The amount reported to be the increase in value of the premises shall constitute the
             1828      amount of the lien and shall be recorded with the statement provided for in Subsection (7).
             1829          (c) Any party aggrieved by the decision may appeal as provided by law.
             1830          (9) (a) The lien provided in this section shall be recorded in the office of the county
             1831      recorder of the county in which the land lies.
             1832          (b) The statement shall constitute a lien upon the land as of the date of the expenditure
             1833      of the [monies] money and shall have priority as a lien second only to the lien of real estate
             1834      taxes imposed upon the land.
             1835          (10) (a) The division may fill any voids, seal any abandoned tunnels, shafts, and
             1836      entryways, and reclaim surface impacts of underground or surface mines which the division
             1837      determines could endanger life and property, constitute a hazard to the public health and safety,
             1838      or degrade the environment.
             1839          (b) The division may make expenditures and carry out the purposes of this section
             1840      without regard to the provisions of Subsections 40-10-25 (2) and (3) only after all reclamation
             1841      with respect to abandoned coal lands or coal development impacts have been met, except for
             1842      those reclamation projects relating to the protection of the public health or safety.
             1843          (c) In those instances where mine waste piles are being reworked for conservation
             1844      purposes, the incremental costs of disposing of the wastes from these operations by filling
             1845      voids and sealing tunnels may be eligible for funding if the disposal of these wastes meets the
             1846      purposes of this section.
             1847          (d) The division may acquire by purchase, donation, easement, or otherwise those
             1848      interests in land it determines necessary to carry out the provisions of this section.
             1849          (11) (a) The division may request the attorney general, who is hereby authorized to


             1850      initiate, in addition to any other remedies provided for in this chapter, in any court of
             1851      competent jurisdiction, an action in equity for an injunction to restrain any interference with the
             1852      exercise of the right to enter or to conduct any work provided in this section.
             1853          (b) (i) The division, in conjunction with appropriate state agencies as determined in the
             1854      rules, may construct and operate plants for the control and treatment of water pollution
             1855      resulting from mine drainage.
             1856          (ii) The extent of this control and treatment of water pollution may be dependent upon
             1857      the ultimate use of the water.
             1858          (iii) This Subsection (11) may not be construed to repeal or supersede any portion of
             1859      the federal Water Pollution Control Act, 33 U.S.C. Sec. 1151 et seq., and no control or
             1860      treatment under this Subsection (11) shall in any way be less than that required under the
             1861      federal Water Pollution Control Act.
             1862          (iv) The construction of a plant may include major interceptors and other facilities
             1863      appurtenant to the plant.
             1864          (c) The division may transfer funds to other appropriate state agencies, in order to carry
             1865      out the reclamation activities authorized by this chapter.
             1866          Section 36. Section 41-1a-422 is amended to read:
             1867           41-1a-422. Support special group license plates -- Contributor -- Voluntary
             1868      contribution collection procedures.
             1869          (1) As used in this section:
             1870          (a) (i) Except as provided in Subsection (1)(a)(ii), "contributor" means a person who
             1871      has donated or in whose name at least $25 has been donated to:
             1872          (A) a scholastic scholarship fund of a single named institution;
             1873          (B) the Department of Veterans' Affairs for veterans' programs;
             1874          (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
             1875      Section 23-14-13 , for conservation of wildlife and the enhancement, preservation, protection,
             1876      access, and management of wildlife habitat;
             1877          (D) the Department of Agriculture and Food for the benefit of conservation districts;


             1878          (E) the Division of Parks and Recreation for the benefit of snowmobile programs;
             1879          (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
             1880      the donation evenly divided between the two;
             1881          (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
             1882      council as specified by the contributor;
             1883          (H) No More Homeless Pets in Utah for distribution to organizations or individuals
             1884      that provide spay and neuter programs that subsidize the sterilization of domestic animals;
             1885          (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
             1886      development programs;
             1887          (J) the Utah Association of Public School Foundations to support public education;
             1888          (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-204 to
             1889      assist people who have severe housing needs;
             1890          (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118
             1891      to support the families of fallen Utah Highway Patrol troopers and other Department of Public
             1892      Safety employees;
             1893          (M) the Division of Parks and Recreation for distribution to organizations that provide
             1894      support for Zion National Park;
             1895          (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support
             1896      firefighter organizations;
             1897          (O) the Share the Road Bicycle Support Restricted Account created in Section
             1898      72-2-127 to support bicycle operation and safety awareness programs;
             1899          (P) the Cancer Research Restricted Account created in Section 26-21a-302 to support
             1900      cancer research programs;
             1901          (Q) Autism Awareness Restricted Account created in Section 53A-1-304 to support
             1902      autism awareness programs; or
             1903          (R) Humanitarian Service and Educational and Cultural Exchange Restricted Account
             1904      created in Section 9-17-102 to support humanitarian service and educational and cultural
             1905      programs.


             1906          (ii) (A) For a veterans' special group license plate, "contributor" means a person who
             1907      has donated or in whose name at least a $25 donation at the time of application and $10 annual
             1908      donation thereafter has been made.
             1909          (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
             1910      person who:
             1911          (I) has donated or in whose name at least $30 has been donated at the time of
             1912      application and annually after the time of application; and
             1913          (II) is a member of a trade organization for real estate licensees that has more than
             1914      15,000 Utah members.
             1915          (C) For an Honoring Heroes special group license plate, "contributor" means a person
             1916      who has donated or in whose name at least $35 has been donated at the time of application and
             1917      annually thereafter.
             1918          (D) For a firefighter support special group license plate, "contributor" means a person
             1919      who:
             1920          (I) has donated or in whose name at least $15 has been donated at the time of
             1921      application and annually after the time of application; and
             1922          (II) is a currently employed, volunteer, or retired firefighter.
             1923          (E) For a cancer research special group license plate, "contributor" means a person who
             1924      has donated or in whose name at least $35 has been donated at the time of application and
             1925      annually after the time of application.
             1926          (b) "Institution" means a state institution of higher education as defined under Section
             1927      53B-3-102 or a private institution of higher education in the state accredited by a regional or
             1928      national accrediting agency recognized by the United States Department of Education.
             1929          (2) (a) An applicant for original or renewal collegiate special group license plates under
             1930      Subsection (1)(a)(i) must be a contributor to the institution named in the application and
             1931      present the original contribution verification form under Subsection (2)(b) or make a
             1932      contribution to the division at the time of application under Subsection (3).
             1933          (b) An institution with a support special group license plate shall issue to a contributor


             1934      a verification form designed by the commission containing:
             1935          (i) the name of the contributor;
             1936          (ii) the institution to which a donation was made;
             1937          (iii) the date of the donation; and
             1938          (iv) an attestation that the donation was for a scholastic scholarship.
             1939          (c) The state auditor may audit each institution to verify that the [moneys] money
             1940      collected by the institutions from contributors [are] is used for scholastic scholarships.
             1941          (d) After an applicant has been issued collegiate license plates or renewal decals, the
             1942      commission shall charge the institution whose plate was issued, a fee determined in accordance
             1943      with Section 63J-1-504 for management and administrative expenses incurred in issuing and
             1944      renewing the collegiate license plates.
             1945          (e) If the contribution is made at the time of application, the contribution shall be
             1946      collected, treated, and deposited as provided under Subsection (3).
             1947          (3) (a) An applicant for original or renewal support special group license plates under
             1948      this section must be a contributor to the sponsoring organization associated with the license
             1949      plate.
             1950          (b) This contribution shall be:
             1951          (i) unless collected by the named institution under Subsection (2), collected by the
             1952      division;
             1953          (ii) considered a voluntary contribution for the funding of the activities specified under
             1954      this section and not a motor vehicle registration fee;
             1955          (iii) deposited into the appropriate account less actual administrative costs associated
             1956      with issuing the license plates; and
             1957          (iv) for a firefighter special group license plate, deposited into the appropriate account
             1958      less:
             1959          (A) the costs of reordering firefighter special group license plate decals; and
             1960          (B) the costs of replacing recognition special group license plates with new license
             1961      plates under Subsection 41-1a-1211 (13).


             1962          (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
             1963      registration or renewal of registration.
             1964          (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
             1965      the division when issuing original:
             1966          (i) snowmobile license plates; or
             1967          (ii) conservation license plates.
             1968          (4) Veterans' license plates shall display one of the symbols representing the Army,
             1969      Navy, Air Force, Marines, Coast Guard, or American Legion.
             1970          Section 37. Section 41-12a-803 is amended to read:
             1971           41-12a-803. Program creation -- Administration -- Selection of designated agent
             1972      -- Duties -- Rulemaking -- Audits.
             1973          (1) There is created the Uninsured Motorist Identification Database Program to:
             1974          (a) establish an Uninsured Motorist Identification Database to verify compliance with
             1975      motor vehicle owner's or operator's security requirements under Section 41-12a-301 and other
             1976      provisions under this part;
             1977          (b) assist in reducing the number of uninsured motor vehicles on the highways of the
             1978      state;
             1979          (c) assist in increasing compliance with motor vehicle registration and sales and use tax
             1980      laws;
             1981          (d) assist in protecting a financial institution's bona fide security interest in a motor
             1982      vehicle; and
             1983          (e) assist in the identification and prevention of identity theft and other crimes.
             1984          (2) The program shall be administered by the department with the assistance of the
             1985      designated agent and the Motor Vehicle Division.
             1986          (3) (a) The department shall contract in accordance with Title 63G, Chapter 6, Utah
             1987      Procurement Code, with a third party to establish and maintain an Uninsured Motorist
             1988      Identification Database for the purposes established under this part.
             1989          (b) The contract may not obligate the department to pay the third party more [monies]


             1990      money than [are] is available in the account.
             1991          (4) (a) The third party under contract under this section is the department's designated
             1992      agent, and shall develop and maintain a computer database from the information provided by:
             1993          (i) insurers under Section 31A-22-315 ;
             1994          (ii) the division under Subsection (6); and
             1995          (iii) the Motor Vehicle Division under Section 41-1a-120 .
             1996          (b) (i) The database shall be developed and maintained in accordance with guidelines
             1997      established by the department so that state and local law enforcement agencies and financial
             1998      institutions as defined in Section 7-1-103 can efficiently access the records of the database,
             1999      including reports useful for the implementation of the provisions of this part.
             2000          (ii) (A) The reports shall be in a form and contain information approved by the
             2001      department.
             2002          (B) The reports may be made available through the Internet or through other electronic
             2003      medium, if the department determines that sufficient security is provided to ensure compliance
             2004      with Section 41-12a-805 regarding limitations on disclosure of information in the database.
             2005          (5) With information provided by the department and the Motor Vehicle Division, the
             2006      designated agent shall, at least monthly for submissions under Subsection 31A-22-315 (2)(b) or
             2007      at least twice a month for submissions under Subsection 31A-22-315 (2)(a):
             2008          (a) update the database with the motor vehicle insurance information provided by the
             2009      insurers in accordance with Section 31A-22-315 ; and
             2010          (b) compare all current motor vehicle registrations against the database.
             2011          (6) The division shall provide the designated agent with the name, date of birth,
             2012      address, and driver license number of all persons on the driver license database.
             2013          (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2014      department shall make rules and develop procedures in cooperation with the Motor Vehicle
             2015      Division to use the database for the purpose of administering and enforcing this part.
             2016          (8) (a) The designated agent shall archive computer data files at least semi-annually for
             2017      auditing purposes.


             2018          (b) The internal audit unit of the tax commission provided under Section 59-1-206
             2019      shall audit the program at least every three years.
             2020          (c) The audit under Subsection (8)(b) shall include verification of:
             2021          (i) billings made by the designated agent; and
             2022          (ii) the accuracy of the designated agent's matching of vehicle registration with
             2023      insurance data.
             2024          Section 38. Section 51-7-3 is amended to read:
             2025           51-7-3. Definitions.
             2026          As used in this chapter:
             2027          (1) "Agent" means "agent" as defined in Section 61-1-13 .
             2028          (2) "Certified dealer" means:
             2029          (a) a primary reporting dealer recognized by the Federal Reserve Bank of New York
             2030      who is certified by the director as having met the applicable criteria of council rule; or
             2031          (b) a broker dealer who:
             2032          (i) has and maintains an office and a resident registered principal in the state;
             2033          (ii) meets the capital requirements established by council rules;
             2034          (iii) meets the requirements for good standing established by council rule; and
             2035          (iv) is certified by the director as meeting quality criteria established by council rule.
             2036          (3) "Certified investment adviser" means a federal covered adviser, as defined in
             2037      Section 61-1-13 , or an investment adviser, as defined in Section 61-1-13 , who is certified by
             2038      the director as having met the applicable criteria of council rule.
             2039          (4) "Commissioner" means the commissioner of financial institutions.
             2040          (5) "Council" means the State Money Management Council created by Section
             2041      51-7-16 .
             2042          (6) "Director" means the director of the Utah State Division of Securities of the
             2043      Department of Commerce.
             2044          (7) (a) "Endowment funds" means gifts, devises, or bequests of property of any kind
             2045      donated to a higher education institution from any source.


             2046          (b) "Endowment funds" does not mean [monies] money used for the general operation
             2047      of a higher education institution that [are] is received by the higher education institution from:
             2048          (i) state appropriations;
             2049          (ii) federal contracts;
             2050          (iii) federal grants;
             2051          (iv) private research grants; and
             2052          (v) tuition and fees collected from students.
             2053          (8) "First tier commercial paper" means commercial paper rated by at least two
             2054      nationally recognized statistical rating organizations in the highest short-term rating category.
             2055          (9) "Funds functioning as endowments" means funds, regardless of source, whose
             2056      corpus is intended to be held in perpetuity by formal institutional designation according to the
             2057      institution's policy for designating those funds.
             2058          (10) "GASB" or "Governmental Accounting Standards Board" means the
             2059      Governmental Accounting Standards Board that is responsible for accounting standards used
             2060      by public entities.
             2061          (11) "Hard put" means an unconditional sell-back provision or a redemption provision
             2062      applicable at issue to a note or bond, allowing holders to sell their holdings back to the issuer
             2063      or to an equal or higher-rated third party provider at specific intervals and specific prices
             2064      determined at the time of issuance.
             2065          (12) "Higher education institution" means the institutions specified in Section
             2066      53B-1-102 .
             2067          (13) "Investment adviser representative" means "investment adviser representative" as
             2068      defined in Section 61-1-13 .
             2069          (14) (a) "Investment agreement" means any written agreement that has specifically
             2070      negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate.
             2071          (b) "Investment agreement" includes any agreement to supply investments on one or
             2072      more future dates.
             2073          (15) "Local government" means a county, municipality, school district, local district


             2074      under Title 17B, Limited Purpose Local Government Entities - Local Districts, special service
             2075      district under Title 17D, Chapter 1, Special Service District Act, or any other political
             2076      subdivision of the state.
             2077          (16) "Market value" means market value as defined in the Master Repurchase
             2078      Agreement.
             2079          (17) "Master Repurchase Agreement" means the current standard Master Repurchase
             2080      Agreement approved by the Public Securities Association or by any successor organization.
             2081          (18) "Maximum amount" means, with respect to qualified depositories, the total
             2082      amount of:
             2083          (a) deposits in excess of the federal deposit insurance limit; and
             2084          (b) nonqualifying repurchase agreements.
             2085          (19) "Money market mutual fund" means an open-end managed investment fund:
             2086          (a) that complies with the diversification, quality, and maturity requirements of Rule
             2087      2a-7 or any successor rule of the Securities and Exchange Commission applicable to money
             2088      market mutual funds; and
             2089          (b) that assesses no sales load on the purchase of shares and no contingent deferred
             2090      sales charge or other similar charges, however designated.
             2091          (20) "Nationally recognized statistical rating organization" means an organization that
             2092      has been designated as a nationally recognized statistical rating organization by the Securities
             2093      and Exchange Commission's Division of Market Regulation.
             2094          (21) "Nonqualifying repurchase agreement" means a repurchase agreement evidencing
             2095      indebtedness of a qualified depository arising from the transfer of obligations of the United
             2096      States Treasury or other authorized investments to public treasurers that is:
             2097          (a) evidenced by a safekeeping receipt issued by the qualified depository;
             2098          (b) included in the depository's maximum amount of public funds; and
             2099          (c) valued and maintained at market value plus an appropriate margin collateral
             2100      requirement based upon the term of the agreement and the type of securities acquired.
             2101          (22) "Operating funds" means current balances and other funds that are to be disbursed


             2102      for operation of the state government or any of its boards, commissions, institutions,
             2103      departments, divisions, agencies, or other similar instrumentalities, or any county, city, school
             2104      district, political subdivision, or other public body.
             2105          (23) "Permanent funds" means funds whose principal may not be expended, the
             2106      earnings from which are to be used for purposes designated by law.
             2107          (24) "Permitted depository" means any out-of-state financial institution that meets
             2108      quality criteria established by rule of the council.
             2109          (25) "Public funds" means [monies] money, funds, and accounts, regardless of the
             2110      source from which the [monies] money, funds, and accounts are derived, that are owned, held,
             2111      or administered by the state or any of its boards, commissions, institutions, departments,
             2112      divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city,
             2113      school district, political subdivision, or other public body.
             2114          (26) (a) "Public [monies] money" means "public funds."
             2115          (b) "Public [monies] money," as used in Article VII, Sec. 15, Utah Constitution, means
             2116      the same as "state funds."
             2117          (27) "Public treasurer" includes the state treasurer and the official of any state board,
             2118      commission, institution, department, division, agency, or other similar instrumentality, or of
             2119      any county, city, school district, political subdivision, or other public body who has the
             2120      responsibility for the safekeeping and investment of any public funds.
             2121          (28) "Qualified depository" means a Utah depository institution or an out-of-state
             2122      depository institution, as those terms are defined in Section 7-1-103 that is authorized to
             2123      conduct business in this state under Section 7-1-702 or Title 7, Chapter 19, Acquisition of
             2124      Failing Depository Institutions or Holding Companies, whose deposits are insured by an
             2125      agency of the federal government and that has been certified by the commissioner of financial
             2126      institutions as having met the requirements established under this chapter and the rules of the
             2127      council to be eligible to receive deposits of public funds.
             2128          (29) "Qualifying repurchase agreement" means a repurchase agreement evidencing
             2129      indebtedness of a financial institution or government securities dealer acting as principal


             2130      arising from the transfer of obligations of the United States Treasury or other authorized
             2131      investments to public treasurers only if purchased securities are:
             2132          (a) delivered to the public treasurer's safekeeping agent or custodian as contemplated
             2133      by Section 7 of the Master Repurchase Agreement; and
             2134          (b) valued and maintained at market value plus an appropriate margin collateral
             2135      requirement based upon the term of the agreement and the type of securities acquired.
             2136          (30) "Securities division" means Utah's Division of Securities created within the
             2137      Department of Commerce by Section 13-1-2 .
             2138          (31) "State funds" means:
             2139          (a) public [monies] money raised by operation of law for the support and operation of
             2140      the state government; and
             2141          (b) all other [monies] money, funds, and accounts, regardless of the source from which
             2142      the [monies] money, funds, or accounts are derived, that are owned, held, or administered by
             2143      the state or any of its boards, commissions, institutions, departments, divisions, agencies,
             2144      bureaus, laboratories, or other similar instrumentalities.
             2145          Section 39. Section 51-7a-101 is amended to read:
             2146     
CHAPTER 7a. INVESTMENT OF LAND GRANT TRUST FUND MONEY

             2147           51-7a-101. Title.
             2148          This chapter is known as the "Investment of Land Grant Trust Fund [Monies] Money."
             2149          Section 40. Section 51-8-102 is amended to read:
             2150           51-8-102. Definitions.
             2151          As used in this chapter:
             2152          (1) "Charitable purpose" means the relief of poverty, the advancement of education or
             2153      religion, the promotion of health, the promotion of governmental purposes, and any other
             2154      purpose the achievement of which is beneficial to the community.
             2155          (2) (a) "Endowment fund" means an institutional fund, or any part of an institutional
             2156      fund, not wholly expendable by the institution on a current basis under the terms of a gift
             2157      instrument.


             2158          (b) "Endowment fund" does not include assets of an institution designated by the
             2159      institution as an endowment fund for its own use.
             2160          (3) "Gift instrument" means a record or records, including an institutional solicitation,
             2161      under which property is granted to, transferred to, or held by an institution as an institutional
             2162      fund.
             2163          (4) (a) "Governing board" means the body responsible for the management of an
             2164      institution or of an institutional fund.
             2165          (b) "Governing board" means, for a higher education institution, the board of trustees
             2166      of the higher education institution.
             2167          (5) "Higher education institution" means the institutions specified in Section
             2168      53B-1-102 .
             2169          (6) "Institution" means:
             2170          (a) a person, other than an individual, organized and operated exclusively for charitable
             2171      purposes;
             2172          (b) a government or a governmental subdivision, agency, or instrumentality to the
             2173      extent that it holds funds exclusively for a charitable purpose; and
             2174          (c) a trust that had both charitable and noncharitable interests, after all noncharitable
             2175      interests have terminated.
             2176          (7) (a) "Institutional fund" means a fund held by an institution exclusively for
             2177      charitable purposes.
             2178          (b) "Institutional fund" does not include:
             2179          (i) program-related assets;
             2180          (ii) a fund held for an institution by a trustee that is not an institution;
             2181          (iii) a fund in which a beneficiary that is not an institution has an interest, other than an
             2182      interest that could arise upon violation or failure of the purposes of the fund; or
             2183          (iv) operating funds.
             2184          (8) "Manager" means either:
             2185          (a) the state treasurer; or


             2186          (b) a higher education institution that accepts the responsibility for the management of
             2187      institutional funds of a different higher education institution.
             2188          (9) "Operating funds" means [monies] money used for the general operation of a higher
             2189      education institution that [are] is received by the higher education institution from:
             2190          (a) state appropriations;
             2191          (b) government contracts;
             2192          (c) government grants; or
             2193          (d) tuition and fees collected from students.
             2194          (10) "Person" means an individual, corporation, business trust, estate, trust,
             2195      partnership, limited liability company, association, joint venture, public corporation,
             2196      government or governmental subdivision, agency, instrumentality, or any other legal or
             2197      commercial entity.
             2198          (11) "Program-related asset" means an asset held by an institution primarily to
             2199      accomplish a charitable purpose of the institution and not primarily for appreciation or the
             2200      production of income.
             2201          (12) "Record" means information that is inscribed on a tangible medium or that is
             2202      stored in an electronic or other medium and is retrievable in perceivable form.
             2203          Section 41. Section 51-9-402 is amended to read:
             2204           51-9-402. Division of collected money retained by state treasurer and local
             2205      governmental collecting entity -- Purpose of surcharge -- Allocation of collections --
             2206      Financial information.
             2207          (1) The amount of the surcharge imposed under this part by courts of record shall be
             2208      collected before any fine and deposited with the state treasurer.
             2209          (2) The amount of the surcharge and the amount of criminal fines, penalties, and
             2210      forfeitures imposed under this part by courts not of record shall be collected concurrently.
             2211          (a) As [monies are] money is collected on criminal fines, penalties, and forfeitures
             2212      subject to the 90% surcharge, the [monies] money shall be divided pro rata so that the local
             2213      governmental collecting entity retains 53% of the collected [monies] money and the state


             2214      retains 47% of the collected [monies] money.
             2215          (b) As [monies are] money is collected on criminal fines, penalties, and forfeitures
             2216      subject to the 35% surcharge, the [monies] money shall be divided pro rata so that the local
             2217      governmental collecting entity retains 74% of the collected [monies] money and the state
             2218      retains 26% of the collected [monies] money.
             2219          (c) The court shall deposit with the state treasurer the surcharge portion of all [monies]
             2220      money as [they are] it is collected.
             2221          (3) Courts of record, courts not of record, and administrative traffic proceedings shall
             2222      collect financial information to determine:
             2223          (a) the total number of cases in which:
             2224          (i) a final judgment has been rendered;
             2225          (ii) surcharges and fines are paid by partial or installment payment; and
             2226          (iii) the judgment is fulfilled by an alternative method upon the court's order; and
             2227          (b) the total dollar amounts of surcharges owed to the state and fines owed to the state
             2228      and county or municipality, including:
             2229          (i) waived surcharges;
             2230          (ii) uncollected surcharges; and
             2231          (iii) collected surcharges.
             2232          (4) The courts of record, courts not of record, and administrative traffic proceedings
             2233      shall report all collected financial information monthly to the Administrative Office of the
             2234      Courts. The collected information shall be categorized by cases subject to the 90% and 35%
             2235      surcharge.
             2236          (5) The purpose of the surcharge is to finance the trust funds and support accounts as
             2237      provided in this part.
             2238          (6) (a) From the surcharge, the Division of Finance shall allocate in the manner and for
             2239      the purposes described in Sections 51-9-403 through 51-9-411 .
             2240          (b) Allocations shall be made on a fiscal year basis.
             2241          (7) The provisions of this section and Section 51-9-401 may not impact the distribution


             2242      and allocation of fines and forfeitures imposed in accordance with Sections 23-14-13 ,
             2243      78A-5-110 , and 78A-7-120 .
             2244          Section 42. Section 51-9-404 is amended to read:
             2245           51-9-404. Distribution of surcharge amounts.
             2246          (1) In this section:
             2247          (a) "Reparation fund" means the Crime Victim Reparations Fund.
             2248          (b) "Safety account" means the Public Safety Support Account.
             2249          (2) (a) There is created a restricted special revenue fund known as the "Crime Victim
             2250      Reparations Fund" to be administered and distributed as provided in this part by the Office of
             2251      Crime Victim Reparations under Title 63M, Chapter 7, Part 5, Crime Victim Reparations Act,
             2252      in cooperation with the Division of Finance.
             2253          (b) [Monies] Money deposited in this fund [are] is for victim reparations, criminal
             2254      justice and substance abuse, other victim services, and, as appropriated, for administrative costs
             2255      of the Commission on Criminal and Juvenile Justice under Title 63M, Chapter 7.
             2256          (3) (a) There is created a restricted account in the General Fund known as the "Public
             2257      Safety Support Account" to be administered and distributed by the Department of Public Safety
             2258      in cooperation with the Division of Finance as provided in this part.
             2259          (b) [Monies] Money deposited in this account shall be appropriated to:
             2260          (i) the Division of Peace Officer Standards and Training (POST) as described in Title
             2261      53, Chapter 6, Peace Officer Standards and Training Act; and
             2262          (ii) the Office of the Attorney General for the support of the Utah Prosecution Council
             2263      established in Title 67, Chapter 5a, and the fulfillment of the council's duties.
             2264          (4) The Division of Finance shall allocate from the collected surcharge established in
             2265      Section 51-9-401 :
             2266          (a) 35% to the Crime Victim Reparations Fund;
             2267          (b) 18.5% to the safety account for POST, but not to exceed the amount appropriated
             2268      by the Legislature; and
             2269          (c) 3% to the safety account for support of the Utah Prosecution Council, but not to


             2270      exceed the amount appropriated by the Legislature.
             2271          (5) (a) In addition to the funding provided by other sections of this part, a percentage of
             2272      the income earned by inmates working for correctional industries in a federally certified private
             2273      sector/prison industries enhancement program shall be deposited in the Crime Victim
             2274      Reparations Fund.
             2275          (b) The percentage of income deducted from inmate pay under Subsection (5)(a) shall
             2276      be determined by the executive director of the Department of Corrections in accordance with
             2277      the requirements of the private sector/prison industries enhancement program.
             2278          (6) (a) In addition to other [monies] money collected from the surcharge, judges are
             2279      encouraged to, and may in their discretion, impose additional reparations to be paid into the
             2280      Crime Victim Reparations Fund by convicted criminals.
             2281          (b) The additional discretionary reparations may not exceed the statutory maximum
             2282      fine permitted by Title 76, Utah Criminal Code, for that offense.
             2283          Section 43. Section 51-9-411 is amended to read:
             2284           51-9-411. Law Enforcement Operations Account -- Share of surcharge -- Uses.
             2285          (1) As used in this section:
             2286          (a) "Account" means the Law Enforcement Operations Account.
             2287          (b) "Commission" means the Commission on Criminal and Juvenile Justice created in
             2288      Section 63M-7-201 .
             2289          (c) "Law enforcement agency" means a state or local law enforcement agency.
             2290          (d) "Other appropriate agency" means a state or local government agency, or a nonprofit
             2291      organization, that works to prevent illegal drug activity and enforce laws regarding illegal drug
             2292      activity and related criminal activity by:
             2293          (i) programs, including education, prevention, treatment, and research programs; and
             2294          (ii) enforcement of laws regarding illegal drugs.
             2295          (2) There is created a restricted account within the General Fund known as the Law
             2296      Enforcement Operations Account.
             2297          (3) (a) The Division of Finance shall allocate the balance of the collected surcharge


             2298      under Section 51-9-401 that is not allocated under Title 51, Chapter 9, Part 4, Criminal
             2299      Conviction Surcharge Allocation, to the account, to be appropriated by the Legislature.
             2300          (b) Money in the account shall be appropriated to the commission for implementing
             2301      law enforcement operations and programs related to reducing illegal drug activity and related
             2302      criminal activity as listed in Subsection (5).
             2303          (c) The state treasurer shall invest [monies] money in the account according to Title 51,
             2304      Chapter 7, State Money Management Act.
             2305          (d) The Division of Finance shall deposit interest or other earnings derived from
             2306      investment of account [monies] money into the General Fund.
             2307          (4) (a) The commission shall allocate grants of funds from the account for the purposes
             2308      under Subsection (5) to state, local, or multijurisdictional law enforcement agencies and other
             2309      appropriate agencies.
             2310          (b) The grants shall be made by an application process established by the commission
             2311      in accordance with Subsection (6).
             2312          (5) (a) The first priority of the commission is to annually allocate not more than
             2313      $2,500,000, depending upon funding available from other sources, to directly fund the
             2314      operational costs of state and local law enforcement agencies' drug or crime task forces,
             2315      including multijurisdictional task forces.
             2316          (b) The second priority of the commission is to allocate grants for specified law
             2317      enforcement agency functions and other agency functions as the commission finds appropriate
             2318      to more effectively reduce illegal drug activity and related criminal activity, including
             2319      providing education, prevention, treatment, and research programs.
             2320          (6) (a) In allocating grants and determining the amount of the grants, the commission
             2321      shall consider:
             2322          (i) the demonstrated ability of the agency to appropriately use the grant to implement
             2323      the proposed functions and how this function or task force will add to the law enforcement
             2324      agency's current efforts to reduce illegal drug activity and related criminal activity; and
             2325          (ii) the agency's cooperation with other state and local agencies and task forces.


             2326          (b) Agencies qualify for a grant only if they demonstrate compliance with all reporting
             2327      and policy requirements applicable under this section and under Title 63M, Chapter 7,
             2328      Criminal Justice and Substance Abuse, in order to qualify as a potential grant recipient.
             2329          (7) Recipient agencies may only use grant [monies] money after approval or
             2330      appropriation by the agency's governing body, and a determination that the grant [monies are]
             2331      money is nonlapsing.
             2332          (8) A recipient law enforcement agency may use funds granted under this section only
             2333      for the purposes stated by the commission in the grant.
             2334          (9) For each fiscal year, any law enforcement agency that receives a grant from the
             2335      commission under this section shall prepare, and file with the commission and the state auditor,
             2336      a report in a form specified by the commission. The report shall include the following
             2337      regarding each grant:
             2338          (a) the agency's name;
             2339          (b) the amount of the grant;
             2340          (c) the date of the grant;
             2341          (d) how the grant has been used; and
             2342          (e) a statement signed by both the agency's or political subdivision's executive officer
             2343      or designee and by the agency's legal counsel, that all grant funds were used for law
             2344      enforcement operations and programs approved by the commission and that relate to reducing
             2345      illegal drug activity and related criminal activity, as specified in the grant.
             2346          (10) The commission shall report in writing to the legislative Law Enforcement and
             2347      Criminal Justice Interim Committee annually regarding the grants allocated under this section,
             2348      including the amounts and uses of the grants.
             2349          Section 44. Section 51-9-504 is amended to read:
             2350           51-9-504. Utah Navajo royalties and related issues.
             2351          (1) (a) Notwithstanding Title 63, Chapter 88, Navajo Trust Fund, repealed July 1,
             2352      2008, and except as provided in Subsection (7), the following are subject to this Subsection (1):
             2353          (i) the repealed board of trustees;


             2354          (ii) the repealed trust administrator;
             2355          (iii) an employee or agent of the repealed Navajo Trust Fund; or
             2356          (iv) the repealed Dineh Committee.
             2357          (b) The repealed board of trustees may not:
             2358          (i) beginning on March 17, 2008, take an action that imposes or may impose a liability
             2359      or obligation described in Subsection (1)(d) that is:
             2360          (A) anticipated to be completed on or after January 1, 2010; or
             2361          (B) equal to or greater than $100,000; or
             2362          (ii) on or after May 5, 2008, take an action that imposes or may impose a liability or
             2363      obligation described in Subsection (1)(d).
             2364          (c) On or after March 17, 2008 a person described in Subsections (1)(a)(ii) through (iv)
             2365      may not take an action that imposes or may impose a liability or obligation described in
             2366      Subsection (1)(d).
             2367          (d) Subsection (1)(b) applies to a liability or obligation on:
             2368          (i) the repealed Navajo Trust Fund;
             2369          (ii) the Navajo Revitalization Fund created under Title 9, Chapter 11, Navajo
             2370      Revitalization Fund Act;
             2371          (iii) the state; or
             2372          (iv) any of the following related to an entity described in this Subsection (1)(d):
             2373          (A) a department;
             2374          (B) a division;
             2375          (C) an office;
             2376          (D) a committee;
             2377          (E) a board;
             2378          (F) an officer;
             2379          (G) an employee; or
             2380          (H) a similar agency or individual.
             2381          (2) The Division of Finance shall:


             2382          (a) establish a fund by no later than July 1, 2008:
             2383          (i) to hold:
             2384          (A) the [monies] money in the repealed Navajo Trust Fund as of June 30, 2008;
             2385          (B) Utah Navajo royalties received by the state on or after July 1, 2008;
             2386          (C) revenues from investments made by the state treasurer of the [monies] money in
             2387      the fund established under this Subsection (2)(a);
             2388          (D) [monies] money owed to the repealed Navajo Trust Fund, including [monies]
             2389      money received by the repealed trust administrator or repealed Dineh Committee from an
             2390      agreement executed by:
             2391          (I) the repealed board of trustees;
             2392          (II) the repealed trust administrator; or
             2393          (III) the repealed Dineh Committee; and
             2394          (E) [monies] money related to litigation, including settlement of litigation related to
             2395      Utah Navajo royalties; and
             2396          (ii) from which [monies] money may not be transferred or expended, except:
             2397          (A) as provided in Subsection (7); or
             2398          (B) as authorized by congressional action to designate a new recipient of the Utah
             2399      Navajo royalties; and
             2400          (b) by no later than July 1, 2008, transfer to the fund created under Subsection (2)(a) in
             2401      a manner consistent with this section the related assets and liabilities of the repealed Navajo
             2402      Trust Fund, including the transfer of [monies] money in the repealed Navajo Trust Fund.
             2403          (3) The state treasurer shall invest [monies] money in the fund created in Subsection
             2404      (2)(a) in accordance with Title 51, Chapter 7, State Money Management Act.
             2405          (4) (a) By no later than May 5, 2008, the repealed board of trustees shall:
             2406          (i) adopt a list of all related assets and liabilities of the repealed trust fund that are not
             2407      satisfied by May 5, 2008, which may include assets and liabilities that are contingent in nature
             2408      or amount;
             2409          (ii) adopt a list of all individuals who at the time of adoption meet the requirements of


             2410      Subsection (7)(b); and
             2411          (iii) provide a copy of the lists described in Subsections (4)(a)(i) and (ii) to:
             2412          (A) the state auditor; and
             2413          (B) the Department of Administrative Services.
             2414          (b) The state auditor, in addition to completing its Fiscal Year 2007-2008 audit of the
             2415      repealed Navajo Trust Fund, shall:
             2416          (i) verify the list of the related assets and liabilities of the repealed Navajo Trust Fund
             2417      adopted by the repealed board of trustees under Subsection (4)(a) by no later than June 30,
             2418      2008; and
             2419          (ii) provide a written copy of the verification to the governor and the Legislature by no
             2420      later than July 30, 2008.
             2421          (5) The governor shall ensure that the reporting requirements under P.L. 90-306, 82
             2422      Stat. 121, are met.
             2423          (6) The Department of Administrative Services, in cooperation with the Department of
             2424      Human Resources, may assist employees of the repealed Navajo Trust Fund as of June 30,
             2425      2008, in accordance with Title 67, Chapter 19, Utah State Personnel Management Act.
             2426          (7) With the fund created under Subsection (2) and the fixed assets of the repealed
             2427      Navajo Trust Fund, the Department of Administrative Services shall:
             2428          (a) subject to Subsection (8), fulfill the liabilities and obligations of the repealed
             2429      Navajo Trust Fund as of June 30, 2008;
             2430          (b) provide [monies] money to an individual enrolled member of the Navajo Nation
             2431      who:
             2432          (i) resides in San Juan County;
             2433          (ii) as of June 30, 2012, has received [monies] money under this Subsection (7)(b) for
             2434      postsecondary education;
             2435          (iii) beginning the later of June 30 or the day on which the individual first receives
             2436      [monies] money under this Subsection (7)(b), is enrolled in postsecondary education for the
             2437      equivalent of at least two semesters each year; and


             2438          (iv) meets the eligibility requirements adopted by the repealed board of trustees as of
             2439      March 17, 2008;
             2440          (c) through the Division of Facilities Construction and Management, reasonably
             2441      maintain the fixed assets of the repealed Navajo Trust Fund, to the extent that a lessee of a
             2442      fixed asset is not required by a lease to maintain a fixed asset;
             2443          (d) through the Division of Facilities Construction and Management, take those steps
             2444      necessary to secure the purchase:
             2445          (i) of the following that is owned by the repealed Navajo Trust Fund as of May 5,
             2446      2008:
             2447          (A) the government service building; or
             2448          (B) another fixed asset of the repealed Navajo Trust Fund, if the sale of the fixed asset
             2449      is consistent with the obligations of the state with regard to the Utah Navajo royalties; and
             2450          (ii) (A) in an arms length manner; and
             2451          (B) so that fair market compensation is paid to the repealed Navajo Trust Fund; and
             2452          (e) charge the fund established under Subsection (2)(a) for the expenses that are
             2453      necessary and reasonable to comply with the requirements of this Subsection (7).
             2454          (8) To fulfill the liabilities and obligations of the repealed Navajo Trust Fund as of
             2455      June 30, 2008, the Division of Finance may expend [monies] money from the fund:
             2456          (a) for a liability or obligation incurred before March 17, 2008, to the extent that the
             2457      expenditure was expressly a liability or obligation of the repealed Navajo Trust Fund as of
             2458      March 17, 2008; and
             2459          (b) on and after March 11, 2010, for a project approved under Subsection (1)(b)(i) by
             2460      the repealed board of trustees, except that the Division of Finance may not expend [monies]
             2461      money from the fund for a project approved under Subsection (1)(b)(i):
             2462          (i) in excess of $100,000 in the aggregate for the project; or
             2463          (ii) to fulfill a liability or obligation related to the project if the expenditure would be
             2464      on or after the earlier of:
             2465          (A) the day on which [monies] money from the fund [are] is transferred as authorized


             2466      by congressional action to designate a new recipient of the Utah Navajo royalties; or
             2467          (B) January 1, 2012.
             2468          (9) Unless expressly prohibited by this part, the state may take any action with regard
             2469      to the assets held by the state under this part that is consistent with the obligations of the state
             2470      related to the Utah Navajo royalties.
             2471          Section 45. Section 51-9-602 is amended to read:
             2472           51-9-602. Creation of fund -- County Road and School Fund from Forest
             2473      Reserves.
             2474          There is established a fund known as the "County Road and School Fund from Forest
             2475      Reserves," comprised of:
             2476          (1) [monies] money which shall come into the hands of the state treasurer from the
             2477      United States under the Act of May 23, 1908, 16 U.S.C. Sec. 500 et seq., and all acts
             2478      amendatory thereof and supplementary thereto; and
             2479          (2) [monies] money paid under the act described in Subsection (1) that:
             2480          (a) [have] has come into the hands of the state treasurer; and
             2481          (b) (i) the state treasurer had not apportioned to counties as of February 24, 2009; or
             2482          (ii) were apportioned to a county by the state treasurer, but were returned by the county
             2483      to the state treasurer on or before June 15, 2009.
             2484          Section 46. Section 52-5-102 is amended to read:
             2485           52-5-102. Definitions.
             2486          As used in this chapter:
             2487          (1) (a) "Contribution" means any of the following:
             2488          (i) a gift, subscription, donation, loan, advance, or deposit of money or anything of
             2489      value to a fund;
             2490          (ii) an express, legally enforceable contract, promise, or agreement to make a gift,
             2491      subscription, donation, unpaid or partially unpaid loan, advance, or deposit of money or
             2492      anything of value to a fund; or
             2493          (iii) any transfer of funds from another elected official or surrogate to the filing elected


             2494      official's or surrogate's fund.
             2495          (b) "Contribution" does not include money lent to the elected official or surrogate by a
             2496      financial institution in the ordinary course of business.
             2497          (2) "Disbursement" means [monies] money, transfers, or other withdrawals from a fund
             2498      for any purpose.
             2499          (3) "Elected official" means each person elected to a state office, county office,
             2500      municipal office, school board or school district office, local district office, or special service
             2501      district office, but does not include judges standing for retention election.
             2502          (4) (a) "Fund" means any sum of money or other resources, however titled or
             2503      described, that is segregated, designated, or set aside for the use or benefit of an elected
             2504      official.
             2505          (b) "Fund" does not mean:
             2506          (i) an elected official's or surrogate's private money or public money; or
             2507          (ii) campaign funds or accounts established by candidates under the authority of Title
             2508      20A, Chapter 11, Part 2, State Office Candidates - Campaign Organization and Financial
             2509      Reporting Requirements, Title 20A, Chapter 11, Part 3, Candidates for Legislative Office -
             2510      Campaign Organization and Financial Reporting Requirements, and Title 20A, Chapter 11,
             2511      Part 4, Officeholder Financial Reporting [Requirement] Requirements.
             2512          (5) "Private money" means personal [monies] money used to pay normal expenses for
             2513      which an elected official or surrogate is personally liable for state and federal taxes.
             2514          (6) "Public money" means [monies] money controlled by an elected official or
             2515      surrogate in their public capacity that [are] is accounted for by a governmental entity.
             2516          (7) "Surrogate" means any committee, party, organization, or other person or group
             2517      who holds or maintains a fund for the benefit of an elected official.
             2518          Section 47. Section 53-1-117 is amended to read:
             2519           53-1-117. Alcohol or drug enforcement funding -- Rulemaking -- Legislative
             2520      findings.
             2521          (1) From [monies] money appropriated by the Legislature and any other funds made


             2522      available for the purposes described under this section, the department shall assist the law
             2523      enforcement agencies of the state and its political subdivisions in the enforcement of alcohol or
             2524      drug-related offenses.
             2525          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2526      commissioner shall make rules establishing criteria and procedures for granting [monies]
             2527      money under this section to law enforcement agencies for:
             2528          (a) providing equipment, including drug and alcohol testing equipment;
             2529          (b) funding the training and overtime of peace officers; and
             2530          (c) managing driving under the influence related abandoned vehicles.
             2531          (3) The Legislature finds that [these monies are] the money is for a general and
             2532      statewide public purpose.
             2533          Section 48. Section 53-2-109 is amended to read:
             2534           53-2-109. General duties of the Search and Rescue Advisory Board.
             2535          The duties of the Search and Rescue Advisory Board shall include:
             2536          (1) conducting a board meeting at least once per quarter;
             2537          (2) receiving applications for reimbursement of eligible expenses from county search
             2538      and rescue operations by the end of the first quarter of each calendar year;
             2539          (3) determining the reimbursement to be provided from the Search and Rescue
             2540      Financial Assistance Program to each applicant;
             2541          (4) standardizing the format and maintaining key search and rescue statistical data from
             2542      each county within the state; and
             2543          (5) disbursing funds accrued in the Search and Rescue Financial Assistance Program,
             2544      created under Section 53-2-107 , to eligible applicants until the program [monies are] money is
             2545      depleted in that fiscal year.
             2546          Section 49. Section 53-2-403 is amended to read:
             2547           53-2-403. State Disaster Recovery Restricted Account.
             2548          (1) (a) There is created a restricted account in the General Fund known as the "State
             2549      Disaster Recovery Restricted Account."


