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First Substitute H.B. 230
7 LONG TITLE
8 General Description:
9 To the extent possible, this bill replaces outdated terms relating to persons with a
10 disability with updated terms.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . except where impracticable due to language used in federal law, uniform law,
15 interstate compacts, or case law, replaces terms as follows:
16 . replaces the term "mental retardation," and its variations, with "intellectual
18 . replaces the term "crippled," with "disability";
19 . replaces the term "disabled person," and similar references, with the term
20 "person with a disability" or similar variations;
21 . replaces the term "mentally ill person" and similar references, with the term
22 "person with a mental illness" or similar variations;
23 . replaces the term "paraplegic" and similar references, with the term "person with
24 paraplegia" or similar variations;
25 . replaces the term "guilty and mentally ill," with the term "guilty with a mental
27 . replaces the term "guilty of a lesser offense and mentally ill," with the term
28 "guilty of a lesser offense with a mental illness"; and
29 . makes technical changes.
30 Money Appropriated in this Bill:
32 Other Special Clauses:
33 This bill provides an effective date.
34 Utah Code Sections Affected:
36 9-4-801, as last amended by Laws of Utah 2010, Chapter 286
37 9-4-802, as last amended by Laws of Utah 2010, Chapter 278
38 9-4-903, as last amended by Laws of Utah 2001, Chapter 319
39 17B-2a-823, as renumbered and amended by Laws of Utah 2007, Chapter 329
40 19-6-102, as last amended by Laws of Utah 2007, Chapter 72
41 20A-1-501, as last amended by Laws of Utah 2006, Chapter 264
42 20A-3-108, as last amended by Laws of Utah 2007, Chapter 75
43 20A-3-403, as last amended by Laws of Utah 2006, Chapter 273
44 20A-3-406, as last amended by Laws of Utah 2010, Chapter 169
45 20A-3-408, as last amended by Laws of Utah 2002, Chapter 112
46 20A-3-410, as last amended by Laws of Utah 2006, Chapter 16
47 20A-8-401, as last amended by Laws of Utah 2010, Chapter 177
48 23-19-1, as last amended by Laws of Utah 2008, Chapter 69
49 23-19-14, as last amended by Laws of Utah 2003, Chapter 171
50 23-19-36, as last amended by Laws of Utah 1999, Chapter 128
51 23-19-38.3, as enacted by Laws of Utah 2010, Chapter 192
52 23-20-12, as last amended by Laws of Utah 1975, Chapter 60
53 24-1-7, as last amended by Laws of Utah 2004, Chapter 296
54 26-1-18, as last amended by Laws of Utah 1991, Chapter 112
55 26-2-27, as last amended by Laws of Utah 1998, Chapter 263
56 26-4-7, as last amended by Laws of Utah 2001, Chapter 278
57 26-10-1, as last amended by Laws of Utah 2001, Chapter 73
58 26-10-2, as enacted by Laws of Utah 1981, Chapter 126
59 26-10-6, as last amended by Laws of Utah 2010, Chapter 286
60 26-18-3, as last amended by Laws of Utah 2010, Chapters 149, 323, 340, and 391
61 26-18-3.1, as enacted by Laws of Utah 1994, Chapter 314
62 26-18-501, as enacted by Laws of Utah 2004, Chapter 215
63 26-19-13.5, as last amended by Laws of Utah 2004, Chapter 72
64 26-21-3, as last amended by Laws of Utah 2008, Chapter 74
65 26-21-9.5, as last amended by Laws of Utah 2009, Chapter 267
66 26-21-13.5, as last amended by Laws of Utah 1993, Chapter 201
67 26-35a-102, as enacted by Laws of Utah 2004, Chapter 284
68 26-35a-103, as last amended by Laws of Utah 2009, Chapter 83
