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H.B. 186

             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