             2550          (b) The disaster recovery fund shall consist of:
             2551          (i) [monies] money deposited into the disaster recovery fund in accordance with
             2552      Section 63J-1-314 ;
             2553          (ii) [monies] money appropriated to the disaster recovery fund by the Legislature; and
             2554          (iii) any other public or private [monies] money received by the division that [are] is:
             2555          (A) given to the division for purposes consistent with this section; and
             2556          (B) deposited into the disaster recovery fund at the request of:
             2557          (I) the division; or
             2558          (II) the person giving the [monies] money.
             2559          (c) The Division of Finance shall deposit interest or other earnings derived from
             2560      investment of fund [monies] money into the General Fund.
             2561          (d) Subject to being appropriated by the Legislature, [monies] money in the disaster
             2562      recovery fund may only be expended or committed to be expended as follows:
             2563          (i) (A) subject to Section 53-2-406, in any fiscal year the division may expend or
             2564      commit to expend an amount that does not exceed $250,000, in accordance with Section
             2565      53-2-404 , to fund costs to the state of emergency disaster services in response to a declared
             2566      disaster;
             2567          (B) subject to Section 53-2-406 , in any fiscal year the division may expend or commit
             2568      to expend an amount that exceeds $250,000, but does not exceed $1,000,000, in accordance
             2569      with Section 53-2-404 , to fund costs to the state of emergency disaster services in response to a
             2570      declared disaster if the division:
             2571          (I) before making the expenditure or commitment to expend, obtains approval for the
             2572      expenditure or commitment to expend from the governor;
             2573          (II) subject to Subsection (4), provides written notice of the expenditure or
             2574      commitment to expend to the speaker of the House of Representatives, the president of the
             2575      Senate, the Division of Finance, and the Office of the Legislative Fiscal Analyst no later than
             2576      72 hours after making the expenditure or commitment to expend; and
             2577          (III) makes the report required by Subsection 53-2-406 (2); and


             2578          (C) subject to Section 53-2-406 , in any fiscal year the division may expend or commit
             2579      to expend an amount that exceeds $1,000,000, but does not exceed $3,000,000, in accordance
             2580      with Section 53-2-404 , to fund costs to the state of emergency disaster services in response to a
             2581      declared disaster if, before making the expenditure or commitment to expend, the division:
             2582          (I) obtains approval for the expenditure or commitment to expend from the governor;
             2583      and
             2584          (II) submits the expenditure or commitment to expend to the Executive Appropriations
             2585      Committee in accordance with Subsection 53-2-406 (3); and
             2586          (ii) subject to being appropriated by the Legislature, [monies] money not described in
             2587      Subsection (1)(d)(i) may be expended or committed to be expended to fund costs to the state
             2588      directly related to a declared disaster that are not costs related to:
             2589          (A) emergency disaster services;
             2590          (B) emergency preparedness; or
             2591          (C) notwithstanding whether or not a county participates in the Wildland Fire
             2592      Suppression Fund created in Section 65A-8-204 , any fire suppression or presuppression costs
             2593      that may be paid for from the Wildland Fire Suppression Fund if the county participates in the
             2594      Wildland Fire Suppression Fund.
             2595          (2) The state treasurer shall invest [monies] money in the disaster recovery fund
             2596      according to Title 51, Chapter 7, State Money Management Act.
             2597          (3) (a) Except as provided in Subsection (1), the [monies] money in the disaster
             2598      recovery fund may not be diverted, appropriated, expended, or committed to be expended for a
             2599      purpose that is not listed in this section.
             2600          (b) Notwithstanding Section 63J-1-410 , the Legislature may not appropriate [monies]
             2601      money from the disaster recovery fund to eliminate or otherwise reduce an operating deficit if
             2602      the [monies] money appropriated from the disaster recovery fund [are] is expended or
             2603      committed to be expended for a purpose other than one listed in this section.
             2604          (c) The Legislature may not amend the purposes for which [monies] money in the
             2605      disaster recovery fund may be expended or committed to be expended except by the affirmative


             2606      vote of two-thirds of all the members elected to each house.
             2607          (4) The division:
             2608          (a) shall provide the notice required by Subsection (1)(d)(i)(B) using the best available
             2609      method under the circumstances as determined by the division; and
             2610          (b) may provide the notice required by Subsection (1)(d)(i)(B) in electronic format.
             2611          Section 50. Section 53-2-404 is amended to read:
             2612           53-2-404. State costs for emergency disaster services.
             2613          (1) Subject to this section and Section 53-2-403 , the division shall expend or commit to
             2614      expend [monies] money described in Subsection 53-2-403 (1)(d)(i) to fund costs to the state of
             2615      emergency disaster services.
             2616          (2) [Monies] Money paid by the division under this section to government entities and
             2617      private persons providing emergency disaster services are subject to Title 63G, Chapter 6, Utah
             2618      Procurement Code.
             2619          Section 51. Section 53-2-405 is amended to read:
             2620           53-2-405. Local government disaster funds.
             2621          (1) (a) Subject to this section and notwithstanding anything to the contrary contained in
             2622      Title 10, Utah Municipal Code, or Title 17, Counties, Title 17B, Limited Purpose Local
             2623      Government Entities - Local Districts, or Title 17D, Chapter 1, Special Service District Act, the
             2624      governing body of a local government may create and maintain by ordinance a special fund
             2625      known as a local government disaster fund.
             2626          (b) The local fund shall consist of:
             2627          (i) subject to the limitations of this section, [monies] money transferred to it in
             2628      accordance with Subsection (2);
             2629          (ii) any other public or private [monies] money received by the local government that
             2630      [are] is:
             2631          (A) given to the local government for purposes consistent with this section; and
             2632          (B) deposited into the local fund at the request of:
             2633          (I) the governing body of the local government; or


             2634          (II) the person giving the [monies] money; and
             2635          (iii) interest or income realized from the local fund.
             2636          (c) Interest or income realized from the local fund shall be deposited into the local
             2637      fund.
             2638          (d) [Monies] Money in a local fund may be:
             2639          (i) deposited or invested as provided in Section 51-7-11 ; or
             2640          (ii) transferred by the local government treasurer to the state treasurer under Section
             2641      51-7-5 for the state treasurer's management and control under Title 51, Chapter 7, State Money
             2642      Management Act.
             2643          (e) (i) The [monies] money in a local fund may accumulate from year to year until the
             2644      local government governing body determines to spend any money in the local fund for one or
             2645      more of the purposes specified in Subsection (3).
             2646          (ii) [Monies] Money in a local fund at the end of a fiscal year:
             2647          (A) shall remain in the local fund for future use; and
             2648          (B) may not be transferred to any other fund or used for any other purpose.
             2649          (2) The amounts transferred to a local fund may not exceed 10% of the total estimated
             2650      revenues of the local government for the current fiscal period that are not restricted or
             2651      otherwise obligated.
             2652          (3) [Monies] Money in the fund may only be used to fund the services and activities of
             2653      the local government creating the local fund in response to:
             2654          (a) a declared disaster within the boundaries of the local government;
             2655          (b) the aftermath of the disaster that gave rise to a declared disaster within the
             2656      boundaries of the local government; and
             2657          (c) subject to Subsection (5), emergency preparedness.
             2658          (4) (a) A local fund is subject to this part and:
             2659          (i) in the case of a town, Title 10, Chapter 5, Uniform Fiscal Procedures Act for Utah
             2660      Towns, except that:
             2661          (A) in addition to the funds listed in Section 10-5-106 , the mayor shall prepare a


             2662      budget for the local fund;
             2663          (B) Section 10-5-119 addressing termination of special funds does not apply to a local
             2664      fund; and
             2665          (C) the council of the town may not authorize an interfund loan under Section
             2666      10-5-120 from the local fund;
             2667          (ii) in the case of a city, Title 10, Chapter 6, Uniform Fiscal Procedures Act for Utah
             2668      Cities, except that:
             2669          (A) in addition to the funds listed in Section 10-6-109 , the mayor shall prepare a
             2670      budget for the local fund;
             2671          (B) Section 10-6-131 addressing termination of special funds does not apply to a local
             2672      fund; and
             2673          (C) the governing body of the city may not authorize an interfund loan under Section
             2674      10-6-132 from the local fund; and
             2675          (iii) in the case of a county, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
             2676      Counties, except that:
             2677          (A) Section 17-36-29 addressing termination of special funds does not apply to a local
             2678      fund; and
             2679          (B) the governing body of the county may not authorize an interfund loan under
             2680      Section 17-36-30 from the local fund; and
             2681          (iv) in the case of a local district or special service district, Title 17B, Chapter 1, Part 6,
             2682      Fiscal Procedures for Local Districts, except that:
             2683          (A) Section 17B-1-625 , addressing termination of a special fund, does not apply to a
             2684      local fund; and
             2685          (B) the governing body of the local district or special service district may not authorize
             2686      an interfund loan under Section 17B-1-626 from the local fund.
             2687          (b) Notwithstanding Subsection (4)(a), transfers of [monies] money to a local fund or
             2688      the accumulation of [monies] money in a local fund do not affect any limits on fund balances,
             2689      net assets, or the accumulation of retained earnings in any of the following of a local


             2690      government:
             2691          (i) a general fund;
             2692          (ii) an enterprise fund;
             2693          (iii) an internal service fund; or
             2694          (iv) any other fund.
             2695          (5) (a) A local government may not expend during a fiscal year more than 10% of the
             2696      [monies] money budgeted to be deposited into a local fund during that fiscal year for
             2697      emergency preparedness.
             2698          (b) The amount described in Subsection (5)(a) shall be determined before the adoption
             2699      of the tentative budget.
             2700          Section 52. Section 53A-1-612 is amended to read:
             2701           53A-1-612. Basic Skills Education Stipend Program.
             2702          (1) As used in this section:
             2703          (a) "Basic skills education" means individual or group instruction, including
             2704      assessments, designed to develop the skills and knowledge necessary to pass the Utah Basic
             2705      Skills Competency Test.
             2706          (b) "Basic skills provider" means:
             2707          (i) a school district;
             2708          (ii) a charter school;
             2709          (iii) an accredited public or private educational institution; or
             2710          (iv) other entity that meets board requirements pursuant to Subsection (12).
             2711          (c) "Program" means the Basic Skills Education Stipend Program.
             2712          (d) "Stipend recipient" means a student who receives a stipend under this section.
             2713          (e) "Utah Basic Skills Competency Test" or "UBSCT" means the basic skills
             2714      competency test administered to students pursuant to Section 53A-1-611 .
             2715          (2) The Basic Skills Education Stipend Program is created to provide students who
             2716      have not passed the UBSCT supplemental instruction in the skills and knowledge necessary to
             2717      pass the test.


             2718          (3) The State Board of Education shall administer the Basic Skills Education Stipend
             2719      Program.
             2720          (4) (a) A student may receive a stipend for basic skills education if:
             2721          (i) the student's score on one more subtests is below the midpoint of the partial mastery
             2722      range;
             2723          (ii) the student's parent or guardian is a Utah resident;
             2724          (iii) the student is enrolled full-time in a public school in the state; and
             2725          (iv) the student does not qualify for the Utah Alternative Assessment.
             2726          (b) A student who meets the criteria of Subsection (4)(a) may receive a stipend for
             2727      basic skills education in the subject of each subtest failed. Depending upon the number of
             2728      subtests failed, a student may receive one, two, or three stipends. A student may receive a
             2729      stipend only once for each subtest failed.
             2730          (5) Stipend amounts shall be based on a student's subtest score as follows:
             2731          (a) $500, if the student's subtest score was below the midpoint of the partial mastery
             2732      range but above the minimal mastery range;
             2733          (b) $1,000, if the student's subtest score was below the partial mastery range, but above
             2734      or at the midpoint of the minimal mastery range; or
             2735          (c) $1,500, if the student's subtest score was below the midpoint of the minimal
             2736      mastery range.
             2737          (6) A stipend recipient may apply for basic skills education from any basic skills
             2738      provider.
             2739          (7) Each basic skill provider shall accept stipend recipients on a first come/first served
             2740      basis.
             2741          (8) A stipend recipient shall give the following to the basic skills provider selected to
             2742      provide basic skills education:
             2743          (a) a voucher in the amount of the stipend which the basic skills educator may present
             2744      for payment by the board if the stipend recipient passes the subtest corresponding to the basic
             2745      skills education provided by the basic skills provider; and


             2746          (b) an authorization signed by the stipend recipient's parent or guardian for the stipend
             2747      recipient's school to release records of the stipend recipient to the basic skills provider, if the
             2748      basic skills provider is not the school district or charter school in which the stipend recipient is
             2749      enrolled.
             2750          (9) A basic skills provider who possesses a voucher shall receive payment from the
             2751      board in the amount of the stipend, if, on a subsequent administration of the UBSCT, the
             2752      stipend recipient passes the subtest corresponding to the basic skills education provided by the
             2753      basic skills provider.
             2754          (10) (a) A basic skills provider may charge a stipend recipient an amount in addition to
             2755      that paid by the board.
             2756          (b) The additional amount charged by a basic skills provider shall be:
             2757          (i) consistent with the restriction in Utah Constitution Article X, Section 2;
             2758          (ii) disclosed to the stipend recipient's parent or guardian when the stipend recipient
             2759      applies for basic skills education; and
             2760          (iii) reported to the board before receiving payment from the board.
             2761          (c) A basic skills provider may not make any additional charge or refund of a charge
             2762      contingent upon a stipend recipient's passing or failing a UBSCT subtest.
             2763          (11) (a) Stipends shall be awarded by the board subject to the availability of money
             2764      appropriated by the Legislature for that purpose.
             2765          (b) The Legislature shall annually appropriate money to the board from the General
             2766      Fund to make stipend payments.
             2767          (c) If [monies are] money is not available to pay for all stipends requested, the stipends
             2768      shall be allocated according to rules adopted by the State Board of Education.
             2769          (12) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             2770      the State Board of Education shall make rules:
             2771          (a) establishing qualifications for basic skills providers who are not school districts,
             2772      high schools, or accredited public or private educational institutions;
             2773          (b) establishing procedures for the administration of the Basic Skills Education Stipend


             2774      Program; and
             2775          (c) requiring the parent or guardian of a stipend recipient who selects a basic skills
             2776      provider other than the school district or charter school in which the stipend recipient is
             2777      enrolled to sign:
             2778          (i) an acknowledgment that the school district or charter school is released from further
             2779      remediation responsibility for the stipend recipient; and
             2780          (ii) if the student has an IEP, an acknowledgment that offering a voucher to the basic
             2781      skill provider has the same effect as a parental refusal to consent to services pursuant to Section
             2782      614(a)(1) of the Individuals with Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.
             2783          (13) School districts and charter schools shall provide each student who qualifies for a
             2784      basic skills education stipend information about the Basic Skills Education Stipend Program,
             2785      including:
             2786          (a) voucher applications; and
             2787          (b) how to access a list of approved public and private providers.
             2788          Section 53. Section 53A-1-708 is amended to read:
             2789           53A-1-708. Grants for online delivery of U-PASS tests.
             2790          (1) As used in this section:
             2791          (a) "summative tests" means tests administered near the end of a course to assess
             2792      overall achievement of course goals;
             2793          (b) "uniform online summative test system" means a single system for the online
             2794      delivery of summative tests required under U-PASS that:
             2795          (i) is coordinated by the Utah State Office of Education;
             2796          (ii) ensures the reliability and security of U-PASS tests; and
             2797          (iii) is selected through collaboration between Utah State Office of Education and
             2798      school district representatives with expertise in technology, assessment, and administration;
             2799      and
             2800          (c) "U-PASS" means the Utah Performance Assessment System for Students.
             2801          (2) The State Board of Education may award grants to school districts and charter


             2802      schools to implement a uniform online summative test system to enable parents of students and
             2803      school staff to review U-PASS test scores by the end of the school year.
             2804          (3) (a) Grant [monies] money may be used to pay for any of the following, provided it
             2805      is directly related to implementing a uniform online summative test system:
             2806          (i) computer equipment and peripherals, including electronic data capture devices
             2807      designed for electronic test administration and scoring;
             2808          (ii) software;
             2809          (iii) networking equipment;
             2810          (iv) upgrades of existing equipment or software;
             2811          (v) upgrades of existing physical plant facilities;
             2812          (vi) personnel to provide technical support or coordination and management; and
             2813          (vii) teacher professional development.
             2814          (b) Equipment purchased in compliance with Subsection (3)(a), when not in use for the
             2815      online delivery of summative tests required under U-PASS may be used for other purposes.
             2816          (4) The State Board of Education may award grants only to school districts and charter
             2817      schools that intend to implement a uniform online summative test system.
             2818          (5) (a) The State Board of Education shall make rules specifying:
             2819          (i) establishing procedures for applying for and awarding grants;
             2820          (ii) specifying how grant [monies] money shall be allocated among school districts and
             2821      charter schools that qualify to receive grants under Subsection (4); and
             2822          (iii) requiring reporting of grant money expenditures and evidence showing that the
             2823      grant [monies have] money has been used to implement a uniform online summative test
             2824      system.
             2825          (b) To ensure that small school districts and charter schools receive adequate funds to
             2826      implement a uniform online summative test system, grant [monies] money shall be allocated on
             2827      a 25% base, with the remaining 75% distributed on a per pupil basis.
             2828          (6) If a school district or charter school uses grant [monies] money for purposes other
             2829      than those stated in Subsection (3), the school district or charter school is liable for reimbursing


             2830      the State Board of Education in the amount of the grant [monies] money improperly used.
             2831          Section 54. Section 53A-1-903 is amended to read:
             2832           53A-1-903. Federal programs -- School official duties.
             2833          (1) School officials may:
             2834          (a) apply for, receive, and administer funds made available through programs of the
             2835      federal government;
             2836          (b) only expend federal funds for the purposes for which they are received and are
             2837      accounted for by the state, school district, or charter school; and
             2838          (c) reduce or eliminate a program created with or expanded by federal funds to the
             2839      extent allowed by law when federal funds for that program are subsequently reduced or
             2840      eliminated.
             2841          (2) School officials shall:
             2842          (a) prioritize resources, especially to resolve conflicts between federal provisions or
             2843      between federal and state programs, including:
             2844          (i) providing first priority to meeting state goals, objectives, program needs, and
             2845      accountability systems as they relate to federal programs; and
             2846          (ii) providing second priority to implementing federal goals, objectives, program needs,
             2847      and accountability systems that do not directly and simultaneously advance state goals,
             2848      objectives, program needs, and accountability systems;
             2849          (b) interpret the provisions of federal programs in the best interest of students in this
             2850      state;
             2851          (c) maximize local control and flexibility;
             2852          (d) minimize additional state resources that are diverted to implement federal programs
             2853      beyond the federal [monies] money that [are] is provided to fund the programs;
             2854          (e) request changes to federal educational programs, especially programs that are
             2855      underfunded or provide conflicts with other state or federal programs, including:
             2856          (i) federal statutes;
             2857          (ii) federal regulations; and


             2858          (iii) other federal policies and interpretations of program provisions; and
             2859          (f) seek waivers from all possible federal statutes, requirements, regulations, and
             2860      program provisions from federal education officials to:
             2861          (i) maximize state flexibility in implementing program provisions; and
             2862          (ii) receive reasonable time to comply with federal program provisions.
             2863          (3) The requirements of school officials under this part, including the responsibility to
             2864      lobby federal officials, are not intended to mandate school officials to incur costs or require the
             2865      hiring of lobbyists, but are intended to be performed in the course of school officials' normal
             2866      duties.
             2867          Section 55. Section 53A-1a-108 is amended to read:
             2868           53A-1a-108. School community councils authorized -- Duties -- Composition --
             2869      Election procedures and selection of members.
             2870          (1) As used in this section:
             2871          (a) (i) "Parent or guardian member" means a member of a school community council
             2872      who is a parent or guardian of a student who is attending the school or who will be enrolled at
             2873      the school at any time during the parent's or guardian's initial term of office.
             2874          (ii) "Parent or guardian member" may not include a person who meets the definition of
             2875      a school employee member unless the person's employment at the school does not exceed an
             2876      average of six hours per week.
             2877          (b) "School employee member" means a member of a school community council who
             2878      is a person employed at a school by the school or school district, including the principal.
             2879          (2) Each public school, in consultation with its local school board, shall establish a
             2880      school community council at the school building level.
             2881          (3) (a) Each school community council shall:
             2882          (i) develop a school improvement plan in accordance with Section 53A-1a-108.5 ;
             2883          (ii) develop the School LAND Trust Program in accordance with Section
             2884      53A-16-101.5 ;
             2885          (iii) assist in the development and implementation of a staff professional development


             2886      plan as provided by Section 53A-3-701 ;
             2887          (iv) develop a child access routing plan in accordance with Section 53A-3-402 ; and
             2888          (v) advise and make recommendations to school and school district administrators and
             2889      the local school board regarding the school and its programs, school district programs, and
             2890      other issues relating to the community environment for students.
             2891          (b) In addition to the duties specified in Subsection (3)(a), a school community council
             2892      for an elementary school shall develop a reading achievement plan in accordance with Section
             2893      53A-1-606.5 .
             2894          (4) (a) Each school community council shall consist of school employee members and
             2895      parent or guardian members in accordance with this section.
             2896          (b) Except as provided in Subsection (4)(c):
             2897          (i) each school community council for a high school shall have six parent or guardian
             2898      members and five school employee members, including the principal; and
             2899          (ii) each school community council for a school other than a high school shall have
             2900      four parent or guardian members and three school employee members, including the principal.
             2901          (c) (i) A school community council may have a larger membership provided that the
             2902      number of parent or guardian members exceeds the number of school employee members.
             2903          (ii) A school community council may have a smaller membership provided that:
             2904          (A) the number of parent or guardian members exceeds the number of school employee
             2905      members; and
             2906          (B) there are at least two school employee members on the school community council.
             2907          (5) (a) Each school employee member, except the principal, shall be elected by secret
             2908      ballot by a majority vote of the school employees and serve a two-year term. The principal
             2909      shall serve as an ex officio member with full voting privileges.
             2910          (b) (i) Each parent or guardian member shall be elected by secret ballot at an election
             2911      held at the school by a majority vote of those voting at the election and serve a two-year term.
             2912          (ii) Only parents or guardians of students attending the school may vote at the election
             2913      under Subsection (5)(b)(I).


             2914          (iii) Any parent or guardian of a student who meets the qualifications of this section
             2915      may file or declare himself as a candidate for election to a school community council.
             2916          (c) (i) The principal of the school, or the principal's designee, shall provide notice of
             2917      the available community council positions to school employees, parents, and guardians at least
             2918      14 days before the date that voting commences for the elections held under Subsections (5)(a)
             2919      and (5)(b).
             2920          (ii) The notice shall include:
             2921          (A) the dates and times of the elections;
             2922          (B) a list of council positions that are up for election; and
             2923          (C) instructions for becoming a candidate for a community council position.
             2924          (iii) The principal of the school, or the principal's designee, shall oversee the elections
             2925      held under Subsections (5)(a) and (5)(b).
             2926          (iv) Ballots cast in an election held under Subsection (5)(b) shall be deposited in a
             2927      secure ballot box;
             2928          (d) Results of the elections held under Subsections (5)(a) and (5)(b) shall be made
             2929      available to the public upon request.
             2930          (e) (i) If a parent or guardian position on a school community council remains unfilled
             2931      after an election is held, the other parent or guardian members of the council shall appoint a
             2932      parent or guardian who meets the qualifications of this section to fill the position.
             2933          (ii) If a school employee position on a school community council remains unfilled after
             2934      an election is held, the other school employee members of the council shall appoint a school
             2935      employee to fill the position.
             2936          (iii) The chair of the community council shall notify the local school board of each
             2937      appointment made under Subsection (5)(e)(i)[,] or (ii)[,] or this Subsection (5)(e)(iii).
             2938          (iv) A member appointed to a school community council under Subsection (5)(e)(i) or
             2939      (ii) shall serve a two-year term.
             2940          (f) Initial terms shall be staggered so that no more than 50% of the council members
             2941      stand for election in any one year.


             2942          (g) (i) Each public school, in consultation with its local school board, shall set the
             2943      beginning date of the term of office for school community council members.
             2944          (ii) Council members may serve up to three successive terms.
             2945          (h) (i) Each school community council shall elect a chair and vice chair from its parent
             2946      or guardian members and elected employee members.
             2947          (ii) No more than one parent or guardian member or elected employee member may at
             2948      the same time serve as an officer specified in Subsection (5)(h)(i).
             2949          (6) (a) A school community council may create subcommittees or task forces to:
             2950          (i) advise or make recommendations to the council; or
             2951          (ii) develop all or part of a plan listed in Subsection (3).
             2952          (b) Any plan or part of a plan developed by a subcommittee or task force shall be
             2953      subject to the approval of the school community council.
             2954          (c) A school community council may appoint individuals who are not council members
             2955      to serve on a subcommittee or task force, including parents, school employees, or other
             2956      community members.
             2957          (7) (a) A school community council shall provide the following information:
             2958          (i) the proposed school community council meeting schedule for the year, provided
             2959      during the first two weeks of the school year;
             2960          (ii) a summary of the school community council's actions and activities during the first
             2961      half of the school year information, provided at the mid-point of the school year; and
             2962          (iii) a summary of the annual report required under Section 53A-16-101.5 on how the
             2963      school's School LAND Trust Program [monies were] money was used to enhance or improve
             2964      academic excellence at the school and implement a component of the school's improvement
             2965      plan, provided at the beginning of the next school year.
             2966          (b) The school community council shall provide the information described in
             2967      Subsection (7)(a) by:
             2968          (i) posting the information on the school's website; and
             2969          (ii) providing individual delivery to each household that has a student attending the


             2970      school by:
             2971          (A) mailing the information;
             2972          (B) delivering a voice message describing the information and explaining where to
             2973      obtain the full information;
             2974          (C) sending an e-mail message containing the information;
             2975          (D) providing the information in a packet that is to be delivered to a student's parent or
             2976      guardian:
             2977          (I) during the school's annual registration period; or
             2978          (II) with the student's report card; or
             2979          (E) using a combination of the methods described in Subsections (7)(b)(ii)(A) through
             2980      (D).
             2981          (8) A school community council shall, at least one week prior to a meeting, post the
             2982      following information on the school's website:
             2983          (a) notice of the meeting date, time, and place;
             2984          (b) an agenda for the meeting; and
             2985          (c) a summary of the previous meeting.
             2986          Section 56. Section 53A-1a-601 is amended to read:
             2987           53A-1a-601. Job enhancements for mathematics, science, technology, and special
             2988      education training.
             2989          (1) As used in this part, "special education teacher" includes occupational therapist.
             2990          (2) The Public Education Job Enhancement Program is established to attract, train, and
             2991      retain highly qualified:
             2992          (a) secondary teachers with expertise in mathematics, physics, chemistry, physical
             2993      science, learning technology, or information technology;
             2994          (b) special education teachers; and
             2995          (c) teachers in grades four through six with mathematics endorsements.
             2996          (3) The program shall provide for the following:
             2997          (a) application by a school district superintendent or the principal of a school on behalf


             2998      of a qualified teacher;
             2999          (b) an award of up to $20,000 or a scholarship to cover the tuition costs for a master's
             3000      degree, an endorsement, or graduate education in the areas identified in Subsection (2) to be
             3001      given to selected public school teachers on a competitive basis:
             3002          (i) whose applications are approved under Subsection 53A-1a-602 (4); and
             3003          (ii) who teach in the state's public education system for four years in the areas
             3004      identified in Subsection (2);
             3005          (c) (i) as to the cash awards under Subsection (3)(b), payment of the award in two
             3006      installments, with an initial payment of up to $10,000 at the beginning of the term and up to
             3007      $10,000 at the conclusion of the term;
             3008          (ii) repayment of a portion of the initial payment by the teacher if the teacher fails to
             3009      complete two years of the four-year teaching term in the areas identified in Subsection (2) as
             3010      provided by rule of the State Board of Education in accordance with Title 63G, Chapter 3, Utah
             3011      Administrative Rulemaking Act, unless waived for good cause by the Job Enhancement
             3012      Committee created in Section 53A-1a-602 ; and
             3013          (iii) nonpayment of the second installment if the teacher fails to complete the four-year
             3014      teaching term; and
             3015          (d) (i) as to the scholarships awarded under Subsection (3)(b), provision for the
             3016      providing institution to certify adequate performance in obtaining the master's degree,
             3017      endorsement, or graduate education in order for the teacher to maintain the scholarship; and
             3018          (ii) repayment by the teacher of a prorated portion of the scholarship, if the teacher fails
             3019      to complete the authorized classes or program or to teach in the state system of public
             3020      education in the areas identified in Subsection (2) for four years after obtaining the master's
             3021      degree, the endorsement, or graduate education.
             3022          (4) An individual teaching in the public schools under a letter of authorization may
             3023      participate in the cash award program if:
             3024          (a) the individual has taught under the letter of authorization for at least one year in the
             3025      areas referred to in Subsection (2); and


             3026          (b) the application made under Subsection (3)(a) is based in large part upon the
             3027      individual receiving a superior evaluation as a classroom teacher.
             3028          (5) (a) The program may provide for the expenditure of up to $1,000,000 of available
             3029      [monies] money, if at least an equal amount of matching [monies become] money becomes
             3030      available, to provide professional development training to superintendents, administrators, and
             3031      principals in the effective use of technology in public schools.
             3032          (b) An award granted under this Subsection (5) shall be made in accordance with
             3033      criteria developed and adopted by the Job Enhancement Committee created in Section
             3034      53A-1a-602 .
             3035          (c) An amount up to $120,000 of the $1,000,000 authorized in Subsection (5)(a) may
             3036      be expended, regardless of the matching [monies] money being available.
             3037          Section 57. Section 53A-1a-706 is amended to read:
             3038           53A-1a-706. Scholarship payments.
             3039          (1) (a) Scholarships shall be awarded by the board subject to the availability of money
             3040      appropriated by the Legislature for that purpose.
             3041          (b) The Legislature shall annually appropriate money to the board from the General
             3042      Fund to make scholarship payments.
             3043          (c) (i) If [monies are] money is not available to pay for all scholarships requested, the
             3044      scholarships shall be allocated on a random basis except that preference shall be given to
             3045      students who received scholarships in the previous school year.
             3046          (ii) If [monies are] money is insufficient in a school year to pay for all the continuing
             3047      scholarships, new scholarships may not be awarded during that school year and the [monies]
             3048      money available for scholarships shall be prorated among the eligible students who received
             3049      scholarships in the previous year.
             3050          (2) Full-year scholarships shall be awarded in the following amounts:
             3051          (a) for a student who received an average of 180 minutes per day or more of special
             3052      education services in a public school before transferring to a private school, an amount not to
             3053      exceed the lesser of:


             3054          (i) the value of the weighted pupil unit multiplied by 2.5; or
             3055          (ii) the private school tuition and fees; and
             3056          (b) for a student who received an average of less than 180 minutes per day of special
             3057      education services in a public school before transferring to a private school, an amount not to
             3058      exceed the lesser of:
             3059          (i) the value of the weighted pupil unit multiplied by 1.5; or
             3060          (ii) the private school tuition and fees.
             3061          (3) The scholarship amount for a student enrolled in a half-day kindergarten program
             3062      shall be the amount specified in Subsection (2)(a) or (b) multiplied by .55.
             3063          (4) (a) The scholarship amount for a student who receives a waiver under Subsection
             3064      53A-1a-704 (3) shall be based upon the assessment team's determination of the appropriate
             3065      level of special education services to be provided to the student.
             3066          (b) (i) If the student requires an average of 180 minutes per day or more of special
             3067      education services, a full-year scholarship shall be equal to the amount specified in Subsection
             3068      (2)(a).
             3069          (ii) If the student requires less than an average of 180 minutes per day of special
             3070      education services, a full-year scholarship shall be equal to the amount specified in Subsection
             3071      (2)(b).
             3072          (iii) If the student is enrolled in a half-day kindergarten program, a full-year
             3073      scholarship is equal to the amount specified in Subsection (3).
             3074          (5) (a) Except as provided in Subsection (5)(b), upon review and receipt of
             3075      documentation that verifies a student's admission to, or continuing enrollment and attendance
             3076      at, a private school, the board shall make scholarship payments in four equal amounts no later
             3077      than September 1, November 1, February 1, and April 15 of each school year in which a
             3078      scholarship is in force.
             3079          (b) In accordance with board rule, the board may make a scholarship payment before
             3080      the first quarterly payment of the school year, if a private school requires partial payment of
             3081      tuition before the start of the school year to reserve space for a student admitted to the school.


             3082          (6) A parent of a scholarship student shall notify the board if the student does not have
             3083      continuing enrollment and attendance at an eligible private school.
             3084          (7) Before scholarship payments are made, the board shall cross-check enrollment lists
             3085      of scholarship students, school districts, and youth in custody to ensure that scholarship
             3086      payments are not erroneously made.
             3087          (8) (a) Scholarship payments shall be made by the board by individual warrant made
             3088      payable to the student's parent and mailed by the board to the private school. The parent shall
             3089      restrictively endorse the warrant to the private school for deposit into the account of the private
             3090      school.
             3091          (b) A person, on behalf of a private school, may not accept a power of attorney from a
             3092      parent to sign a warrant referred to in Subsection (8)(a), and a parent of a scholarship student
             3093      may not give a power of attorney designating a person, on behalf of a private school, as the
             3094      parent's attorney-in-fact.
             3095          (9) (a) Scholarships shall be retroactively awarded to students with disabilities for
             3096      attendance at a private school in the 2004-05 school year, if:
             3097          (i) the student meets the qualifications for a scholarship under Section 53A-1a-704 and
             3098      is awarded a scholarship under this section; and
             3099          (ii) the private school meets the eligibility requirements of Section 53A-1a-705 ,
             3100      including submitting an application to enroll scholarship students in the 2005-06 school year.
             3101          (b) Subsection (5) does not apply to retroactive scholarship payments.
             3102          Section 58. Section 53A-1a-806 is amended to read:
             3103           53A-1a-806. Scholarship payments.
             3104          (1) (a) Scholarships shall be awarded by the board subject to the availability of money
             3105      appropriated by the Legislature for that purpose.
             3106          (b) The Legislature shall annually appropriate money to the board from the General
             3107      Fund to make scholarship payments for all students projected to apply for scholarships.
             3108          (c) (i) If [monies are] money is not available to pay for all scholarships requested, the
             3109      scholarships shall be allocated on a random basis except that preference shall be given to


             3110      students who received scholarships in the previous year.
             3111          (ii) If [monies are] money is insufficient in a school year to pay for all the continuing
             3112      scholarships:
             3113          (A) new scholarships may not be awarded during that school year;
             3114          (B) the [monies] money available for scholarships shall be prorated among the eligible
             3115      students who received scholarships in the previous year; and
             3116          (C) the board shall request a supplemental appropriation from the Legislature to make
             3117      full scholarship payments as provided in Subsection (4) or (5).
             3118          (2) (a) Scholarships shall be awarded based upon the income of a scholarship student's
             3119      parents in the calendar year immediately preceding the school year for which a scholarship is
             3120      sought.
             3121          (b) (i) The board shall make rules specifying how the income of a prospective
             3122      scholarship student's parents shall be determined and verified.
             3123          (ii) The rules shall provide that the scholarship shall be based upon parental income as
             3124      follows:
             3125          (A) if the parents are married, the income of both parents;
             3126          (B) if a parent is widowed, the income of the widowed parent;
             3127          (C) if a parent is widowed and has remarried, the income of the parent and stepparent;
             3128          (D) if the parents are divorced, the income of the parent with whom the scholarship
             3129      student resided for the greatest amount of time during the past 12 months;
             3130          (E) if the parents are divorced and the scholarship student resided with each parent an
             3131      equal amount of time, the income of the parent who provided more financial support during the
             3132      past 12 months;
             3133          (F) if the divorced parent with whom the scholarship student resided for the greatest
             3134      amount of time or who provided the greatest financial support has remarried, the income of the
             3135      parent and stepparent; and
             3136          (G) if the scholarship student resides with a guardian, the income of the guardian,
             3137      unless the guardian's income is exempt by board rule.


             3138          (iii) The rules shall provide that:
             3139          (A) if a parent filed federal or state income tax forms, income shall be based upon
             3140      adjusted gross income as listed on the income tax forms;
             3141          (B) if a parent was exempt from filing federal and state income tax forms, income shall
             3142      be based on income earned from work; and
             3143          (C) a parent shall submit documentation verifying income.
             3144          (3) (a) The board shall compare the income of a scholarship student's parents to the
             3145      maximum annual incomes listed in the income eligibility guideline as defined in Section
             3146      53A-1a-803 to set the scholarship amount.
             3147          (b) In determining scholarship amounts, the board shall use:
             3148          (i) the income eligibility guideline in effect for the school year immediately preceding
             3149      the school year for which a scholarship is sought; and
             3150          (ii) the scholarship student's household size as the applicable household size for the
             3151      purpose of determining maximum annual income under the income eligibility guideline.
             3152          (4) Full-year scholarships shall be awarded in the amounts shown in the following
             3153      table, or for the amount of tuition for a full year, whichever is less.
             3154      If the annual income of a scholarship
             3155      student's parents is:                    The full-year scholarship amount is:
             3156      Less than or equal to 100% of the
             3157          income eligibility guideline                    $3,000
             3158      Greater than 100% but less than or equal
             3159           to 125% of the income eligibility guideline            $2,750
             3160      Greater than 125% but less than or equal to
             3161          150% of the income eligibility guideline            $2,500
             3162      Greater than 150% but less than or equal to
             3163          175% of the income eligibility guideline            $2,250
             3164      Greater than 175% but less than or equal to
             3165          200% of the income eligibility guideline            $2,000


             3166      Greater than 200% but less than or equal to
             3167          225% of the income eligibility guideline            $1,750
             3168      Greater than 225% but less than or equal to
             3169          250% of the income eligibility guideline            $1,000
             3170      Greater than 250% of the income eligibility guideline        $500
             3171          (5) The full-year scholarship amounts shown in the table in Subsection (4) apply to
             3172      scholarships for all grades except kindergarten. The full-year scholarship amount for
             3173      kindergarten shall be .55 times the amounts shown in the table in Subsection (4).
             3174          (6) The board shall annually increase the full-year scholarship amounts shown in the
             3175      table in Subsection (4) by the same percentage annual increase in the value of the weighted
             3176      pupil unit established in Section 53A-17a-103 .
             3177          (7) (a) Except as provided in Subsection (7)(b), upon review and receipt of
             3178      documentation that verifies a student's admission to, or continuing enrollment and attendance
             3179      at, a private school, the board shall make scholarship payments in four equal amounts no later
             3180      than September 1, November 1, February 1, and April 15 of each school year in which a
             3181      scholarship is in force.
             3182          (b) In accordance with board rule, the board shall make a scholarship payment before
             3183      the first quarterly payment of the school year, if a private school requires partial payment of
             3184      tuition before the start of the school year to reserve space for a student admitted to the school.
             3185          (8) A parent of a scholarship student and the student's private school shall notify the
             3186      board if the student does not have continuing enrollment and attendance at the private school.
             3187          (9) Before scholarship payments are made, the board shall cross-check enrollment lists
             3188      of scholarship students, school districts, and youth in custody to ensure that scholarship
             3189      payments are not erroneously made.
             3190          (10) (a) Scholarship payments shall be made by the board by individual warrant made
             3191      payable to the student's parent and mailed by the board to the private school. The parent shall
             3192      restrictively endorse the warrant to the private school for deposit into the account of the private
             3193      school.


             3194          (b) A person, on behalf of a private school, may not accept a power of attorney from a
             3195      parent to sign a warrant referred to in Subsection (10)(a), and a parent of a scholarship student
             3196      may not give a power of attorney designating a person, on behalf of a private school, as the
             3197      parent's attorney in fact.
             3198          Section 59. Section 53A-4-205 is amended to read:
             3199           53A-4-205. Establishment of public education foundations -- Powers and duties --
             3200      Tax exempt status.
             3201          (1) State and local school boards may establish foundations to:
             3202          (a) assist in the development and implementation of the programs authorized under this
             3203      part to promote educational excellence; and
             3204          (b) assist in the accomplishment of other education-related objectives.
             3205          (2) A foundation established under Subsection (1):
             3206          (a) may solicit and receive contributions from private enterprises for the purpose of this
             3207      part;
             3208          (b) shall comply with Title 51, Chapter 7, State Money Management Act, and rules
             3209      made under the act;
             3210          (c) has no power or authority to incur contractual obligations or liabilities that
             3211      constitute a claim against public funds except as provided in this section;
             3212          (d) may not exercise executive, administrative, or rulemaking authority over the
             3213      programs referred to in this part, except to the extent specifically authorized by the responsible
             3214      school board;
             3215          (e) is exempt from all taxes levied by the state or any of its political subdivisions with
             3216      respect to activities conducted under this part;
             3217          (f) may participate in the Risk Management Fund under Section 63A-4-204 ;
             3218          (g) shall provide a school with information detailing transactions and balances of funds
             3219      managed for that school;
             3220          (h) shall, for foundation accounts from which [monies are] money is distributed to
             3221      schools, provide all the schools within a school district information that:


             3222          (i) details account transactions; and
             3223          (ii) shows available balances in the accounts; and
             3224          (i) may not:
             3225          (i) engage in lobbying activities;
             3226          (ii) attempt to influence legislation; or
             3227          (iii) participate in any campaign activity for or against:
             3228          (A) a political candidate; or
             3229          (B) an initiative, referendum, proposed constitutional amendment, bond, or any other
             3230      ballot proposition submitted to the voters.
             3231          (3) A local school board that establishes a foundation under Subsection (1) shall:
             3232          (a) require the foundation to:
             3233          (i) use the school district's accounting system; or
             3234          (ii) follow written accounting policies established by the board;
             3235          (b) review and approve the foundation's accounting, purchasing, and check issuance
             3236      policies to ensure that there is an adequate separation of responsibilities; and
             3237          (c) approve procedures to verify that issued foundation payments have been properly
             3238      approved.
             3239          Section 60. Section 53A-16-107.1 is amended to read:
             3240           53A-16-107.1. School capital outlay in counties of the first class -- Allocation --
             3241      Report to Education Interim Committee.
             3242          (1) For purposes of this section:
             3243          (a) "Average annual enrollment growth over the prior three years" means the quotient
             3244      of:
             3245          (i) (A) enrollment in the current school year, based on October 1 enrollment counts;
             3246      minus
             3247          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             3248      divided by
             3249          (ii) three.