69 26-35a-108, as enacted by Laws of Utah 2005, Chapter 31
70 31A-1-301, as last amended by Laws of Utah 2010, Chapter 10
71 31A-22-611, as last amended by Laws of Utah 2006, Chapter 188
72 31A-22-614, as last amended by Laws of Utah 2001, Chapter 116
73 31A-22-625, as last amended by Laws of Utah 2010, Chapters 10 and 68
74 31A-22-802, as last amended by Laws of Utah 2004, Chapter 90
75 31A-23a-114, as renumbered and amended by Laws of Utah 2003, Chapter 298
76 31A-26-215, as enacted by Laws of Utah 2001, Chapter 116
77 31A-36-111, as last amended by Laws of Utah 2009, Chapter 355
78 34-38-14, as last amended by Laws of Utah 2010, Chapter 284
79 34-41-106, as last amended by Laws of Utah 1997, Chapter 375
80 34A-2-107, as last amended by Laws of Utah 2010, Chapter 286
81 34A-2-413, as last amended by Laws of Utah 2010, Chapter 59
82 34A-2-703, as renumbered and amended by Laws of Utah 1997, Chapter 375
83 34A-2-902, as last amended by Laws of Utah 2008, Chapter 3
84 34A-2-903, as renumbered and amended by Laws of Utah 2005, Chapter 243
85 34A-3-104, as renumbered and amended by Laws of Utah 1997, Chapter 375
86 34A-3-107, as renumbered and amended by Laws of Utah 1997, Chapter 375
87 34A-4-101, as renumbered and amended by Laws of Utah 1997, Chapter 375
88 34A-4-102, as renumbered and amended by Laws of Utah 1997, Chapter 375
89 34A-8a-102, as renumbered and amended by Laws of Utah 2009, Chapter 158
90 34A-8a-301, as renumbered and amended by Laws of Utah 2009, Chapter 158
91 34A-8a-302, as renumbered and amended by Laws of Utah 2009, Chapter 158
92 34A-8a-303, as renumbered and amended by Laws of Utah 2009, Chapter 158
93 39-1-59, as last amended by Laws of Utah 1988, Chapter 210
94 41-6a-1011, as renumbered and amended by Laws of Utah 2005, Chapter 2
95 41-22-2, as last amended by Laws of Utah 2009, Chapters 289 and 311
96 49-11-403, as last amended by Laws of Utah 2010, Chapters 257, 266, and 321
97 49-11-404, as last amended by Laws of Utah 2010, Chapters 266 and 321
98 49-12-601, as renumbered and amended by Laws of Utah 2002, Chapter 250
99 49-14-502, as last amended by Laws of Utah 2003, Chapter 240
100 49-14-504, as last amended by Laws of Utah 2009, Chapter 224
101 49-15-502, as last amended by Laws of Utah 2003, Chapter 240
102 49-15-504, as last amended by Laws of Utah 2009, Chapter 224
103 49-16-201, as last amended by Laws of Utah 2010, Chapter 266
104 49-16-502, as renumbered and amended by Laws of Utah 2002, Chapter 250
105 49-16-504, as last amended by Laws of Utah 2003, Chapter 240
106 49-16-602, as last amended by Laws of Utah 2007, Chapter 130
107 49-21-102, as last amended by Laws of Utah 2007, Chapter 130
108 49-21-401, as last amended by Laws of Utah 2010, Chapter 321
109 49-21-403, as last amended by Laws of Utah 2010, Chapters 266 and 321
110 49-22-402, as enacted by Laws of Utah 2010, Chapter 266
111 53-3-807, as last amended by Laws of Utah 2009, Chapter 315
112 53-10-208.1, as last amended by Laws of Utah 2009, Chapter 356
113 53A-1a-704, as last amended by Laws of Utah 2009, Chapter 197
114 53A-3-204, as enacted by Laws of Utah 1988, Chapter 2
115 53A-9-103, as last amended by Laws of Utah 2001, Chapters 73 and 86
116 53A-15-205, as last amended by Laws of Utah 2002, Chapter 210
117 53A-17a-112, as last amended by Laws of Utah 2010, Chapter 3
118 53A-17a-127, as last amended by Laws of Utah 2010, Chapter 305
119 53B-23-101, as enacted by Laws of Utah 2006, Chapter 301