             3250          (b) "Capital outlay increment [monies] money" means the amount of revenue equal to
             3251      the difference between:
             3252          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             3253      within a receiving school district during a fiscal year; and
             3254          (ii) the amount of revenue the receiving school district received during the same fiscal
             3255      year from the distribution described in Subsection (2).
             3256          (c) "Contributing school district" means a school district in a county of the first class
             3257      that in a fiscal year receives less revenue from the distribution described in Subsection (2) than
             3258      it would have received during the same fiscal year from a levy imposed within the school
             3259      district of .0006 per dollar of taxable value.
             3260          (d) "Receiving school district" means a school district in a county of the first class that
             3261      in a fiscal year receives more revenue from the distribution described in Subsection (2) than it
             3262      would have received during the same fiscal year from a levy imposed within the school district
             3263      of .0006 per dollar of taxable value.
             3264          (2) The county treasurer of a county of the first class shall distribute revenues
             3265      generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
             3266      to school districts located within the county of the first class as follows:
             3267          (a) 25% of the revenues shall be distributed in proportion to a school district's
             3268      percentage of the total enrollment growth in all of the school districts within the county that
             3269      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             3270      over the prior three years in all of the school districts within the county that have an increase in
             3271      enrollment over the prior three years, as of the October 1 enrollment counts; and
             3272          (b) 75% of the revenues shall be distributed in proportion to a school district's
             3273      percentage of the total current year enrollment in all of the school districts within the county, as
             3274      of the October 1 enrollment counts.
             3275          (3) If a new school district is created or school district boundaries are adjusted, the
             3276      enrollment and average annual enrollment growth for each affected school district shall be
             3277      calculated on the basis of enrollment in school district schools located within that school


             3278      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             3279          (4) On or before December 31 of each year, the State Board of Education shall provide
             3280      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             3281      to distribute revenues as required by this section.
             3282          (5) On or before March 31 of each year, a county treasurer in a county of the first class
             3283      shall distribute the revenue generated within the county of the first class during the prior
             3284      calendar year from the capital outlay levy described in Section 53A-16-107 .
             3285          (6) On or before the November meeting of the Education Interim Committee of each
             3286      year, a receiving school district shall report to the committee:
             3287          (a) how the receiving school district spent the district's capital outlay increment
             3288      [monies] money during the prior fiscal year; and
             3289          (b) the receiving school district's plan to increase student capacity of existing school
             3290      buildings within the district.
             3291          (7) The Education Interim Committee shall consider the reports of receiving school
             3292      districts described in Subsection (6) as part of a review to reauthorize this section and
             3293      provisions related to this section, if the committee is directed to conduct a review pursuant to
             3294      Title 63I, Legislative Oversight and Sunset Act.
             3295          Section 61. Section 53A-17a-105 is amended to read:
             3296           53A-17a-105. Powers and duties of State Board of Education to adjust Minimum
             3297      School Program allocations.
             3298          (1) Except as provided in Subsection (2) or (4), if the number of weighted pupil units
             3299      in a program is underestimated, the State Board of Education shall reduce the value of the
             3300      weighted pupil unit in that program so that the total amount paid for the program does not
             3301      exceed the amount appropriated for the program.
             3302          (2) If the number of weighted pupil units in a program is overestimated, the State
             3303      Board of Education shall spend excess [monies] money appropriated for the following
             3304      purposes giving priority to the purpose described in Subsection (2)(a):
             3305          (a) to support the value of the weighted pupil unit in a program within the basic


             3306      state-supported school program in which the number of weighted pupil units is underestimated;
             3307          (b) to support the state guarantee per weighted pupil unit provided under the voted
             3308      leeway program established in Section 53A-17a-133 or the board-approved leeway program
             3309      established in Section 53A-17a-134 , if:
             3310          (i) local contributions to the voted leeway program or board-approved leeway program
             3311      are overestimated; or
             3312          (ii) the number of weighted pupil units within school districts qualifying for a
             3313      guarantee is underestimated;
             3314          (c) to support the state supplement to local property taxes allocated to charter schools,
             3315      if the state supplement is less than the amount prescribed by Subsection 53A-1a-513 (4);
             3316          (d) for charter school administrative costs, if the appropriation for charter school
             3317      administrative costs is insufficient to provide the amount per student prescribed in Subsection
             3318      53A-17a-108 (2)(a); or
             3319          (e) to support a school district with a loss in student enrollment as provided in Section
             3320      53A-17a-139 .
             3321          (3) If local contributions from the minimum basic tax rate imposed under Section
             3322      53A-17a-135 are overestimated, the State Board of Education shall reduce the value of the
             3323      weighted pupil unit for all programs within the basic state-supported school program so the
             3324      total state contribution to the basic state-supported school program does not exceed the amount
             3325      of state funds appropriated.
             3326          (4) If local contributions from the minimum basic tax rate imposed under Section
             3327      53A-17a-135 are underestimated, the State Board of Education shall:
             3328          (a) spend the excess local contributions for the purposes specified in Subsection (2),
             3329      giving priority to supporting the value of the weighted pupil unit in programs within the basic
             3330      state-supported school program in which the number of weighted pupil units is underestimated;
             3331      and
             3332          (b) reduce the state contribution to the basic state-supported school program so the
             3333      total cost of the basic state-supported school program does not exceed the total state and local


             3334      funds appropriated to the basic state-supported school program plus the local contributions
             3335      necessary to support the value of the weighted pupil unit in programs within the basic
             3336      state-supported school program in which the number of weighted pupil units is underestimated.
             3337          (5) Except as provided in Subsection (2) or (4), the State Board of Education shall
             3338      reduce the guarantee per weighted pupil unit provided under the voted leeway program
             3339      established in Section 53A-17a-133 or board-approved leeway program established in Section
             3340      53A-17a-134 , if:
             3341          (a) local contributions to the voted leeway program or board-approved leeway program
             3342      are overestimated; or
             3343          (b) the number of weighted pupil units within school districts qualifying for a
             3344      guarantee is underestimated.
             3345          (6) [Monies] Money appropriated to the State Board of Education [are] is nonlapsing.
             3346          (7) The State Board of Education shall report actions taken by the board under this
             3347      section to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning
             3348      and Budget.
             3349          Section 62. Section 53A-17a-111 is amended to read:
             3350           53A-17a-111. Weighted pupil units for programs for students with disabilities --
             3351      District allocation.
             3352          (1) The number of weighted pupil units for students with disabilities shall reflect the
             3353      direct cost of programs for those students conducted in accordance with rules established by the
             3354      State Board of Education in accordance with Title 63G, Chapter 3, Utah Administrative
             3355      Rulemaking Act.
             3356          (2) Disability program [monies] money allocated to districts [are] is restricted and shall
             3357      be spent for the education of students with disabilities but may include expenditures for
             3358      approved programs of services conducted for certified instructional personnel who have
             3359      students with disabilities in their classes.
             3360          (3) The State Board of Education shall establish and strictly interpret definitions and
             3361      provide standards for determining which students have disabilities and shall assist districts in


             3362      determining the services that should be provided to students with disabilities.
             3363          (4) Each year the board shall evaluate the standards and guidelines that establish the
             3364      identifying criteria for disability classifications to assure strict compliance with those standards
             3365      by the districts.
             3366          (5) (a) [Monies] Money appropriated to the State Board of Education for add-on WPUs
             3367      for students with disabilities enrolled in regular programs shall be allocated to school districts
             3368      as provided in this Subsection (5).
             3369          (b) Beginning on July 1, 2003, the State Board of Education shall:
             3370          (i) use a district's average number of special education add-on weighted pupil units
             3371      determined by the previous five year's average daily membership data as a foundation for the
             3372      special education add-on appropriation; and
             3373          (ii) implement a hold harmless provision for up to three years as needed to accomplish
             3374      a phase-in period for school districts to accommodate the change in the special education
             3375      add-on WPUs foundation formula.
             3376          (c) A district's special education add-on WPUs for the current year may not be less than
             3377      the foundation special education add-on WPUs.
             3378          (d) Growth WPUs shall be added to the prior year special education add-on WPUs, and
             3379      growth WPUs shall be determined as follows:
             3380          (i) The special education student growth factor is calculated by comparing S-3 total
             3381      special education ADM of two years previous to the current year to the S-3 total special
             3382      education ADM three years previous to the current year, not to exceed the official October total
             3383      district growth factor from the prior year.
             3384          (ii) When calculating and applying the growth factor, a district's S-3 total special
             3385      education ADM for a given year is limited to 12.18% of the district's S-3 total student ADM
             3386      for the same year.
             3387          (iii) Growth ADMs are calculated by applying the growth factor to the S-3 total special
             3388      education ADM of two years previous to the current year.
             3389          (iv) Growth ADMs for each district are multiplied by 1.53 weighted pupil units and


             3390      added to the prior year special education add-on WPU to determine each district's total
             3391      allocation.
             3392          (6) If [monies] money appropriated under this chapter for programs for students with
             3393      disabilities [do] does not meet the costs of districts for those programs, each district shall first
             3394      receive the amount generated for each student with a disability under the basic program.
             3395          Section 63. Section 53A-17a-121 is amended to read:
             3396           53A-17a-121. Appropriation for at-risk programs.
             3397          (1) Money appropriated to the State Board of Education for at-risk programs shall be
             3398      allocated to local school boards for the following programs:
             3399          (a) youth in custody;
             3400          (b) homeless and disadvantaged minority students;
             3401          (c) mathematics, engineering, and science achievement programs;
             3402          (d) gang prevention and intervention; and
             3403          (e) at-risk flow through.
             3404          (2) Districts shall spend [monies] money for these programs according to rules
             3405      established by the State Board of Education in accordance with Title 63G, Chapter 3, Utah
             3406      Administrative Rulemaking Act.
             3407          (3) (a) From the amount appropriated for youth at risk programs, the board shall
             3408      allocate [moneys] money to school districts for homeless and disadvantaged minority students.
             3409          (b) Each district shall receive its allocation on the basis of:
             3410          (i) the total number of homeless students in the district;
             3411          (ii) added to 50% of the number of disadvantaged minority students in the district;
             3412          (iii) multiplying the total of Subsections (3)(b)(i) and (ii) by the value of the weighted
             3413      pupil unit; and
             3414          (iv) prorating the amount under Subsection (3)(b)(iii) to the amount in Subsection
             3415      (3)(a).
             3416          (4) (a) From the amount appropriated for at-risk programs, the board shall allocate
             3417      [monies] money for mathematics, engineering, and science achievement programs, MESA


             3418      programs, in the districts.
             3419          (b) The board shall make the distribution to school districts on a competitive basis by
             3420      application under guidelines established by the board.
             3421          (5) (a) From the amount appropriated for at-risk programs, the board shall distribute
             3422      [moneys] money for gang prevention and intervention programs at the district or school level.
             3423          (b) The board shall make the distribution to school districts under guidelines
             3424      established by the board consistent with Section 53A-15-601 .
             3425          (6) (a) From the amount appropriated for at-risk programs, the board shall distribute
             3426      [moneys] money for programs for youth in custody.
             3427          (b) The board shall allocate [these moneys] the money to school districts which operate
             3428      programs for youth in custody in accordance with standards established by the board.
             3429          (7) From the amount appropriated for at-risk programs, the board shall allocate
             3430      [monies] money based on:
             3431          (a) a formula which takes into account prior year WPU's per district and a district's low
             3432      income population; and
             3433          (b) a minimum base of no less than $18,600 for small school districts.
             3434          Section 64. Section 53A-17a-123.5 is amended to read:
             3435           53A-17a-123.5. Interventions for Student Success Block Grant Program -- State
             3436      contribution.
             3437          (1) The State Board of Education shall distribute money appropriated for the
             3438      Interventions for Student Success Block Grant Program to school districts and charter schools
             3439      according to a formula adopted by the board, after consultation with school districts and charter
             3440      schools, that allocates the funding in a fair and equitable manner.
             3441          (2) Schools districts and charter schools shall use Interventions for Student Success
             3442      Block Grant money to improve student academic success, with priority given to interventions
             3443      on behalf of students not performing to standards as determined by U-PASS test results.
             3444          (3) (a) Each school district shall develop a plan for the expenditure of Interventions for
             3445      Student Success Block Grant money.


             3446          (b) The plan:
             3447          (i) shall specify anticipated results; and
             3448          (ii) may include continuing existing programs to improve students' academic success
             3449      for which funds were appropriated before the establishment of the block grant.
             3450          (c) The local school board shall approve the plan for the expenditure of the block grant
             3451      money in an open public meeting before the money [are] is spent.
             3452          Section 65. Section 53A-17a-134 is amended to read:
             3453           53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
             3454          (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
             3455      value to maintain a school program above the cost of the basic school program as follows:
             3456          (a) a local school board shall use the [monies] money generated by the tax for class
             3457      size reduction within the school district;
             3458          (b) if a local school board determines that the average class size in the school district is
             3459      not excessive, it may use the [monies] money for other school purposes but only if the board
             3460      has declared the use for other school purposes in a public meeting prior to levying the tax rate;
             3461      and
             3462          (c) a district may not use the [monies] money for other school purposes under
             3463      Subsection (1)(b) until it has certified in writing that its class size needs are already being met
             3464      and has identified the other school purposes for which the [monies] money will be used to the
             3465      State Board of Education and the state board has approved their use for other school purposes.
             3466          (2) (a) The state shall contribute an amount sufficient to guarantee $25.25 per weighted
             3467      pupil unit for each .0001 per dollar of taxable value.
             3468          (b) The guarantee shall increase in the same manner as provided for the voted leeway
             3469      guarantee in Subsection 53A-17a-133 (3)(c).
             3470          (c) (i) The amount of state guarantee money to which a school district would otherwise
             3471      be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
             3472      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             3473      pursuant to changes in property valuation.


             3474          (ii) Subsection (2)(c)(i) applies for a period of five years following any such change in
             3475      the certified tax rate.
             3476          (d) The guarantee provided under this section does not apply to:
             3477          (i) a board-authorized leeway in the first fiscal year the leeway is in effect, unless the
             3478      leeway was approved by voters pursuant to Subsections (4) through (6); or
             3479          (ii) the portion of a board-authorized leeway rate that is in excess of the
             3480      board-authorized leeway rate that was in effect for the previous fiscal year.
             3481          (3) The levy authorized under this section is not in addition to the maximum rate of
             3482      .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
             3483      rate under that section.
             3484          (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
             3485      require voter approval, but the board may require voter approval if requested by a majority of
             3486      the board.
             3487          (5) An election to consider disapproval of the board-authorized levy is required, if
             3488      within 60 days after the levy is established by the board, referendum petitions signed by the
             3489      number of legal voters required in Section 20A-7-301 , who reside within the school district, are
             3490      filed with the school district.
             3491          (6) (a) A local school board shall establish its board-approved levy by April 1 to have
             3492      the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
             3493      election is required under this section, the levy applies to the fiscal year beginning July 1 of the
             3494      next calendar year.
             3495          (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
             3496      occur at a general election in even-numbered years, except that a vote required under this
             3497      section in odd-numbered years shall occur at a special election held on a day in odd-numbered
             3498      years that corresponds to the general election date. The school district shall pay for the cost of
             3499      a special election.
             3500          (7) (a) Modification or termination of a voter-approved leeway rate authorized under
             3501      this section is governed by Section 53A-17a-133 .


             3502          (b) A board-authorized leeway rate may be modified or terminated by a majority vote
             3503      of the board subject to disapproval procedures specified in this section.
             3504          (8) A board levy election does not require publication of a voter information pamphlet.
             3505          Section 66. Section 53A-17a-144 is amended to read:
             3506           53A-17a-144. Contribution of state to cost of minimum school program --
             3507      Determination of amounts -- Levy on taxable property -- Disbursal -- Deficiency.
             3508          The state's contribution to the total cost of the minimum school program is determined
             3509      and distributed as follows:
             3510          (1) The State Tax Commission shall levy an amount determined by the Legislature on
             3511      all taxable property of the state.
             3512          (a) This amount, together with other funds provided by law, is the state's contribution
             3513      to the minimum school program.
             3514          (b) The statewide levy is set at zero until changed by the Legislature.
             3515          (2) During the first week in November, the State Tax Commission shall certify to the
             3516      State Board of Education the amounts designated as state aid for each district under Section
             3517      59-2-902 .
             3518          (3) (a) The actual amounts computed under Section 59-2-902 are the state's
             3519      contribution to the minimum school program of each district.
             3520          (b) The state board shall provide each district with a statement of the amount of state
             3521      aid.
             3522          (4) Prior to the first day of each month, the state treasurer and the Division of Finance,
             3523      with the approval of the State Board of Education, shall disburse 1/12 of the state's contribution
             3524      to the cost of the minimum school program to each school district.
             3525          (a) A disbursement may not be made to a district whose payments have been
             3526      interrupted under Subsection (4)(d).
             3527          (b) Discrepancies between the monthly disbursements and the actual cost of the
             3528      program shall be adjusted in the final settlement under Subsection (5).
             3529          (c) If the monthly distributions overdraw the money in the Uniform School Fund, the


             3530      Division of Finance is authorized to run this fund in a deficit position.
             3531          (d) The state board may interrupt disbursements to a district if, in the judgment of the
             3532      board, the district is failing to comply with the minimum school program, is operating
             3533      programs that are not approved by the state board, or has not submitted reports required by law
             3534      or the state board.
             3535          (i) Disbursements shall be resumed upon request of the state board.
             3536          (ii) Back disbursements shall be included in the next regular disbursement, and the
             3537      amount disbursed certified to the State Division of Finance and state treasurer by the state
             3538      board.
             3539          (e) The State Board of Education may authorize exceptions to the 1/12 per month
             3540      disbursement formula for grant funds if the board determines that a different disbursement
             3541      formula would better serve the purposes of the grant.
             3542          (5) (a) If [monies] money in the Uniform School Fund [are] is insufficient to meet the
             3543      state's contribution to the minimum school program as appropriated, the amount of the
             3544      deficiency thus created shall be carried as a deficiency in the Uniform School Fund until the
             3545      next session of the Legislature, at which time the Legislature shall appropriate funds to cover
             3546      the deficiency.
             3547          (b) If there is an operating deficit in public education Uniform School Fund
             3548      appropriations, the Legislature shall eliminate the deficit by:
             3549          (i) budget transfers or other legal means;
             3550          (ii) appropriating money from the Education Budget Reserve Account;
             3551          (iii) appropriating up to 25% of the balance in the General Fund Budget Reserve
             3552      Account; or
             3553          (iv) some combination of Subsections (5)(b)(i), (ii), and (iii).
             3554          (c) Nothing in Subsection (5)(b) precludes the Legislature from appropriating more
             3555      than 25% of the balance in the General Fund Budget Reserve Account to fund operating
             3556      deficits in public education appropriations.
             3557          Section 67. Section 53A-17a-150 is amended to read:


             3558           53A-17a-150. K-3 Reading Improvement Program.
             3559          (1) As used in this section:
             3560          (a) "program" means the K-3 Reading Improvement Program; and
             3561          (b) "program [monies] money" means:
             3562          (i) school district revenue from the levy authorized under Section 53A-17a-151 ;
             3563          (ii) school district revenue allocated to the program from other [monies] money
             3564      available to the school district, except [monies] money provided by the state, for the purpose of
             3565      receiving state funds under this section; and
             3566          (iii) [monies] money appropriated by the Legislature to the program.
             3567          (2) The K-3 Reading Improvement Program consists of program [monies] money and
             3568      is created to achieve the state's goal of having third graders reading at or above grade level.
             3569          (3) Subject to future budget constraints, the Legislature may annually appropriate
             3570      money to the K-3 Reading Improvement Program.
             3571          (4) (a) Prior to using program [monies] money, a school district or charter school shall
             3572      submit a plan to the State Board of Education for reading proficiency improvement that
             3573      incorporates the following components:
             3574          (i) assessment;
             3575          (ii) intervention strategies;
             3576          (iii) professional development;
             3577          (iv) reading performance standards; and
             3578          (v) specific measurable goals that are based upon gain scores.
             3579          (b) The State Board of Education shall provide model plans which a school district or
             3580      charter school may use, or the district or school may develop its own plan.
             3581          (c) Plans developed by a school district or charter school shall be approved by the State
             3582      Board of Education.
             3583          (5) There is created within the K-3 Reading Achievement Program three funding
             3584      programs:
             3585          (a) the Base Level Program;


             3586          (b) the Guarantee Program; and
             3587          (c) the Low Income Students Program.
             3588          (6) [Monies] Money appropriated to the State Board of Education for the K-3 Reading
             3589      Improvement Program shall be allocated to the three funding programs as follows:
             3590          (a) 8% to the Base Level Program;
             3591          (b) 46% to the Guarantee Program; and
             3592          (c) 46% to the Low Income Students Program.
             3593          (7) (a) To participate in the Base Level Program, a school district or charter school
             3594      shall submit a reading proficiency improvement plan to the State Board of Education as
             3595      provided in Subsection (4) and must receive approval of the plan from the board.
             3596          (b) (i) Each school district qualifying for Base Level Program funds and the qualifying
             3597      elementary charter schools combined shall receive a base amount.
             3598          (ii) The base amount for the qualifying elementary charter schools combined shall be
             3599      allocated among each school in an amount proportionate to:
             3600          (A) each existing charter school's prior year fall enrollment in grades kindergarten
             3601      through grade 3; and
             3602          (B) each new charter school's estimated fall enrollment in grades kindergarten through
             3603      grade 3.
             3604          (8) (a) A school district that applies for program [monies] money in excess of the Base
             3605      Level Program funds shall choose to first participate in either the Guarantee Program or the
             3606      Low Income Students Program.
             3607          (b) A school district must fully participate in either the Guarantee Program or the Low
             3608      Income Students Program before it may elect to either fully or partially participate in the other
             3609      program.
             3610          (c) To fully participate in the Guarantee Program, a school district shall:
             3611          (i) levy a tax rate of .000056 under Section 53A-17a-151 ;
             3612          (ii) allocate to the program other [monies] money available to the school district,
             3613      except [monies] money provided by the state, equal to the amount of revenue that would be


             3614      generated by a tax rate of .000056; or
             3615          (iii) levy a tax under Section 53A-17a-151 and allocate to the program other [monies]
             3616      money available to the school district, except [monies] money provided by the state, so that the
             3617      total revenue from the combined revenue sources equals the amount of revenue that would be
             3618      generated by a tax rate of .000056.
             3619          (d) To fully participate in the Low Income Students Program, a school district shall:
             3620          (i) levy a tax rate of .000065 under Section 53A-17a-151 ;
             3621          (ii) allocate to the program other [monies] money available to the school district,
             3622      except [monies] money provided by the state, equal to the amount of revenue that would be
             3623      generated by a tax rate of .000065; or
             3624          (iii) levy a tax under Section 53A-17a-151 and allocate to the program other [monies]
             3625      money available to the school district, except [monies] money provided by the state, so that the
             3626      total revenue from the combined revenue sources equals the amount of revenue that would be
             3627      generated by a tax rate of .000065.
             3628          (9) (a) A school district that fully participates in the Guarantee Program shall receive
             3629      state funds in an amount that is:
             3630          (i) equal to the difference between $21 times the district's total WPUs and the revenue
             3631      the school district is required to generate or allocate under Subsection (8)(c) to fully participate
             3632      in the Guarantee Program; and
             3633          (ii) not less than $0.
             3634          (b) An elementary charter school shall receive under the Guarantee Program an amount
             3635      equal to $21 times the school's total WPUs.
             3636          (10) The State Board of Education shall distribute Low Income Students Program
             3637      funds in an amount proportionate to the number of students in each school district or charter
             3638      school who qualify for free or reduced price school lunch multiplied by two.
             3639          (11) A school district that partially participates in the Guarantee Program or Low
             3640      Income Students Program shall receive program funds based on the amount of district revenue
             3641      generated for or allocated to the program as a percentage of the amount of revenue that could


             3642      have been generated or allocated if the district had fully participated in the program.
             3643          (12) (a) Each school district and charter school shall use program [monies] money for
             3644      reading proficiency improvement in grades kindergarten through grade three.
             3645          (b) Program [monies] money may not be used to supplant funds for existing programs,
             3646      but may be used to augment existing programs.
             3647          (13) (a) Each school district and charter school shall annually submit a report to the
             3648      State Board of Education accounting for the expenditure of program [monies] money in
             3649      accordance with its plan for reading proficiency improvement.
             3650          (b) If a school district or charter school uses program [monies] money in a manner that
             3651      is inconsistent with Subsection (12), the school district or charter school is liable for
             3652      reimbursing the State Board of Education for the amount of program [monies] money
             3653      improperly used, up to the amount of program [monies] money received from the State Board
             3654      of Education.
             3655          (14) (a) The State Board of Education shall make rules to implement the program.
             3656          (b) (i) The rules under Subsection (14)(a) shall require each school district or charter
             3657      school to annually report progress in meeting goals stated in the district's or charter school's
             3658      plan for student reading proficiency as measured by gain scores.
             3659          (ii) If a school district or charter school does not meet or exceed the goals, the school
             3660      district or charter school shall prepare a new plan which corrects deficiencies. The new plan
             3661      must be approved by the State Board of Education before the school district or charter school
             3662      receives an allocation for the next year.
             3663          (15) If after 36 months of program operation, a school district fails to meet goals stated
             3664      in the district's plan for student reading proficiency as measured by gain scores, the school
             3665      district shall terminate any levy imposed under Section 53A-17a-151 .
             3666          Section 68. Section 53A-28-301 is amended to read:
             3667           53A-28-301. Business administrator duties -- Paying agent to provide notice --
             3668      State treasurer to execute transfer to paying agents -- Effect of transfer.
             3669          (1) (a) The business administrator of each board with outstanding, unpaid bonds shall


             3670      transfer [monies] money sufficient for the scheduled debt service payment to its paying agent at
             3671      least 15 days before any principal or interest payment date for the bonds.
             3672          (b) The paying agent may, if instructed to do so by the business administrator, invest
             3673      the [monies] money at the risk and for the benefit of the board until the payment date.
             3674          (c) A business administrator who is unable to transfer the scheduled debt service
             3675      payment to the paying agent 15 days before the payment date shall immediately notify the
             3676      paying agent and the state treasurer by:
             3677          (i) telephone;
             3678          (ii) a writing sent by facsimile transmission; and
             3679          (iii) a writing sent by first-class United States mail.
             3680          (2) If sufficient funds are not transferred to the paying agent as required by Subsection
             3681      (1), the paying agent shall notify the state treasurer of that failure in writing at least 10 days
             3682      before the scheduled debt service payment date by:
             3683          (a) telephone;
             3684          (b) a writing sent by facsimile transmission; and
             3685          (c) a writing sent by first-class United States mail.
             3686          (3) (a) If sufficient [monies] money to pay the scheduled debt service payment [have]
             3687      has not been transferred to the paying agent, the state treasurer shall, on or before the scheduled
             3688      payment date, transfer sufficient [monies] money to the paying agent to make the scheduled
             3689      debt service payment.
             3690          (b) The payment by the treasurer:
             3691          (i) discharges the obligation of the issuing board to its bondholders for the payment;
             3692      and
             3693          (ii) transfers the rights represented by the general obligation of the board from the
             3694      bondholders to the state.
             3695          (c) The board shall pay the transferred obligation to the state as provided in this
             3696      chapter.
             3697          Section 69. Section 53A-28-302 is amended to read:


             3698           53A-28-302. State financial assistance intercept mechanism -- State treasurer
             3699      duties -- Interest and penalty provisions.
             3700          (1) (a) If one or more payments on bonds are made by the state treasurer as provided in
             3701      Section 53A-28-301 , the state treasurer shall:
             3702          (i) immediately intercept any payments from the Uniform School Fund or from any
             3703      other source of operating [monies] money provided by the state to the board that issued the
             3704      bonds that would otherwise be paid to the board by the state; and
             3705          (ii) apply the intercepted payments to reimburse the state for payments made pursuant
             3706      to the state's guaranty until all obligations of the board to the state arising from those payments,
             3707      including interest and penalties, are paid in full.
             3708          (b) The state has no obligation to the board or to any person or entity to replace any
             3709      [monies] money intercepted under authority of Subsection (1)(a).
             3710          (2) The board that issued bonds for which the state has made all or part of a debt
             3711      service payment shall:
             3712          (a) reimburse all [monies] money drawn by the state treasurer on its behalf;
             3713          (b) pay interest to the state on all [monies] money paid by the state from the date the
             3714      [monies were] money was drawn to the date they are repaid at a rate not less than the average
             3715      prime rate for national money center banks plus 1%; and
             3716          (c) pay all penalties required by this chapter.
             3717          (3) (a) The state treasurer shall establish the reimbursement interest rate after
             3718      considering the circumstances of any prior draws by the board on the state, market interest and
             3719      penalty rates, and the cost of funds, if any, that were required to be borrowed by the state to
             3720      make payment on the bonds.
             3721          (b) The state treasurer may, after considering the circumstances giving rise to the
             3722      failure of the board to make payment on its bonds in a timely manner, impose on the board a
             3723      penalty of not more than 5% of the amount paid by the state pursuant to its guaranty for each
             3724      instance in which a payment by the state is made.
             3725          (4) (a) (i) If the state treasurer determines that amounts obtained under this section will


             3726      not reimburse the state in full within one year from the state's payment of a board's scheduled
             3727      debt service payment, the state treasurer shall pursue any legal action, including mandamus,
             3728      against the board to compel it to:
             3729          (A) levy and provide property tax revenues to pay debt service on its bonds when due
             3730      as required by Title 11, Chapter 14, Local Government Bonding Act; and
             3731          (B) meet its repayment obligations to the state.
             3732          (ii) In pursuing its rights under this Subsection (4)(a), the state shall have the same
             3733      substantive and procedural rights under Title 11, Chapter 14, Local Government Bonding Act,
             3734      as would a holder of the bonds of a board.
             3735          (b) The attorney general shall assist the state treasurer in these duties.
             3736          (c) The board shall pay the attorney's fees, expenses, and costs of the state treasurer
             3737      and the attorney general.
             3738          (5) (a) Except as provided in Subsection (5)(c), any board whose operating funds were
             3739      intercepted under this section may replace those funds from other board [monies] money or
             3740      from ad valorem property taxes, subject to the limitations provided in this Subsection (5).
             3741          (b) A board may use ad valorem property taxes or other [monies] money to replace
             3742      intercepted funds only if the ad valorem property taxes or other [monies were] money was
             3743      derived from:
             3744          (i) taxes originally levied to make the payment but which were not timely received by
             3745      the board;
             3746          (ii) taxes from a special levy made to make the missed payment or to replace the
             3747      intercepted [monies] money;
             3748          (iii) [monies] money transferred from the capital outlay fund of the board or the
             3749      undistributed reserve, if any, of the board; or
             3750          (iv) any other source of money on hand and legally available.
             3751          (c) Notwithstanding the provisions of Subsections (5)(a) and (b), a board may not
             3752      replace operating funds intercepted by the state with [monies] money collected and held to
             3753      make payments on bonds if that replacement would divert [monies] money from the payment


             3754      of future debt service on the bonds and increase the risk that the state's guaranty would be
             3755      called upon a second time.
             3756          Section 70. Section 53A-28-401 is amended to read:
             3757           53A-28-401. Backup liquidity arrangements -- Issuance of notes.
             3758          (1) (a) If, at the time the state is required to make a debt service payment under its
             3759      guaranty on behalf of a board, sufficient [monies] money of the state [are] is not on hand and
             3760      available for that purpose, the state treasurer may:
             3761          (i) seek a loan from the Permanent School Fund sufficient to make the required
             3762      payment; or
             3763          (ii) issue state debt as provided in Subsection (2).
             3764          (b) Nothing in this Subsection (1) requires the Permanent School Fund to lend
             3765      [monies] money to the state treasurer.
             3766          (2) (a) The state treasurer may issue state debt in the form of general obligation notes
             3767      to meet its obligations under this chapter.
             3768          (b) The amount of notes issued may not exceed the amount necessary to make payment
             3769      on all bonds with respect to which the notes are issued plus all costs of issuance, sale, and
             3770      delivery of the notes, rounded up to the nearest natural multiple of $5,000.
             3771          (c) Each series of notes issued may not mature later than 18 months from the date the
             3772      notes are issued.
             3773          (d) Notes issued may be refunded using the procedures set forth in this chapter for the
             3774      issuance of notes, in an amount not more than the amount necessary to pay principal of and
             3775      accrued but unpaid interest on any refunded notes plus all costs of issuance, sale, and delivery
             3776      of the refunding notes, rounded up to the nearest natural multiple of $5,000.
             3777          (e) Each series of refunding notes may not mature later than 18 months from the date
             3778      the refunding notes are issued.
             3779          (3) (a) Before issuing or selling any general obligation note to other than a state fund or
             3780      account, the state treasurer shall:
             3781          (i) prepare a written plan of financing; and


             3782          (ii) file it with the governor.
             3783          (b) The plan of financing shall provide for:
             3784          (i) the terms and conditions under which the notes will be issued, sold, and delivered;
             3785          (ii) the taxes or revenues to be anticipated;
             3786          (iii) the maximum amount of notes that may be outstanding at any one time under the
             3787      plan of financing;
             3788          (iv) the sources of payment of the notes;
             3789          (v) the rate or rates of interest, if any, on the notes or a method, formula, or index under
             3790      which the interest rate or rates on the notes may be determined during the time the notes are
             3791      outstanding; and
             3792          (vi) all other details relating to the issuance, sale, and delivery of the notes.
             3793          (c) In identifying the taxes or revenues to be anticipated and the sources of payment of
             3794      the notes in the financing plan, the state treasurer may include:
             3795          (i) the taxes authorized by Section 53A-28-402 ;
             3796          (ii) the intercepted revenues authorized by Section 53A-28-302 ;
             3797          (iii) the proceeds of refunding notes; or
             3798          (iv) any combination of Subsections (3)(c)(i), (ii), and (iii).
             3799          (d) The state treasurer may include in the plan of financing the terms and conditions of
             3800      arrangements entered into by the state treasurer on behalf of the state with financial and other
             3801      institutions for letters of credit, standby letters of credit, reimbursement agreements, and
             3802      remarketing, indexing, and tender agent agreements to secure the notes, including payment
             3803      from any legally available source of fees, charges, or other amounts coming due under the
             3804      agreements entered into by the state treasurer.
             3805          (e) When issuing the notes, the state treasurer shall issue an order setting forth the
             3806      interest, form, manner of execution, payment, manner of sale, prices at, above, or below face
             3807      value, and all details of issuance of the notes.
             3808          (f) The order and the details set forth in the order shall conform with any applicable
             3809      plan of financing and with this chapter.


             3810          (g) (i) Each note shall recite that it is a valid obligation of the state and that the full
             3811      faith, credit, and resources of the state are pledged for the payment of the principal of and
             3812      interest on the note from the taxes or revenues identified in accordance with its terms and the
             3813      constitution and laws of Utah.
             3814          (ii) These general obligation notes do not constitute debt of the state for the purposes of
             3815      the 1.5% debt limitation of the Utah Constitution, Article XIV, Section 1.
             3816          (h) Immediately upon the completion of any sale of notes, the state treasurer shall:
             3817          (i) make a verified return of the sale to the state auditor, specifying the amount of notes
             3818      sold, the persons to whom the notes were sold, and the price, terms, and conditions of the sale;
             3819      and
             3820          (ii) credit the proceeds of sale, other than accrued interest and amounts required to pay
             3821      costs of issuance of the notes, to the General Fund to be applied to the purpose for which the
             3822      notes were issued.
             3823          Section 71. Section 53A-28-402 is amended to read:
             3824           53A-28-402. Unlimited ad valorem tax as pledge of full faith and credit -- State
             3825      Tax Commission duties -- Property tax abated.
             3826          (1) (a) In each year after the issuance of general obligation notes under this chapter and
             3827      until all outstanding notes are retired, there is levied a direct annual tax on all real and personal
             3828      property within the state subject to state taxation, sufficient to pay all principal of and interest
             3829      on the general obligation notes as they become due.
             3830          (b) If [monies] money expected to be intercepted under Section 53A-28-302 [are] is
             3831      expected to be insufficient to reimburse the state for its payments of school districts' scheduled
             3832      debt service payments or if it is necessary for the state treasurer to borrow as provided in
             3833      Section 53A-28-401 and amounts to be intercepted under Section 53A-28-302 are expected to
             3834      be insufficient to timely pay the general obligation notes issued or other borrowing undertaken
             3835      under that section, the state treasurer shall certify to and give notice to the state tax commission
             3836      of the amount of the deficiency.
             3837          (c) After receipt of that certified notice from the state treasurer, the state tax


             3838      commission shall:
             3839          (i) immediately fix the tax rate necessary and levy direct ad valorem property tax on all
             3840      real and personal property in the state subject to state taxation sufficient to provide [monies]
             3841      money in the amount of the deficiency stated in the notice; and
             3842          (ii) require that the tax be collected and remitted as soon as may be in the ordinary
             3843      course of ad valorem tax levy and collection.
             3844          (2) To the extent that other legally available revenues and funds of the state are
             3845      sufficient to meet the certified deficiency, the property tax for this purpose is abated.
             3846          Section 72. Section 53B-8a-103 is amended to read:
             3847           53B-8a-103. Creation of Utah Educational Savings Plan -- Powers and duties of
             3848      plan.
             3849          (1) There is created the Utah Educational Savings Plan, which may also be known and
             3850      function as the Utah Educational Savings Plan Trust.
             3851          (2) The plan:
             3852          (a) is a non-profit, self-supporting agency that administers a public trust;
             3853          (b) shall administer the various programs, funds, trusts, plans, functions, duties, and
             3854      obligations assigned to the plan:
             3855          (i) consistent with sound fiduciary principles; and
             3856          (ii) subject to review of the board; and
             3857          (c) shall be known as and managed as a qualified tuition program in compliance with
             3858      Section 529, Internal Revenue Code, that is sponsored by the state.
             3859          (3) The plan may:
             3860          (a) make and enter into contracts necessary for the administration of the plan payable
             3861      from plan [moneys] money, including:
             3862          (i) contracts for goods and services; and
             3863          (ii) contracts to engage:
             3864          (A) personnel, including consultants, actuaries, managers, counsel, and auditors for the
             3865      purpose of rendering professional, managerial, and technical assistance and advice; and


             3866          (B) one or more investment advisors, registered under the Investment Advisers Act of
             3867      1940, with at least 5,000 advisory clients and at least $1,000,000,000 under management, to
             3868      provide investment advice to the board with respect to the assets held in each account;
             3869          (b) adopt a corporate seal and change and amend it from time to time;
             3870          (c) invest [moneys] money within the program fund:
             3871          (i) (A) in any investments that are determined by the board to be appropriate; or
             3872          (B) in mutual funds registered under the Investment Company Act of 1940, consistent
             3873      with the best interests of a designated beneficiary's higher education funding needs; and
             3874          (ii) that [are] is in compliance with rules of the State Money Management Council
             3875      applicable to gift funds;
             3876          (d) invest [moneys] money within the endowment fund in any investments that are:
             3877          (i) determined by the board to be appropriate;
             3878          (ii) approved by the state treasurer; and
             3879          (iii) in compliance with rules of the State Money Management Council applicable to
             3880      gift funds;
             3881          (e) enter into agreements with account owners, any institution of higher education, any
             3882      federal or state agency, or other entity as required to implement this chapter;
             3883          (f) solicit and accept any grants, gifts, legislative appropriations, and other [moneys]
             3884      money from the state, any unit of federal, state, or local government, or any other person, firm,
             3885      partnership, or corporation for deposit to the administrative fund, endowment fund, or the
             3886      program fund;
             3887          (g) make provision for the payment of costs of administration and operation of the
             3888      plan;
             3889          (h) carry out studies and projections in order to advise account owners regarding
             3890      present and estimated future higher education costs and levels of financial participation in the
             3891      plan required in order to enable account owners to achieve their educational funding objective;
             3892          (i) participate in federal, state, local governmental, or private programs;
             3893          (j) create public and private partnerships, including investment or management


             3894      relationships with other 529 plans or entities;
             3895          (k) promulgate, impose, and collect administrative fees and charges in connection with
             3896      transactions of the plan, and provide for reasonable service charges;
             3897          (l) procure insurance:
             3898          (i) against any loss in connection with the property, assets, or activities of the plan; and
             3899          (ii) indemnifying any member of the board from personal loss or accountability arising
             3900      from liability resulting from a member's action or inaction as a member of the plan's board;
             3901          (m) administer outreach efforts to:
             3902          (i) market and publicize the plan and its products to existing and prospective account
             3903      owners; and
             3904          (ii) encourage economically challenged populations to save for post-secondary
             3905      education;
             3906          (n) adopt, trademark, and copyright names and materials for use in marketing and
             3907      publicizing the plan and its products;
             3908          (o) administer the funds of the plan;
             3909          (p) sue and be sued in its own name; and
             3910          (q) have and exercise any other powers or duties that are necessary or appropriate to
             3911      carry out and effectuate the purposes of this chapter.
             3912          Section 73. Section 53B-13-107 is amended to read:
             3913           53B-13-107. Payment of funds -- Payment on warrants -- Contracts with
             3914      bondholders -- Security.
             3915          (1) The funds of the board, except as otherwise authorized or provided in this section,
             3916      are paid to the state treasurer.
             3917          (2) The [moneys] money in the accounts [are] is paid out on warrants signed by the
             3918      State Division of Finance on requisition of the chairman of the board or of a board authorized
             3919      officer or employee.
             3920          (3) The board, subject to the approval of the state treasurer, may contract with the
             3921      holders of its bonds as to the custody, collection, securing, investment, and payment of money


             3922      of the board or of money held in trust or otherwise for the payment of bonds.
             3923          (4) Money held in trust or otherwise for the payment of bonds or to secure bonds and
             3924      deposits of the money may be secured in the same manner as money of the board.
             3925          (5) Banks and trust companies are authorized to give such security for the deposits.
             3926          Section 74. Section 53B-21-105 is amended to read:
             3927           53B-21-105. Disposition and use of income from operation of buildings --
             3928      Payment of principal and interest on bonds.
             3929          (1) Except for the revenues paid directly to a trustee under Subsection
             3930      53B-21-102 (3)(f), all income and revenues from the operation of the buildings under this
             3931      chapter are deposited as collected in a fund established in compliance with the State Money
             3932      Management Act [of 1974].
             3933          (2) (a) [These moneys are] This money is for the payment of the principal and interest
             3934      on the bonds authorized under this chapter.
             3935          (b) [They] The money shall also be used, to the extent provided in the resolution
             3936      authorizing the bonds, to pay for the cost of maintaining and operating the building and to
             3937      establish reserves for that purpose.
             3938          (3) The State Board of Regents treasurer or other designated fiscal officer shall, not
             3939      less than 15 days prior to the date interest and principal payments are due, transmit to the
             3940      paying agent sufficient money from the fund to pay the obligation.
             3941          Section 75. Section 53C-3-202 is amended to read:
             3942           53C-3-202. Collection and distribution of revenues from federal land exchange
             3943      parcels.
             3944          (1) The director shall collect all bonus payments, rentals, and royalties from the lease
             3945      of:
             3946          (a) minerals on acquired lands;
             3947          (b) acquired mineral interests;
             3948          (c) minerals on exchanged lands; and
             3949          (d) exchanged mineral interests.


             3950          (2) No later than the last day of the second month following each calendar quarter, the
             3951      director shall distribute:
             3952          (a) bonus payments received during the calendar quarter from the lease of coal, oil and
             3953      gas, and coalbed methane on the identified tracts as follows:
             3954          (i) 50% to the United States; and
             3955          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
             3956          (b) rentals and royalties received during the calendar quarter from the lease of subject
             3957      minerals on the acquired lands and the lease of acquired mineral interests as follows:
             3958          (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
             3959          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ;
             3960          (c) mineral bonus, rental, and royalty revenue generated from the lease of subject
             3961      minerals, other than oil shale, on exchanged lands or from the lease of exchanged mineral
             3962      interests, other than interests in oil shale, as follows:
             3963          (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
             3964          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 ; and
             3965          (d) mineral bonus, rental, and royalty revenue generated from the lease of oil shale on
             3966      exchanged lands or the lease of exchanged mineral interests that are interests in oil shale, net of
             3967      amounts paid to the United States pursuant to a reserved interest of the United States in oil
             3968      shale, as follows:
             3969          (i) 50% to the Land Grant Management Fund created by Section 53C-3-101 ; and
             3970          (ii) 50% to the Land Exchange Distribution Account created in Section 53C-3-203 .
             3971          (3) (a) Except as provided in Subsection (3)(c), the director may retain up to 3% of the
             3972      [monies] money collected under Subsection (1) to pay for administrative costs incurred under
             3973      Subsections (1) and (2).
             3974          (b) Except as provided in Subsection (3)(c), the director may deduct administrative
             3975      costs before distributions are made under Subsection (2).
             3976          (c) The director may not deduct administrative costs from the portion of collections
             3977      derived from minerals on exchanged lands or exchanged mineral interests that is equal to the


             3978      United States' reserved interest in oil shale.
             3979          (d) The director shall keep the administrative cost deductions in separate accounts.
             3980          (e) The [monies] money retained under Subsection (3)(a) [are] is nonlapsing.
             3981          (f) The director shall distribute in accordance with Subsection (2) the unused balance
             3982      of the [monies] money retained under Subsection (3)(a) that exceeds $2,000,000 at the end of a
             3983      fiscal year.
             3984          Section 76. Section 54-4-15.2 is amended to read:
             3985           54-4-15.2. Signals or devices at grade crossings -- Funds for payment of costs.
             3986          The funds provided by the state for purposes of this act shall be used in conjunction
             3987      with other available [moneys] money, including [those] money received from federal sources,
             3988      to pay all or part of the cost of the installation, maintenance, reconstruction or improvement of
             3989      any signals or devices described in Section 54-4-15.1 at any grade crossing of a public highway
             3990      or any road over the tracks of any railroad or street railroad corporation in this state.
             3991          Section 77. Section 54-7-17 is amended to read:
             3992           54-7-17. Stay of commission's order or decision pending appeal.
             3993          (1) A petition for judicial review does not stay or suspend the operation of the order or
             3994      decision of the commission.
             3995          (2) (a) The court may stay or suspend, in whole or in part, the operation of the
             3996      commission's order or decision after at least three days' notice and after a hearing.
             3997          (b) If the court stays or suspends the order or decision of the commission, the order
             3998      shall contain a specific finding, based upon evidence submitted to the court and identified by
             3999      reference, that:
             4000          (i) great or irreparable damage will result to the petitioner absent suspension or a stay
             4001      of the order; and
             4002          (ii) specifies the nature of the damage.
             4003          (3) (a) The court's order staying or suspending the decision of the commission is not
             4004      effective until a supersedeas bond is executed, filed with, and approved by the commission (or
             4005      approved, on review, by the court).