120 54-1-1.6, as last amended by Laws of Utah 2002, Chapter 176
121 57-21-5, as last amended by Laws of Utah 1993, Chapter 114
122 58-15-2, as last amended by Laws of Utah 1993, Chapter 297
123 58-15-3, as repealed and reenacted by Laws of Utah 1993, Chapter 297
124 58-17b-503, as last amended by Laws of Utah 2005, Chapter 160
125 58-17b-701, as last amended by Laws of Utah 2008, Chapter 382
126 58-26a-307, as last amended by Laws of Utah 2009, Chapter 183
127 58-31b-102, as last amended by Laws of Utah 2008, Chapters 214 and 382
128 58-31b-401, as last amended by Laws of Utah 2008, Chapters 214 and 382
129 58-60-114, as last amended by Laws of Utah 2009, Chapter 356
130 58-60-509, as last amended by Laws of Utah 2009, Chapter 356
131 58-61-602, as last amended by Laws of Utah 2009, Chapter 356
132 58-67-601, as last amended by Laws of Utah 2008, Chapter 382
133 58-68-601, as last amended by Laws of Utah 2008, Chapter 382
134 58-69-601, as last amended by Laws of Utah 2008, Chapter 382
135 58-71-601, as last amended by Laws of Utah 2008, Chapter 382
136 58-73-401, as last amended by Laws of Utah 2010, Chapter 324
137 59-2-1101, as last amended by Laws of Utah 2007, Chapter 329
138 59-2-1104, as last amended by Laws of Utah 2010, Chapter 71
139 59-2-1105, as last amended by Laws of Utah 2008, Chapters 104 and 382
140 59-2-1109, as last amended by Laws of Utah 2009, Chapter 72
141 59-7-602, as enacted by Laws of Utah 1993, Chapter 169
142 59-10-1011, as renumbered and amended by Laws of Utah 2006, Chapter 223
143 62A-1-108.5, as last amended by Laws of Utah 2008, Chapter 382
144 62A-2-101, as last amended by Laws of Utah 2009, Chapter 75
145 62A-2-120, as last amended by Laws of Utah 2010, Chapter 365
146 62A-2-122, as last amended by Laws of Utah 2009, Chapter 75
147 62A-4a-1010, as last amended by Laws of Utah 2008, Chapters 3 and 299
148 62A-5-101, as last amended by Laws of Utah 2009, Chapter 75
149 62A-5-103, as last amended by Laws of Utah 2008, Chapter 382
150 62A-5-104, as last amended by Laws of Utah 2009, Chapter 75
151 62A-5-110, as last amended by Laws of Utah 1998, Chapter 145
152 62A-5-201, as last amended by Laws of Utah 2010, Chapter 42
153 62A-5-206, as last amended by Laws of Utah 1996, Chapter 79
154 62A-5-207, as last amended by Laws of Utah 1992, Chapter 104
155 62A-5-302, as last amended by Laws of Utah 2004, Chapter 114
156 62A-5-304, as last amended by Laws of Utah 1991, Chapter 207
157 62A-5-305, as last amended by Laws of Utah 1991, Chapter 207
158 62A-5-308, as last amended by Laws of Utah 1993, Chapter 132
159 62A-5-309, as last amended by Laws of Utah 2004, Chapter 114
160 62A-5-310, as enacted by Laws of Utah 1988, Chapter 1
161 62A-5-311, as last amended by Laws of Utah 2004, Chapter 114
162 62A-5-312, as last amended by Laws of Utah 2004, Chapter 114
163 62A-5-313, as last amended by Laws of Utah 2008, Chapter 382
164 62A-5-316, as enacted by Laws of Utah 1988, Chapter 1
165 62A-5-317, as last amended by Laws of Utah 2004, Chapter 114
166 62A-5-318, as enacted by Laws of Utah 1993, Chapter 132
167 62A-6-101, as last amended by Laws of Utah 2005, Chapter 254
168 62A-11-111, as last amended by Laws of Utah 1994, Chapter 12
169 62A-15-605, as last amended by Laws of Utah 2010, Chapter 286
170 62A-15-608, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
171 Chapter 8
172 62A-15-610, as last amended by Laws of Utah 2003, Chapter 195
173 62A-15-616, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