             4006          (b) The bond shall be payable to the state, and shall be sufficient in amount and
             4007      security to insure the prompt payment by the party petitioning for the review of:
             4008          (i) all damages caused by the delay in the enforcement of the order or decision of the
             4009      commission; and
             4010          (ii) all [moneys] money that any person or corporation is compelled to pay, pending the
             4011      review proceedings, for transportation, transmission, product, commodity, or service in excess
             4012      of the charges fixed by the order or decision of the commission.
             4013          (c) Whenever necessary to insure the prompt payment of damages and any
             4014      overcharges, the court may order the party petitioning for a review to give additional security or
             4015      to increase the supersedeas bond.
             4016          (4) (a) When the court stays or suspends the order or decision of the commission in any
             4017      matter affecting rates, fares, tolls, rentals, charges, or classifications, it shall order the public
             4018      utility affected to pay into court, or into some bank or trust company paying interest on
             4019      deposits, all sums of money collected by the public utility that are greater than the sum a person
             4020      would have paid if the order or decision of the commission had not been stayed or suspended.
             4021          (b) (i) Upon the final decision by the court, the public utility shall refund all [moneys]
             4022      money collected by it that [are greater than those] exceeds the amount authorized by the court's
             4023      final decision, together with interest if the [moneys were] money was deposited in a bank or
             4024      trust company, to the persons entitled to the refund.
             4025          (ii) The commission shall prescribe the methods for distributing the refund.
             4026          (c) (i) If any of the refund money has not been claimed within one year from the final
             4027      decision of the court, the commission shall publish notice of the refund:
             4028          (A) (I) once per week for two successive weeks in a newspaper of general circulation
             4029      printed and published in the city and county of Salt Lake; and
             4030          (II) in any other newspapers that the commission designates; and
             4031          (B) in accordance with Section 45-1-101 for two successive weeks.
             4032          (ii) The notice shall state the names of the persons entitled to the [moneys] money and
             4033      the amount due each person.


             4034          (iii) All [moneys] money not claimed within three months after the publication of the
             4035      notice shall be paid by the public utility into the General Fund.
             4036          (5) When the court stays or suspends any order or decision lowering any rate, fare, toll,
             4037      rental, charge, or classification, after the execution and approval of the supersedeas bond, the
             4038      commission shall order the public utility affected to keep accounts, verified by oath, that show:
             4039          (a) the amounts being charged or received by the public utility; and
             4040          (b) the names and addresses of the persons to whom overcharges will be refundable.
             4041          Section 78. Section 54-8b-10 is amended to read:
             4042           54-8b-10. Imposing a surcharge to provide hearing and speech impaired persons
             4043      with telecommunication devices -- Definitions -- Procedures for establishing program --
             4044      Surcharge -- Administration and disposition of surcharge money.
             4045          (1) As used in this section:
             4046          (a) "Certified deaf or severely hearing or speech impaired person" means any state
             4047      resident who:
             4048          (i) is so certified by:
             4049          (A) a licensed physician;
             4050          (B) an otolaryngologist;
             4051          (C) a speech language pathologist;
             4052          (D) an audiologist; or
             4053          (E) a qualified state agency; and
             4054          (ii) qualifies for assistance under any low income public assistance program
             4055      administered by a state agency.
             4056          (b) "Certified interpreter" means a person who is a certified interpreter under Title
             4057      53A, Chapter 26a, Interpreter Services for the Hearing Impaired Act.
             4058          (c) (i) "Telecommunication device" means any mechanical adaptation device that
             4059      enables a deaf or severely hearing or speech impaired person to use the telephone.
             4060          (ii) "Telecommunication device" includes:
             4061          (A) telecommunication devices for the deaf (TDD);


             4062          (B) telephone amplifiers;
             4063          (C) telephone signal devices;
             4064          (D) artificial larynxes; and
             4065          (E) adaptive equipment for TDD keyboard access.
             4066          (2) The commission shall hold hearings to establish a program whereby any certified
             4067      deaf or severely hearing or speech impaired customer of a telephone corporation that provides
             4068      service through a local exchange or of a wireless telecommunications provider may obtain a
             4069      telecommunication device capable of serving the customer at no charge to the customer beyond
             4070      the rate for basic service.
             4071          (3) (a) The program described in Subsection (2) shall provide a dual party relay system
             4072      using third party intervention to connect a certified deaf or severely hearing or speech impaired
             4073      person with a normal hearing person by way of telecommunication devices designed for that
             4074      purpose.
             4075          (b) The commission may, by rule, establish the type of telecommunications device to
             4076      be provided to ensure functional equivalence.
             4077          (4) (a) The commission shall impose a surcharge on each residence and business access
             4078      line of each customer to the local exchange of any telephone corporation providing such lines
             4079      in this state to cover the costs of:
             4080          (i) the program described in Subsection (2); and
             4081          (ii) payments made under Subsection (5).
             4082          (b) The commission shall establish by rule the amount to be charged under this section,
             4083      which may not exceed 25 cents per residence and business access line.
             4084          (c) The telephone corporation shall collect the surcharge from its customers and
             4085      transfer the money collected to the commission under rules adopted by the commission.
             4086          (d) The surcharge shall be separately identified on customer bills.
             4087          (5) (a) Any money collected from the surcharge imposed under Subsection (4) shall be
             4088      deposited in the state treasury as dedicated credits to be administered as determined by the
             4089      Public Service Commission.


             4090          (b) These dedicated credits may be used only:
             4091          (i) for the purchase, maintenance, repair, and distribution of telecommunication
             4092      devices;
             4093          (ii) for the acquisition, operation, maintenance, and repair of a dual party relay system;
             4094          (iii) to reimburse telephone corporations for the expenses incurred in collecting and
             4095      transferring to the commission the surcharge imposed by the commission;
             4096          (iv) for the general administration of the program;
             4097          (v) to train persons in the use of telecommunications devices; and
             4098          (vi) by the commission to contract, in compliance with Title 63G, Chapter 6, Utah
             4099      Procurement Code, with:
             4100          (A) an institution within the state system of higher education listed in Section
             4101      53B-1-102 for a program approved by the Board of Regents that trains persons to qualify as
             4102      certified interpreters; or
             4103          (B) the Division of Services to the Deaf and Hard of Hearing for a program that trains
             4104      persons to qualify as certified interpreters.
             4105          (c) (i) The commission shall make rules under Title 63G, Chapter 3, Utah
             4106      Administrative Rulemaking Act, for the administration of [monies] money under Subsection
             4107      (5)(b)(vi).
             4108          (ii) In the initial rulemaking to determine the administration of [monies] money under
             4109      Subsection (5)(b)(vi), the commission shall give notice and hold a public hearing.
             4110          (d) [Monies] Money received by the commission under Subsection (4) [are] is
             4111      nonlapsing.
             4112          (6) (a) The telephone surcharge need not be collected by a local exchange company if
             4113      the amount collected would be less than the actual administrative costs of the collection.
             4114          (b) If Subsection (6)(a) applies, the local exchange company shall submit to the
             4115      commission, in lieu of the revenue from the surcharge collection, a breakdown of the
             4116      anticipated costs and the expected revenue from the collection, showing that the costs exceed
             4117      the revenue.


             4118          (7) The commission shall solicit the advice, counsel, and physical assistance of
             4119      severely hearing or speech impaired persons and the organizations serving them in the design
             4120      and implementation of the program.
             4121          Section 79. Section 54-9-106 is amended to read:
             4122           54-9-106. Funding -- Power sales contracts -- Revenue bonds -- Fee in lieu of ad
             4123      valorem property taxes -- Bond issues -- Public purpose.
             4124          (1) A public power entity participating in common facilities under this chapter may
             4125      furnish money and provide property, both real and personal, and, in addition to any other
             4126      authority now existing, may issue and sell, either at public or privately negotiated sale, general
             4127      obligation bonds or revenue bonds, pledging either the revenues of its entire electric system or
             4128      only its interest or share of the revenues derived from the common facilities in order to pay its
             4129      respective share of the costs of the planning, financing, acquisition, construction, repair, and
             4130      replacement of common facilities.
             4131          (2) (a) Capacity or output derived by a public power entity from its ownership share of
             4132      common facilities not then required by the public power entity for its own use and for the use
             4133      of its customers may be sold or exchanged for a consideration, for a period, and upon other
             4134      terms and conditions as may be determined by the parties prior to the sale and as embodied in a
             4135      power sales contract.
             4136          (b) Any revenues arising under a power sales contract under Subsection (2)(a) may be
             4137      pledged by the public power entity to the payment of revenue bonds issued to pay its respective
             4138      share of the costs of the common facilities.
             4139          (c) (i) As used in this Subsection (2)(c), "nonexempt purchaser" means a purchaser that
             4140      is not exempt from property taxes under Utah Constitution Article XIII, Section 2.
             4141          (ii) (A) Each power sales contract between a public power entity and a nonexempt
             4142      purchaser shall contain a provision requiring the nonexempt purchaser to pay an annual fee to
             4143      the public power entity in lieu of ad valorem property taxes.
             4144          (B) The amount of the fee in lieu of ad valorem property taxes under Subsection
             4145      (2)(c)(ii)(A) shall be based on the taxable value of the public power entity's percentage


             4146      ownership of the common facilities used to produce the capacity or output that the public
             4147      power entity sells to or exchanges with the nonexempt purchaser.
             4148          (iii) The public power entity shall pay over to the county treasurer each fee in lieu of ad
             4149      valorem property taxes that it receives from a nonexempt purchaser for distribution in the same
             4150      manner as other ad valorem tax revenues.
             4151          (iv) This Subsection (2)(c) does not apply to a public power entity to the extent that its
             4152      interest in common facilities is subject to or exempt from the fee in lieu of ad valorem property
             4153      taxes under Section 11-13-302 .
             4154          (3) A public power entity acquiring or owning an undivided interest in common
             4155      facilities may contract with a county to pay, solely from the revenues derived from the interest
             4156      of the public power entity in the common facilities, to the county or counties in which the
             4157      common facilities are located, an annual fee in lieu of ad valorem property taxes based upon
             4158      the taxable value of the percentage of the ownership share of the public power entity in the
             4159      common facilities, which fee in lieu of ad valorem property taxes shall be paid over by the
             4160      public power entity to the county treasurer of the county or counties in which the common
             4161      facilities are located for distribution as per distribution of other ad valorem tax revenues.
             4162          (4) (a) Bonds issued by a city or town shall be issued under the applicable provisions of
             4163      Title 11, Chapter 14, Local Government Bonding Act, authorizing the issuance of bonds for the
             4164      acquisition and construction of electric public utility properties by cities or towns.
             4165          (b) Bonds or other debt instruments issued by an interlocal entity shall be issued under
             4166      Title 11, Chapter 13, Interlocal Cooperation Act, or other applicable law.
             4167          (5) All [moneys] money paid or property supplied by a public power entity for the
             4168      purpose of carrying out powers conferred by this chapter [are] is declared to be for a public
             4169      purpose.
             4170          Section 80. Section 58-63-103 is amended to read:
             4171           58-63-103. Use of dedicated credits for licensing, education, and enforcement.
             4172          (1) The director may, with the concurrence of the board, use the [monies] money
             4173      collected under Section 58-63-503 for the following purposes:


             4174          (a) educating and training licensees under this chapter;
             4175          (b) educating and training the general public or other interested persons in matters
             4176      concerning the laws that govern the practices licensed under this chapter; and
             4177          (c) enforcing this chapter by:
             4178          (i) investigating unprofessional or unlawful conduct; and
             4179          (ii) providing legal representation to the division when it takes legal action against a
             4180      person charged with unprofessional or unlawful conduct.
             4181          (2) The [monies] money collected under Section 58-63-503 and used for the purposes
             4182      listed in Subsection (1) [are] is nonlapsing.
             4183          Section 81. Section 59-2-1365 is amended to read:
             4184           59-2-1365. Payment to taxing entities by county treasurer -- Investment of
             4185      proceeds -- Transfer and receipt of money between taxing entities.
             4186          (1) Except as provided in Subsections (3) and (4), the county treasurer shall pay to the
             4187      treasurer of each taxing entity in the county on or before the tenth day of each month:
             4188          (a) all [moneys] money that the county treasurer received during the preceding month
             4189      that [are] is due to the taxing entity; and
             4190          (b) each taxing entity's proportionate share of [moneys] money the county treasurer
             4191      received during the preceding month for:
             4192          (i) delinquent taxes;
             4193          (ii) interest;
             4194          (iii) penalties; and
             4195          (iv) costs on all tax sales and redemptions.
             4196          (2) Except as provided in Subsections (3) and (4), the county treasurer shall:
             4197          (a) adopt an appropriate procedure to account for the transfer and receipt of [moneys]
             4198      money between taxing entities;
             4199          (b) make a final annual settlement on March 31 with each taxing entity, including
             4200      providing the taxing entity a written statement for the most recent calendar year of the amount
             4201      of:


             4202          (i) total taxes charged;
             4203          (ii) current taxes collected;
             4204          (iii) treasurer's relief;
             4205          (iv) redemptions;
             4206          (v) penalties;
             4207          (vi) interest;
             4208          (vii) in lieu fee collections on motor vehicles; and
             4209          (viii) miscellaneous collections;
             4210          (c) invest the [moneys] money it receives under Subsection (1); and
             4211          (d) pay annually to each taxing entity in the county the interest earned on the invested
             4212      [moneys] money under Subsection (2)(c):
             4213          (i) on or before March 31; and
             4214          (ii) apportioned according to the proportion that the taxing entity's tax receipts bear to
             4215      the total tax receipts received by the county treasurer.
             4216          (3) Notwithstanding Subsections (1) and (2), a county may:
             4217          (a) negotiate with a taxing entity a procedure other than the procedure provided in
             4218      Subsection (2)(a) to account for the transfer and receipt of [moneys] money between the county
             4219      and the taxing entity; and
             4220          (b) establish a date other than the tenth day of each month for the county treasurer to
             4221      make payments required under Subsection (1).
             4222          (4) This section does not invalidate an existing contract between a county and a taxing
             4223      entity relating to the apportionment and payment of [moneys] money or interest.
             4224          Section 82. Section 59-9-102.5 is amended to read:
             4225           59-9-102.5. Offset for occupational health and safety related donations.
             4226          (1) As used in this section:
             4227          (a) "Occupational health and safety center" means the Rocky Mountain Center for
             4228      Occupational and Environmental Health created in Title 53B, Chapter 17, Part 8, Rocky
             4229      Mountain Center for Occupational and Environmental Health.


             4230          (b) "Qualified donation" means a donation that is:
             4231          (i) cash;
             4232          (ii) given directly to an occupational health and safety center; and
             4233          (iii) given exclusively for the purpose of:
             4234          (A) supporting graduate level education and training in fields of:
             4235          (I) safety and ergonomics;
             4236          (II) industrial hygiene;
             4237          (III) occupational health nursing; and
             4238          (IV) occupational medicine;
             4239          (B) providing continuing education programs for employers designed to promote
             4240      workplace safety; and
             4241          (C) paying reasonable administrative, personnel, equipment, and overhead costs of the
             4242      occupational health and safety center.
             4243          (c) "Workers' compensation insurer" means an admitted insurer writing workers'
             4244      compensation insurance in this state that is required to pay the premium assessment imposed
             4245      under Subsection 59-9-101 (2).
             4246          (2) (a) A workers' compensation insurer may offset against the premium assessment
             4247      imposed under Subsection 59-9-101 (2) an amount equal to the lesser of:
             4248          (i) the total of qualified donations made by the workers' compensation insurer in the
             4249      calendar year for which the premium assessment is calculated; and
             4250          (ii) .10% of the workers' compensation insurer's total workers' compensation premium
             4251      income as defined in Subsection 59-9-101 (2)(b) in the calendar year for which the premium
             4252      assessment is calculated.
             4253          (b) The offset provided under this Subsection (2) shall be allocated in proportion to the
             4254      percentages provided in Subsection 59-9-101 (2)(c).
             4255          (3) An occupational health and safety center shall:
             4256          (a) provide a workers' compensation insurer a receipt for any qualified donation made
             4257      by the workers' compensation insurer to the occupational health and safety center;


             4258          (b) expend [monies] money received by a qualified donation:
             4259          (i) for the purposes described in Subsection (1)(b)(iii); and
             4260          (ii) in a manner that can be audited to ensure that the [monies are] money is expended
             4261      for the purposes described in Subsection (1)(b)(iii); and
             4262          (c) in conjunction with the report required by Section 34A-2-202.5 , report to the
             4263      Legislature through the Office of the Legislative Fiscal Analyst by no later than July 1 of each
             4264      year:
             4265          (i) the qualified donations received by the occupational health and safety center in the
             4266      previous calendar year; and
             4267          (ii) the expenditures during the previous calendar year of qualified donations received
             4268      by the occupational health and safety center.
             4269          Section 83. Section 59-12-103 is amended to read:
             4270           59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
             4271      tax revenues.
             4272          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
             4273      charged for the following transactions:
             4274          (a) retail sales of tangible personal property made within the state;
             4275          (b) amounts paid for:
             4276          (i) telecommunications service, other than mobile telecommunications service, that
             4277      originates and terminates within the boundaries of this state;
             4278          (ii) mobile telecommunications service that originates and terminates within the
             4279      boundaries of one state only to the extent permitted by the Mobile Telecommunications
             4280      Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
             4281          (iii) an ancillary service associated with a:
             4282          (A) telecommunications service described in Subsection (1)(b)(i); or
             4283          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
             4284          (c) sales of the following for commercial use:
             4285          (i) gas;


             4286          (ii) electricity;
             4287          (iii) heat;
             4288          (iv) coal;
             4289          (v) fuel oil; or
             4290          (vi) other fuels;
             4291          (d) sales of the following for residential use:
             4292          (i) gas;
             4293          (ii) electricity;
             4294          (iii) heat;
             4295          (iv) coal;
             4296          (v) fuel oil; or
             4297          (vi) other fuels;
             4298          (e) sales of prepared food;
             4299          (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
             4300      user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
             4301      exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
             4302      fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
             4303      television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
             4304      driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
             4305      tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
             4306      horseback rides, sports activities, or any other amusement, entertainment, recreation,
             4307      exhibition, cultural, or athletic activity;
             4308          (g) amounts paid or charged for services for repairs or renovations of tangible personal
             4309      property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
             4310          (i) the tangible personal property; and
             4311          (ii) parts used in the repairs or renovations of the tangible personal property described
             4312      in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
             4313      of that tangible personal property;


             4314          (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
             4315      assisted cleaning or washing of tangible personal property;
             4316          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
             4317      accommodations and services that are regularly rented for less than 30 consecutive days;
             4318          (j) amounts paid or charged for laundry or dry cleaning services;
             4319          (k) amounts paid or charged for leases or rentals of tangible personal property if within
             4320      this state the tangible personal property is:
             4321          (i) stored;
             4322          (ii) used; or
             4323          (iii) otherwise consumed;
             4324          (l) amounts paid or charged for tangible personal property if within this state the
             4325      tangible personal property is:
             4326          (i) stored;
             4327          (ii) used; or
             4328          (iii) consumed; and
             4329          (m) amounts paid or charged for a sale:
             4330          (i) (A) of a product that:
             4331          (I) is transferred electronically; and
             4332          (II) would be subject to a tax under this chapter if the product was transferred in a
             4333      manner other than electronically; or
             4334          (B) of a repair or renovation of a product that:
             4335          (I) is transferred electronically; and
             4336          (II) would be subject to a tax under this chapter if the product was transferred in a
             4337      manner other than electronically; and
             4338          (ii) regardless of whether the sale provides:
             4339          (A) a right of permanent use of the product; or
             4340          (B) a right to use the product that is less than a permanent use, including a right:
             4341          (I) for a definite or specified length of time; and


             4342          (II) that terminates upon the occurrence of a condition.
             4343          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
             4344      is imposed on a transaction described in Subsection (1) equal to the sum of:
             4345          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
             4346          (A) 4.70%; and
             4347          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
             4348      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             4349      through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
             4350      State Sales and Use Tax Act; and
             4351          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
             4352      and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
             4353      through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
             4354      imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             4355          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             4356      transaction under this chapter other than this part.
             4357          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             4358      on a transaction described in Subsection (1)(d) equal to the sum of:
             4359          (i) a state tax imposed on the transaction at a tax rate of 2%; and
             4360          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             4361      transaction under this chapter other than this part.
             4362          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
             4363      on amounts paid or charged for food and food ingredients equal to the sum of:
             4364          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
             4365      a tax rate of 1.75%; and
             4366          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
             4367      amounts paid or charged for food and food ingredients under this chapter other than this part.
             4368          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
             4369      tangible personal property other than food and food ingredients, a state tax and a local tax is


             4370      imposed on the entire bundled transaction equal to the sum of:
             4371          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
             4372          (I) the tax rate described in Subsection (2)(a)(i)(A); and
             4373          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
             4374      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             4375      59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
             4376      Additional State Sales and Use Tax Act; and
             4377          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
             4378      Sales and Use Tax Act, if the location of the transaction as determined under Sections
             4379      59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
             4380      the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
             4381          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
             4382      described in Subsection (2)(a)(ii).
             4383          (ii) Subject to Subsection (2)(d)(iii), for a bundled transaction other than a bundled
             4384      transaction described in Subsection (2)(d)(i):
             4385          (A) if the sales price of the bundled transaction is attributable to tangible personal
             4386      property, a product, or a service that is subject to taxation under this chapter and tangible
             4387      personal property, a product, or service that is not subject to taxation under this chapter, the
             4388      entire bundled transaction is subject to taxation under this chapter unless:
             4389          (I) the seller is able to identify by reasonable and verifiable standards the tangible
             4390      personal property, product, or service that is not subject to taxation under this chapter from the
             4391      books and records the seller keeps in the seller's regular course of business; or
             4392          (II) state or federal law provides otherwise; or
             4393          (B) if the sales price of a bundled transaction is attributable to two or more items of
             4394      tangible personal property, products, or services that are subject to taxation under this chapter
             4395      at different rates, the entire bundled transaction is subject to taxation under this chapter at the
             4396      higher tax rate unless:
             4397          (I) the seller is able to identify by reasonable and verifiable standards the tangible


             4398      personal property, product, or service that is subject to taxation under this chapter at the lower
             4399      tax rate from the books and records the seller keeps in the seller's regular course of business; or
             4400          (II) state or federal law provides otherwise.
             4401          (iii) For purposes of Subsection (2)(d)(ii), books and records that a seller keeps in the
             4402      seller's regular course of business includes books and records the seller keeps in the regular
             4403      course of business for nontax purposes.
             4404          (e) Subject to Subsections (2)(f) and (g), a tax rate repeal or tax rate change for a tax
             4405      rate imposed under the following shall take effect on the first day of a calendar quarter:
             4406          (i) Subsection (2)(a)(i)(A);
             4407          (ii) Subsection (2)(b)(i);
             4408          (iii) Subsection (2)(c)(i); or
             4409          (iv) Subsection (2)(d)(i)(A)(I).
             4410          (f) (i) A tax rate increase shall take effect on the first day of the first billing period that
             4411      begins after the effective date of the tax rate increase if the billing period for the transaction
             4412      begins before the effective date of a tax rate increase imposed under:
             4413          (A) Subsection (2)(a)(i)(A);
             4414          (B) Subsection (2)(b)(i);
             4415          (C) Subsection (2)(c)(i); or
             4416          (D) Subsection (2)(d)(i)(A)(I).
             4417          (ii) The repeal of a tax or a tax rate decrease shall take effect on the first day of the last
             4418      billing period that began before the effective date of the repeal of the tax or the tax rate
             4419      decrease if the billing period for the transaction begins before the effective date of the repeal of
             4420      the tax or the tax rate decrease imposed under:
             4421          (A) Subsection (2)(a)(i)(A);
             4422          (B) Subsection (2)(b)(i);
             4423          (C) Subsection (2)(c)(i); or
             4424          (D) Subsection (2)(d)(i)(A)(I).
             4425          (g) (i) For a tax rate described in Subsection (2)(g)(ii), if a tax due on a catalogue sale


             4426      is computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal
             4427      or change in a tax rate takes effect:
             4428          (A) on the first day of a calendar quarter; and
             4429          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
             4430          (ii) Subsection (2)(g)(i) applies to the tax rates described in the following:
             4431          (A) Subsection (2)(a)(i)(A);
             4432          (B) Subsection (2)(b)(i);
             4433          (C) Subsection (2)(c)(i); or
             4434          (D) Subsection (2)(d)(i)(A)(I).
             4435          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             4436      the commission may by rule define the term "catalogue sale."
             4437          (3) (a) The following state taxes shall be deposited into the General Fund:
             4438          (i) the tax imposed by Subsection (2)(a)(i)(A);
             4439          (ii) the tax imposed by Subsection (2)(b)(i);
             4440          (iii) the tax imposed by Subsection (2)(c)(i); or
             4441          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             4442          (b) The following local taxes shall be distributed to a county, city, or town as provided
             4443      in this chapter:
             4444          (i) the tax imposed by Subsection (2)(a)(ii);
             4445          (ii) the tax imposed by Subsection (2)(b)(ii);
             4446          (iii) the tax imposed by Subsection (2)(c)(ii); and
             4447          (iv) the tax imposed by Subsection (2)(d)(i)(B).
             4448          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             4449      2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
             4450      through (g):
             4451          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
             4452          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
             4453          (B) for the fiscal year; or


             4454          (ii) $17,500,000.
             4455          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
             4456      described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
             4457      Department of Natural Resources to:
             4458          (A) implement the measures described in Subsections 79-2-303 (3)(a) through (d) to
             4459      protect sensitive plant and animal species; or
             4460          (B) award grants, up to the amount authorized by the Legislature in an appropriations
             4461      act, to political subdivisions of the state to implement the measures described in Subsections
             4462      79-2-303 (3)(a) through (d) to protect sensitive plant and animal species.
             4463          (ii) Money transferred to the Department of Natural Resources under Subsection
             4464      (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
             4465      person to list or attempt to have listed a species as threatened or endangered under the
             4466      Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
             4467          (iii) At the end of each fiscal year:
             4468          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             4469      Conservation and Development Fund created in Section 73-10-24 ;
             4470          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             4471      Program Subaccount created in Section 73-10c-5 ; and
             4472          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             4473      Program Subaccount created in Section 73-10c-5 .
             4474          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
             4475      Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
             4476      created in Section 4-18-6 .
             4477          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
             4478      in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
             4479      Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
             4480      water rights.
             4481          (ii) At the end of each fiscal year:


             4482          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
             4483      Conservation and Development Fund created in Section 73-10-24 ;
             4484          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
             4485      Program Subaccount created in Section 73-10c-5 ; and
             4486          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
             4487      Program Subaccount created in Section 73-10c-5 .
             4488          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
             4489      in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
             4490      Fund created in Section 73-10-24 for use by the Division of Water Resources.
             4491          (ii) In addition to the uses allowed of the Water Resources Conservation and
             4492      Development Fund under Section 73-10-24 , the Water Resources Conservation and
             4493      Development Fund may also be used to:
             4494          (A) conduct hydrologic and geotechnical investigations by the Division of Water
             4495      Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
             4496      quantifying surface and ground water resources and describing the hydrologic systems of an
             4497      area in sufficient detail so as to enable local and state resource managers to plan for and
             4498      accommodate growth in water use without jeopardizing the resource;
             4499          (B) fund state required dam safety improvements; and
             4500          (C) protect the state's interest in interstate water compact allocations, including the
             4501      hiring of technical and legal staff.
             4502          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             4503      in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
             4504      created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
             4505          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
             4506      in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
             4507      created in Section 73-10c-5 for use by the Division of Drinking Water to:
             4508          (i) provide for the installation and repair of collection, treatment, storage, and
             4509      distribution facilities for any public water system, as defined in Section 19-4-102 ;


             4510          (ii) develop underground sources of water, including springs and wells; and
             4511          (iii) develop surface water sources.
             4512          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             4513      2006, the difference between the following amounts shall be expended as provided in this
             4514      Subsection (5), if that difference is greater than $1:
             4515          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
             4516      fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
             4517          (ii) $17,500,000.
             4518          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
             4519          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
             4520      credits; and
             4521          (B) expended by the Department of Natural Resources for watershed rehabilitation or
             4522      restoration.
             4523          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             4524      in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
             4525      created in Section 73-10-24 .
             4526          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
             4527      remaining difference described in Subsection (5)(a) shall be:
             4528          (A) transferred each fiscal year to the Division of Water Resources as dedicated
             4529      credits; and
             4530          (B) expended by the Division of Water Resources for cloud-seeding projects
             4531      authorized by Title 73, Chapter 15, Modification of Weather.
             4532          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
             4533      in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
             4534      created in Section 73-10-24 .
             4535          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
             4536      remaining difference described in Subsection (5)(a) shall be deposited into the Water
             4537      Resources Conservation and Development Fund created in Section 73-10-24 for use by the


             4538      Division of Water Resources for:
             4539          (i) preconstruction costs:
             4540          (A) as defined in Subsection 73-26-103 (6) for projects authorized by Title 73, Chapter
             4541      26, Bear River Development Act; and
             4542          (B) as defined in Subsection 73-28-103 (8) for the Lake Powell Pipeline project
             4543      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
             4544          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
             4545      Chapter 26, Bear River Development Act;
             4546          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
             4547      authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
             4548          (iv) other uses authorized under Sections 73-10-24 , 73-10-25.1 , 73-10-30 , and
             4549      Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
             4550          (e) Any unexpended [monies] money described in Subsection (5)(d) that [remain]
             4551      remains in the Water Resources Conservation and Development Fund at the end of the fiscal
             4552      year [are] is nonlapsing.
             4553          (f) After making the transfers required by Subsections (5)(b) and (c) and subject to
             4554      Subsection (5)(g), 6% of the remaining difference described in Subsection (5)(a) shall be
             4555      transferred each year as dedicated credits to the Division of Water Rights to cover the costs
             4556      incurred for employing additional technical staff for the administration of water rights.
             4557          (g) At the end of each fiscal year, any unexpended dedicated credits described in
             4558      Subsection (5)(f) over $150,000 lapse to the Water Resources Conservation and Development
             4559      Fund created in Section 73-10-24 .
             4560          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
             4561      2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
             4562      tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited in
             4563      the Transportation Fund created by Section 72-2-102 .
             4564          (7) (a) Notwithstanding Subsection (3)(a) and until Subsection (7)(b) applies,
             4565      beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial


             4566      Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
             4567      under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
             4568      transactions under Subsection (1).
             4569          (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
             4570      have been paid off and the highway projects completed that are intended to be paid from
             4571      revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
             4572      Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
             4573      Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
             4574      72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
             4575      by a 1/64% tax rate on the taxable transactions under Subsection (1).
             4576          (8) (a) Notwithstanding Subsection (3)(a) and in addition to the amount deposited in
             4577      Subsection (7)(a), for the 2010-11 fiscal year only, the Division of Finance shall deposit into
             4578      the Centennial Highway Fund Restricted Account created by Section 72-2-118 a portion of the
             4579      taxes listed under Subsection (3)(a) equal to 1.93% of the revenues collected from the
             4580      following taxes, which represents a portion of the approximately 17% of sales and use tax
             4581      revenues generated annually by the sales and use tax on vehicles and vehicle-related products:
             4582          (i) the tax imposed by Subsection (2)(a)(i)(A);
             4583          (ii) the tax imposed by Subsection (2)(b)(i);
             4584          (iii) the tax imposed by Subsection (2)(c)(i); and
             4585          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             4586          (b) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
             4587      Subsection (7)(a), and until Subsection (8)(c) applies, for a fiscal year beginning on or after
             4588      July 1, 2011, the Division of Finance shall deposit into the Centennial Highway Fund
             4589      Restricted Account created by Section 72-2-118 a portion of the taxes listed under Subsection
             4590      (3)(a) equal to 8.3% of the revenues collected from the following taxes, which represents a
             4591      portion of the approximately 17% of sales and use tax revenues generated annually by the sales
             4592      and use tax on vehicles and vehicle-related products:
             4593          (i) the tax imposed by Subsection (2)(a)(i)(A);


             4594          (ii) the tax imposed by Subsection (2)(b)(i);
             4595          (iii) the tax imposed by Subsection (2)(c)(i); and
             4596          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             4597          (c) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
             4598      Subsection (7)(b), when the highway general obligation bonds have been paid off and the
             4599      highway projects completed that are intended to be paid from revenues deposited in the
             4600      Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
             4601      Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit into the
             4602      Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes
             4603      listed under Subsection (3)(a) equal to 8.3% of the revenues collected from the following taxes,
             4604      which represents a portion of the approximately 17% of sales and use tax revenues generated
             4605      annually by the sales and use tax on vehicles and vehicle-related products:
             4606          (i) the tax imposed by Subsection (2)(a)(i)(A);
             4607          (ii) the tax imposed by Subsection (2)(b)(i);
             4608          (iii) the tax imposed by Subsection (2)(c)(i); and
             4609          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
             4610          (9) (a) Notwithstanding Subsection (3)(a) and for the fiscal year 2008-09 only, the
             4611      Division of Finance shall deposit $55,000,000 of the revenues generated by the taxes listed
             4612      under Subsection (3)(a) into the Critical Highway Needs Fund created by Section 72-2-125 .
             4613          (b) Notwithstanding Subsection (3)(a) and until Subsection (9)(c) applies, for a fiscal
             4614      year beginning on or after July 1, 2009, the Division of Finance shall annually deposit
             4615      $90,000,000 of the revenues generated by the taxes listed under Subsection (3)(a) into the
             4616      Critical Highway Needs Fund created by Section 72-2-125 .
             4617          (c) Notwithstanding Subsection (3)(a) and in addition to any amounts deposited under
             4618      Subsections (7) and (8), when the general obligation bonds authorized by Section 63B-16-101
             4619      have been paid off and the highway projects completed that are included in the prioritized
             4620      project list under Subsection 72-2-125 (4) as determined in accordance with Subsection
             4621      72-2-125 (6), the Division of Finance shall annually deposit $90,000,000 of the revenues


             4622      generated by the taxes listed under Subsection (3)(a) into the Transportation Investment Fund
             4623      of 2005 created by Section 72-2-124 .
             4624          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
             4625      2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
             4626      created by Section 9-4-1409 and expended as provided in Section 9-4-1409 .
             4627          (11) (a) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection
             4628      (11)(a)(ii), and until Subsection (11)(b) applies, beginning on January 1, 2009, the Division of
             4629      Finance shall deposit into the Critical Highway Needs Fund created by Section 72-2-125 the
             4630      amount of tax revenue generated by a .025% tax rate on the transactions described in
             4631      Subsection (1).
             4632          (ii) For purposes of Subsection (11)(a)(i), the Division of Finance may not deposit into
             4633      the Critical Highway Needs Fund any tax revenue generated by amounts paid or charged for
             4634      food and food ingredients, except for tax revenue generated by a bundled transaction
             4635      attributable to food and food ingredients and tangible personal property other than food and
             4636      food ingredients described in Subsection (2)(e).
             4637          (b) (i) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b)(ii),
             4638      and in addition to any amounts deposited under Subsections (7), (9), and (10), when the general
             4639      obligation bonds authorized by Section 63B-16-101 have been paid off and the highway
             4640      projects completed that are included in the prioritized project list under Subsection 72-2-125 (4)
             4641      as determined in accordance with Subsection 72-2-125 (6), the Division of Finance shall
             4642      deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 the
             4643      amount of tax revenue generated by a .025% tax rate on the transactions described in
             4644      Subsection (1).
             4645          (ii) For purposes of Subsection (11)(b)(i), the Division of Finance may not deposit into
             4646      the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
             4647      charged for food and food ingredients, except for tax revenue generated by a bundled
             4648      transaction attributable to food and food ingredients and tangible personal property other than
             4649      food and food ingredients described in Subsection (2)(e).


             4650          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
             4651      (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
             4652      Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
             4653      .025% tax rate on the transactions described in Subsection (1) to be expended to address
             4654      chokepoints in construction management.
             4655          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into
             4656      the Transportation Fund any tax revenue generated by amounts paid or charged for food and
             4657      food ingredients, except for tax revenue generated by a bundled transaction attributable to food
             4658      and food ingredients and tangible personal property other than food and food ingredients
             4659      described in Subsection (2)(e).
             4660          Section 84. Section 59-21-1 is amended to read:
             4661           59-21-1. Disposition of federal mineral lease money -- Priority to political
             4662      subdivisions impacted by mineral development -- Disposition of mineral bonus payments
             4663      -- Appropriation of money attributable to royalties from extraction of minerals on federal
             4664      land located within boundaries of Grand Staircase-Escalante National Monument.
             4665          (1) Except as provided in Subsections (2) through (4), all [monies] money received
             4666      from the United States under the provisions of the Mineral Lands Leasing Act, 30 U.S.C. Sec.
             4667      181 et seq., shall:
             4668          (a) be deposited in the Mineral Lease Account of the General Fund; and
             4669          (b) be appropriated by the Legislature giving priority to those subdivisions of the state
             4670      socially or economically impacted by development of minerals leased under the Mineral Lands
             4671      Leasing Act, for:
             4672          (i) planning;
             4673          (ii) construction and maintenance of public facilities; and
             4674          (iii) provision of public services.
             4675          (2) Seventy percent of money received from federal mineral lease bonus payments
             4676      shall be deposited into the Permanent Community Impact Fund and shall be used as provided
             4677      in Title 9, Chapter 4, Part 3, Community Impact Alleviation.


             4678          (3) Thirty percent of money received from federal mineral lease bonus payments shall
             4679      be deposited in the Mineral Bonus Account created by Subsection 59-21-2 (1) and appropriated
             4680      as provided in that subsection.
             4681          (4) (a) For purposes of this Subsection (4):
             4682          (i) the "boundaries of the Grand Staircase-Escalante National Monument" means the
             4683      boundaries:
             4684          (A) established by Presidential Proclamation No. 6920, 61 Fed. Reg. 50,223 (1996);
             4685      and
             4686          (B) modified by:
             4687          (I) Pub. L. No. 105-335, 112 Stat. 3139; and
             4688          (II) Pub. L. No. 105-355, 112 Stat. 3247; and
             4689          (ii) a special service district, school district, or federal land is considered to be located
             4690      within the boundaries of the Grand Staircase-Escalante National Monument if a portion of the
             4691      special service district, school district, or federal land is located within the boundaries
             4692      described in Subsection (4)(a)(i).
             4693          (b) Beginning on July 1, 1999, the Legislature shall appropriate, as provided in
             4694      Subsections (4)(c) through (g), [monies] money received from the United States that [are] is
             4695      attributable to royalties from the extraction of minerals on federal land that, on September 18,
             4696      1996, was located within the boundaries of the Grand Staircase-Escalante National Monument.
             4697          (c) The Legislature shall annually appropriate 40% of the [monies] money described in
             4698      Subsection (4)(b) to the Department of Transportation to be distributed by the Department of
             4699      Transportation to special service districts that are:
             4700          (i) established by counties under Title 17D, Chapter 1, Special Service District Act;
             4701          (ii) socially or economically impacted by the development of minerals under the
             4702      Mineral Lands Leasing Act; and
             4703          (iii) located within the boundaries of the Grand Staircase-Escalante National
             4704      Monument.
             4705          (d) The Department of Transportation shall distribute the money described in


             4706      Subsection (4)(c) in amounts proportionate to the amount of federal mineral lease money
             4707      generated by the county in which a special service district is located.
             4708          (e) The Legislature shall annually appropriate 40% of the [monies] money described in
             4709      Subsection (4)(b) to the State Board of Education to be distributed equally to school districts
             4710      that are:
             4711          (i) socially or economically impacted by the development of minerals under the
             4712      Mineral Lands Leasing Act; and
             4713          (ii) located within the boundaries of the Grand Staircase-Escalante National
             4714      Monument.
             4715          (f) The Legislature shall annually appropriate 2.25% of the [monies] money described
             4716      in Subsection (4)(b) to the Utah Geological Survey to facilitate the development of energy and
             4717      mineral resources in counties that are:
             4718          (i) socially or economically impacted by the development of minerals under the
             4719      Mineral Lands Leasing Act; and
             4720          (ii) located within the boundaries of the Grand Staircase-Escalante National
             4721      Monument.
             4722          (g) Seventeen and three-fourths percent of the [monies] money described in Subsection
             4723      (4)(b) shall be deposited annually into the State School Fund established by Utah Constitution
             4724      Article X, Section 5.
             4725          Section 85. Section 59-21-2 is amended to read:
             4726           59-21-2. Mineral Bonus Account created -- Contents -- Use of Mineral Bonus
             4727      Account money -- Mineral Lease Account created -- Contents -- Appropriation of money
             4728      from Mineral Lease Account.
             4729          (1) (a) There is created a restricted account within the General Fund known as the
             4730      "Mineral Bonus Account."
             4731          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
             4732      deposited pursuant to Subsection 59-21-1 (3).
             4733          (c) The Legislature shall make appropriations from the Mineral Bonus Account in


             4734      accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
             4735          (d) The state treasurer shall:
             4736          (i) invest the money in the Mineral Bonus Account by following the procedures and
             4737      requirements of Title 51, Chapter 7, State Money Management Act; and
             4738          (ii) deposit all interest or other earnings derived from the account into the Mineral
             4739      Bonus Account.
             4740          (2) (a) There is created a restricted account within the General Fund known as the
             4741      "Mineral Lease Account."
             4742          (b) The Mineral Lease Account consists of federal mineral lease money deposited
             4743      pursuant to Subsection 59-21-1 (1).
             4744          (c) The Legislature shall make appropriations from the Mineral Lease Account as
             4745      provided in Subsection 59-21-1 (1) and this Subsection (2).
             4746          (d) The Legislature shall annually appropriate 32.5% of all deposits made to the
             4747      Mineral Lease Account to the Permanent Community Impact Fund established by Section
             4748      9-4-303 .
             4749          (e) The Legislature shall annually appropriate 2.25% of all deposits made to the
             4750      Mineral Lease Account to the State Board of Education, to be used for education research and
             4751      experimentation in the use of staff and facilities designed to improve the quality of education in
             4752      Utah.
             4753          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
             4754      Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
             4755      the survey having as a purpose the development and exploitation of natural resources in the
             4756      state.
             4757          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
             4758      Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
             4759      for activities carried on by the laboratory having as a purpose the development and exploitation
             4760      of water resources in the state.
             4761          (h) (i) The Legislature shall annually appropriate to the Department of Transportation


             4762      40% of all deposits made to the Mineral Lease Account to be distributed as provided in
             4763      Subsection (2)(h)(ii) to:
             4764          (A) counties;
             4765          (B) special service districts established:
             4766          (I) by counties;
             4767          (II) under Title 17D, Chapter 1, Special Service District Act; and
             4768          (III) for the purpose of constructing, repairing, or maintaining roads; or
             4769          (C) special service districts established:
             4770          (I) by counties;
             4771          (II) under Title 17D, Chapter 1, Special Service District Act; and
             4772          (III) for other purposes authorized by statute.
             4773          (ii) The Department of Transportation shall allocate the funds specified in Subsection
             4774      (2)(h)(i):
             4775          (A) in amounts proportionate to the amount of mineral lease money generated by each
             4776      county; and
             4777          (B) to a county or special service district established by a county under Title 17D,
             4778      Chapter 1, Special Service District Act, as determined by the county legislative body.
             4779          (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the
             4780      Mineral Lease Account to the Department of Community and Culture to be distributed to:
             4781          (A) special service districts established:
             4782          (I) by counties;
             4783          (II) under Title 17D, Chapter 1, Special Service District Act; and
             4784          (III) for the purpose of constructing, repairing, or maintaining roads; or
             4785          (B) special service districts established:
             4786          (I) by counties;
             4787          (II) under Title 17D, Chapter 1, Special Service District Act; and
             4788          (III) for other purposes authorized by statute.
             4789          (ii) The Department of Community and Culture may distribute the amounts described


             4790      in Subsection (2)(i)(i) only to special service districts established under Title 17D, Chapter 1,
             4791      Special Service District Act, by counties:
             4792          (A) of the third, fourth, fifth, or sixth class;
             4793          (B) in which 4.5% or less of the mineral lease [moneys] money within the state [are] is
             4794      generated; and
             4795          (C) that are significantly socially or economically impacted as provided in Subsection
             4796      (2)(i)(iii) by the development of minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec.
             4797      181 et seq.
             4798          (iii) The significant social or economic impact required under Subsection (2)(i)(ii)(C)
             4799      shall be as a result of:
             4800          (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
             4801      as defined in Section 59-5-101 ;
             4802          (B) the employment of persons residing within the county in hydrocarbon extraction,
             4803      including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
             4804          (C) a combination of Subsections (2)(i)(iii)(A) and (B).
             4805          (iv) For purposes of distributing the appropriations under this Subsection (2)(i) to
             4806      special service districts established by counties under Title 17D, Chapter 1, Special Service
             4807      District Act, the Department of Community and Culture shall:
             4808          (A) (I) allocate 50% of the appropriations equally among the counties meeting the
             4809      requirements of Subsections (2)(i)(ii) and (iii); and
             4810          (II) allocate 50% of the appropriations based on the ratio that the population of each
             4811      county meeting the requirements of Subsections (2)(i)(ii) and (iii) bears to the total population
             4812      of all of the counties meeting the requirements of Subsections (2)(i)(ii) and (iii); and
             4813          (B) after making the allocations described in Subsection (2)(i)(iv)(A), distribute the
             4814      allocated revenues to special service districts established by the counties under Title 17D,
             4815      Chapter 1, Special Service District Act, as determined by the executive director of the
             4816      Department of Community and Culture after consulting with the county legislative bodies of
             4817      the counties meeting the requirements of Subsections (2)(i)(ii) and (iii).


             4818          (v) The executive director of the Department of Community and Culture:
             4819          (A) shall determine whether a county meets the requirements of Subsections (2)(i)(ii)
             4820      and (iii);
             4821          (B) shall distribute the appropriations under Subsection (2)(i)(i) to special service
             4822      districts established by counties under Title 17D, Chapter 1, Special Service District Act, that
             4823      meet the requirements of Subsections (2)(i)(ii) and (iii); and
             4824          (C) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             4825      may make rules:
             4826          (I) providing a procedure for making the distributions under this Subsection (2)(i) to
             4827      special service districts; and
             4828          (II) defining the term "population" for purposes of Subsection (2)(i)(iv).
             4829          (j) (i) The Legislature shall annually make the following appropriations from the
             4830      Mineral Lease Account:
             4831          (A) an amount equal to 52 cents multiplied by the number of acres of school or
             4832      institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
             4833      by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
             4834      county in which those lands are located;
             4835          (B) to each county in which school or institutional trust lands are transferred to the
             4836      federal government after December 31, 1992, an amount equal to the number of transferred
             4837      acres in the county multiplied by a payment per acre equal to the difference between 52 cents
             4838      per acre and the per acre payment made to that county in the most recent payment under the
             4839      federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal
             4840      payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
             4841      Subsection (2)(j)(i)(B) may not be made for the transferred lands;
             4842          (C) to each county in which federal lands, which are entitlement lands under the federal
             4843      in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
             4844      the number of transferred acres in the county multiplied by a payment per acre equal to the
             4845      difference between the most recent per acre payment made under the federal payment in lieu of


             4846      taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
             4847      cents per acre, in which case a payment under this Subsection (2)(j)(i)(C) may not be made for
             4848      the transferred land; and
             4849          (D) to a county of the fifth or sixth class, an amount equal to the product of:
             4850          (I) $1,000; and
             4851          (II) the number of residences described in Subsection (2)(j)(iv) that are located within
             4852      the county.
             4853          (ii) A county receiving money under Subsection (2)(j)(i) may, as determined by the
             4854      county legislative body, distribute the money or a portion of the money to:
             4855          (A) special service districts established by the county under Title 17D, Chapter 1,
             4856      Special Service District Act;
             4857          (B) school districts; or
             4858          (C) public institutions of higher education.
             4859          (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
             4860      Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
             4861      (2)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
             4862      consumers published by the Department of Labor.
             4863          (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
             4864      shall increase or decrease the amount described in Subsection (2)(j)(i)(D)(I) by the average
             4865      annual change in the Consumer Price Index for all urban consumers published by the
             4866      Department of Labor.
             4867          (iv) Residences for purposes of Subsection (2)(j)(i)(D)(II) are residences that are:
             4868          (A) owned by:
             4869          (I) the Division of Parks and Recreation; or
             4870          (II) the Division of Wildlife Resources;
             4871          (B) located on lands that are owned by:
             4872          (I) the Division of Parks and Recreation; or
             4873          (II) the Division of Wildlife Resources; and


             4874          (C) are not subject to taxation under:
             4875          (I) Chapter 2, Property Tax Act; or
             4876          (II) Chapter 4, Privilege Tax.
             4877          (k) The Legislature shall annually appropriate to the Permanent Community Impact
             4878      Fund all deposits remaining in the Mineral Lease Account after making the appropriations
             4879      provided for in Subsections (2)(d) through (j).
             4880          (3) (a) Each agency, board, institution of higher education, and political subdivision
             4881      receiving money under this chapter shall provide the Legislature, through the Office of the
             4882      Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
             4883      basis.
             4884          (b) The accounting required under Subsection (3)(a) shall:
             4885          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
             4886      current fiscal year, and planned expenditures for the following fiscal year; and
             4887          (ii) be reviewed by the Economic Development and Human Resources Appropriation
             4888      Subcommittee as part of its normal budgetary process under Title 63J, Chapter 1, Budgetary
             4889      Procedures Act.
             4890          Section 86. Section 61-2e-203 is amended to read:
             4891           61-2e-203. Criminal background check -- Conditional registration -- Changes in
             4892      ownership or controlling person.
             4893          (1) The division shall request the Department of Public Safety to complete a Federal
             4894      Bureau of Investigation criminal background check for an individual described in Subsection
             4895      61-2e-202 (1)(e) or (g) through the national criminal history system or any successor system.
             4896          (2) (a) The entity filing the application under Section 61-2e-202 shall pay the cost of
             4897      the criminal background check and the fingerprinting.
             4898          (b) [Monies] Money paid to the division by an entity for the cost of a criminal
             4899      background check [are] is nonlapsing.
             4900          (3) (a) A registration issued under Section 61-2e-202 is conditional, pending
             4901      completion of a criminal background check.


             4902          (b) If a criminal background check discloses that an individual described in Subsection
             4903      61-2e-202 (1)(e) or (g) fails to accurately disclose a criminal history, the registration is
             4904      immediately and automatically revoked.
             4905          (c) An entity whose conditional registration is revoked under this Subsection (3) is
             4906      entitled to a post-revocation hearing conducted in accordance with Title 63G, Chapter 4,
             4907      Administrative Procedures Act, to challenge the revocation.
             4908          (d) The board shall decide whether relief from the revocation of a registration under
             4909      this Subsection (3) will be granted, except that relief from a revocation under this Subsection
             4910      (3) may be granted only if:
             4911          (i) the criminal history upon which the revocation is based:
             4912          (A) did not occur; or
             4913          (B) is the criminal history of another individual;
             4914          (ii) (A) the revocation is based on a failure to accurately disclose a criminal history;
             4915      and
             4916          (B) the entity has a reasonable good faith belief at the time of application that there is
             4917      no criminal history to be disclosed; or
             4918          (iii) the division fails to follow the prescribed procedure for the revocation.
             4919          (e) If a registration is revoked or a revocation under this Subsection (3) is upheld after
             4920      a post-revocation hearing, the entity may not apply for a new registration until at least 12
             4921      months after the day on which the registration is revoked.
             4922          (4) (a) An appraisal management company shall comply with this Subsection (4) if
             4923      there is a change in:
             4924          (i) an individual who owns 10% or more of the entity; or
             4925          (ii) the controlling person designated as the contact as required by Section 61-2e-201 .
             4926          (b) If there is a change in an individual described in Subsection (4)(a), within 30 days
             4927      of the day on which the change occurs, the appraisal management company shall file with the
             4928      division:
             4929          (i) the individual's name, address, and contact information;


             4930          (ii) a statement of whether or not the individual has had a license or certificate to
             4931      engage in an act related to a real estate or mortgage transaction refused, denied, canceled, or
             4932      revoked in this state or in another state; and
             4933          (iii) (A) fingerprint cards in a form acceptable to the division at the time the
             4934      registration application is filed; and
             4935          (B) consent to a criminal background check by the Utah Bureau of Criminal
             4936      Identification and the Federal Bureau of Investigation regarding the application.
             4937          Section 87. Section 62A-1-119 is amended to read:
             4938           62A-1-119. Respite Care Assistance Fund -- Use of money -- Restrictions --
             4939      Annual report.
             4940          (1) There is created a restricted special revenue fund known as the Respite Care
             4941      Assistance Fund.
             4942          (2) The fund shall consist of:
             4943          (a) gifts, grants, devises, donations, and bequests of real property, personal property, or
             4944      services, from any source, made to the fund; and
             4945          (b) any additional amounts as appropriated by the Legislature.
             4946          (3) The fund shall be administered by the director of the Utah Developmental
             4947      Disabilities Council.
             4948          (4) All [monies] money appropriated to the fund [are] is nonlapsing.
             4949          (5) The fund [monies] money shall be used for the following activities:
             4950          (a) to support a respite care information and referral system;
             4951          (b) to educate and train caregivers and respite care providers; and
             4952          (c) to provide grants to caregivers.
             4953          (6) An individual who receives services paid for from the fund shall:
             4954          (a) be a resident of Utah; and
             4955          (b) be a primary care giver for:
             4956          (i) an aging individual; or
             4957          (ii) an individual with a cognitive, mental, or physical disability.


             4958          (7) The fund [monies] money may not be used for:
             4959          (a) administrative expenses that are normally provided for by legislative appropriation;
             4960      or
             4961          (b) direct services or support mechanisms that are available from or provided by
             4962      another government or private agency.
             4963          (8) All interest and other earnings derived from the fund [monies] money shall be
             4964      deposited into the fund.
             4965          (9) The state treasurer shall invest the [monies] money in the fund under Title 51,
             4966      Chapter 7, State Money Management Act.
             4967          (10) The Department of Human Services shall make an annual report to the appropriate
             4968      appropriations subcommittee of the Legislature regarding the status of the fund, including a
             4969      report on the contributions received, expenditures made, and programs and services funded.
             4970          Section 88. Section 62A-15-102 is amended to read:
             4971           62A-15-102. Definitions.
             4972          As used in this chapter:
             4973          (1) "Director" means the director of the Division of Substance Abuse and Mental
             4974      Health.
             4975          (2) "Division" means the Division of Substance Abuse and Mental Health established
             4976      in Section 62A-15-103 .
             4977          (3) "Local mental health authority" means a county legislative body.
             4978          (4) "Local substance abuse authority" means a county legislative body.
             4979          (5) (a) "Public funds" means federal [monies] money received from the Department of
             4980      Human Services or the Department of Health, and state [monies] money appropriated by the
             4981      Legislature to the Department of Human Services, the Department of Health, a county
             4982      governing body, or a local substance abuse authority, or a local mental health authority for the
             4983      purposes of providing substance abuse or mental health programs or services.
             4984          (b) "Public funds" [includes those] include federal and state [monies] money that
             4985      [have] has been transferred by a local substance abuse authority or a local mental health


             4986      authority to a private provider under an annual or otherwise ongoing contract to provide
             4987      comprehensive substance abuse or mental health programs or services for the local substance
             4988      abuse authority or local mental health authority. [Those monies maintain] The money
             4989      maintains the nature of "public funds" while in the possession of the private entity that has an
             4990      annual or otherwise ongoing contract with a local substance abuse authority or a local mental
             4991      health authority to provide comprehensive substance abuse or mental health programs or
             4992      services for the local substance abuse authority or local mental health authority.
             4993          (c) Public funds received for the provision of services pursuant to substance abuse or
             4994      mental health service plans may not be used for any other purpose except those authorized in
             4995      the contract between the local mental health or substance abuse authority and provider for the
             4996      provision of plan services.
             4997          (6) "Severe mental disorder" means schizophrenia, major depression, bipolar disorders,
             4998      delusional disorders, psychotic disorders, and other mental disorders as defined by the division.
             4999          Section 89. Section 63A-8-301 is amended to read:
             5000           63A-8-301. State Debt Collection Fund.
             5001          (1) There is created a restricted special revenue fund entitled the "State Debt Collection
             5002      Fund."
             5003          (2) The fund consists of:
             5004          (a) all amounts appropriated to the fund under this chapter;
             5005          (b) fees and interest established by the office under Subsection 63A-8-201 (4)(g); and
             5006          (c) except as otherwise provided by law, all postjudgment interest collected by the
             5007      office or the state except postjudgment interest on restitution.
             5008          (3) [Monies] Money in this fund shall be used to pay for:
             5009          (a) the costs of the office in the performance of its duties under this chapter;
             5010          (b) restitution to victims to whom the debt is owed;
             5011          (c) interest accrued that is associated with the debt;
             5012          (d) principal on the debt to the state agencies or other entities that placed the receivable
             5013      for collection; and


             5014          (e) other legal obligations including those ordered by a court.
             5015          (4) (a) The fund may collect interest.
             5016          (b) All interest earned from the fund shall be deposited in the General Fund.
             5017          (5) The office shall ensure that [monies] money remaining in the fund at the end of the
             5018      fiscal year that [are] is not committed under the priorities established under Subsection (3) [are]
             5019      is deposited into the General Fund.
             5020          (6) (a) The office shall report at least annually to the appropriations subcommittee
             5021      assigned to review the budget of the Department of Administrative Services on the fund
             5022      balance and its revenues and expenditures and administrative offsets.
             5023          (b) The report shall include the amounts paid under each provision under Subsection
             5024      (3).
             5025          Section 90. Section 63B-1b-402 is amended to read:
             5026           63B-1b-402. Commission may authorize revenue bonds -- Contents of bond
             5027      document -- Special and reserve funds -- Limitation on liability -- Restoration of money
             5028      in reserve funds -- Payment of bonds and other technical requirements -- Refunding --
             5029      Report to Division of Finance.
             5030          (1) (a) In order to provide authorizing agencies with an alternative method of
             5031      liquidating agency bonds and, by doing so, providing authorizing agencies with additional
             5032      funds to further the purposes of authorizing agencies, the commission may authorize the
             5033      issuance of revenue bonds from time to time by the state.
             5034          (b) These revenue bonds shall be payable solely from a special fund established by the
             5035      state treasurer as provided in Subsection (4).
             5036          (c) Revenue bonds may be sold at public or private sale and may be issued in one or
             5037      more series.
             5038          (2) Revenue bonds may be authorized, issued, and sold by the commission on behalf of
             5039      the state at a time or times and in a manner set forth in a bond document that provides for:
             5040          (a) the terms and conditions of sale, including price, whether at, below or above face
             5041      value;


             5042          (b) interest rates, including a variable rate;
             5043          (c) authorized denomination;
             5044          (d) maturity dates;
             5045          (e) form;
             5046          (f) manner of execution;
             5047          (g) manner of authentication;
             5048          (h) place and medium of payment;
             5049          (i) redemption terms;
             5050          (j) authorized signatures of public officials; and
             5051          (k) other provisions and details considered necessary or appropriate.
             5052          (3) To the extent set forth in the resolution, the proceeds of revenue bonds may be used
             5053      for the purposes set forth in Subsection (1) and to:
             5054          (a) provide for any necessary or desirable reserve fund as provided for in Subsection
             5055      (5); and
             5056          (b) pay fees, charges, and other amounts related to the issuance and sale of the revenue
             5057      bonds.
             5058          (4) (a) As provided in the bond document, the principal of, premium, if any, and
             5059      interest on, any issue of revenue bonds is payable solely from and secured by one or more
             5060      special funds consisting of:
             5061          (i) the pledge and assignment of any agency bonds, including all amounts payable on or
             5062      with respect to them, and other [monies] money and security, as provided for in an agreement
             5063      entered into under Subsection 63B-1b-401 (2);
             5064          (ii) amounts on deposit in the reserve fund, if any, established under Subsection (5);
             5065          (iii) amounts available pursuant to any security device or credit enhancement device
             5066      that the commission authorizes for the purpose of improving the marketability of the revenue
             5067      bonds; and
             5068          (iv) other amounts available and pledged by the commission to secure payment of that
             5069      issue of revenue bonds.


             5070          (b) Owners of revenue bonds do not have recourse against the general funds or general
             5071      credit of the state or its political subdivisions or agencies, but this limitation does not limit or
             5072      alter the obligations of political subdivisions on agency bonds in any manner.
             5073          (c) Revenue bonds do not constitute nor give rise to a general obligation or liability of,
             5074      or constitute a charge or lien against, the general credit or taxing power of the state or its
             5075      political subdivisions or agencies, including any authorizing agency.
             5076          (d) Revenue bonds shall contain on their face a statement that:
             5077          (i) the revenue bonds are payable solely from the sources set forth in this Subsection
             5078      (4) and specified in the bond document with respect to the revenue bonds;
             5079          (ii) neither the state nor any political subdivision of the state is obligated to pay the
             5080      revenue bonds; and
             5081          (iii) neither the faith and credit nor the taxing power of the state or any of its political
             5082      subdivisions is pledged to the payment of principal or redemption price of, or premium, if any,
             5083      or interest on the revenue bonds.
             5084          (e) Revenue bonds do not constitute debt of the state within the meaning of Utah
             5085      Constitution Article XIII, Sec. 5 (3) or Article XIV, Sec. 1.
             5086          (5) (a) The commission may establish a reserve fund with respect to any issue of
             5087      revenue bonds.
             5088          (b) If a reserve fund is established, the bond document relating to that issue of revenue
             5089      bonds shall specify:
             5090          (i) the minimum amount that is required to be on deposit in the reserve fund;
             5091          (ii) the amount of sale proceeds from the sale of that issue of revenue bonds that shall
             5092      be deposited in the reserve fund; and
             5093          (iii) the manner in which any deficiency in the reserve fund shall be replenished.
             5094          (c) (i) On or before the first day of December of each year, the state treasurer shall
             5095      certify to the governor and the director of the Division of Finance the amount, if any, that may
             5096      be required to restore all reserve funds established to the minimum amount specified by the
             5097      state treasurer with respect to each reserve fund.


             5098          (ii) The governor may request an appropriation from the Legislature equal to the
             5099      certified amount in order to restore each reserve fund to the specified minimum amount.
             5100          (6) (a) (i) The commission may provide in the bond document that any signature of a
             5101      public official authorized to sign revenue bonds may be by the facsimile signature of that
             5102      official imprinted, engraved, stamped, or otherwise placed on the revenue bonds.
             5103          (ii) If all signatures of public officials on the revenue bonds are facsimile signatures,
             5104      the bond document shall provide for a manual authenticating signature on the revenue bonds by
             5105      or on behalf of a designated authenticating agent.
             5106          (iii) If an official ceases to hold office before delivery of the revenue bonds signed by
             5107      that official, the signature or facsimile signature of the official is valid and sufficient for all
             5108      purposes.
             5109          (b) A facsimile of the seal of the state may be imprinted, engraved, stamped, or
             5110      otherwise placed on the revenue bonds.
             5111          (7) (a) The commission may provide in the bond document for the replacement of lost,
             5112      destroyed, stolen, or mutilated revenue bonds or for the exchange of revenue bonds after
             5113      issuance for revenue bonds of smaller or larger denominations.
             5114          (b) Revenue bonds in changed denominations shall:
             5115          (i) be exchanged for the original revenue bonds in the aggregate principal amounts and
             5116      in a manner that prevents the duplication of interest; and
             5117          (ii) bear interest at the same rate, be of the same series, mature on the same date, and
             5118      be as nearly as practicable in the same form as the original revenue bonds.
             5119          (8) (a) (i) Revenue bonds may be registered as to both principal and interest or may be
             5120      in a book entry form under which the right to principal and interest may be transferred only
             5121      through a book entry.
             5122          (ii) The commission may provide for the services and payment for the services of one
             5123      or more financial institutions, other entities or persons, or nominees, within or outside the state,
             5124      for:
             5125          (A) authentication;


             5126          (B) registration;
             5127          (C) transfer, including record, bookkeeping, or book entry functions;
             5128          (D) exchange; and
             5129          (E) payment.
             5130          (b) The records of ownership, registration, transfer, and exchange of the revenue
             5131      bonds, and of persons to whom payment with respect to them is made, are classified as private
             5132      or protected as defined in Title 63G, Chapter 2, Government Records Access and Management
             5133      Act.
             5134          (c) The revenue bonds and any evidences of participation interests in the revenue bonds
             5135      may be issued, executed, authenticated, registered, transferred, exchanged, and otherwise made
             5136      to comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the
             5137      Legislature relating to the registration of obligations enacted to meet the requirements of
             5138      Section 149 (a), Internal Revenue Code of 1986, or any comparable predecessor or successor
             5139      provision, and applicable regulations.
             5140          (9) (a) The commission may authorize the execution and delivery of whatever
             5141      agreements and contracts that the commission considers necessary and appropriate in
             5142      connection with the issuance of revenue bonds.
             5143          (b) These agreements and contracts may include agreements and contracts with
             5144      financial and other institutions for financial advisory services, trustee services, insurance,
             5145      letters of credit, reimbursement agreements, tender agreements, put agreements, repurchase
             5146      agreements, and indexing and tender agent agreements to:
             5147          (i) facilitate the sale of the revenue bonds; or
             5148          (ii) secure or provide liquidity to support any agreement, obligation, or contract entered
             5149      into by an authorized officer on behalf of the state in connection with:
             5150          (A) the issuance and sale of the revenue bonds;
             5151          (B) any repurchase, remarketing, or other pledge of the revenue bonds; and
             5152          (C) any insurance, repurchase, remarketing, tender, put, letter of credit, or agreement,
             5153      obligation, or contract entered into in connection with them, including payment of fees,


             5154      charges, or other amounts coming due under agreements entered into with financial or other
             5155      institutions on behalf of the state.
             5156          (10) When all revenue bonds of an issue have been paid, or provision for their payment
             5157      has been made, there shall be transferred to the appropriate authorizing agency or agencies, in
             5158      the amounts and in the manner that the commission considers fair and equitable, and to the
             5159      extent not required to secure payment of the revenue bonds and related fees, charges, and other
             5160      amounts:
             5161          (a) all amounts remaining on deposit in any reserve fund established with respect to the
             5162      issue of revenue bonds; and
             5163          (b) all other amounts and all agency bonds held by the commission and any trustee and
             5164      pledged to the payment of the revenue bonds.
             5165          (11) (a) The state treasurer or the commission may create any funds and accounts
             5166      necessary to carry out the purposes of this section.
             5167          (b) (i) The state treasurer shall administer and maintain those funds and accounts.
             5168          (ii) The state treasurer may invest all [monies] money held in those funds and accounts
             5169      in accordance with Title 51, Chapter 7, State Money Management Act, and in accordance with
             5170      the bond document or any other agreement entered into on behalf of the state as authorized by
             5171      the bond document.
             5172          (iii) The commission may not approve the bond document or other agreement with
             5173      respect to the investment and application of [these monies] the money unless the state treasurer
             5174      has affirmatively approved any investment provisions contained in the bond document or other
             5175      agreement.
             5176          (c) All income from the [monies] money invested in a fund or account created under
             5177      this Subsection (11) shall accrue to the benefit of the fund or account and shall be used for the
             5178      purpose for which the fund or account was established.
             5179          (12) (a) The commission may authorize the issuance of refunding revenue bonds of the
             5180      state in accordance with Title 11, Chapter 27, Utah Refunding Bond Act, for the purpose of
             5181      refunding any revenue bonds.


             5182          (b) The state is considered a "public body" and the commission its "governing body"
             5183      for purposes of that act.
             5184          (13) (a) Revenue bonds may not be issued under this section until an authorized
             5185      official finds and certifies that all conditions precedent to the issuance of the revenue bond
             5186      have been satisfied.
             5187          (b) A recital on any revenue bond of a finding and certification conclusively establishes
             5188      the completion and satisfaction of all conditions of this section.
             5189          (14) Revenue bonds, interest paid on revenue bonds, and any income from revenue
             5190      bonds is not taxable within this state for any purpose, except for the corporate franchise tax.
             5191          (15) (a) Revenue bonds are legal investments for all state trust funds, insurance
             5192      companies, banks, trust companies, and the State School Fund.
             5193          (b) Revenue bonds may also be used as collateral to secure legal obligations.
             5194          (16) Immediately upon the issuance of each issue of revenue bonds, an authorized
             5195      official shall make a verified return to the Division of Finance of:
             5196          (a) the aggregate principal amount of revenue bonds issued;
             5197          (b) the amount of proceeds of sale of revenue bonds received by the state;
             5198          (c) the amount paid to the authorizing agency or agencies for the agency bonds;
             5199          (d) the total amount of all fees and expenses relating to the issuance of the revenue
             5200      bonds;
             5201          (e) the amount of sale proceeds of the revenue bonds used to pay fees and expenses;
             5202      and
             5203          (f) the amount of sale proceeds of the revenue bonds deposited in the reserve fund
             5204      established with respect to the issue of revenue bonds, if any.
             5205          Section 91. Section 63B-2-111 is amended to read:
             5206           63B-2-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5207      income and unexpended proceeds.
             5208          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5209      within one or more accounts as determined by resolution of the commission.


             5210          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5211      provided by the commission by resolution.
             5212          (c) The commission by resolution may provide for the deposit of [these monies] the
             5213      money with a trustee and the administration, disposition, or investment of [these monies] the
             5214      money by this trustee.
             5215          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5216      which the proceeds of bonds issued under this chapter may be invested.
             5217          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5218      applied as provided by resolution of the commission.
             5219          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5220      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5221      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5222      this chapter.
             5223          Section 92. Section 63B-2-211 is amended to read:
             5224           63B-2-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5225      income and unexpended proceeds.
             5226          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5227      within one or more accounts as determined by resolution of the commission.
             5228          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5229      provided by the commission by resolution.
             5230          (c) The commission by resolution may provide for the deposit of [these monies] the
             5231      money with a trustee and the administration, disposition, or investment of [these monies] the
             5232      money by this trustee.
             5233          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5234      which the proceeds of bonds issued under this chapter may be invested.
             5235          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5236      applied as provided by resolution of the commission.
             5237          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon


             5238      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5239      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5240      this chapter.
             5241          Section 93. Section 63B-3-111 is amended to read:
             5242           63B-3-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5243      income and unexpended proceeds.
             5244          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5245      within one or more accounts as determined by resolution of the commission.
             5246          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5247      provided by the commission by resolution.
             5248          (c) The commission by resolution may provide for the deposit of [these monies] the
             5249      money with a trustee and the administration, disposition, or investment of [these monies] the
             5250      money by this trustee.
             5251          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5252      which the proceeds of bonds issued under this chapter may be invested.
             5253          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5254      applied as provided by resolution of the commission.
             5255          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5256      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5257      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5258      this chapter.
             5259          Section 94. Section 63B-3-211 is amended to read:
             5260           63B-3-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5261      income and unexpended proceeds.
             5262          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5263      within one or more accounts as determined by resolution of the commission.
             5264          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5265      provided by the commission by resolution.


             5266          (c) The commission by resolution may provide for the deposit of [these monies] the
             5267      money with a trustee and the administration, disposition, or investment of [these monies] the
             5268      money by this trustee.
             5269          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5270      which the proceeds of bonds issued under this chapter may be invested.
             5271          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5272      applied as provided by resolution of the commission.
             5273          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5274      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5275      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5276      this chapter.
             5277          Section 95. Section 63B-4-111 is amended to read:
             5278           63B-4-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5279      income and unexpended proceeds.
             5280          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5281      within one or more accounts as determined by resolution of the commission.
             5282          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5283      provided by the commission by resolution.
             5284          (c) The commission by resolution may provide for the deposit of [these monies] the
             5285      money with a trustee and the administration, disposition, or investment of [these monies] the
             5286      money by this trustee.
             5287          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5288      which the proceeds of bonds issued under this chapter may be invested.
             5289          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5290      applied as provided by resolution of the commission.
             5291          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5292      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5293      otherwise provided in the resolution of the commission authorizing the issuance of bonds under


             5294      this chapter.
             5295          Section 96. Section 63B-5-111 is amended to read:
             5296           63B-5-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5297      income and unexpended proceeds.
             5298          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5299      within one or more accounts as determined by resolution of the commission.
             5300          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5301      provided by the commission by resolution.
             5302          (c) The commission by resolution may provide for the deposit of [these monies] the
             5303      money with a trustee and the administration, disposition, or investment of [these monies] the
             5304      money by this trustee.
             5305          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5306      which the proceeds of bonds issued under this chapter may be invested.
             5307          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5308      applied as provided by resolution of the commission.
             5309          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5310      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5311      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5312      this chapter.
             5313          Section 97. Section 63B-6-111 is amended to read:
             5314           63B-6-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5315      income and unexpended proceeds.
             5316          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5317      within one or more accounts as determined by resolution of the commission.
             5318          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5319      provided by the commission by resolution.
             5320          (c) The commission by resolution may provide for the deposit of [these monies] the
             5321      money with a trustee and the administration, disposition, or investment of [these monies] the


             5322      money by this trustee.
             5323          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5324      which the proceeds of bonds issued under this chapter may be invested.
             5325          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5326      applied as provided by resolution of the commission.
             5327          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5328      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5329      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5330      this chapter.
             5331          Section 98. Section 63B-6-211 is amended to read:
             5332           63B-6-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5333      income and unexpended proceeds.
             5334          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5335      within one or more accounts as determined by resolution of the commission.
             5336          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5337      provided by the commission by resolution.
             5338          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5339      money with a trustee and the administration, disposition, or investment of [these monies] the
             5340      money by this trustee.
             5341          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5342      which the proceeds of bonds issued under this chapter may be invested.
             5343          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5344      applied as provided by resolution of the commission.
             5345          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5346      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5347      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5348      this chapter.
             5349          Section 99. Section 63B-6-304 is amended to read:


             5350           63B-6-304. General provisions -- Funds and accounts.
             5351          (1) (a) Sections 63B-6-205 , 63B-6-206 , 63B-6-213 , 63B-6-214 , 63B-6-215 , and
             5352      63B-6-216 apply to any notes or renewals of notes issued under this part.
             5353          (b) (i) For purposes of this part, any action that those sections require or permit the
             5354      commission to take shall be considered sufficient if taken by the state treasurer.
             5355          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5356      that he finds necessary or convenient, to accomplish the purposes of this part.
             5357          (2) The treasurer may:
             5358          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5359      to carry out the purposes of this part; and
             5360          (b) until the [monies are] money is needed for the purpose for which the fund or
             5361      account was created, invest the [monies] money held in those funds and accounts by following
             5362      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5363          Section 100. Section 63B-6-411 is amended to read:
             5364           63B-6-411. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5365      income and unexpended proceeds.
             5366          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5367      within one or more accounts as determined by resolution of the commission.
             5368          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5369      provided by the commission by resolution.
             5370          (c) The commission by resolution may provide for the deposit of [these monies] the
             5371      money with a trustee and the administration, disposition, or investment of [these monies] the
             5372      money by this trustee.
             5373          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5374      which the proceeds of bonds issued under this chapter may be invested.
             5375          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5376      applied as provided by resolution of the commission.
             5377          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon


             5378      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5379      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5380      this chapter.
             5381          Section 101. Section 63B-7-111 is amended to read:
             5382           63B-7-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5383      income and unexpended proceeds.
             5384          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5385      within one or more accounts as determined by resolution of the commission.
             5386          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5387      provided by the commission by resolution.
             5388          (c) The commission by resolution may provide for the deposit of [these monies] the
             5389      money with a trustee and the administration, disposition, or investment of [these monies] the
             5390      money by this trustee.
             5391          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5392      which the proceeds of bonds issued under this chapter may be invested.
             5393          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5394      applied as provided by resolution of the commission.
             5395          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5396      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5397      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5398      this chapter.
             5399          Section 102. Section 63B-7-211 is amended to read:
             5400           63B-7-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5401      income and unexpended proceeds.
             5402          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5403      within one or more accounts as determined by resolution of the commission.
             5404          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5405      provided by the commission by resolution.


             5406          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5407      money with a trustee and the administration, disposition, or investment of [these monies] the
             5408      money by this trustee.
             5409          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5410      which the proceeds of bonds issued under this chapter may be invested.
             5411          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5412      applied as provided by resolution of the commission.
             5413          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5414      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5415      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5416      this chapter.
             5417          Section 103. Section 63B-7-304 is amended to read:
             5418           63B-7-304. General provisions -- Funds and accounts.
             5419          (1) (a) Sections 63B-7-205 , 63B-7-206 , 63B-7-213 , 63B-7-214 , 63B-7-215 , and
             5420      63B-7-216 apply to any notes or renewals of notes issued under this part.
             5421          (b) (i) For purposes of this part, any action that those sections require or permit the
             5422      commission to take shall be considered sufficient if taken by the state treasurer.
             5423          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5424      that he finds necessary or convenient, to accomplish the purposes of this part.
             5425          (2) The treasurer may:
             5426          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5427      to carry out the purposes of this part; and
             5428          (b) until the [monies are] money is needed for the purpose for which the fund or
             5429      account was created, invest the [monies] money held in those funds and accounts by following
             5430      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5431          Section 104. Section 63B-7-411 is amended to read:
             5432           63B-7-411. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5433      income and unexpended proceeds.


             5434          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5435      within one or more accounts as determined by resolution of the commission.
             5436          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5437      provided by the commission by resolution.
             5438          (c) The commission by resolution may provide for the deposit of [these monies] the
             5439      money with a trustee and the administration, disposition, or investment of [these monies] the
             5440      money by this trustee.
             5441          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5442      which the proceeds of bonds issued under this chapter may be invested.
             5443          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5444      applied as provided by resolution of the commission.
             5445          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5446      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5447      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5448      this chapter.
             5449          Section 105. Section 63B-8-111 is amended to read:
             5450           63B-8-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5451      income and unexpended proceeds.
             5452          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5453      within one or more accounts as determined by resolution of the commission.
             5454          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5455      provided by the commission by resolution.
             5456          (c) The commission by resolution may provide for the deposit of [these monies] the
             5457      money with a trustee and the administration, disposition, or investment of [these monies] the
             5458      money by this trustee.
             5459          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5460      which the proceeds of bonds issued under this chapter may be invested.
             5461          (b) Income from the investment of proceeds of bonds issued under this chapter shall be


             5462      applied as provided by resolution of the commission.
             5463          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5464      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5465      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5466      this chapter.
             5467          Section 106. Section 63B-8-211 is amended to read:
             5468           63B-8-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5469      income and unexpended proceeds.
             5470          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5471      within one or more accounts as determined by resolution of the commission.
             5472          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5473      provided by the commission by resolution.
             5474          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5475      money with a trustee and the administration, disposition, or investment of [these monies] the
             5476      money by this trustee.
             5477          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5478      which the proceeds of bonds issued under this chapter may be invested.
             5479          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5480      applied as provided by resolution of the commission.
             5481          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5482      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5483      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5484      this chapter.
             5485          Section 107. Section 63B-8-304 is amended to read:
             5486           63B-8-304. General provisions -- Funds and accounts.
             5487          (1) (a) Sections 63B-8-205 , 63B-8-206 , 63B-8-213 , 63B-8-214 , 63B-8-215 , and
             5488      63B-8-216 apply to any notes or renewals of notes issued under this part.
             5489          (b) (i) For purposes of this part, any action that those sections require or permit the


             5490      commission to take shall be considered sufficient if taken by the state treasurer.
             5491          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5492      that he finds necessary or convenient, to accomplish the purposes of this part.
             5493          (2) The treasurer may:
             5494          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5495      to carry out the purposes of this part; and
             5496          (b) until the [monies are] money is needed for the purpose for which the fund or
             5497      account was created, invest the [monies] money held in those funds and accounts by following
             5498      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5499          Section 108. Section 63B-8-411 is amended to read:
             5500           63B-8-411. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5501      income and unexpended proceeds.
             5502          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5503      within one or more accounts as determined by resolution of the commission.
             5504          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5505      provided by the commission by resolution.
             5506          (c) The commission by resolution may provide for the deposit of [these monies] the
             5507      money with a trustee and the administration, disposition, or investment of [these monies] the
             5508      money by this trustee.
             5509          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5510      which the proceeds of bonds issued under this chapter may be invested.
             5511          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5512      applied as provided by resolution of the commission.
             5513          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5514      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5515      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5516      this chapter.
             5517          Section 109. Section 63B-10-111 is amended to read:


             5518           63B-10-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5519      income and unexpended proceeds.
             5520          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5521      within one or more accounts as determined by resolution of the commission.
             5522          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5523      provided by the commission by resolution.
             5524          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5525      money with a trustee and the administration, disposition, or investment of [these monies] the
             5526      money by this trustee.
             5527          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5528      which the proceeds of bonds issued under this chapter may be invested.
             5529          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5530      applied as provided by resolution of the commission.
             5531          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5532      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5533      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5534      this chapter.
             5535          Section 110. Section 63B-10-204 is amended to read:
             5536           63B-10-204. General provisions -- Funds and accounts.
             5537          (1) (a) Sections 63B-10-105 , 63B-10-106 , 63B-10-113 , 63B-10-114 , 63B-10-115 , and
             5538      63B-10-116 apply to any notes or renewals of notes issued under this part.
             5539          (b) (i) For purposes of this part, any action that those sections require or permit the
             5540      commission to take shall be considered sufficient if taken by the state treasurer.
             5541          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5542      that he finds necessary or convenient, to accomplish the purposes of this part.
             5543          (2) The treasurer may:
             5544          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5545      to carry out the purposes of this part; and


             5546          (b) until the [monies are] money is needed for the purpose for which the fund or
             5547      account was created, invest the [monies] money held in those funds and accounts by following
             5548      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5549          Section 111. Section 63B-11-111 is amended to read:
             5550           63B-11-111. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5551      income and unexpended proceeds.
             5552          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5553      within one or more accounts as determined by resolution of the commission.
             5554          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5555      provided by the commission by resolution.
             5556          (c) The commission by resolution may provide for the deposit of [these monies] the
             5557      money with a trustee and the administration, disposition, or investment of [these monies] the
             5558      money by this trustee.
             5559          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5560      which the proceeds of bonds issued under this chapter may be invested.
             5561          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5562      applied as provided by resolution of the commission.
             5563          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5564      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5565      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5566      this chapter.
             5567          Section 112. Section 63B-11-211 is amended to read:
             5568           63B-11-211. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5569      income and unexpended proceeds.
             5570          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5571      within one or more accounts as determined by resolution of the commission.
             5572          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5573      provided by the commission by resolution.


             5574          (c) The commission by resolution may provide for the deposit of [these monies] the
             5575      money with a trustee and the administration, disposition, or investment of [these monies] the
             5576      money by this trustee.
             5577          (2) (a) The commission by resolution shall provide for the kinds of investments in
             5578      which the proceeds of bonds issued under this chapter may be invested.
             5579          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5580      applied as provided by resolution of the commission.
             5581          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5582      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5583      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5584      this chapter.
             5585          Section 113. Section 63B-11-311 is amended to read:
             5586           63B-11-311. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5587      income and unexpended proceeds.
             5588          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5589      within one or more accounts as determined by resolution of the commission.
             5590          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5591      provided by the commission by resolution.
             5592          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5593      money with a trustee and the administration, disposition, or investment of [these monies] the
             5594      money by this trustee.
             5595          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5596      which the proceeds of bonds issued under this chapter may be invested.
             5597          (b) Income from the investment of proceeds of bonds issued under this chapter shall be
             5598      applied as provided by resolution of the commission.
             5599          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5600      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5601      otherwise provided in the resolution of the commission authorizing the issuance of bonds under


             5602      this chapter.
             5603          Section 114. Section 63B-11-404 is amended to read:
             5604           63B-11-404. General provisions -- Funds and accounts.
             5605          (1) (a) Sections 63B-11-305 , 63B-11-306 , 63B-11-313 , 63B-11-314 , 63B-11-315 , and
             5606      63B-11-316 apply to any notes or renewals of notes issued under this part.
             5607          (b) (i) For purposes of this part, any action that those sections require or permit the
             5608      commission to take shall be considered sufficient if taken by the state treasurer.
             5609          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5610      that he finds necessary or convenient, to accomplish the purposes of this part.
             5611          (2) The treasurer may:
             5612          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5613      to carry out the purposes of this part; and
             5614          (b) until the [monies are] money is needed for the purpose for which the fund or
             5615      account was created, invest the [monies] money held in those funds and accounts by following
             5616      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5617          Section 115. Section 63B-11-511 is amended to read:
             5618           63B-11-511. Bond proceeds -- Deposits -- Investment -- Disposition of investment
             5619      income and unexpended proceeds.
             5620          (1) (a) Proceeds from the sale of bonds issued under this chapter shall be deposited
             5621      within one or more accounts as determined by resolution of the commission.
             5622          (b) The state treasurer shall administer and maintain these accounts unless otherwise
             5623      provided by the commission by resolution.
             5624          (c) The commission, by resolution, may provide for the deposit of [these monies] the
             5625      money with a trustee and the administration, disposition, or investment of [these monies] the
             5626      money by this trustee.
             5627          (2) (a) The commission, by resolution, shall provide for the kinds of investments in
             5628      which the proceeds of bonds issued under this chapter may be invested.
             5629          (b) Income from the investment of proceeds of bonds issued under this chapter shall be


             5630      applied as provided by resolution of the commission.
             5631          (3) Any unexpended bond proceeds issued under this chapter shall be deposited, upon
             5632      completion of the purposes for which the bonds were issued, in the sinking fund, unless
             5633      otherwise provided in the resolution of the commission authorizing the issuance of bonds under
             5634      this chapter.
             5635          Section 116. Section 63B-11-604 is amended to read:
             5636           63B-11-604. General provisions -- Funds and accounts.
             5637          (1) (a) Sections 63B-11-505 , 63B-11-506 , 63B-11-513 , 63B-11-514 , 63B-11-515 , and
             5638      63B-11-516 apply to any notes or renewals of notes issued under this part.
             5639          (b) (i) For purposes of this part, any action that those sections require or permit the
             5640      commission to take shall be considered sufficient if taken by the state treasurer.
             5641          (ii) The treasurer may take action by issuing a written order, or in some other manner
             5642      that he finds necessary or convenient, to accomplish the purposes of this part.
             5643          (2) The treasurer may:
             5644          (a) in a written order, establish whatever funds and accounts are necessary or desirable
             5645      to carry out the purposes of this part; and
             5646          (b) until the [monies are] money is needed for the purpose for which the fund or
             5647      account was created, invest the [monies] money held in those funds and accounts by following
             5648      the procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             5649          Section 117. Section 63C-6-104 is amended to read:
             5650           63C-6-104. Staffing and appropriated funds.
             5651          (1) Staff support to the commission shall be provided by the Division of Homeland
             5652      Security and the Utah Geological Survey.
             5653          (2) [Monies] Money not expended by the Utah Seismic Safety Commission during a
             5654      fiscal year [are] is nonlapsing except that any balance of General Fund [monies] money greater
             5655      than $10,000 lapses to the General Fund.
             5656          Section 118. Section 63C-11-301 is amended to read:
             5657           63C-11-301. Licensing.


             5658          (1) A license is required for a person to act as or to represent that the person is:
             5659          (a) a promoter;
             5660          (b) a manager;
             5661          (c) a contestant;
             5662          (d) a second;
             5663          (e) a referee;
             5664          (f) a judge; or
             5665          (g) another official established by the commission by rule.
             5666          (2) The commission shall issue to a person who qualifies under this chapter a license in
             5667      the classifications of:
             5668          (a) promoter;
             5669          (b) manager;
             5670          (c) contestant;
             5671          (d) second;
             5672          (e) referee;
             5673          (f) judge; or
             5674          (g) another official who meets the requirements established by rule under Subsection
             5675      (1)(g).
             5676          (3) (a) All [monies] money collected pursuant to this section and Sections 63C-11-304 ,
             5677      63C-11-307 , 63C-11-310 , and 63C-11-313 shall be retained as dedicated credits to pay for
             5678      commission expenses.
             5679          (b) All [monies] money available to the commission under Subsection (3)(a) to pay for
             5680      commission expenses [are] is nonlapsing for fiscal year 2009-10 only.
             5681          (4) Each applicant for licensure as a promoter shall:
             5682          (a) submit an application in a form prescribed by the commission;
             5683          (b) pay the fee determined by the commission under Section 63J-1-504 ;
             5684          (c) provide to the commission evidence of financial responsibility, which shall include
             5685      financial statements and other information that the commission may reasonably require to


             5686      determine that the applicant or licensee is able to competently perform as and meet the
             5687      obligations of a promoter in this state;
             5688          (d) make assurances that the applicant:
             5689          (i) is not engaging in illegal gambling with respect to sporting events or gambling with
             5690      respect to the promotions the applicant is promoting;
             5691          (ii) has not been found in a criminal or civil proceeding to have engaged in or
             5692      attempted to engage in any fraud or misrepresentation in connection with a contest or any other
             5693      sporting event; and
             5694          (iii) has not been found in a criminal or civil proceeding to have violated or attempted
             5695      to violate any law with respect to a contest in any jurisdiction or any law, rule, or order relating
             5696      to the regulation of contests in this state or any other jurisdiction;
             5697          (e) acknowledge in writing to the commission receipt, understanding, and intent to
             5698      comply with this chapter and the rules made under this chapter; and
             5699          (f) if requested by the commission or the director, meet with the commission or the
             5700      director to examine the applicant's qualifications for licensure.
             5701          (5) Each applicant for licensure as a contestant shall:
             5702          (a) be not less than 18 years of age at the time the application is submitted to the
             5703      commission;
             5704          (b) submit an application in a form prescribed by the commission;
             5705          (c) pay the fee established by the commission under Section 63J-1-504 ;
             5706          (d) provide a certificate of physical examination, dated not more than 60 days prior to
             5707      the date of application for licensure, in a form provided by the commission, completed by a
             5708      licensed physician and surgeon certifying that the applicant is free from any physical or mental
             5709      condition that indicates the applicant should not engage in activity as a contestant;
             5710          (e) make assurances that the applicant:
             5711          (i) is not engaging in illegal gambling with respect to sporting events or gambling with
             5712      respect to a contest in which the applicant will participate;
             5713          (ii) has not been found in a criminal or civil proceeding to have engaged in or


             5714      attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             5715      any other sporting event; and
             5716          (iii) has not been found in a criminal or civil proceeding to have violated or attempted
             5717      to violate any law with respect to contests in any jurisdiction or any law, rule, or order relating
             5718      to the regulation of contests in this state or any other jurisdiction;
             5719          (f) acknowledge in writing to the commission receipt, understanding, and intent to
             5720      comply with this chapter and the rules made under this chapter; and
             5721          (g) if requested by the commission or the director, meet with the commission or the
             5722      director to examine the applicant's qualifications for licensure.
             5723          (6) Each applicant for licensure as a manager or second shall:
             5724          (a) submit an application in a form prescribed by the commission;
             5725          (b) pay a fee determined by the commission under Section 63J-1-504 ;
             5726          (c) make assurances that the applicant:
             5727          (i) is not engaging in illegal gambling with respect to sporting events or gambling with
             5728      respect to a contest in which the applicant is participating;
             5729          (ii) has not been found in a criminal or civil proceeding to have engaged in or
             5730      attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             5731      any other sporting event; and
             5732          (iii) has not been found in a criminal or civil proceeding to have violated or attempted
             5733      to violate any law with respect to a contest in any jurisdiction or any law, rule, or order relating
             5734      to the regulation of contests in this state or any other jurisdiction;
             5735          (d) acknowledge in writing to the commission receipt, understanding, and intent to
             5736      comply with this chapter and the rules made under this chapter; and
             5737          (e) if requested by the commission or director, meet with the commission or the
             5738      director to examine the applicant's qualifications for licensure.
             5739          (7) Each applicant for licensure as a referee or judge shall:
             5740          (a) submit an application in a form prescribed by the commission;
             5741          (b) pay a fee determined by the commission under Section 63J-1-504 ;


             5742          (c) make assurances that the applicant:
             5743          (i) is not engaging in illegal gambling with respect to sporting events or gambling with
             5744      respect to a contest in which the applicant is participating;
             5745          (ii) has not been found in a criminal or civil proceeding to have engaged in or
             5746      attempted to have engaged in any fraud or misrepresentation in connection with a contest or
             5747      any other sporting event; and
             5748          (iii) has not been found in a criminal or civil proceeding to have violated or attempted
             5749      to violate any law with respect to contests in any jurisdiction or any law, rule, or order relating
             5750      to the regulation of contests in this state or any other jurisdiction;
             5751          (d) acknowledge in writing to the commission receipt, understanding, and intent to
             5752      comply with this chapter and the rules made under this chapter;
             5753          (e) provide evidence satisfactory to the commission that the applicant is qualified by
             5754      training and experience to competently act as a referee or judge in a contest; and
             5755          (f) if requested by the commission or the director, meet with the commission or the
             5756      director to examine the applicant's qualifications for licensure.
             5757          (8) The commission may make rules concerning the requirements for a license under
             5758      this chapter, that deny a license to an applicant for the violation of a crime that, in the
             5759      commission's determination, would have a material affect on the integrity of a contest held
             5760      under this chapter.
             5761          (9) (a) A licensee serves at the pleasure, and under the direction, of the commission
             5762      while participating in any way at a contest.
             5763          (b) A licensee's license may be suspended, or a fine imposed, if the licensee does not
             5764      follow the commission's direction at an event or contest.
             5765          Section 119. Section 63C-11-304 is amended to read:
             5766           63C-11-304. Additional fees for license of promoter -- Dedicated credits --
             5767      Promotion of contests -- Annual exemption of showcase event.
             5768          (1) In addition to the payment of any other fees and money due under this chapter,
             5769      every promoter shall pay a license fee determined by the commission and established in rule.


             5770          (a) License fees collected under Subsection (1)(a) from professional boxing contests or
             5771      exhibitions shall be retained by the commission as a dedicated credit to be used by the
             5772      commission to award grants to organizations that promote amateur boxing in the state and
             5773      cover commission expenses.
             5774          (b) [Monies] Money available to the commission for awarding grants to organizations
             5775      that promote amateur boxing in the state and covering commission expenses [are] is nonlapsing
             5776      for fiscal year 2009-10 only.
             5777          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             5778      commission shall adopt rules:
             5779          (a) governing the manner in which applications for grants under Subsection (1) may be
             5780      submitted to the commission; and
             5781          (b) establishing standards for awarding grants under Subsection (1) to organizations
             5782      which promote amateur boxing in the state.
             5783          (3) (a) For the purpose of creating a greater interest in contests in the state, the
             5784      commission may exempt from the payment of license fees under this section one contest or
             5785      exhibition in each calendar year, intended as a showcase event.
             5786          (b) The commission shall select the contest or exhibition to be exempted based on
             5787      factors which include:
             5788          (i) attraction of the optimum number of spectators;
             5789          (ii) costs of promoting and producing the contest or exhibition;
             5790          (iii) ticket pricing;
             5791          (iv) committed promotions and advertising of the contest or exhibition;
             5792          (v) rankings and quality of the contestants; and
             5793          (vi) committed television and other media coverage of the contest or exhibition.
             5794          Section 120. Section 63E-2-110 is amended to read:
             5795           63E-2-110. Budgetary and fiscal requirements.
             5796          (1) The board of each independent corporation shall annually adopt a budget.
             5797          (2) (a) All [monies] money held in trust by an independent corporation [are] is not


             5798      public funds, even if they were public funds before [those monies were] the money was
             5799      received by the independent corporation.
             5800          (b) The [monies] money of an independent corporation [are] is not required to be held
             5801      in the custody of the state treasurer.
             5802          Section 121. Section 63G-1-201 is amended to read:
             5803           63G-1-201. Official state language.
             5804          (1) English is declared to be the official language of Utah.
             5805          (2) As the official language of this State, the English language is the sole language of
             5806      the government, except as otherwise provided in this section.
             5807          (3) Except as provided in Subsection (4), all official documents, transactions,
             5808      proceedings, meetings, or publications issued, conducted, or regulated by, on behalf of, or
             5809      representing the state and its political subdivisions shall be in English.
             5810          (4) Languages other than English may be used when required:
             5811          (a) by the United States Constitution, the Utah State Constitution, federal law, or
             5812      federal regulation;
             5813          (b) by law enforcement or public health and safety needs;
             5814          (c) by public and higher education systems according to rules made by the State Board
             5815      of Education and the State Board of Regents to comply with Subsection (5);
             5816          (d) in judicial proceedings, when necessary to insure that justice is served;
             5817          (e) to promote and encourage tourism and economic development, including the
             5818      hosting of international events such as the Olympics; and
             5819          (f) by libraries to:
             5820          (i) collect and promote foreign language materials; and
             5821          (ii) provide foreign language services and activities.
             5822          (5) The State Board of Education and the State Board of Regents shall make rules
             5823      governing the use of foreign languages in the public and higher education systems that promote
             5824      the following principles:
             5825          (a) non-English speaking children and adults should become able to read, write, and


             5826      understand English as quickly as possible;
             5827          (b) foreign language instruction should be encouraged;
             5828          (c) formal and informal programs in English as a Second Language should be initiated,
             5829      continued, and expanded; and
             5830          (d) public schools should establish communication with non-English speaking parents
             5831      of children within their systems, using a means designed to maximize understanding when
             5832      necessary, while encouraging those parents who do not speak English to become more
             5833      proficient in English.
             5834          (6) Unless exempted by Subsection (4), all state funds appropriated or designated for
             5835      the printing or translation of materials or the provision of services or information in a language
             5836      other than English shall be returned to the General Fund.
             5837          (a) Each state agency that has state funds appropriated or designated for the printing or
             5838      translation of materials or the provision of services or information in a language other than
             5839      English shall:
             5840          (i) notify the Division of Finance that [those monies exist] the money exists and the
             5841      amount of [those monies] the money; and
             5842          (ii) return [those monies] the money to the Division of Finance.
             5843          (b) The Division of Finance shall account for [those monies] the money and inform the
             5844      Legislature of the existence and amount of [those monies] the money at the beginning of the
             5845      Legislature's annual general session.
             5846          (c) The Legislature may appropriate any [monies] money received under this section to
             5847      the State School Board for use in English as a Second Language programs.
             5848          (7) Nothing in this section affects the ability of government employees, private
             5849      businesses, nonprofit organizations, or private individuals to exercise their rights under:
             5850          (a) the First Amendment of the United States Constitution; and
             5851          (b) Utah Constitution, Article 1, Sections 1 and 15.
             5852          (8) If any provision of this section, or the application of any such provision to any
             5853      person or circumstance, is held invalid, the remainder of this act shall be given effect without


             5854      the invalid provision or application.
             5855          Section 122. Section 63J-1-104 is amended to read:
             5856           63J-1-104. Revenue types -- Disposition of funds collected or credited by a state
             5857      agency.
             5858          (1) (a) The Division of Finance shall:
             5859          (i) account for revenues in accordance with generally accepted accounting principles;
             5860      and
             5861          (ii) use the major revenue types in internal accounting.
             5862          (b) Each agency shall:
             5863          (i) use the major revenue types to account for revenues;
             5864          (ii) deposit revenues and other public funds received by them by following the
             5865      procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
             5866          (iii) expend revenues and public funds as required by this chapter.
             5867          (2) (a) Each agency shall deposit its free revenues into the appropriate fund.
             5868          (b) An agency may expend free revenues up to the amount specifically appropriated by
             5869      the Legislature.
             5870          (c) Any free revenue funds appropriated by the Legislature to an agency that remain
             5871      unexpended at the end of the fiscal year lapse to the source fund unless the Legislature provides
             5872      by law that those funds are nonlapsing.
             5873          (3) (a) Each agency shall deposit its restricted revenues into the applicable restricted
             5874      account or fund.
             5875          (b) Revenues in a restricted account or fund do not lapse to another account or fund
             5876      unless otherwise specifically provided for by law or legislative appropriation.
             5877          (c) The Legislature may appropriate restricted revenues from a restricted account or
             5878      fund for the specific purpose or program designated by law.
             5879          (d) If the fund equity of a restricted account or fund is insufficient to provide the
             5880      accounts appropriated from it by the Legislature, the Division of Finance may reduce the
             5881      appropriation to a level that ensures that the fund equity is not less than zero.


             5882          (e) Any restricted revenues appropriated by the Legislature to an agency that remain
             5883      unexpended at the end of the fiscal year lapse to the applicable restricted account or fund unless
             5884      the Legislature provides by law that those appropriations, or the program or line item financed
             5885      by those appropriations, are nonlapsing.
             5886          (4) (a) An agency may expend dedicated credits for any purpose within the program or
             5887      line item.
             5888          (b) (i) Except as provided in Subsection (4)(b)(ii), an agency may not expend dedicated
             5889      credits in excess of the amount appropriated as dedicated credits by the Legislature.
             5890          (ii) In order to expend dedicated credits in excess of the amount appropriated as
             5891      dedicated credits by the Legislature, the following procedure shall be followed:
             5892          (A) The agency seeking to make the excess expenditure shall:
             5893          (I) develop a new work program that:
             5894          (Aa) consists of the currently approved work program and the excess expenditure
             5895      sought to be made; and
             5896          (Bb) complies with the requirements of Section 63J-2-202 ;
             5897          (II) prepare a written justification for the new work program that sets forth the purpose
             5898      and necessity of the excess expenditure; and
             5899          (III) submit the new work program and the written justification for the new work
             5900      program to the Division of Finance.
             5901          (B) The Division of Finance shall process the new work program with written
             5902      justification and make this information available to the Governor's Office of Planning and
             5903      Budget and the legislative fiscal analyst.
             5904          (iii) An expenditure of dedicated credits in excess of amounts appropriated as
             5905      dedicated credits by the Legislature may not be used to permanently increase personnel within
             5906      the agency unless:
             5907          (A) the increase is approved by the Legislature; or
             5908          (B) the [monies are] money is deposited as a dedicated [credits] credit in:
             5909          (I) the Drug Stamp Tax Fund under Section 59-19-105 ; or


             5910          (II) a line item covering tuition or federal vocational funds at an institution of higher
             5911      education.
             5912          (c) (i) All excess dedicated credits lapse to the appropriate fund at the end of the fiscal
             5913      year unless the Legislature has designated the entire program or line item that is partially or
             5914      fully funded from dedicated credits as nonlapsing.
             5915          (ii) The Division of Finance shall determine the appropriate fund into which the
             5916      dedicated credits lapse.
             5917          (5) (a) The Legislature may establish by law the maximum amount of fixed collections
             5918      that an agency may expend.
             5919          (b) If an agency receives less than the maximum amount of expendable fixed
             5920      collections established by law, the agency's authority to expend is limited to the amount of
             5921      fixed collections that it receives.
             5922          (c) If an agency receives fixed collections greater than the maximum amount of
             5923      expendable fixed collections established by law, those excess amounts lapse to the General
             5924      Fund, the Education Fund, the Transportation Fund, or the Transportation Investment Fund of
             5925      2005 as designated by the director of the Division of Finance at the end of the fiscal year.
             5926          (6) Unless otherwise specifically provided by law, when an agency has a program or
             5927      line item that is funded by more than one major revenue type:
             5928          (a) the agency shall expend its dedicated credits and fixed collections first; and
             5929          (b) if the program or line item includes both free revenue and restricted revenue, an
             5930      agency shall expend those revenues based upon a proration of the amounts appropriated from
             5931      each of those major revenue types.
             5932          Section 123. Section 63J-1-206 is amended to read:
             5933           63J-1-206. Appropriations governed by chapter -- Restrictions on expenditures --
             5934      Transfer of funds -- Exclusion.
             5935          (1) As used in this section, "work program" means a budget that contains revenues and
             5936      expenditures for specific purposes or functions within an item of appropriation.
             5937          (2) (a) Except as provided in Subsection (2)(b), (3)(e), or where expressly exempted in


             5938      the appropriating act:
             5939          (i) all [monies] money appropriated by the Legislature [are] is appropriated upon the
             5940      terms and conditions set forth in this chapter; and
             5941          (ii) any department, agency, or institution that accepts [monies] money appropriated by
             5942      the Legislature does so subject to the requirements of this chapter.
             5943          (b) This section does not apply to:
             5944          (i) the Legislature and its committees; and
             5945          (ii) the Investigation Account of the Water Resources Construction Fund, which is
             5946      governed by Section 73-10-8 .
             5947          (3) (a) Each appropriation item is to be expended subject to any schedule of programs
             5948      and any restriction attached to the appropriation item, as designated by the Legislature.
             5949          (b) Each schedule of programs or restriction attached to an appropriation item:
             5950          (i) is a restriction or limitation upon the expenditure of the respective appropriation
             5951      made;
             5952          (ii) does not itself appropriate any money; and
             5953          (iii) is not itself an item of appropriation.
             5954          (c) An appropriation or any surplus of any appropriation may not be diverted from any
             5955      department, agency, institution, or division to any other department, agency, institution, or
             5956      division.
             5957          (d) The money appropriated subject to a schedule or programs or restriction may be
             5958      used only for the purposes authorized.
             5959          (e) In order for a department, agency, or institution to transfer [monies] money
             5960      appropriated to it from one program to another program within an item of appropriation, the
             5961      following procedure shall be followed:
             5962          (i) The department, agency, or institution seeking to make the transfer shall prepare:
             5963          (A) a new work program for the fiscal year involved that consists of the currently
             5964      approved work program and the transfer sought to be made; and
             5965          (B) a written justification for the new work program that sets forth the purpose and


             5966      necessity for the transfer.
             5967          (ii) The Division of Finance shall process the new work program with written
             5968      justification and make this information available to the Governor's Office of Planning and
             5969      Budget and the legislative fiscal analyst.
             5970          (f) (i) Except as provided in Subsection (3)(f)(ii), [monies] money may not be
             5971      transferred from one item of appropriation to any other item of appropriation.
             5972          (ii) The state superintendent may transfer [monies] money appropriated for the
             5973      Minimum School Program between line items of appropriation in accordance with Section
             5974      53A-17a-105 .
             5975          (g) (i) The procedures for transferring [monies] money between programs within an
             5976      item of appropriation as provided by Subsection (3)(e) do not apply to [monies] money
             5977      appropriated to the State Board of Education for the Minimum School Program or capital
             5978      outlay programs created in Title 53A, Chapter 21, Public Education Capital Outlay Act.
             5979          (ii) The state superintendent may transfer [monies] money appropriated for the
             5980      programs specified in Subsection (3)(g)(i) only as provided by Section 53A-17a-105 .
             5981          Section 124. Section 63J-1-210 is amended to read:
             5982           63J-1-210. Restrictions on agency expenditures of money -- Lobbyists.
             5983          (1) As used in this section:
             5984          (a) (i) "Agency" means each department, commission, board, council, agency,
             5985      institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,
             5986      unit, bureau, panel, or other administrative unit of the state.
             5987          (ii) "Agency" includes the legislative branch, the judicial branch, the Board of Regents,
             5988      the board of trustees of each higher education institution, each higher education institution, or a
             5989      public education entity.
             5990          (b) "Executive action" means action undertaken by the governor, including signing or
             5991      vetoing legislation, and action undertaken by any official in the executive branch of
             5992      government.
             5993          (c) "Legislative action" means action undertaken by the Utah Legislature or any part of


             5994      it.
             5995          (d) "Lobbyist" means a person who is not an employee of an agency who is hired as an
             5996      independent contractor by the agency to communicate with legislators or the governor for the
             5997      purpose of influencing the passage, defeat, amendment, or postponement of legislative or
             5998      executive action.
             5999          (2) A state agency or entity to which [monies are] money is appropriated by the
             6000      Legislature may not expend any [monies] money to pay a lobbyist.
             6001          Section 125. Section 63J-1-312 is amended to read:
             6002           63J-1-312. Establishing a General Fund Budget Reserve Account -- Providing for
             6003      deposits and expenditures from the account -- Providing for interest generated by the
             6004      account.
             6005          (1) As used in this section:
             6006          (a) "Education Fund budget deficit" means a situation where appropriations made by
             6007      the Legislature from the Education Fund for a fiscal year exceed the estimated revenues
             6008      adopted by the Executive Appropriations Committee of the Legislature for the Education Fund
             6009      in that fiscal year.
             6010          (b) "General Fund appropriations" means the sum of the spending authority for a fiscal
             6011      year that is:
             6012          (i) granted by the Legislature in all appropriation acts and bills; and
             6013          (ii) identified as coming from the General Fund.
             6014          (c) "General Fund budget deficit" means a situation where General Fund appropriations
             6015      made by the Legislature for a fiscal year exceed the estimated revenues adopted by the
             6016      Executive Appropriations Committee of the Legislature for the General Fund in that fiscal year.
             6017          (d) "General Fund revenue surplus" means a situation where actual General Fund
             6018      revenues collected in a completed fiscal year exceed the estimated revenues for the General
             6019      Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
             6020      Legislature.
             6021          (e) "Operating deficit" means that, at the end of the fiscal year, the unreserved and


             6022      undesignated fund balance in the General Fund is less than zero.
             6023          (2) There is created within the General Fund a restricted account to be known as the
             6024      General Fund Budget Reserve Account, which is designated to receive the legislative
             6025      appropriations, investment earnings, and the surplus revenue required to be deposited into the
             6026      account by this section.
             6027          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
             6028      which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
             6029      conjunction with the completion of the annual audit by the state auditor, determines that there
             6030      is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General
             6031      Fund revenue surplus to the General Fund Budget Reserve Account.
             6032          (ii) If the transfer of 25% of the General Fund revenue surplus to the General Fund
             6033      Budget Reserve Account would cause the balance in the account to exceed 6% of General Fund
             6034      appropriations for the fiscal year in which the revenue surplus occurred, the Division of
             6035      Finance shall transfer only those funds necessary to ensure that the balance in the account
             6036      equals 6% of General Fund appropriations for the fiscal year in which the General Fund
             6037      revenue surplus occurred.
             6038          (iii) The Division of Finance shall calculate the amount to be transferred under this
             6039      Subsection (3)(a):
             6040          (A) before transferring from the General Fund revenue surplus any other year-end
             6041      contingency appropriations, year-end set-asides, or other year-end transfers required by law;
             6042      and
             6043          (B) excluding the investment earnings for the fiscal year and excluding any direct
             6044      legislative appropriation made to the General Fund Budget Reserve Account for the fiscal year.
             6045          (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
             6046      a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has
             6047      appropriated any money from the General Fund Budget Reserve Account that has not been
             6048      replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
             6049      transfer up to 25% more of the General Fund revenue surplus to the General Fund Budget


             6050      Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
             6051      any, and transfers from the General Fund revenue surplus under this Subsection (3)(b) have
             6052      replaced the appropriations from the account.
             6053          (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
             6054      exceed 6% of General Fund appropriations for the fiscal year in which the revenue surplus
             6055      occurred, the Division of Finance shall transfer only those funds necessary to ensure that the
             6056      balance in the account equals 6% of General Fund appropriations for the fiscal year in which
             6057      the revenue surplus occurred.
             6058          (iii) The Division of Finance shall calculate the amount to be transferred under this
             6059      Subsection (3)(b):
             6060          (A) before transferring from the General Fund revenue surplus any other year-end
             6061      contingency appropriations, year-end set-asides, or other year-end transfers required by law;
             6062      and
             6063          (B) excluding the investment earnings for the fiscal year and excluding any direct
             6064      legislative appropriation made to the General Fund Budget Reserve Account for the fiscal year.
             6065          (c) For appropriations made by the Legislature to the General Fund Budget Reserve
             6066      Account, the Division of Finance shall treat those appropriations, unless otherwise specified in
             6067      the appropriation, as replacement funds for appropriations made from the account if funds were
             6068      appropriated from the General Fund Budget Reserve Account within the past 10 years and have
             6069      not yet been replaced.
             6070          (4) (a) If, at the close of any fiscal year, there [appear] appears to be insufficient
             6071      [monies] money to pay additional debt service for any bonded debt authorized by the
             6072      Legislature, the Division of Finance may hold back from any General Fund revenue surplus
             6073      [monies] money sufficient to pay the additional debt service requirements resulting from
             6074      issuance of bonded debt that was authorized by the Legislature.
             6075          (b) The Division of Finance may not spend the hold back amount for debt service
             6076      under Subsection (4)(a) unless and until it is appropriated by the Legislature.
             6077          (c) If, after calculating the amount for transfers to the General Fund Budget Reserve


             6078      Account, the remaining General Fund revenue surplus is insufficient to cover the hold back for
             6079      debt service required by Subsection (4)(a), the Division of Finance shall reduce the transfer to
             6080      the General Fund Budget Reserve Account by the amount necessary to cover the debt service
             6081      hold back.
             6082          (d) Notwithstanding Subsection (3), the Division of Finance shall hold back the
             6083      General Fund balance for debt service authorized by this Subsection (4) before making any
             6084      transfers to the General Fund Budget Reserve Account or any other designation or allocation of
             6085      General Fund revenue surplus.
             6086          (5) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
             6087      Finance determines that an operating deficit exists and that holding back the transfers to the
             6088      State Disaster Recovery Restricted Account under Section 63J-1-314 does not eliminate the
             6089      operating deficit, the Division of Finance may reduce the transfer to the General Fund Budget
             6090      Reserve Account by the amount necessary to eliminate the operating deficit.
             6091          (6) The Legislature may appropriate [monies] money from the General Fund Budget
             6092      Reserve Account only to:
             6093          (a) resolve a General Fund budget deficit, for the fiscal year in which the General Fund
             6094      budget deficit occurs;
             6095          (b) pay some or all of state settlement agreements approved under Title 63G, Chapter
             6096      10, State Settlement Agreements Act;
             6097          (c) pay retroactive tax refunds; or
             6098          (d) resolve an Education Fund budget deficit.
             6099          (7) Interest generated from investments of money in the General Fund Budget Reserve
             6100      Account shall be deposited into the General Fund.
             6101          Section 126. Section 63J-1-602.5 is amended to read:
             6102           63J-1-602.5. List of nonlapsing funds and accounts -- Title 64 and thereafter.
             6103          (1) Funds collected by the housing of state probationary inmates or state parole
             6104      inmates, as provided in Subsection 64-13e-104 (2).
             6105          (2) The Sovereign Lands Management account created in Section 65A-5-1 .


             6106          (3) Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and
             6107      State Lands, as provided in Section 65A-8-103 .
             6108          (4) The Department of Human Resource Management user training program, as
             6109      provided in Section 67-19-6 .
             6110          (5) Funds for the University of Utah Poison Control Center program, as provided in
             6111      Section 69-2-5.5 .
             6112          (6) Appropriations to the Transportation Corridor Preservation Revolving Loan Fund,
             6113      as provided in Section 72-2-117 .
             6114          (7) Appropriations to the Local Transportation Corridor Preservation Fund, as provided
             6115      in Section 72-2-117.5 .
             6116          (8) Appropriations to the Tollway Special Revenue Fund, as provided in Section
             6117      72-2-120 .
             6118          (9) Appropriations to the Aeronautics Construction Revolving Loan Fund, as provided
             6119      in Section 72-2-122 .
             6120          (10) The Traffic Noise Abatement Program created in Section 72-6-112 .
             6121          (11) Certain funds received by the Office of the State Engineer for well drilling fines or
             6122      bonds, as provided in Section 73-3-25 .
             6123          (12) Certain [monies] money appropriated to increase the carrying capacity of the
             6124      Jordan River that [are] is transferred to the Division of Parks and Recreation, as provided in
             6125      Section 73-10e-1 .
             6126          (13) Certain funds in the Water Development and Flood Mitigation Reserve Account,
             6127      as provided in Section 73-10e-1 .
             6128          (14) Certain [monies] money appropriated from the Water Resources Conservation and
             6129      Development Fund, as provided in Section 73-23-2 .
             6130          (15) The Lake Powell Pipeline Project Operation and Maintenance Fund created in
             6131      Section 73-28-404 .
             6132          (16) Certain funds appropriated for compensation for special prosecutors, as provided
             6133      in Section 77-10a-19 .


             6134          (17) The Indigent Aggravated Murder Defense Trust Fund created in Section
             6135      77-32-601 .
             6136          (18) The Indigent Felony Defense Trust Fund created in Section 77-32-701 .
             6137          (19) Funds donated or paid to a juvenile court by private sources, as provided in
             6138      Subsection 78A-6-203 (1)(c).
             6139          (20) A state rehabilitative employment program, as provided in Section 78A-6-210 .
             6140          (21) The account for the Utah Geological Survey, as provided in Section 79-3-401 .
             6141          (22) Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
             6142      Park, Jordan River State Park, and Green River State Park, as provided under Section
             6143      79-4-403 .
             6144          (23) Certain funds received by the Division of Parks and Recreation from the sale or
             6145      disposal of buffalo, as provided under Section 79-4-1001 .
             6146          (24) The Bonneville Shoreline Trail Program created under Section 79-5-503 .
             6147          Section 127. Section 63J-3-205 is amended to read:
             6148           63J-3-205. Money excluded from the limitation.
             6149          [Monies] Money from the following sources [are] is excluded from the revenues
             6150      appropriated and used in determining a limitation:
             6151          (1) [monies] money received from the government of the United States including
             6152      federal mineral lease payments;
             6153          (2) [monies] money received by the state from another unit of government, except the
             6154      proceeds of taxes, fees, or penalties imposed by the state and collected by the other unit of
             6155      government;
             6156          (3) [monies] money derived from the issuance of, or to pay interest, principal, or
             6157      redemption premiums on, any security;
             6158          (4) [monies] money received from the sale of fixed assets or gains on fixed asset
             6159      transfers;
             6160          (5) the proceeds of contracts, grants, gifts, donations, and bequests made to the state for
             6161      a purpose specified by the contractor or donor;


             6162          (6) user charges derived by the state from the sale of a product or service pledged or
             6163      legally available to repay any security or for which the quantity of the product or level of
             6164      service provided to a user is at the discretion of the user; and
             6165          (7) [monies] money raised to meet fiscal emergencies.
             6166          Section 128. Section 63M-1-303 is amended to read:
             6167           63M-1-303. Board duties and powers.
             6168          (1) The board shall:
             6169          (a) promote and encourage the economic, commercial, financial, industrial,
             6170      agricultural, and civic welfare of the state;
             6171          (b) do all lawful acts for the development, attraction, and retention of businesses,
             6172      industries, and commerce within the state;
             6173          (c) promote and encourage the expansion and retention of businesses, industries, and
             6174      commerce located in the state;
             6175          (d) support the efforts of local government and regional nonprofit economic
             6176      development organizations to encourage expansion or retention of businesses, industries, and
             6177      commerce located in the state;
             6178          (e) do other acts not specifically enumerated in this chapter, if the acts are for the
             6179      betterment of the economy of the state;
             6180          (f) work in conjunction with companies and individuals located or doing business
             6181      within the state to secure favorable rates, fares, tolls, charges, and classification for
             6182      transportation of persons or property by:
             6183          (i) railroad;
             6184          (ii) motor carrier; or
             6185          (iii) other common carriers;
             6186          (g) recommend policies, priorities, and objectives to the office regarding the assistance,
             6187      retention, or recruitment of business, industries, and commerce in the state; and
             6188          (h) recommend how any money or program administered by the office or its divisions
             6189      for the assistance, retention, or recruitment of businesses, industries, and commerce in the state


             6190      shall be administered, so that the money or program is equitably available to all areas of the
             6191      state unless federal or state law requires or authorizes the geographic location of a recipient of
             6192      the money or program to be considered in the distribution of the money or administration of the
             6193      program.
             6194          (2) The board may:
             6195          (a) in furtherance of the authority granted under Subsection (1)(f), appear as a party
             6196      litigant on behalf of individuals or companies located or doing business within the state in
             6197      proceedings before regulatory commissions of the state, other states, or the federal government
             6198      having jurisdiction over such matters; and
             6199          (b) make, amend, or repeal rules for the conduct of its business consistent with this part
             6200      and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
             6201          (3) (a) Subject to Subsection (3)(b), when [monies are] money is appropriated or
             6202      otherwise made available to the office by the Legislature for the purchase of a contract for the
             6203      sale of land, the board, with the approval of the state treasurer, may purchase the contract if the
             6204      board makes a finding that the purchase of the contract promotes a statewide public interest
             6205      such as promoting ease of interstate or intrastate travel or advancing economic development.
             6206          (b) (i) As used in this Subsection (3)(b), "net projected debt service cost" means the
             6207      [monies] money projected to be necessary to pay bond issuance costs for a general obligation
             6208      bond and to make any interest payments for that general obligation bond less the projected
             6209      investment earnings from the state's investment of that bond's proceeds, if any.
             6210          (ii) When some or all of the [monies] money made available by the Legislature to
             6211      purchase a contract for the sale of land [are] is provided from the proceeds from the issuance of
             6212      one or more general obligation bonds, if the board and state treasurer decide to purchase the
             6213      contract, the board and state treasurer shall purchase the contract at a price discounted by an
             6214      amount equal to the total net projected debt service cost for those bonds.
             6215          (iii) The State Bonding Commission shall certify the total net projected debt service
             6216      cost to the board and the state treasurer.
             6217          (iv) In purchasing a contract, the board and state treasurer may:


             6218          (A) purchase the contract with a single payment; or
             6219          (B) arrange to have the contract placed in escrow pending the final payment on the
             6220      contract and make multiple payments on the contract according to a schedule that is negotiated
             6221      with the holder of the contract and included as part of the contract.
             6222          (c) Before purchasing a contract, the board and the state treasurer shall:
             6223          (i) contract with a qualified person or entity to prepare a report evaluating the
             6224      purchaser of the land;
             6225          (ii) ensure that the report evaluates:
             6226          (A) the purchaser's financial ability to pay the money to complete the purchase on the
             6227      date that the final payment is due under the contract;
             6228          (B) whether or not the security underlying the contract is adequate to protect the state if
             6229      the purchaser defaults;
             6230          (C) the purchaser's balance sheet and general credit-worthiness;
             6231          (D) environmental issues affecting the property under federal or state law; and
             6232          (E) any other items that will assist the board and the state treasurer in determining
             6233      whether or not to purchase the contract;
             6234          (iii) ensure that the state has or will have a properly perfected security interest in, title
             6235      to, or a deed in escrow for, the property that is the subject of the purchase; and
             6236          (iv) after reviewing the report, evaluating the state's security in case of a default on the
             6237      contract, and considering the terms of the proposed contract, determine whether or not to
             6238      purchase the contract.
             6239          (d) The board and the state treasurer may not purchase a contract under this Subsection
             6240      (3) if the date of the last payment owed by the land purchaser under the contract is more than
             6241      seven years from the date that the board purchases the contract.
             6242          Section 129. Section 63M-1-1207 is amended to read:
             6243           63M-1-1207. Utah Capital Investment Corporation -- Powers and purposes.
             6244          (1) (a) There is created an independent quasi-public nonprofit corporation known as the
             6245      Utah Capital Investment Corporation.


             6246          (b) The corporation:
             6247          (i) may exercise all powers conferred on independent corporations under Section
             6248      63E-2-106 ;
             6249          (ii) is subject to the prohibited participation provisions of Section 63E-2-107 ; and
             6250          (iii) is subject to the other provisions of Title 63E, Chapter 2, Independent
             6251      Corporations Act, except as otherwise provided in this part.
             6252          (c) The corporation shall file with the Division of Corporations and Commercial Code:
             6253          (i) articles of incorporation; and
             6254          (ii) any amendment to its articles of incorporation.
             6255          (d) In addition to the articles of incorporation, the corporation may adopt bylaws and
             6256      operational policies that are consistent with this chapter.
             6257          (e) Except as otherwise provided in this part, this part does not exempt the corporation
             6258      from the requirements under state law which apply to other corporations organized under Title
             6259      63E, Chapter 2, Independent Corporations Act.
             6260          (2) The purposes of the corporation are to:
             6261          (a) organize the Utah fund of funds;
             6262          (b) select a venture capital investment fund allocation manager to make venture capital
             6263      fund investments by the Utah fund of funds;
             6264          (c) negotiate the terms of a contract with the venture capital investment fund allocation
             6265      manager;
             6266          (d) execute the contract with the selected venture capital investment fund manager on
             6267      behalf of the Utah fund of funds;
             6268          (e) receive funds paid by designated investors for the issuance of certificates by the
             6269      board for private investment in the Utah fund of funds;
             6270          (f) receive investment returns from the Utah fund of funds; and
             6271          (g) establish the redemption reserve to be used by the corporation to redeem
             6272      certificates.
             6273          (3) The corporation may not:


             6274          (a) exercise governmental functions;
             6275          (b) have members;
             6276          (c) pledge the credit or taxing power of the state or any political subdivision of the
             6277      state; or
             6278          (d) make its debts payable out of any [moneys] money except [those] money of the
             6279      corporation.
             6280          (4) The obligations of the corporation are not obligations of the state or any political
             6281      subdivision of the state within the meaning of any constitutional or statutory debt limitations,
             6282      but are obligations of the corporation payable solely and only from the corporation's funds.
             6283          (5) The corporation may:
             6284          (a) engage consultants and legal counsel;
             6285          (b) expend funds;
             6286          (c) invest funds;
             6287          (d) issue debt and borrow funds;
             6288          (e) enter into contracts;
             6289          (f) insure against loss;
             6290          (g) hire employees; and
             6291          (h) perform any other act necessary to carry out its purposes.
             6292          Section 130. Section 63M-1-1218 is amended to read:
             6293           63M-1-1218. Certificates and contingent tax credits.
             6294          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             6295      board, in consultation with the State Tax Commission, shall make rules governing the form,
             6296      issuance, transfer, and redemption of certificates.
             6297          (2) The board's issuance of certificates and related contingent tax credits to designated
             6298      investors is subject to the following:
             6299          (a) the aggregate outstanding certificates may not exceed a total of $300,000,000 of
             6300      contingent tax credits;
             6301          (b) the board shall issue a certificate contemporaneously with an investment in the


             6302      Utah fund of funds by a designated investor;
             6303          (c) the board shall issue contingent tax credits in a manner that not more than
             6304      $20,000,000 of contingent tax credits for each $100,000,000 increment of contingent tax
             6305      credits may be redeemable in any fiscal year; and
             6306          (d) the credits are certifiable if there are insufficient funds in the redemption reserve to
             6307      make a cash redemption and the board does not exercise its other options under Subsection
             6308      63M-1-1220 (3)(b).
             6309          (3) In determining the $300,000,000 maximum limit in Subsection (2)(a) and the
             6310      $20,000,000 limitation for each $100,000,000 increment of contingent tax credits in Subsection
             6311      (2)(c):
             6312          (a) the board shall use the cumulative amount of scheduled aggregate returns on
             6313      certificates issued by the board to designated investors;
             6314          (b) certificates and related contingent tax credits which have expired may not be
             6315      included; and
             6316          (c) certificates and related contingent tax credits which have been redeemed shall be
             6317      included only to the extent of tax credits actually allowed.
             6318          (4) Contingent tax credits are subject to the following:
             6319          (a) a contingent tax credit may not be redeemed except by a designated investor in
             6320      accordance with the terms of a certificate from the board;
             6321          (b) a contingent tax credit may not be redeemed prior to the time the Utah fund of
             6322      funds receives full payment from the designated investor for the certificate;
             6323          (c) a contingent tax credit shall be claimed for a tax year that begins during the
             6324      calendar year maturity date stated on the certificate;
             6325          (d) an investor who redeems a certificate and the related contingent tax credit shall
             6326      allocate the amount of the contingent tax credit to the taxpayers of the investor based on the
             6327      taxpayer's pro rata share of the investor's earnings; and
             6328          (e) a contingent tax credit shall be claimed as a refundable credit.
             6329          (5) In calculating the amount of a contingent tax credit:


             6330          (a) the board shall certify a contingent tax credit only if the actual return or payment of
             6331      principal and interest to the designated investor is less than that targeted at the issuance of the
             6332      certificate;
             6333          (b) the amount of the contingent tax credit for a designated investor with an equity
             6334      interest may not exceed the difference between:
             6335          (i) the sum of:
             6336          (A) the initial private investment of the designated investor in the Utah fund of funds;
             6337      and
             6338          (B) the scheduled aggregate return to the designated investor at rates of return
             6339      authorized by the board at the issuance of the certificate; and
             6340          (ii) the aggregate actual return received by the designated investor and any predecessor
             6341      in interest of the initial equity investment and interest on the initial equity investment;
             6342          (c) the rates, whether fixed rates or variable rates, shall be determined by a formula
             6343      stipulated in the certificate; and
             6344          (d) the amount of the contingent tax credit for a designated investor with a loan or
             6345      other debt obligation from the Utah fund of funds shall be equal to the amount of any principal,
             6346      interest, or interest equivalent unpaid at the redemption of the loan or other obligation, as
             6347      stipulated in the certificate.
             6348          (6) The board shall clearly indicate on the certificate:
             6349          (a) the targeted return on the invested capital, if the private investment is an equity
             6350      interest;
             6351          (b) the payment schedule of principal, interest, or interest equivalent, if the private
             6352      investment is a loan or other debt obligation;
             6353          (c) the amount of the initial private investment;
             6354          (d) the calculation formula for determining the scheduled aggregate return on the initial
             6355      equity investment, if applicable; and
             6356          (e) the calculation formula for determining the amount of the contingent tax credit that
             6357      may be claimed.


             6358          (7) Once [moneys are] money is invested by a designated investor, the certificate:
             6359          (a) is binding on the board; and
             6360          (b) may not be modified, terminated, or rescinded.
             6361          (8) Funds invested by a designated investor for a certificate shall be paid to the
             6362      corporation for placement in the Utah fund of funds.
             6363          (9) The State Tax Commission may, in accordance with Title 63G, Chapter 3, Utah
             6364      Administrative Rulemaking Act, and in consultation with the board, make rules to help
             6365      implement this section.
             6366          Section 131. Section 63M-1-1406 is amended to read:
             6367           63M-1-1406. Tourism Marketing Performance Account.
             6368          (1) There is created within the General Fund a restricted account known as the Tourism
             6369      Marketing Performance Account.
             6370          (2) The account shall be administered by the office for the purposes listed in
             6371      Subsection (5).
             6372          (3) (a) The account shall earn interest.
             6373          (b) All interest earned on account [monies] money shall be deposited into the account.
             6374          [(c) Monies in the account are nonlapsing.]
             6375          (4) The account shall be funded by appropriations made to the account by the
             6376      Legislature in accordance with this section.
             6377          (5) The director may use account [monies] money appropriated to the office to pay for
             6378      the statewide advertising, marketing, and branding campaign for promotion of the state as
             6379      conducted by the office.
             6380          (6) (a) For the fiscal year beginning July 1, 2007, the director shall allocate 10% of the
             6381      account [monies] money appropriated to the office to be distributed to a sports organization for
             6382      advertising, marketing, branding, and promoting Utah in attracting sporting events into the
             6383      state as determined by the office.
             6384          (b) For a fiscal year beginning on or after July 1, 2008, the amount distributed under
             6385      Subsection (6)(a) shall be indexed from the July 1, 2007 fiscal year to reflect a percent increase


             6386      or decrease of [monies] money set aside into the account as compared to the previous fiscal
             6387      year.
             6388          (c) The [monies] money distributed under Subsections (6)(a) and (b) [are] is
             6389      nonlapsing.
             6390          (d) The office shall provide for an annual accounting to the office by a sports
             6391      organization of the use of [monies] money it receives under Subsection (6)(a) or (b).
             6392          (e) For purposes of this Subsection (6), "sports organization" means an organization
             6393      that is:
             6394          (i) exempt from federal income taxation in accordance with Section 501(c)(3), Internal
             6395      Revenue Code; and
             6396          (ii) created to foster national and international amateur sports competitions to be held
             6397      in the state and sports tourism throughout the state, to include advertising, marketing, branding,
             6398      and promoting Utah for the purpose of attracting sporting events into the state.
             6399          (7) (a) [Monies] Money set aside into the account shall be as follows:
             6400          (i) for the fiscal year beginning July 1, 2005 only, an amount appropriated in Section 7
             6401      of this bill;
             6402          (ii) for the fiscal year beginning July 1, 2006:
             6403          (A) the beginning nonlapsing appropriation balances, if any, in the Tourism Marketing
             6404      Performance Account;
             6405          (B) any legislative appropriation from the sales and use tax revenue increases identified
             6406      in Subsection (8); and
             6407          (C) any appropriation made by the Legislature from the General Fund to the account in
             6408      an appropriations bill; and
             6409          (iii) for the fiscal year beginning July 1, 2007, and for each fiscal year thereafter, a
             6410      $1,000,000 reduction in the prior year's appropriation sources other than the sales and use tax
             6411      revenue increases identified in Subsection (8), plus a legislative appropriation from the
             6412      cumulative sales and use tax revenue increases identified in Subsection (8).
             6413          (b) [Monies] Money in the account [are] is nonlapsing.


             6414          (8) (a) In fiscal years 2006 through 2015, a portion of the state sales and use tax
             6415      revenues determined under this Subsection (8) shall be certified as a set-aside for the account
             6416      by the State Tax Commission and reported to the Office of Legislative Fiscal Analyst.
             6417          (b) The State Tax Commission shall determine the set-aside under this Subsection (8)
             6418      in each fiscal year by applying the following formula: if the increase in the state sales and use
             6419      tax revenues derived from the retail sales of tourist-oriented goods and services in the fiscal
             6420      year two years prior to the fiscal year in which the set-aside is to be made for the account is at
             6421      least 3% over the state sales and use tax revenues derived from the retail sales of
             6422      tourist-oriented goods and services generated in the fiscal year three years prior to the fiscal
             6423      year in which the set-aside is to be made, an amount equal to 1/2 of the state sales and use tax
             6424      revenues generated above the 3% increase shall be calculated by the commission and set aside
             6425      by the state treasurer for appropriation to the account.
             6426          (c) Total [monies] money to be appropriated to the account in any fiscal year under
             6427      Subsections (8)(a) and (b) may not exceed the amount in the account under this section in the
             6428      fiscal year immediately preceding the current fiscal year by more than $3,000,000.
             6429          (d) As used in this Subsection (8), "sales of tourism-oriented goods and services" are
             6430      those sales by businesses registered with the State Tax Commission under the following codes
             6431      of the 1997 North American Industry Classification System of the federal Executive Office of
             6432      the President, Office of Management and Budget:
             6433          (i) NAICS Code 453 Miscellaneous Store Retailers;
             6434          (ii) NAICS Code 481 Passenger Air Transportation;
             6435          (iii) NAICS Code 487 Scenic and Sightseeing Transportation;
             6436          (iv) NAICS Code 711 Performing Arts, Spectator Sports and Related Industries;
             6437          (v) NAICS Code 712 Museums, Historical Sites and Similar Institutions;
             6438          (vi) NAICS Code 713 Amusement, Gambling and Recreation Industries;
             6439          (vii) NAICS Code 721 Accommodations;
             6440          (viii) NAICS Code 722 Food Services and Drinking Places;
             6441          (ix) NAICS Code 4483 Jewelry, Luggage, and Leather Goods Stores;


             6442          (x) NAICS Code 4853 Taxi and Limousine Service;
             6443          (xi) NAICS Code 4855 Charter Bus;
             6444          (xii) NAICS Code 5615 Travel Arrangement and Reservation Services;
             6445          (xiii) NAICS Code 44611 Pharmacies and Drug Stores;
             6446          (xiv) NAICS Code 45111 Sporting Goods Stores;
             6447          (xv) NAICS Code 45112 Hobby Toy and Game Stores;
             6448          (xvi) NAICS Code 45121 Book Stores and News Dealers;
             6449          (xvii) NAICS Code 445120 Convenience Stores without Gas Pumps;
             6450          (xviii) NAICS Code 447110 Gasoline Stations with Convenience Stores;
             6451          (xix) NAICS Code 447190 Other Gasoline Stations;
             6452          (xx) NAICS Code 532111 Passenger Car Rental; and
             6453          (xxi) NAICS Code 532292 Recreational Goods Rental.
             6454          (e) For the fiscal year beginning on July 1, 2009, $6,000,000 of ongoing [monies]
             6455      money in the account shall be transferred to the General Fund.
             6456          Section 132. Section 63M-7-511 is amended to read:
             6457           63M-7-511. Compensable losses and amounts.
             6458          A reparations award under this chapter may be made if:
             6459          (1) the reparations officer finds the claim satisfies the requirements for the award under
             6460      the provisions of this chapter and the rules of the board;
             6461          (2) [monies are] money is available in the fund;
             6462          (3) the person for whom the award of reparations is to be paid is otherwise eligible
             6463      under this part; and
             6464          (4) the claim is for an allowable expense incurred by the victim, as follows:
             6465          (a) reasonable and necessary charges incurred for products, services, and
             6466      accommodations;
             6467          (b) inpatient and outpatient medical treatment and physical therapy, subject to rules
             6468      promulgated by the board pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking
             6469      Act;


             6470          (c) mental health counseling which:
             6471          (i) is set forth in a mental health treatment plan which has been approved prior to any
             6472      payment by a reparations officer; and
             6473          (ii) qualifies within any further rules promulgated by the board pursuant to Title 63G,
             6474      Chapter 3, Utah Administrative Rulemaking Act;
             6475          (d) actual loss of past earnings and anticipated loss of future earnings because of a
             6476      death or disability resulting from the personal injury at a rate not to exceed 66-2/3% of the
             6477      person's weekly gross salary or wages or the maximum amount allowed under the state
             6478      workers' compensation statute;
             6479          (e) care of minor children enabling a victim or spouse of a victim, but not both of them,
             6480      to continue gainful employment at a rate per child per week as determined under rules
             6481      established by the board;
             6482          (f) funeral and burial expenses for death caused by the criminally injurious conduct,
             6483      subject to rules promulgated by the board pursuant to Title 63G, Chapter 3, Utah
             6484      Administrative Rulemaking Act;
             6485          (g) loss of support to the dependent or dependents not otherwise compensated for a
             6486      pecuniary loss for personal injury, for as long as the dependence would have existed had the
             6487      victim survived, at a rate not to exceed 66-2/3% of the person's weekly salary or wages or the
             6488      maximum amount allowed under the state workers' compensation statute, whichever is less;
             6489          (h) personal property necessary and essential to the health or safety of the victim as
             6490      defined by rules promulgated by the board pursuant to Title 63G, Chapter 3, Utah
             6491      Administrative Rulemaking Act; and
             6492          (i) medical examinations as defined in Section 63M-7-502 , subject to rules
             6493      promulgated by the board pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking
             6494      Act, which may allow for exemptions from Sections 63M-7-509 , 63M-7-512 , and 63M-7-513 .
             6495          Section 133. Section 63M-7-514 is amended to read:
             6496           63M-7-514. Notification of claimant -- Suspension of proceedings.
             6497          (1) The Office of Crime Victim Reparations shall immediately notify the claimant in


             6498      writing of any award and shall forward to the Division of Finance a certified copy of the award
             6499      and a warrant request for the amount of the award. The Division of Finance shall pay the
             6500      claimant the amount submitted to the division, out of the fund. If [monies] money in the fund
             6501      [are] is temporarily depleted, claimants approved to receive awards shall be placed on a waiting
             6502      list and shall receive their awards as funds are available in the order in which their awards were
             6503      approved.
             6504          (2) The reparations officer may suspend the proceedings pending disposition of a
             6505      criminal prosecution that has been commenced or is imminent.
             6506          Section 134. Section 65A-8-103 is amended to read:
             6507           65A-8-103. Forestry and fire control funds.
             6508          (1) The division shall use [monies] money available to it to meet the costs of:
             6509          (a) controlling forest, range, and watershed fires;
             6510          (b) controlling insect and disease epidemics;
             6511          (c) rehabilitating or reforesting nonfederal forest, range, and watershed lands; and
             6512          (d) carrying on the purposes of this chapter.
             6513          (2) All [monies] money available to the division to meet the costs of Subsections (1)(a)
             6514      through (d) [are] is nonlapsing and available to the division until expended.
             6515          (3) (a) The collection and disbursement of all money made available to the division
             6516      shall be in accordance with the rules of the Division of Finance.
             6517          (b) [Monies] Money collected by the division from fees, rentals, sales, contributions,
             6518      reimbursements, and other such sources shall be deposited in the appropriate account.
             6519          Section 135. Section 65A-8-205 is amended to read:
             6520           65A-8-205. Agreements for coverage by the Wildland Fire Suppression Fund --
             6521      Eligible lands -- County and state obligations -- Termination -- Revocation.
             6522          (1) (a) A county legislative body may enter annually into a written agreement with the
             6523      state forester to provide for payment from the Wildland Fire Suppression Fund of fire
             6524      suppression costs incurred by the county in excess of the county's fire suppression budget.
             6525          (b) Fire suppression costs on forest, range, and watershed lands within the


             6526      unincorporated area of a county, except federal or state lands, are eligible for coverage by the
             6527      Wildland Fire Suppression Fund.
             6528          (2) (a) An agreement for payment of fire suppression costs from the Wildland Fire
             6529      Suppression Fund shall provide that the county shall:
             6530          (i) except as provided by Subsection (2)(b), pay into the fund an amount equal to:
             6531          (A) .01 times the number of acres of privately- or county-owned land in the
             6532      unincorporated area of the county; and
             6533          (B) .0001151 times the taxable value of real property in the unincorporated area of the
             6534      county; and
             6535          (ii) budget an amount for fire suppression costs determined to be normal by the state
             6536      forester in accordance with the formula specified by rule.
             6537          (b) A county is not required to pay for an acre or real property described in Subsection
             6538      (2)(a)(i) if the acre or real property:
             6539          (i) is subject to concentrated residential, commercial, or industrial development;
             6540          (ii) would not be exposed to wildland fire; and
             6541          (iii) would not expose any wildland to fire spreading from it.
             6542          (3) (a) Any county that elects to initiate participation in the fund, or reestablish
             6543      participation in the fund after participation was terminated, shall make an equity payment, in
             6544      addition to the assessment provided in Subsection (2)(a)(i).
             6545          (b) The equity payment shall represent what the county's equity in the fund would be if
             6546      the county had made assessments into the fund for each of the previous three years.
             6547          (c) The equity payment shall be determined by the state forester in accordance with
             6548      division rules.
             6549          (4) The agreement shall provide that:
             6550          (a) the state shall pay into the fund an amount equal to the county's payment, including
             6551      any equity payment required under Subsection (3); and
             6552          (b) if [monies] money in the fund [are] is insufficient to pay for all eligible fire
             6553      suppression costs, the state shall pay for 1/2 of the county's remaining costs.


             6554          (5) The agreement shall provide for revocation of the agreement for failure to pay
             6555      assessments when due.
             6556          (6) Any county that elects to withdraw from participation in the fund, or whose
             6557      participation in the fund is revoked due to failure to pay its assessments when due, shall forfeit
             6558      any right to any previously paid assessments by the county.
             6559          Section 136. Section 67-3-1 is amended to read:
             6560           67-3-1. Functions and duties.
             6561          (1) (a) The state auditor is the auditor of public accounts and is independent of any
             6562      executive or administrative officers of the state.
             6563          (b) The state auditor is not limited in the selection of personnel or in the determination
             6564      of the reasonable and necessary expenses of the state auditor's office.
             6565          (2) The state auditor shall examine and certify annually in respect to each fiscal year,
             6566      financial statements showing:
             6567          (a) the condition of the state's finances;
             6568          (b) the revenues received or accrued;
             6569          (c) expenditures paid or accrued;
             6570          (d) the amount of unexpended or unencumbered balances of the appropriations to the
             6571      agencies, departments, divisions, commissions, and institutions; and
             6572          (e) the cash balances of the funds in the custody of the state treasurer.
             6573          (3) (a) The state auditor shall:
             6574          (i) audit each permanent fund, each special fund, the General Fund, and the accounts of
             6575      any department of state government or any independent agency or public corporation as the law
             6576      requires, as the auditor determines is necessary, or upon request of the governor or the
             6577      Legislature;
             6578          (ii) perform the audits in accordance with generally accepted auditing standards and
             6579      other auditing procedures as promulgated by recognized authoritative bodies;
             6580          (iii) as the auditor determines is necessary, conduct the audits to determine:
             6581          (A) honesty and integrity in fiscal affairs;


             6582          (B) accuracy and reliability of financial statements;
             6583          (C) effectiveness and adequacy of financial controls; and
             6584          (D) compliance with the law.
             6585          (b) If any state entity receives federal funding, the state auditor shall ensure that the
             6586      audit is performed in accordance with federal audit requirements.
             6587          (c) (i) The costs of the federal compliance portion of the audit may be paid from an
             6588      appropriation to the state auditor from the General Fund.
             6589          (ii) If an appropriation is not provided, or if the federal government does not
             6590      specifically provide for payment of audit costs, the costs of the federal compliance portions of
             6591      the audit shall be allocated on the basis of the percentage that each state entity's federal funding
             6592      bears to the total federal funds received by the state.
             6593          (iii) The allocation shall be adjusted to reflect any reduced audit time required to audit
             6594      funds passed through the state to local governments and to reflect any reduction in audit time
             6595      obtained through the use of internal auditors working under the direction of the state auditor.
             6596          (4) (a) Except as provided in Subsection (4)(b), the state auditor shall, in addition to
             6597      financial audits, and as the auditor determines is necessary, conduct performance and special
             6598      purpose audits, examinations, and reviews of any entity that receives public funds, including a
             6599      determination of any or all of the following:
             6600          (i) the honesty and integrity of all its fiscal affairs;
             6601          (ii) whether or not its administrators have faithfully complied with legislative intent;
             6602          (iii) whether or not its operations have been conducted in an efficient, effective, and
             6603      cost-efficient manner;
             6604          (iv) whether or not its programs have been effective in accomplishing the intended
             6605      objectives; and
             6606          (v) whether or not its management, control, and information systems are adequate and
             6607      effective.
             6608          (b) The auditor may not conduct performance and special purpose audits,
             6609      examinations, and reviews of any entity that receives public funds if the entity:


             6610          (i) has an elected auditor; and
             6611          (ii) has, within the entity's last budget year, had its financial statements or performance
             6612      formally reviewed by another outside auditor.
             6613          (5) The state auditor shall administer any oath or affirmation necessary to the
             6614      performance of the duties of the auditor's office, and may subpoena witnesses and documents,
             6615      whether electronic or otherwise, and examine into any matter that the auditor considers
             6616      necessary.
             6617          (6) The state auditor may require all persons who have had the disposition or
             6618      management of any property of this state or its political subdivisions to submit statements
             6619      regarding it at the time and in the form that the auditor requires.
             6620          (7) The state auditor shall:
             6621          (a) except where otherwise provided by law, institute suits in Salt Lake County in
             6622      relation to the assessment, collection, and payment of its revenues against:
             6623          (i) persons who by any means have become entrusted with public [monies] money or
             6624      property and have failed to pay over or deliver [those monies] the money or property; and
             6625          (ii) all debtors of the state;
             6626          (b) collect and pay into the state treasury all fees received by the state auditor;
             6627          (c) perform the duties of a member of all boards of which the state auditor is a member
             6628      by the constitution or laws of the state, and any other duties that are prescribed by the
             6629      constitution and by law;
             6630          (d) stop the payment of the salary of any state official or state employee who:
             6631          (i) refuses to settle accounts or provide required statements about the custody and
             6632      disposition of public funds or other state property;
             6633          (ii) refuses, neglects, or ignores the instruction of the state auditor or any controlling
             6634      board or department head with respect to the manner of keeping prescribed accounts or funds;
             6635      or
             6636          (iii) fails to correct any delinquencies, improper procedures, and errors brought to the
             6637      official's or employee's attention;


             6638          (e) establish accounting systems, methods, and forms for public accounts in all taxing
             6639      or fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
             6640          (f) superintend the contractual auditing of all state accounts;
             6641          (g) subject to Subsection (8), withhold state allocated funds or the disbursement of
             6642      property taxes from any state taxing or fee-assessing unit, if necessary, to ensure that officials
             6643      and employees in those taxing units of the state comply with state laws and procedures in the
             6644      budgeting, expenditures, and financial reporting of public funds; and
             6645          (h) subject to Subsection (9), withhold the disbursement of tax [monies] money from
             6646      any county, if necessary, to ensure that officials and employees in the county comply with
             6647      Section 59-2-303.1 .
             6648          (8) Except as otherwise provided by law, the state auditor may not withhold funds
             6649      under Subsection (7)(g) until a taxing or fee-assessing unit has received formal written notice
             6650      of noncompliance from the auditor and has been given 60 days to make the specified
             6651      corrections.
             6652          (9) The state auditor may not withhold funds under Subsection (7)(h) until a county has
             6653      received formal written notice of noncompliance from the auditor and has been given 60 days
             6654      to make the specified corrections.
             6655          (10) The state auditor shall:
             6656          (a) establish audit guidelines and procedures for audits of local mental health and
             6657      substance abuse authorities and their contract providers, conducted pursuant to Title 17,
             6658      Chapter 43, Parts 2, Local Substance Abuse Authorities and 3, Local Mental Health
             6659      Authorities, Title 51, Chapter 2a, Accounting Reports from Political Subdivisions, Interlocal
             6660      Organizations, and Other Local Entities Act, and Title 62A, Chapter 15, Substance Abuse and
             6661      Mental Health Act; and
             6662          (b) ensure that those guidelines and procedures provide assurances to the state that:
             6663          (i) state and federal funds appropriated to local mental health authorities are used for
             6664      mental health purposes;
             6665          (ii) a private provider under an annual or otherwise ongoing contract to provide


             6666      comprehensive mental health programs or services for a local mental health authority is in
             6667      compliance with state and local contract requirements, and state and federal law;
             6668          (iii) state and federal funds appropriated to local substance abuse authorities are used
             6669      for substance abuse programs and services; and
             6670          (iv) a private provider under an annual or otherwise ongoing contract to provide
             6671      comprehensive substance abuse programs or services for a local substance abuse authority is in
             6672      compliance with state and local contract requirements, and state and federal law.
             6673          (11) The state auditor may, in accordance with the auditor's responsibilities for political
             6674      subdivisions of the state as provided in Title 51, Chapter 2a, Accounting Reports from Political
             6675      Subdivisions, Interlocal Organizations, and Other Local Entities Act, initiate audits or
             6676      investigations of any political subdivision that are necessary to determine honesty and integrity
             6677      in fiscal affairs, accuracy and reliability of financial statements, effectiveness, and adequacy of
             6678      financial controls and compliance with the law.
             6679          (12) (a) The state auditor may not audit work that the state auditor performed before
             6680      becoming state auditor.
             6681          (b) If the state auditor has previously been a responsible official in state government
             6682      whose work has not yet been audited, the Legislature shall:
             6683          (i) designate how that work shall be audited; and
             6684          (ii) provide additional funding for those audits, if necessary.
             6685          (13) The state auditor shall:
             6686          (a) with the assistance, advice, and recommendations of an advisory committee
             6687      appointed by the state auditor from among local district boards of trustees, officers, and
             6688      employees and special service district boards, officers, and employees:
             6689          (i) prepare a Uniform Accounting Manual for Local Districts that:
             6690          (A) prescribes a uniform system of accounting and uniform budgeting and reporting
             6691      procedures for local districts under Title 17B, Limited Purpose Local Government Entities -
             6692      Local Districts, and special service districts under Title 17D, Chapter 1, Special Service
             6693      District Act;


             6694          (B) conforms with generally accepted accounting principles; and
             6695          (C) prescribes reasonable exceptions and modifications for smaller districts to the
             6696      uniform system of accounting, budgeting, and reporting;
             6697          (ii) maintain the manual under Subsection (13)(a) so that it continues to reflect
             6698      generally accepted accounting principles;
             6699          (iii) conduct a continuing review and modification of procedures in order to improve
             6700      them;
             6701          (iv) prepare and supply each district with suitable budget and reporting forms; and
             6702          (v) prepare instructional materials, conduct training programs, and render other
             6703      services considered necessary to assist local districts and special service districts in
             6704      implementing the uniform accounting, budgeting, and reporting procedures; and
             6705          (b) continually analyze and evaluate the accounting, budgeting, and reporting practices
             6706      and experiences of specific local districts and special service districts selected by the state
             6707      auditor and make the information available to all districts.
             6708          (14) (a) The following records in the custody or control of the state auditor are
             6709      protected records under Title 63G, Chapter 2, Government Records Access and Management
             6710      Act:
             6711          (i) records that would disclose information relating to allegations of personal
             6712      misconduct, gross mismanagement, or illegal activity of a past or present governmental
             6713      employee if the information or allegation cannot be corroborated by the state auditor through
             6714      other documents or evidence, and the records relating to the allegation are not relied upon by
             6715      the state auditor in preparing a final audit report;
             6716          (ii) records and audit workpapers to the extent they would disclose the identity of a
             6717      person who during the course of an audit, communicated the existence of any waste of public
             6718      funds, property, or manpower, or a violation or suspected violation of a law, rule, or regulation
             6719      adopted under the laws of this state, a political subdivision of the state, or any recognized entity
             6720      of the United States, if the information was disclosed on the condition that the identity of the
             6721      person be protected;


             6722          (iii) before an audit is completed and the final audit report is released, records or drafts
             6723      circulated to a person who is not an employee or head of a governmental entity for their
             6724      response or information;
             6725          (iv) records that would disclose an outline or part of any audit survey plans or audit
             6726      program; and
             6727          (v) requests for audits, if disclosure would risk circumvention of an audit.
             6728          (b) The provisions of Subsections (14)(a)(i), (ii), and (iii) do not prohibit the disclosure
             6729      of records or information that relate to a violation of the law by a governmental entity or
             6730      employee to a government prosecutor or peace officer.
             6731          (c) The provisions of this Subsection (14) do not limit the authority otherwise given to
             6732      the state auditor to classify a document as public, private, controlled, or protected under Title
             6733      63G, Chapter 2, Government Records Access and Management Act.
             6734          Section 137. Section 67-4-11 is amended to read:
             6735           67-4-11. Delict of treasurer -- Duties of auditor and governor -- Suspension.
             6736          (1) The state auditor shall notify the governor if the state auditor examines the books of
             6737      the state treasurer, and finds that:
             6738          (a) the books do not correspond with the amount of funds on hand;
             6739          (b) the books do not show the actual condition of the funds;
             6740          (c) [monies] money belonging to the state [have] has been embezzled, diverted, or in
             6741      any manner taken from the treasury without authority of law; or
             6742          (d) the state treasurer has been guilty of negligence in keeping the books or in taking
             6743      care of the public [monies] money.
             6744          (2) Upon receipt of the notice, the governor shall:
             6745          (a) take possession of all books, [monies] money, papers, and other property belonging
             6746      to the state in the possession of the state treasurer; and
             6747          (b) temporarily suspend the state treasurer from office.
             6748          (3) (a) The state auditor shall:
             6749          (i) examine the books, papers, and all matters connected with the office of the


             6750      suspended state treasurer; and
             6751          (ii) notify the governor of the findings.
             6752          (b) If, based upon the examination, the auditor concludes that the state treasurer has
             6753      embezzled or converted to personal use the public [monies] money, or has been negligent in
             6754      keeping the books, or in taking care of the public [monies] money, the governor shall appoint
             6755      another person to replace the suspended state treasurer.
             6756          (c) The new state treasurer shall execute an official bond, and enter upon the office of
             6757      state treasurer, as provided by law.
             6758          (d) The governor shall report all of the acts done under this section to the Legislature.
             6759          (4) The new state treasurer shall hold office until the suspended state treasurer is
             6760      restored or until his successor is elected and qualified.
             6761          Section 138. Section 67-5-1 is amended to read:
             6762           67-5-1. General duties.
             6763          The attorney general shall:
             6764          (1) perform all duties in a manner consistent with the attorney-client relationship under
             6765      Section 67-5-17 ;
             6766          (2) except as provided in Sections 10-3-928 and 17-18-1 , attend the Supreme Court
             6767      and the Court of Appeals of this state, and all courts of the United States, and prosecute or
             6768      defend all causes to which the state, or any officer, board, or commission of the state in an
             6769      official capacity is a party; and take charge, as attorney, of all civil legal matters in which the
             6770      state is interested;
             6771          (3) after judgment on any cause referred to in Subsection (2), direct the issuance of
             6772      process as necessary to execute the judgment;
             6773          (4) account for, and pay over to the proper officer, all [moneys] money that [come]
             6774      comes into the attorney general's possession that [belong] belongs to the state;
             6775          (5) keep a file of all cases in which the attorney general is required to appear, including
             6776      any documents and papers showing the court in which the cases have been instituted and tried,
             6777      and whether they are civil or criminal, and:


             6778          (a) if civil, the nature of the demand, the stage of proceedings, and when prosecuted to
             6779      judgment, a memorandum of the judgment and of any process issued whether satisfied, and if
             6780      not satisfied, the return of the sheriff;
             6781          (b) if criminal, the nature of the crime, the mode of prosecution, the stage of
             6782      proceedings, and when prosecuted to sentence, a memorandum of the sentence and of the
             6783      execution, if the sentence has been executed, if not executed, of the reason of the delay or
             6784      prevention; and
             6785          (c) deliver this information to the attorney general's successor in office;
             6786          (6) exercise supervisory powers over the district and county attorneys of the state in all
             6787      matters pertaining to the duties of their offices, and from time to time require of them reports of
             6788      the condition of public business entrusted to their charge;
             6789          (7) give the attorney general's opinion in writing and without fee to the Legislature or
             6790      either house, and to any state officer, board, or commission, and to any county attorney or
             6791      district attorney, when required, upon any question of law relating to their respective offices;
             6792          (8) when required by the public service or directed by the governor, assist any county,
             6793      district, or city attorney in the discharge of his duties;
             6794          (9) purchase in the name of the state, under the direction of the state Board of
             6795      Examiners, any property offered for sale under execution issued upon judgments in favor of or
             6796      for the use of the state, and enter satisfaction in whole or in part of the judgments as the
             6797      consideration of the purchases;
             6798          (10) when the property of a judgment debtor in any judgment mentioned in Subsection
             6799      (9) has been sold under a prior judgment, or is subject to any judgment, lien, or encumbrance
             6800      taking precedence of the judgment in favor of the state, redeem the property, under the
             6801      direction of the state Board of Examiners, from the prior judgment, lien, or encumbrance, and
             6802      pay all money necessary for the redemption, upon the order of the state Board of Examiners,
             6803      out of any money appropriated for these purposes;
             6804          (11) when in his opinion it is necessary for the collection or enforcement of any
             6805      judgment, institute and prosecute on behalf of the state any action or proceeding necessary to


             6806      set aside and annul all conveyances fraudulently made by the judgment debtors, and pay the
             6807      cost necessary to the prosecution, when allowed by the state Board of Examiners, out of any
             6808      money not otherwise appropriated;
             6809          (12) discharge the duties of a member of all official boards of which the attorney
             6810      general is or may be made a member by the Utah Constitution or by the laws of the state, and
             6811      other duties prescribed by law;
             6812          (13) institute and prosecute proper proceedings in any court of the state or of the
             6813      United States, to restrain and enjoin corporations organized under the laws of this or any other
             6814      state or territory from acting illegally or in excess of their corporate powers or contrary to
             6815      public policy, and in proper cases forfeit their corporate franchises, dissolve the corporations,
             6816      and wind up their affairs;
             6817          (14) institute investigations for the recovery of all real or personal property that may
             6818      have escheated or should escheat to the state, and for that purpose, subpoena any persons
             6819      before any of the district courts to answer inquiries and render accounts concerning any
             6820      property, examine all books and papers of any corporations, and when any real or personal
             6821      property is discovered that should escheat to the state, institute suit in the district court of the
             6822      county where the property is situated for its recovery, and escheat that property to the state;
             6823          (15) administer the Children's Justice Center as a program to be implemented in
             6824      various counties pursuant to Sections 67-5b-101 through 67-5b-107 ;
             6825          (16) assist the Constitutional Defense Council as provided in Title 63C, Chapter 4,
             6826      Constitutional Defense Council;
             6827          (17) pursue any appropriate legal action to implement the state's public lands policy
             6828      established in Subsection 63C-4-105 (1);
             6829          (18) investigate and prosecute violations of all applicable state laws relating to fraud in
             6830      connection with the state Medicaid program and any other medical assistance program
             6831      administered by the state, including violations of Title 26, Chapter 20, False Claims Act;
             6832          (19) investigate and prosecute complaints of abuse, neglect, or exploitation of patients
             6833      at:


             6834          (a) health care facilities that receive payments under the state Medicaid program; and
             6835          (b) board and care facilities, as defined in the federal Social Security Act, 42 U.S.C.
             6836      Sec. 1396b(q)(4)(B), regardless of the source of payment to the board and care facility; and
             6837          (20) (a) report at least twice per year to the Legislative Management Committee on any
             6838      pending or anticipated lawsuits, other than eminent domain lawsuits, that might:
             6839          (i) cost the state more than $500,000; or
             6840          (ii) require the state to take legally binding action that would cost more than $500,000
             6841      to implement; and
             6842          (b) if the meeting is closed, include an estimate of the state's potential financial or other
             6843      legal exposure in that report.
             6844          Section 139. Section 67-19d-201 is amended to read:
             6845           67-19d-201. Trust fund -- Creation -- Oversight -- Dissolution.
             6846          (1) There is created a post-retirement benefits trust fund entitled the "State
             6847      Post-Retirement Benefits Trust Fund."
             6848          (2) The trust fund consists of:
             6849          (a) revenue provided from an ongoing labor additive as defined in Subsection
             6850      67-19d-202 (2)(g);
             6851          (b) appropriations made to the fund by the Legislature, if any;
             6852          (c) income as defined in Section 67-19d-102 ; and
             6853          (d) other revenues received from other sources.
             6854          (3) The Division of Finance shall account for the receipt and expenditures of trust fund
             6855      [monies] money.
             6856          (4) (a) The state treasurer shall invest trust fund [monies] money by following the
             6857      procedures and requirements of Part 3, Trust Fund Investments.
             6858          (b) (i) The trust fund shall earn interest.
             6859          (ii) The state treasurer shall deposit all interest or other income earned from investment
             6860      of the trust fund back into the trust fund.
             6861          (5) The board of trustees created in Section 67-19d-202 may expend [monies] money


             6862      from the trust fund for:
             6863          (a) the employer portion of the costs of the programs established in Sections 67-19-14
             6864      through 67-19-14.4 ; and
             6865          (b) reasonable administrative costs that the board of trustees incurs in performing their
             6866      duties as trustees of the trust fund.
             6867          (6) The board of trustees shall ensure that:
             6868          (a) [monies] money deposited into the trust fund [are] is irrevocable and [are] is
             6869      expended only for the employer portion of the costs of post-retirement benefits;
             6870          (b) assets of the trust fund are dedicated to providing benefits to retirees and their
             6871      beneficiaries according to the terms of the post-retirement benefit plans established by statute
             6872      and rule; and
             6873          (c) creditors of the board of trustees and of employers liable for the post-retirement
             6874      benefits may not seize, attach, or otherwise obtain assets of the trust fund.
             6875          (7) When all of the liabilities for which the trust fund was created are paid, the
             6876      Division of Finance shall transfer any assets remaining in the state trust fund into the
             6877      appropriate fund.
             6878          Section 140. Section 70D-3-402 is amended to read:
             6879           70D-3-402. Prohibited acts.
             6880          (1) An individual transacting the business of a loan originator in this state may not:
             6881          (a) violate or not comply with:
             6882          (i) this chapter;
             6883          (ii) an order of the commissioner under this chapter;
             6884          (iii) a rule made by the commissioner under this chapter;
             6885          (iv) Title 70C, Utah Consumer Credit Code, if subject to that title; or
             6886          (v) Chapter 2, Mortgage Lending and Servicing Act, if subject to that chapter;
             6887          (b) engage in an act that is performed to:
             6888          (i) evade this chapter; or
             6889          (ii) assist another person to evade this chapter;


             6890          (c) do any of the following to induce a lender to extend credit as part of a residential
             6891      mortgage loan transaction:
             6892          (i) make a false statement or representation;
             6893          (ii) cause a false document to be generated; or
             6894          (iii) knowingly permit false information to be submitted by a person in a transaction;
             6895          (d) fail to respond within the required time period to:
             6896          (i) a notice or complaint of the commissioner; or
             6897          (ii) a request for information from the commissioner;
             6898          (e) make a false representation to the commissioner, including in a licensure
             6899      application;
             6900          (f) engage in the business of a loan originator with respect to a residential mortgage
             6901      loan transaction if the individual also acts in any of the following capacities with respect to the
             6902      same residential mortgage loan transaction:
             6903          (i) appraiser;
             6904          (ii) escrow agent;
             6905          (iii) real estate agent;
             6906          (iv) general contractor; or
             6907          (v) title insurance agent;
             6908          (g) engage in an act or omission in transacting the business of a loan originator that
             6909      constitutes dishonesty, fraud, or misrepresentation;
             6910          (h) engage in false or misleading advertising;
             6911          (i) (i) fail to account for [monies] money received in connection with a residential
             6912      mortgage loan;
             6913          (ii) use [monies] money for a different purpose than the purpose for which the [monies
             6914      are] money is received; or
             6915          (iii) subject to Subsection (3), retain [monies] money paid for services if the services
             6916      are not performed;
             6917          (j) fail, within 90 calendar days of a request from a borrower who has paid for an


             6918      appraisal, to give a copy of an appraisal ordered and used for a residential mortgage loan to the
             6919      borrower;
             6920          (k) recommend or encourage default, delinquency, or continuation of an existing
             6921      default or delinquency, by a mortgage applicant on an existing indebtedness before the closing
             6922      of a residential mortgage loan that will refinance all or part of the indebtedness; or
             6923          (l) pay or offer to pay an individual who does not hold a license under this chapter for
             6924      services that require the individual to hold a license under this chapter.
             6925          (2) (a) An individual engaging solely in loan processor or underwriter activities, may
             6926      not represent to the public that the individual can or will perform any act of a loan originator.
             6927          (b) A representation prohibited under this Subsection (2) includes an advertisement or
             6928      other means of communicating or providing information including the use of:
             6929          (i) a business card;
             6930          (ii) stationery;
             6931          (iii) a brochure;
             6932          (iv) a sign;
             6933          (v) a rate list; or
             6934          (vi) another promotional item.
             6935          (3) Notwithstanding Subsection (1)(i)(iii), if a licensee complies with Section
             6936      70D-2-305 , the licensee may charge a reasonable cancellation fee for services completed to
             6937      originate a residential mortgage loan if the residential mortgage loan is not closed.
             6938          Section 141. Section 72-2-117 is amended to read:
             6939           72-2-117. Transportation Corridor Preservation Revolving Loan Fund --
             6940      Distribution -- Repayment -- Rulemaking.
             6941          (1) There is created the Transportation Corridor Preservation Revolving Loan Fund
             6942      within the Transportation Fund.
             6943          (2) The fund shall be funded from the following sources:
             6944          (a) motor vehicle rental tax imposed under Section 59-12-1201 ;
             6945          (b) appropriations made to the fund by the Legislature;


             6946          (c) contributions from other public and private sources for deposit into the fund;
             6947          (d) interest earnings on cash balances;
             6948          (e) all [monies] money collected for repayments and interest on fund [monies] money;
             6949          (f) all [monies] money collected from rents and sales of real property acquired with
             6950      fund [monies] money; and
             6951          (g) proceeds from general obligation bonds, revenue bonds, or other obligations as
             6952      authorized by Title 63B, Bonds.
             6953          (3) All [monies] money appropriated to the Transportation Corridor Preservation
             6954      Revolving Loan Fund [are] is nonlapsing.
             6955          (4) (a) The commission shall authorize the expenditure of fund [monies] money to
             6956      allow the department to acquire real property or any interests in real property for state, county,
             6957      and municipal transportation corridors subject to:
             6958          (i) [monies] money available in the fund;
             6959          (ii) rules made under Subsection (7); and
             6960          (iii) Subsection (9).
             6961          (b) Fund [monies] money may be used to pay interest on debts incurred in accordance
             6962      with this section.
             6963          (5) Administrative costs for transportation corridor preservation shall be paid from the
             6964      fund.
             6965          (6) The department:
             6966          (a) may apply to the commission under this section for [monies] money from the
             6967      Transportation Corridor Preservation Revolving Loan Fund for a specified transportation
             6968      corridor project, including for county and municipal projects; and
             6969          (b) shall repay the fund [monies] money authorized for the project to the fund as
             6970      required under Subsection (7).
             6971          (7) The commission shall:
             6972          (a) administer the Transportation Corridor Preservation Revolving Loan Fund to:
             6973          (i) preserve transportation corridors;


             6974          (ii) promote long-term statewide transportation planning;
             6975          (iii) save on acquisition costs; and
             6976          (iv) promote the best interests of the state in a manner which minimizes impact on
             6977      prime agricultural land;
             6978          (b) prioritize fund [monies] money based on considerations, including:
             6979          (i) areas with rapidly expanding population;
             6980          (ii) the willingness of local governments to complete studies and impact statements
             6981      that meet department standards;
             6982          (iii) the preservation of corridors by the use of local planning and zoning processes;
             6983          (iv) the availability of other public and private matching funds for a project; and
             6984          (v) the cost-effectiveness of the preservation projects;
             6985          (c) designate high priority corridor preservation projects in cooperation with a
             6986      metropolitan planning organization;
             6987          (d) administer the program for the purposes provided in this section;
             6988          (e) prioritize fund [monies] money in accordance with this section; and
             6989          (f) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             6990      Rulemaking Act, establishing:
             6991          (i) the procedures for the awarding of fund [monies] money;
             6992          (ii) the procedures for the department to apply for transportation corridor preservation
             6993      [monies] money for projects; and
             6994          (iii) repayment conditions of the [monies] money to the fund from the specified project
             6995      funds.
             6996          (8) (a) The proceeds from any bonds or other obligations secured by revenues of the
             6997      Transportation Corridor Preservation Revolving Loan Fund shall be used for:
             6998          (i) the acquisition of real property in hardship cases; and
             6999          (ii) any of the purposes authorized for funds in the Transportation Corridor
             7000      Preservation Revolving Loan Fund under this section.
             7001          (b) The commission shall pledge the necessary part of the revenues of the


             7002      Transportation Corridor Preservation Revolving Loan Fund to the payment of principal of and
             7003      interest on the bonds or other obligations.
             7004          (9) (a) The department may not apply for [monies] money under this section unless the
             7005      highway authority has an access management policy or ordinance in effect that meets the
             7006      requirements under Subsection (9)(b).
             7007          (b) The access management policy or ordinance shall:
             7008          (i) be for the purpose of balancing the need for reasonable access to land uses with the
             7009      need to preserve the smooth flow of traffic on the highway system in terms of safety, capacity,
             7010      and speed; and
             7011          (ii) include provisions:
             7012          (A) limiting the number of conflict points at driveway locations;
             7013          (B) separating conflict areas;
             7014          (C) reducing the interference of through traffic;
             7015          (D) spacing at-grade signalized intersections; and
             7016          (E) providing for adequate on-site circulation and storage.
             7017          (c) The department shall develop a model access management policy or ordinance that
             7018      meets the requirements of this Subsection (9) for the benefit of a county or municipality under
             7019      this section.
             7020          (10) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             7021      Act, the commission shall make rules establishing a corridor preservation advisory council.
             7022          (b) The corridor preservation advisory council shall:
             7023          (i) assist with and help coordinate the corridor preservation efforts of the department
             7024      and local governments;
             7025          (ii) provide recommendations and priorities concerning corridor preservation and the
             7026      use of fund [monies] money to the department and to the commission; and
             7027          (iii) include members designated by each metropolitan planning organization in the
             7028      state to represent local governments that are involved with corridor preservation through
             7029      official maps and planning.


             7030          Section 142. Section 72-2-117.5 is amended to read:
             7031           72-2-117.5. Definitions -- Local Transportation Corridor Preservation Fund --
             7032      Disposition of fund money.
             7033          (1) As used in this section:
             7034          (a) "Council of governments" means a decision-making body in each county composed
             7035      of the county governing body and the mayors of each municipality in the county.
             7036          (b) "Metropolitan planning organization" has the same meaning as defined in Section
             7037      72-1-208.5 .
             7038          (2) There is created the Local Transportation Corridor Preservation Fund within the
             7039      Transportation Fund.
             7040          (3) The fund shall be funded from the following sources:
             7041          (a) a local option highway construction and transportation corridor preservation fee
             7042      imposed under Section 41-1a-1222 ;
             7043          (b) appropriations made to the fund by the Legislature;
             7044          (c) contributions from other public and private sources for deposit into the fund;
             7045          (d) all [monies] money collected from rents and sales of real property acquired with
             7046      fund [monies] money;
             7047          (e) proceeds from general obligation bonds, revenue bonds, or other obligations issued
             7048      as authorized by Title 63B, Bonds;
             7049          (f) the portion of the sales and use tax described in Subsection 59-12-2217 (2)(b) and
             7050      required by Subsection 59-12-2217 (8)(a) to be deposited into the fund; and
             7051          (g) sales and use tax revenues deposited into the fund in accordance with Section
             7052      59-12-2218 .
             7053          (4) (a) The fund shall earn interest.
             7054          (b) All interest earned on fund [monies] money shall be deposited into the fund.
             7055          (c) All [monies] money appropriated to the Local Transportation Corridor Preservation
             7056      Fund [are] is nonlapsing.
             7057          (d) The State Tax Commission shall provide the department with sufficient data for the


             7058      department to allocate the revenues:
             7059          (i) provided under Subsection (3)(a) to each county imposing a local option highway
             7060      construction and transportation corridor preservation fee under Section 41-1a-1222 ;
             7061          (ii) provided under Subsection 59-12-2217 (2)(b) to each county imposing a county
             7062      option sales and use tax for transportation; and
             7063          (iii) provided under Subsection (3)(g) to each county of the second class or city or town
             7064      within a county of the second class that imposes the sales and use tax authorized by Section
             7065      59-12-2218 .
             7066          (e) (i) The department shall annually allocate the interest earned on fund [monies]
             7067      money to each county based on the proportionate amount of interest earned on each county's
             7068      allocation of funds under Subsection (4)(d) on an average monthly balance basis.
             7069          (ii) The initial annual allocation of fund interest shall include all interest earned on
             7070      fund [monies] money since the creation of the fund.
             7071          (f) The [monies] money allocated under Subsection (4)(d):
             7072          (i) shall be used for the purposes provided in this section for each county, city, or town;
             7073      and
             7074          (ii) are allocated to each county, city or town as provided in this section:
             7075          (A) with the condition that the state will not be charged for any asset purchased with
             7076      the [monies] money allocated under Subsections (4)(d) and (e); and
             7077          (B) are considered a local matching contribution for the purposes described under
             7078      Section 72-2-123 if used on a state highway.
             7079          (g) Administrative costs of the department to implement this section shall be paid from
             7080      the fund.
             7081          (5) (a) The department shall authorize the expenditure of fund [monies] money to
             7082      allow a highway authority to acquire real property or any interests in real property for state,
             7083      county, and municipal highway corridors subject to:
             7084          (i) [monies] money available in the fund to each county under Subsections (4)(d) and
             7085      (e); and


             7086          (ii) the provisions of this section.
             7087          (b) Fund [monies] money may be used to pay interest on debts incurred in accordance
             7088      with this section.
             7089          (c) (i) (A) Fund [monies] money may be used to pay maintenance costs of properties
             7090      acquired under this section but limited to a total of 5% of the purchase price of the property.
             7091          (B) Any additional maintenance cost shall be paid from funds other than under this
             7092      section.
             7093          (C) Revenue generated by any property acquired under this section is excluded from
             7094      the limitations under this Subsection (5)(c)(i).
             7095          (ii) Fund [monies] money may be used to pay direct costs of acquisition of properties
             7096      acquired under this section.
             7097          (d) Fund [monies] money allocated under Subsections (4)(d) and (e) may be used by a
             7098      county highway authority for countywide transportation planning if:
             7099          (i) the county is not included in a metropolitan planning organization;
             7100          (ii) the transportation planning is part of the county's continuing, cooperative, and
             7101      comprehensive process for transportation planning, corridor preservation, right-of-way
             7102      acquisition, and project programming;
             7103          (iii) no more than four years allocation every 20 years to each county is used for
             7104      transportation planning under this Subsection (5)(d); and
             7105          (iv) the county otherwise qualifies to use the fund [monies] money as provided under
             7106      this section.
             7107          (e) (i) Subject to Subsection (11), fund [monies] money allocated under Subsections
             7108      (4)(d) and (e) may be used by a county highway authority for transportation corridor planning
             7109      that is part of the corridor elements of an ongoing work program of transportation projects.
             7110          (ii) The transportation corridor planning under Subsection (5)(e)(i) shall be under the
             7111      direction of:
             7112          (A) the metropolitan planning organization if the county is within the boundaries of a
             7113      metropolitan planning organization; or


             7114          (B) the department if the county is not within the boundaries of a metropolitan
             7115      planning organization.
             7116          (6) (a) (i) The Local Transportation Corridor Preservation Fund shall be used to
             7117      preserve highway corridors, promote long-term statewide transportation planning, save on
             7118      acquisition costs, and promote the best interests of the state in a manner which minimizes
             7119      impact on prime agricultural land.
             7120          (ii) The Local Transportation Corridor Preservation Fund shall only be used to preserve
             7121      a highway corridor that is right-of-way:
             7122          (A) in a county of the first or second class for a:
             7123          (I) state highway;
             7124          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             7125          (III) a minor arterial highway as defined in Section 72-4-102.5 ; or
             7126          (IV) a collector highway in an urban area as defined in Section 72-4-102.5 ; or
             7127          (B) in a county of the third, fourth, fifth, or sixth class for a:
             7128          (I) state highway;
             7129          (II) a principal arterial highway as defined in Section 72-4-102.5 ;
             7130          (III) a minor arterial highway as defined in Section 72-4-102.5 ;
             7131          (IV) a major collector highway as defined in Section 72-4-102.5 ; or
             7132          (V) a minor collector road as defined in Section 72-4-102.5 .
             7133          (iii) The Local Transportation Corridor Preservation Fund may not be used for a
             7134      highway corridor that is primarily a recreational trail as defined under Section 79-5-102 .
             7135          (b) (i) The department shall develop and implement a program to educate highway
             7136      authorities on the objectives, application process, use, and responsibilities of the Local
             7137      Transportation Corridor Preservation Fund as provided under this section to promote the most
             7138      efficient and effective use of fund [monies] money including priority use on designated high
             7139      priority corridor preservation projects.
             7140          (ii) The department shall develop a model transportation corridor property acquisition
             7141      policy or ordinance that meets federal requirements for the benefit of a highway authority to


             7142      acquire real property or any interests in real property under this section.
             7143          (c) The department shall authorize the expenditure of fund [monies] money after
             7144      determining that the expenditure is being made in accordance with this section from
             7145      applications that are:
             7146          (i) made by a highway authority;
             7147          (ii) endorsed by the council of governments; and
             7148          (iii) for a right-of-way purchase for a highway authorized under Subsection (6)(a)(ii).
             7149          (7) (a) (i) A council of governments shall establish a council of governments
             7150      endorsement process which includes prioritization and application procedures for use of the
             7151      [monies] money allocated to each county under this section.
             7152          (ii) The endorsement process under Subsection (7)(a)(i) may include review or
             7153      endorsement of the preservation project by the:
             7154          (A) metropolitan planning organization if the county is within the boundaries of a
             7155      metropolitan planning organization; or
             7156          (B) the department if the county is not within the boundaries of a metropolitan
             7157      planning organization.
             7158          (b) All fund [monies] money shall be prioritized by each highway authority and council
             7159      of governments based on considerations, including:
             7160          (i) areas with rapidly expanding population;
             7161          (ii) the willingness of local governments to complete studies and impact statements
             7162      that meet department standards;
             7163          (iii) the preservation of corridors by the use of local planning and zoning processes;
             7164          (iv) the availability of other public and private matching funds for a project;
             7165          (v) the cost-effectiveness of the preservation projects;
             7166          (vi) long and short-term maintenance costs for property acquired; and
             7167          (vii) whether the transportation corridor is included as part of:
             7168          (A) the county and municipal master plan; and
             7169          (B) (I) the statewide long range plan; or


             7170          (II) the regional transportation plan of the area metropolitan planning organization if
             7171      one exists for the area.
             7172          (c) The council of governments shall:
             7173          (i) establish a priority list of highway corridor preservation projects within the county;
             7174          (ii) submit the list described in Subsection (7)(c)(i) to the county's legislative body for
             7175      approval; and
             7176          (iii) obtain approval of the list described in Subsection (7)(c)(i) from a majority of the
             7177      members of the county legislative body.
             7178          (d) A county's council of governments may only submit one priority list described in
             7179      Subsection (7)(c)(i) per calendar year.
             7180          (e) A county legislative body may only consider and approve one priority list described
             7181      in Subsection (7)(c)(i) per calendar year.
             7182          (8) (a) Unless otherwise provided by written agreement with another highway
             7183      authority, the highway authority that holds the deed to the property is responsible for
             7184      maintenance of the property.
             7185          (b) The transfer of ownership for property acquired under this section from one
             7186      highway authority to another shall include a recorded deed for the property and a written
             7187      agreement between the highway authorities.
             7188          (9) (a) The proceeds from any bonds or other obligations secured by revenues of the
             7189      Local Transportation Corridor Preservation Fund shall be used for the purposes authorized for
             7190      funds under this section.
             7191          (b) The highway authority shall pledge the necessary part of the revenues of the Local
             7192      Transportation Corridor Preservation Fund to the payment of principal and interest on the
             7193      bonds or other obligations.
             7194          (10) (a) A highway authority may not apply for [monies] money under this section to
             7195      purchase a right-of-way for a state highway unless the highway authority has:
             7196          (i) a transportation corridor property acquisition policy or ordinance in effect that
             7197      meets federal requirements for the acquisition of real property or any interests in real property


             7198      under this section; and
             7199          (ii) an access management policy or ordinance in effect that meets the requirements
             7200      under Subsection 72-2-117 (9).
             7201          (b) The provisions of Subsection (10)(a)(i) do not apply if the highway authority has a
             7202      written agreement with the department for the acquisition of real property or any interests in
             7203      real property under this section.
             7204          (11) (a) The department shall, in expending or authorizing the expenditure of fund
             7205      [monies] money, ensure to the extent possible that the fund [monies] money allocated to a city
             7206      or town in accordance with Subsection (4) [are] is expended:
             7207          (i) to fund a project or service as allowed by this section within the city or town to
             7208      which the fund [monies are] money is allocated;
             7209          (ii) to pay debt service, principal, or interest on a bond or other obligation as allowed
             7210      by this section if that bond or other obligation is:
             7211          (A) secured by [monies] money allocated to the city or town; and
             7212          (B) issued to finance a project or service as allowed by this section within the city or
             7213      town to which the fund [monies are] money is allocated;
             7214          (iii) to fund transportation planning as allowed by this section within the city or town
             7215      to which the fund [monies are] money is allocated; or
             7216          (iv) for another purpose allowed by this section within the city or town to which the
             7217      fund [monies are] money is allocated.
             7218          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7219      department may make rules to implement the requirements of Subsection (11)(a).
             7220          Section 143. Section 72-2-121.2 is amended to read:
             7221           72-2-121.2. Definition -- County of the Second Class State Highway Projects
             7222      Fund -- Use of fund money.
             7223          (1) As used in this section, "fund" means the County of the Second Class State
             7224      Highway Projects Fund created by this section.
             7225          (2) There is created within the Transportation Fund a special revenue fund known as


             7226      the County of the Second Class State Highway Projects Fund.
             7227          (3) The fund shall be funded by [monies] money collected from:
             7228          (a) any voluntary contributions the department receives for new construction, major
             7229      renovations, and improvements to state highways within a county of the second class; and
             7230          (b) sales and use taxes deposited into the fund in accordance with Section 59-12-2218 .
             7231          (4) The department shall make a separate accounting for:
             7232          (a) the revenues described in Subsection (3); and
             7233          (b) each county of the second class or city or town within a county of the second class
             7234      for which revenues are deposited into the fund.
             7235          (5) (a) The fund shall earn interest.
             7236          (b) Interest earned on fund [monies] money shall be deposited into the fund.
             7237          (6) Subject to Subsection (9), the executive director may use fund [monies] money
             7238      only:
             7239          (a) for right-of-way acquisition, new construction, major renovations, and
             7240      improvements to state highways within a county of the second class or a city or town within a
             7241      county of the second class in an amount that does not exceed the amounts deposited for or
             7242      allocated to that county of the second class or city or town within a county of the second class
             7243      in accordance with this section;
             7244          (b) to pay any debt service and bond issuance costs related to a purpose described in
             7245      Subsection (6)(a) in an amount that does not exceed the amounts deposited for or allocated to
             7246      that county of the second class or city or town within a county of the second class described in
             7247      Subsection (6)(a) in accordance with this section; and
             7248          (c) to pay the costs of the department to administer the fund in an amount not to exceed
             7249      interest earned by the fund [monies] money.
             7250          (7) If interest remains in the fund after the executive director pays the costs of the
             7251      department to administer the fund, the interest shall be:
             7252          (a) allocated to each county of the second class or city or town within a county of the
             7253      second class for which revenues are deposited into the fund in proportion to the deposits made


             7254      into the fund for that county of the second class or city or town within a county of the second
             7255      class; and
             7256          (b) expended for the purposes described in Subsection (6).
             7257          (8) Revenues described in Subsection (3)(b) that are deposited into the fund are
             7258      considered to be a local matching contribution for the purposes described in Section 72-2-123 .
             7259          (9) (a) The executive director shall, in using fund [monies] money, ensure to the extent
             7260      possible that the fund [monies] money deposited for or allocated to a city or town [are] is used:
             7261          (i) for a purpose described in Subsection (6)(a) within the city or town to which the
             7262      fund [monies are] money is allocated;
             7263          (ii) to pay debt service and bond issuance costs described in Subsection (6)(b) if the
             7264      debt service and bond issuance costs are:
             7265          (A) secured by [monies] money deposited for or allocated to the city or town; and
             7266          (B) related to a project described in Subsection (6)(a) within the city or town to which
             7267      the fund [monies are] money is allocated; or
             7268          (iii) for a purpose described in Subsection (6)(c).
             7269          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             7270      department may make rules to implement the requirements of Subsection (9)(a).
             7271          Section 144. Section 72-2-122 is amended to read:
             7272           72-2-122. Aeronautics Construction Revolving Loan Fund -- Distribution --
             7273      Repayment -- Rulemaking.
             7274          (1) There is created the Aeronautics Construction Revolving Loan Fund within the
             7275      Transportation Fund.
             7276          (2) The fund shall include [monies] money from the following sources:
             7277          (a) appropriations made to the fund by the Legislature;
             7278          (b) contributions from other public and private sources for deposit into the fund;
             7279          (c) interest earnings on cash balances;
             7280          (d) all [monies] money collected for repayments and interest on fund [monies] money;
             7281      and


             7282          (e) proceeds from revenue bonds or other obligations issued in accordance with Title
             7283      63B, Chapter 1, Part 3, State Building Ownership Authority Act, and Title 63B, Bonds.
             7284          (3) All [monies] money appropriated to the Aeronautics Construction Revolving Loan
             7285      Fund [are] is nonlapsing.
             7286          (4) (a) The commission shall authorize the expenditure of fund [monies] money for
             7287      construction, major reconstruction, major renovation, or property acquisition of airports and
             7288      airport runways for state, county, and municipal airports subject to:
             7289          (i) [monies] money available in the fund; and
             7290          (ii) rules made under Subsection (7).
             7291          (b) Fund [monies] money may be used to pay interest on debts incurred in accordance
             7292      with this section.
             7293          (5) Administrative costs of the Aeronautics Construction Revolving Loan Fund shall
             7294      be paid from the fund.
             7295          (6) The Operations Division:
             7296          (a) may apply to the commission under this section for [monies] money from the
             7297      Aeronautics Construction Revolving Loan Fund for a specified aeronautics project, including
             7298      for county and municipal projects; and
             7299          (b) shall repay the fund [monies] money authorized for the project to the fund as
             7300      required under Subsection (7).
             7301          (7) The commission shall:
             7302          (a) administer the Aeronautics Construction Revolving Loan Fund to promote
             7303      long-term statewide aeronautics transportation;
             7304          (b) prioritize fund [monies] money based on considerations, including:
             7305          (i) areas with rapidly expanding population;
             7306          (ii) the willingness of local governments to:
             7307          (A) complete studies and impact statements that meet department standards; and
             7308          (B) preserve long-term airport operations by the use of local planning and zoning
             7309      processes;


             7310          (iii) the availability of other public and private matching funds for a project; and
             7311          (iv) the cost-effectiveness of the projects; and
             7312          (c) make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             7313      Rulemaking Act, establishing:
             7314          (i) the procedures for the awarding of fund [monies] money;
             7315          (ii) the procedures for the Operations Division to apply for Aeronautics Construction
             7316      Revolving Loan Fund [monies] money for projects; and
             7317          (iii) repayment schedules and conditions of replacing the [monies] money back into the
             7318      fund.
             7319          (8) For loans made under this section to a county or municipal airport, the Division of
             7320      Finance shall:
             7321          (a) collect and account for a loan made in accordance with this section; and
             7322          (b) have custody of all loan documents evidencing indebtedness of the Aeronautics
             7323      Construction Revolving Loan Fund, including all:
             7324          (i) notes; and
             7325          (ii) contracts.
             7326          (9) (a) The proceeds from the revenue bonds or other obligations issued on revenues of
             7327      the Aeronautics Construction Revolving Loan Fund shall be used for the purposes authorized
             7328      for funds under this section.
             7329          (b) The commission shall pledge the necessary part of the revenues of the Aeronautics
             7330      Construction Revolving Loan Fund to the payment of principal of and interest on the revenue
             7331      bonds or other obligations.
             7332          Section 145. Section 72-2-205 is amended to read:
             7333           72-2-205. Loan contracts of state agencies.
             7334          (1) (a) Notwithstanding Sections 53B-21-113 and 63A-1-112 , a state agency may
             7335      obtain an infrastructure loan.
             7336          (b) A state agency may contract to repay an infrastructure loan from the [monies]
             7337      money which [are] is appropriated to the agency and may pledge all or any portion of [those


             7338      monies] the money to repay the loan.
             7339          (c) A state agency's infrastructure loan may not constitute a debt of the state or lending
             7340      the credit of the state within the meaning of any constitutional or statutory limitation.
             7341          (2) The terms of an infrastructure loan contract shall bind the state and a state agency,
             7342      and the state agency shall unconditionally repay the loan from the [monies] money the agency
             7343      has pledged under the terms of the loan contract.
             7344          Section 146. Section 73-10-8 is amended to read:
             7345           73-10-8. Water Resources Construction Fund -- Creation and contents of fund --
             7346      Use -- Investigation Account created -- Interest -- Retainage -- Loans and grants for dam
             7347      safety work.
             7348          (1) There is created the Water Resources Construction Fund, which consists of:
             7349          (a) money appropriated or otherwise made available to it by the Legislature;
             7350          (b) money from the sale or management of the 500,000 acres of land selected for the
             7351      establishment of reservoirs under Section 12 of the Utah Enabling Act;
             7352          (c) charges assessed against water and power users pursuant to Section 73-10-6 ; and
             7353          (d) interest accrued pursuant to Subsection (5).
             7354          (2) The board may authorize the use of money in the fund for the following purposes:
             7355          (a) to develop water conservation projects, including paying the costs of construction,
             7356      engineering, investigation, inspection, and other related expenses;
             7357          (b) to provide loans and grants to dam owners to conduct dam safety studies;
             7358          (c) to provide loans and grants to dam owners:
             7359          (i) to upgrade dams in conformance with the minimum standards established by the
             7360      state engineer in rules; or
             7361          (ii) for nonstructural solutions developed to meet minimum standards or lower hazard
             7362      ratings that are approved by the state engineer, including the purchase of habitable structures,
             7363      purchase of flood easements, and installation of early warning systems; or
             7364          (d) as otherwise provided by law.
             7365          (3) The board may provide for the repayment of the costs of investigation, engineering,


             7366      and inspection out of the first [monies] money to be paid under a contract for the construction
             7367      of a water project. [Those monies] The money repaid shall be deposited into a subaccount
             7368      within the Water Resources Construction Fund known as the Investigation Account, to be used
             7369      by the board for the purpose of making investigations for the development and use of the water
             7370      resources of the state.
             7371          (4) Contributions of money, property, or equipment may be received from any political
             7372      subdivision of the state, federal agency, water users' association, person, or corporation for use
             7373      in making investigations, constructing projects, or otherwise carrying out the purposes of this
             7374      section.
             7375          (5) All [monies] money deposited into the Water Resources Construction Fund shall be
             7376      invested by the state treasurer with interest accruing to the Water Resources Construction
             7377      Fund.
             7378          (6) If any payment on a contract with a private contractor to construct a project funded
             7379      by the Water Resources Construction Fund is retained or withheld, it shall be retained or
             7380      withheld and released as provided in Section 13-8-5 .
             7381          (7) Loans to dam owners for dam safety studies and to upgrade dams in conformance
             7382      with minimum standards shall be secured by taking water rights associated with the dam.
             7383          (8) The following restrictions apply to any grant made to a dam owner for a dam safety
             7384      study:
             7385          (a) only a nonprofit mutual irrigation company or a water users association is eligible
             7386      to receive a grant;
             7387          (b) the dam safety study shall be required by the state engineer pursuant to Section
             7388      73-5a-503 ; and
             7389          (c) the amount of any grant shall be limited to up to 50% of the costs of the dam safety
             7390      study.
             7391          (9) (a) The board may provide grants to mutual irrigation companies and water users
             7392      associations to upgrade dams in conformance with minimum standards of the state engineer.
             7393      Each grant authorized by the board for the upgrade of a dam of a mutual irrigation company or


             7394      water users association in conformance with the minimum standards shall be sufficient to pay
             7395      for 80% of the costs to upgrade the dam.
             7396          (b) (i) Pursuant to guidelines specified in Subsection (9)(b)(ii), the board may provide
             7397      loans or grants, or both, to entities other than mutual irrigation companies and water users
             7398      associations to upgrade dams in conformance with minimum standards of the state engineer.
             7399          (ii) In determining the type of financial assistance to be provided to an entity other than
             7400      a mutual irrigation company or water users association, the board shall consider the dam
             7401      owner's ability to pay and may consider other factors including:
             7402          (A) the degree of hazard;
             7403          (B) the threat to public safety;
             7404          (C) the state engineer's priority list of dams;
             7405          (D) the cost effectiveness of the restoration;
             7406          (E) the number of potential and actual applications for financial assistance; and
             7407          (F) the funds available.
             7408          (10) The amount of money in the fund that may be used for grants for dam safety
             7409      studies shall be limited to the amount of money appropriated to the fund for that purpose.
             7410          (11) The board shall consult with the state engineer in establishing a priority list of
             7411      dams to be upgraded with money in the fund.
             7412          (12) A dam owner who has initiated or completed construction approved by the state
             7413      engineer to upgrade the dam in conformance with minimum standards may apply for a grant or
             7414      loan from the board as reimbursement for those construction expenditures.
             7415          Section 147. Section 73-10-30 is amended to read:
             7416           73-10-30. Construction in conjunction with Water Resources Construction Fund
             7417      -- Supplemental financing.
             7418          (1) Projects authorized under this chapter may be constructed in participation with
             7419      [moneys] money from the Water Resources Construction Fund when authorized by the board.
             7420          (2) Projects specified by the Legislature to be financed by general obligation bonds of
             7421      the state may receive supplemental financing from the Water Resources Conservation and


             7422      Development Fund when needed and [moneys are] money is available.
             7423          Section 148. Section 73-10c-5 is amended to read:
             7424           73-10c-5. Water Development Security Fund created -- Water Quality Security
             7425      and Drinking Water Security Subaccounts created -- Use -- Revolving loan funds --
             7426      Hardship grants.
             7427          (1) There is established an enterprise fund known as the Water Development Security
             7428      Fund which includes the Water Quality Security Subaccount and the Drinking Water Security
             7429      Subaccount.
             7430          (2) The Water Quality Security Subaccount consists of four subaccounts:
             7431          (a) the Utah Wastewater Loan Program Subaccount, which consists of:
             7432          (i) money appropriated to the subaccount by the Legislature;
             7433          (ii) money received from the repayment of the principal of loans made by the Water
             7434      Quality Board under Sections 73-10c-4 and 73-10c-6 from the Utah Wastewater Loan Program
             7435      Subaccount; and
             7436          (iii) money deposited in the subaccount under any other law;
             7437          (b) the Utah State Revolving Fund for Wastewater Projects Subaccount, which consists
             7438      of:
             7439          (i) money appropriated to the subaccount by the Legislature;
             7440          (ii) money received from the Utah Wastewater Loan Program Subaccount applied to
             7441      meet match requirements for federal funds under 33 U.S.C.A. 1251 et seq., federal Clean
             7442      Water Act;
             7443          (iii) money received from the repayment of loans made by the Water Quality Board
             7444      under Section 73-10c-4 from the Utah State Revolving Fund for Wastewater Projects
             7445      Subaccount;
             7446          (iv) money received from the repayment of loans made by the Water Quality Board
             7447      under Section 73-10c-4.5 ;
             7448          (v) money deposited in the subaccount under any other law;
             7449          (vi) money received under and subject to the restrictions of 33 U.S.C.A. 1251 et seq.,


             7450      federal Clean Water Act, and which is eligible for use in state revolving loan funds established
             7451      to meet the requirements of the act; and
             7452          (vii) all investment income derived from money in the Utah State Revolving Fund for
             7453      Wastewater Projects Subaccount;
             7454          (c) the Hardship Grant Program for Wastewater Projects Subaccount, which consists
             7455      of:
             7456          (i) money appropriated to the subaccount by the Legislature;
             7457          (ii) money received as interest payments on loans made by the Water Quality Board
             7458      under Sections 73-10c-4 and 73-10c-6 , from the Utah Wastewater Loan Program Subaccount;
             7459          (iii) money deposited in the subaccount under any other law;
             7460          (iv) the Hardship Grant Assessment charged to State Revolving Fund loan recipients;
             7461      and
             7462          (v) all investment income derived from money in the Utah Wastewater Loan Program
             7463      Subaccount or the Hardship Grant Program for Wastewater Projects Subaccount; and
             7464          (d) the Water Quality Origination Fee Subaccount, which consists of the origination
             7465      fee paid under Section 73-10c-10 .
             7466          (3) The Drinking Water Security Subaccount consists of four subaccounts:
             7467          (a) the Drinking Water Loan Program Subaccount, which consists of:
             7468          (i) money appropriated to the subaccount by the Legislature;
             7469          (ii) money received from the repayment of the principal of loans made by the Drinking
             7470      Water Board under Sections 73-10c-4 and 73-10c-6 , from the Drinking Water Loan Program
             7471      Subaccount; and
             7472          (iii) money deposited in the subaccount under any other law;
             7473          (b) the State Revolving Fund for Drinking Water Projects Subaccount, which consists
             7474      of:
             7475          (i) money appropriated to the subaccount by the Legislature;
             7476          (ii) money received from the Utah Drinking Water Loan Program Subaccount and
             7477      applied to meet match requirements for federal funds under 42 U.S.C.A. 300f et seq., federal


             7478      Safe Drinking Water Act;
             7479          (iii) money received from the repayment of loans made by the Drinking Water Board
             7480      under Section 73-10c-4 from the State Revolving Fund for Drinking Water Projects
             7481      Subaccount;
             7482          (iv) money deposited in the subaccount under any other law;
             7483          (v) money received under and subject to the restrictions of 42 U.S.C.A. 300f et seq.,
             7484      federal Safe Drinking Water Act, and which is eligible for use in state revolving loan funds
             7485      established to meet the requirements of the act; and
             7486          (vi) all investment income derived from money in the State Revolving Fund for
             7487      Drinking Water Projects Subaccount;
             7488          (c) the Hardship Grant Program for Drinking Water Projects Subaccount, which
             7489      consists of:
             7490          (i) money appropriated to the subaccount by the Legislature;
             7491          (ii) money received from interest payments on loans made by the Drinking Water
             7492      Board under Sections 73-10c-4 and 73-10c-6 , from the Drinking Water Loan Program
             7493      Subaccount;
             7494          (iii) money deposited in the subaccount under any other law;
             7495          (iv) the Hardship Grant Assessment charged to State Revolving Fund loan recipients;
             7496      and
             7497          (v) all investment income derived from money in the Drinking Water Loan Program
             7498      Subaccount or the Hardship Grant Program for Drinking Water Projects Subaccount; and
             7499          (d) the Drinking Water Origination Fee Subaccount, which consists of the origination
             7500      fee paid under Section 73-10c-10 .
             7501          (4) State [monies] money in the Water Quality Security Subaccount and the Drinking
             7502      Water Security Subaccount may be applied to meet match requirements for federal funds under
             7503      the Clean Water Act, 33 U.S.C. Sec. 1251 et seq. and the Safe Drinking Water Act, 42 U.S.C.
             7504      Sec. 300f et seq.
             7505          (5) If the money in the security fund is insufficient for the purposes for which the


             7506      security fund is established, the council shall ask the governor to request the Legislature to
             7507      appropriate additional money to the account.
             7508          (6) (a) The Drinking Water Board and Water Quality Board may use the money in the
             7509      appropriate security fund subaccount only to the extent of the money available in the account,
             7510      for the support of drinking water projects and wastewater projects in accordance with the terms
             7511      of credit enhancement agreements, grant agreements, and loan agreements.
             7512          (b) Repayments to the security fund from loans made by the acting board, [monies]
             7513      money allocated by the Legislature, and interest accrued on [these monies] the money shall
             7514      remain available for use by that board for further project funding.
             7515          (c) The Drinking Water Board and Water Quality Board may use the money in the
             7516      origination fee subaccount to administer this chapter.
             7517          (7) Funds received under the Safe Drinking Water Act, 42 U.S.C. Sec. 300f et seq. may
             7518      be used for providing financial assistance to community water systems and nonprofit
             7519      noncommunity water systems as defined and within the limits of that act.
             7520          Section 149. Section 73-26-302 is amended to read:
             7521           73-26-302. Construction contingent upon sale or lease of water -- Preconstruction
             7522      may proceed if funded.
             7523          (1) Except as provided in Subsection (3), the division may not expend [monies] money
             7524      for construction costs on any phase of a project until:
             7525          (a) contracts have been made for the sale or lease of at least 70% of the water
             7526      developed by that phase; and
             7527          (b) all permits required by the environmental impact statement have been obtained.
             7528          (2) Construction of the project and implementation of the environmental mitigation
             7529      plan shall proceed concurrently.
             7530          (3) The division may make expenditures for preconstruction costs if [monies are]
             7531      money is expressly appropriated or earmarked by statute for that purpose by the Legislature.
             7532          Section 150. Section 73-28-202 is amended to read:
             7533           73-28-202. Construction contingent upon sale of water.


             7534          (1) Except as provided in Subsection (3), the board may not expend [monies] money
             7535      for construction costs for any phase of the project until:
             7536          (a) the board has contracted with the districts for the sale of at least 70% of the water
             7537      developed by that phase of the project; and
             7538          (b) all permits required by the environmental impact statement have been obtained.
             7539          (2) Construction of the project and implementation of any environmental mitigation
             7540      requirements may proceed concurrently.
             7541          (3) The board may make expenditures for preconstruction costs if [monies are] money
             7542      is expressly appropriated or earmarked by statute for that purpose by the Legislature.
             7543          Section 151. Section 73-28-404 is amended to read:
             7544           73-28-404. Repayments returned to Water Resources Conservation and
             7545      Development Fund -- Establishment of an enterprise fund.
             7546          (1) The board shall deposit, in accordance with Section 51-4-1 , into the Water
             7547      Resources Conservation and Development Fund:
             7548          (a) repayments of preconstruction and construction costs; and
             7549          (b) the interest charged.
             7550          (2) (a) There is created an enterprise fund, as defined in Subsection 51-5-4 (8), entitled
             7551      the "Lake Powell Pipeline Project Operation and Maintenance Fund."
             7552          (b) The fund consists of:
             7553          (i) revenues received from the sale of developed water that is designated for project
             7554      operation, maintenance, repair, and replacement costs;
             7555          (ii) revenues received from the sale of electricity that are deposited in the fund in
             7556      accordance with Subsection 73-28-203 (3); and
             7557          (iii) all interest earned by the fund.
             7558          (3) (a) Any unexpended [monies] money remaining in the fund at the end of the fiscal
             7559      year [are] is nonlapsing.
             7560          (b) Notwithstanding Section 63J-1-211 , the Legislature may not appropriate any
             7561      [monies] money from the Lake Powell Pipeline Project Operation and Maintenance Fund.


             7562          (4) The state treasurer shall:
             7563          (a) invest the [monies] money in the enterprise fund by following the procedures and
             7564      requirements of Title 51, Chapter 7, State Money Management Act; and
             7565          (b) deposit all interest or other earnings derived from those investments into the Lake
             7566      Powell Pipeline Operation and Maintenance Fund.
             7567          (5) The committee shall approve the expenditure of fund [monies] money to cover the
             7568      project operation, maintenance, repair, and replacement costs, subject to:
             7569          (a) [monies] money available in the fund; and
             7570          (b) rules established by the board under Subsection 73-28-104 (2).
             7571          (6) If title to the project is transferred under Section 73-28-405 , the agreement shall
             7572      direct the disposition of the [monies] money remaining in the fund.
             7573          Section 152. Section 76-8-401 is amended to read:
             7574           76-8-401. "Public money," "public funds," and "public officer" defined.
             7575          As used in this title:
             7576          (1) "Public [monies] money" and "public funds" [mean monies] means money, funds,
             7577      and accounts, regardless of the source from which they are derived, that are owned, held, or
             7578      administered by the state or any of its boards, commissions, institutions, departments,
             7579      divisions, agencies, bureaus, laboratories, or other similar instrumentalities, or any county, city,
             7580      school district, political subdivision, or other public body. "Public [monies] money" also
             7581      includes [monies] money, funds, or accounts that have been transferred by any of those public
             7582      entities to a private contract provider of programs or services. [Those monies] The money,
             7583      funds, or accounts maintain the nature of public [monies] money while in the possession of the
             7584      private entity that has contracted with a public entity to provide programs or services.
             7585          (2) "Public officer" means:
             7586          (a) all elected officials of the state, a political subdivision of the state, a county, town,
             7587      city, precinct, or district;
             7588          (b) a person appointed to or serving an unexpired term of an elected office;
             7589          (c) a judge of a court of record and not of record including justice court judges; and


             7590          (d) a member of the Board of Pardons and Parole.
             7591          Section 153. Section 77-18-1.1 is amended to read:
             7592           77-18-1.1. Screening, assessment, and treatment.
             7593          (1) As used in this section:
             7594          (a) "Assessment" has the same meaning as in Section 41-6a-501 .
             7595          (b) "Convicted" means:
             7596          (i) a conviction by entry of a plea of guilty or nolo contendere, guilty and mentally ill,
             7597      or no contest; and
             7598          (ii) conviction of any crime or offense.
             7599          (c) "Screening" has the same meaning as in Section 41-6a-501 .
             7600          (d) "Substance abuse treatment" means treatment obtained through a substance abuse
             7601      program that is licensed by the Office of Licensing within the Department of Human Services.
             7602          (2) On or after July 1, 2009, the courts of the judicial districts where the Drug Offender
             7603      Reform Act under Section 63M-7-305 is implemented shall, in coordination with the local
             7604      substance abuse authority regarding available resources, order offenders convicted of a felony
             7605      to:
             7606          (a) participate in a screening prior to sentencing;
             7607          (b) participate in an assessment prior to sentencing if the screening indicates an
             7608      assessment to be appropriate; and
             7609          (c) participate in substance abuse treatment if:
             7610          (i) the assessment indicates treatment to be appropriate;
             7611          (ii) the court finds treatment to be appropriate for the offender; and
             7612          (iii) the court finds the offender to be an appropriate candidate for community-based
             7613      supervision.
             7614          (3) The findings from any screening and any assessment conducted under this section
             7615      shall be part of the presentence investigation report submitted to the court prior to sentencing
             7616      of the offender.
             7617          (4) [Monies] Money appropriated by the Legislature to assist in the funding of the


             7618      screening, assessment, substance abuse treatment, and supervision provided under this section
             7619      [are] is not subject to any requirement regarding matching funds from a state or local
             7620      governmental entity.
             7621          Section 154. Section 77-28-1 is amended to read:
             7622           77-28-1. Compact enacted into law -- Text of compact.
             7623          The Western Interstate Corrections Compact as contained herein is enacted into law and
             7624      entered into on behalf of this state with any and all other states legally joining therein in a form
             7625      substantially as follows:
             7626     
ARTICLE I

             7627     
PURPOSE AND POLICY

             7628          The party states, desiring by common action to improve their institutional facilities and
             7629      provide programs of sufficiently high quality for the confinement, treatment and rehabilitation
             7630      of various types of offenders, declare that it is the policy of each of the party states to provide
             7631      such facilities and programs on a basis of cooperation with one another, thereby serving the
             7632      best interests of such offenders and of society. The purpose of this compact is to provide for
             7633      the development and execution of such programs of cooperation for the confinement, treatment
             7634      and rehabilitation of offenders.
             7635     
ARTICLE II

             7636     
DEFINITIONS

             7637          As used in this compact, unless the context clearly requires otherwise:
             7638          (a) "State" means a state of the United States or, subject to the limitation contained in
             7639      Article VII, Guam.
             7640          (b) "Sending state" means a state party to this compact in which conviction was had.
             7641          (c) "Receiving state" means a state party to this compact to which an inmate is sent for
             7642      confinement other than a state in which conviction was had.
             7643          (d) "Inmate" means a male or female offender who is under sentence to or confined in a
             7644      prison or other correctional institution.
             7645          (e) "Institution" means any prison, reformatory or other correctional facility (including


             7646      but not limited to a facility for the mentally ill or mentally defective) in which inmates may
             7647      lawfully be confined.
             7648     
ARTICLE III

             7649     
CONTRACTS

             7650          (a) Each party state may make one or more contracts with any one or more of the other
             7651      party states for the confinement of inmates on behalf of a sending state in institutions situated
             7652      within receiving states. Any such contract shall provide for:
             7653          (1) Its duration.
             7654          (2) Payments to be made to the receiving state by the sending state for inmate
             7655      maintenance, extraordinary medical and dental expenses, and any participation in or receipt by
             7656      inmates of rehabilitative or correctional services, facilities, programs or treatment not
             7657      reasonably included as part of normal maintenance.
             7658          (3) Participation in programs of inmate employment, if any; the disposition or crediting
             7659      of any payments received by inmates on account thereof; and the crediting of proceeds from or
             7660      disposal of any products resulting therefrom.
             7661          (4) Delivery and retaking of inmates.
             7662          (5) Such other matters as may be necessary and appropriate to fix the obligations,
             7663      responsibilities and rights of the sending and receiving states.
             7664          (b) Prior to the construction or completion of construction of any institution or addition
             7665      thereto by a party state, any other party state or states may contract therewith for the
             7666      enlargement of the planned capacity of the institution or addition thereto, or for the inclusion
             7667      therein of particular equipment or structures, and for the reservation of a specific percentum of
             7668      the capacity of the institution to be kept available for use by inmates of the sending state or
             7669      states so contracting. Any sending state so contracting may, to the extent that [monies are]
             7670      money is legally available therefor, pay to the receiving state, a reasonable sum as
             7671      consideration for such enlargement of capacity, or provision of equipment or structures, and
             7672      reservation of capacity. Such payment may be in a lump sum or in installments as provided in
             7673      the contract.


             7674          (c) The terms and provisions of this compact shall be a part of any contract entered into
             7675      by the authority of or pursuant thereto, and nothing in any such contract shall be inconsistent
             7676      therewith.
             7677     
ARTICLE IV

             7678     
PROCEDURE AND RIGHTS

             7679          (a) Whenever the duly constituted judicial or administrative authorities in a state party
             7680      to this compact, and which has entered into a contract pursuant to Article III, shall decide that
             7681      confinement in, or transfer of an inmate to, an institution within the territory of another party
             7682      state is necessary in order to provide adequate quarters and care or desirable in order to provide
             7683      an appropriate program of rehabilitation or treatment, said officials may direct that the
             7684      confinement be within an institution within the territory of said other party state, the receiving
             7685      state to act in that regard solely as agent for the sending state.
             7686          (b) The appropriate officials of any state party to this compact shall have access, at all
             7687      reasonable times, to any institutions in which it has a contractual right to confine inmates for
             7688      the purpose of inspecting the facilities thereof and visiting such of its inmates as may be
             7689      confined in the institution.
             7690          (c) Inmates confined in an institution pursuant to the terms of this compact shall at all
             7691      times be subject to the jurisdiction of the sending state and may at any time be removed
             7692      therefrom for transfer to a prison or other institution within the sending state, for transfer to
             7693      another institution in which the sending state may have a contractual or other right to confine
             7694      inmates, for release on probation or parole, for discharge, or for any other purpose permitted by
             7695      the laws of the sending state; provided that the sending state shall continue to be obligated to
             7696      such payments as may be required pursuant to the terms of any contract entered into under the
             7697      terms of Article III.
             7698          (d) Each receiving state shall provide regular reports to each sending state on the
             7699      inmates of that sending state in institutions pursuant to this compact including a conduct record
             7700      of each inmate and certify said record to the official designated by the sending state, in order
             7701      that each inmate may have the benefit of his or her record in determining and altering the


             7702      disposition of said inmate in accordance with the law which may obtain in the sending state
             7703      and in order that the same may be a source of information for the sending state.
             7704          (e) All inmates who may be confined in an institution pursuant to the provisions of this
             7705      compact shall be treated in a reasonable and humane manner and shall be cared for and treated
             7706      equally with such similar inmates of the receiving state as may be confined in the same
             7707      institution. The fact of confinement in a receiving state shall not deprive any inmate so
             7708      confined of any legal rights which said inmate would have had if confined in an appropriate
             7709      institution of the sending state.
             7710          (f) Any hearing or hearings to which an inmate confined pursuant to this compact may
             7711      be entitled by the laws of the sending state may be had before the appropriate authorities of the
             7712      sending state, or of the receiving state if authorized by the sending state. The receiving state
             7713      shall provide adequate facilities for such hearings as may be conducted by the appropriate
             7714      officials of a sending state. In the event such hearing or hearings are had before officials of the
             7715      receiving state, the governing law shall be that of the sending state and a record of the hearing
             7716      or hearings as prescribed by the sending state shall be made. Said record together with any
             7717      recommendations of the hearing officials shall be transmitted forthwith to the official or
             7718      officials before whom the hearing would have been had if it had taken place in the sending
             7719      state. In any and all proceedings had pursuant to the provisions of this subdivision, the
             7720      officials of the receiving state shall act solely as agents of the sending state and no final
             7721      determination shall be made in any matter except by the appropriate officials of the sending
             7722      state. Costs of records made pursuant to this subdivision shall be borne by the sending state.
             7723          (g) Any inmate confined pursuant to this compact shall be released within the territory
             7724      of the sending state unless the inmate, and the sending and receiving states, shall agree upon
             7725      release in some other place. The sending state shall bear the cost of such return to its territory.
             7726          (h) Any inmate confined pursuant to the terms of this compact shall have any and all
             7727      rights to participate in and derive any benefits or incur or be relieved of any obligations or have
             7728      such obligations modified or his status changed on account of any action or proceeding in
             7729      which he could have participated if confined in any appropriate institution of the sending state


             7730      located within such state.
             7731          (i) The parent, guardian, trustee, or other person or persons entitled under the laws of
             7732      the sending state to act for, advise, or otherwise function with respect to any inmate shall not be
             7733      deprived of or restricted in his exercise of any powers in respect of any inmate confined
             7734      pursuant to the terms of this compact.
             7735     
ARTICLE V

             7736     
ACTS NOT REVIEWABLE IN RECEIVING STATE -- EXTRADITION

             7737          (a) Any decision of the sending state in respect of any matter over which it retains
             7738      jurisdiction pursuant to this compact shall be conclusive upon and not reviewable within the
             7739      receiving state, but if at any time the sending state seeks to remove an inmate from an
             7740      institution in the receiving state there is pending against the inmate within such state any
             7741      criminal charge or if the inmate is suspected of having committed within such state a criminal
             7742      offense, the inmate shall not be returned without the consent of the receiving state until
             7743      discharged from prosecution or other form of proceeding, imprisonment or detention for such
             7744      offense. The duly accredited officers of the sending state shall be permitted to transport
             7745      inmates pursuant to this compact through any and all states party to this compact without
             7746      interference.
             7747          (b) An inmate who escapes from an institution in which he is confined pursuant to this
             7748      compact shall be deemed a fugitive from the sending state and from the state in which the
             7749      institution is situated. In the case of an escape to a jurisdiction other than the sending or
             7750      receiving state, the responsibility for institution of extradition proceedings shall be that of the
             7751      sending state, but nothing contained herein shall be construed to prevent or affect the activities
             7752      of officers and agencies of any jurisdiction directed toward the apprehension and return of an
             7753      escapee.
             7754     
ARTICLE VI

             7755     
FEDERAL AID

             7756          Any state party to this compact may accept federal aid for use in connection with any
             7757      institution or program, the use of which is or may be affected by this compact or any contract


             7758      pursuant hereto and any inmate in a receiving state pursuant to this compact may participate in
             7759      any such federally aided program or activity for which the sending and receiving states have
             7760      made contractual provision provided that if such program or activity is not part of the
             7761      customary correctional regimen the express consent of the appropriate official of the sending
             7762      state shall be required therefor.
             7763     
ARTICLE VII

             7764     
ENTRY INTO FORCE

             7765          This compact shall enter into force and become effective and binding upon the states so
             7766      acting when it has been enacted into law by any two contiguous states from among the states of
             7767      Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nebraska, Nevada, New
             7768      Mexico, Oregon, Utah, Washington and Wyoming. For the purposes of this article, Alaska and
             7769      Hawaii shall be deemed contiguous to each other; to any and all of the states of California,
             7770      Oregon and Washington; and to Guam. Thereafter, this compact shall enter into force and
             7771      become effective and binding as to any other of said states, or any other state contiguous to at
             7772      least one party state upon similar action by such state. Guam may become party to this
             7773      compact by taking action similar to that provided for joinder by any other eligible party state
             7774      and upon the consent of congress to such joinder. For the purpose of this article, Guam shall
             7775      be deemed contiguous to Alaska, Hawaii, California, Oregon and Washington.
             7776     
ARTICLE VIII

             7777     
WITHDRAWAL AND TERMINATION

             7778          This compact shall continue in force and remain binding upon a party state until it shall
             7779      have enacted a statute repealing the same and providing for the sending of formal written
             7780      notice of withdrawal from the compact to the appropriate officials of all other party states. An
             7781      actual withdrawal shall not take effect until two years after the notices provided in said statute
             7782      have been sent. Such withdrawal shall not relieve the withdrawing state from its obligations
             7783      assumed hereunder prior to the effective date of withdrawal. Before the effective date of
             7784      withdrawal, a withdrawing state shall remove to its territory, at its own expense, such inmates
             7785      as it may have confined pursuant to the provisions of this compact.


             7786     
ARTICLE IX

             7787     
OTHER ARRANGEMENTS UNAFFECTED

             7788          Nothing contained in this compact shall be construed to abrogate or impair any
             7789      agreement or other arrangement which a party state may have with a non-party state for the
             7790      confinement, rehabilitation or treatment of inmates nor to repeal any other laws of a party state
             7791      authorizing the making of cooperative institutional arrangements.
             7792     
ARTICLE X

             7793     
CONSTRUCTION AND SEVERABILITY

             7794          The provisions of this compact shall be liberally construed and shall be severable. If
             7795      any phrase, clause, sentence or provision of this compact is declared to be contrary to the
             7796      constitution of any participating state or of the United States or the applicability thereof to any
             7797      government, agency, person or circumstance is held invalid, the validity of the remainder of
             7798      this compact and the applicability thereof to any government, agency, person or circumstance
             7799      shall not be affected thereby. If this compact shall be held contrary to the constitution of any
             7800      state participating therein, the compact shall remain in full force and effect as to the remaining
             7801      states and in full force and effect as to the state affected as to all severable matters.
             7802          Section 155. Section 79-5-503 is amended to read:
             7803           79-5-503. Bonneville Shoreline Trail Program.
             7804          (1) There is created the Bonneville Shoreline Trail Program.
             7805          (2) The program shall be funded from the following sources:
             7806          (a) appropriations made to the program by the Legislature; and
             7807          (b) contributions from other public and private sources.
             7808          (3) All [monies] money appropriated to the Bonneville Shoreline Trail Program [are] is
             7809      nonlapsing.
             7810          (4) The Bonneville Shoreline Trail is intended to:
             7811          (a) follow on or near the old Lake Bonneville shoreline terrace near the foot of the
             7812      Wasatch Mountains from Juab County through Cache County; and
             7813          (b) provide continuous and safe trails.


             7814          (5) (a) The program [monies] money shall be used to provide grants to local
             7815      governments for the planning, development, and construction of the Bonneville Shoreline
             7816      Trail.
             7817          (b) Grant recipients shall provide matching funds in accordance with Section 79-5-501 .


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