174 Chapter 8
175 62A-15-619, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
176 Chapter 8
177 62A-15-629, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
178 Chapter 8
179 62A-15-631, as last amended by Laws of Utah 2003, Chapter 303
180 62A-15-632, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
181 Chapter 8
182 62A-15-644, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
183 Chapter 8
184 62A-15-706, as renumbered and amended by Laws of Utah 2002, Fifth Special Session,
185 Chapter 8
186 62A-15-902, as last amended by Laws of Utah 2010, Chapter 218
187 63M-9-103, as renumbered and amended by Laws of Utah 2008, Chapter 382
188 64-9b-1, as last amended by Laws of Utah 1998, Chapter 363
189 67-19-27, as last amended by Laws of Utah 2009, Chapter 344
190 68-3-12.5, as enacted by Laws of Utah 2010, Chapter 254
191 71-10-1, as last amended by Laws of Utah 2007, Chapter 329
192 71-10-2, as last amended by Laws of Utah 2000, Chapter 134
193 71-11-2, as last amended by Laws of Utah 2007, Chapter 173
194 72-10-601, as last amended by Laws of Utah 2007, Chapter 329
195 75-2-801, as repealed and reenacted by Laws of Utah 1998, Chapter 39
196 75-5-303, as last amended by Laws of Utah 1988, Chapter 104
197 75-5-316, as last amended by Laws of Utah 2001, Chapter 73
198 75-5-408, as enacted by Laws of Utah 1975, Chapter 150
199 75-5-425, as last amended by Laws of Utah 1977, Chapter 194
200 75-5-501, as last amended by Laws of Utah 2003, Chapter 241
201 76-3-203.5, as last amended by Laws of Utah 2010, Chapter 334
202 76-3-406, as last amended by Laws of Utah 2007, Chapter 339
203 76-5-109, as last amended by Laws of Utah 2008, Chapter 45
204 76-5-110, as last amended by Laws of Utah 2009, Chapter 219
205 77-13-1, as last amended by Laws of Utah 2007, Chapter 306
206 77-16a-101, as last amended by Laws of Utah 1994, Chapter 13
207 77-16a-102, as last amended by Laws of Utah 2009, Chapter 206
208 77-16a-103, as last amended by Laws of Utah 2002, Chapter 61
209 77-16a-104, as last amended by Laws of Utah 2003, Chapter 206
210 77-16a-201, as last amended by Laws of Utah 2002, Chapter 61
211 77-16a-202, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
212 77-16a-203, as last amended by Laws of Utah 2005, Chapter 61
213 77-16a-204, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
214 77-16a-205, as enacted by Laws of Utah 1992, Chapter 171
215 77-16a-302, as last amended by Laws of Utah 2002, Fifth Special Session, Chapter 8
216 77-16a-304, as last amended by Laws of Utah 2005, Chapter 61
217 77-16a-306, as enacted by Laws of Utah 1992, Chapter 171
218 77-18-1, as last amended by Laws of Utah 2009, Chapter 81
219 77-18-1.1, as last amended by Laws of Utah 2009, Chapter 337
220 77-18-8.3, as enacted by Laws of Utah 1996, Chapter 210
221 77-18-8.5, as enacted by Laws of Utah 1996, Chapter 210
222 77-27-2, as last amended by Laws of Utah 2010, Chapter 110
223 77-27-5.3, as enacted by Laws of Utah 1996, Chapter 161
224 77-27-10.5, as last amended by Laws of Utah 1997, Chapter 10
225 77-33-5, as enacted by Laws of Utah 1980, Chapter 15
226 77-38-302, as last amended by Laws of Utah 2008, Chapter 339 and renumbered and
227 amended by Laws of Utah 2008, Chapter 3
228 78A-2-302, as renumbered and amended by Laws of Utah 2008, Chapter 3
229 78A-6-103, as last amended by Laws of Utah 2009, Chapter 146
230 78A-6-117 (Superseded 07/01/11), as renumbered and amended by Laws of Utah
231 2008, Chapter 3
232 78A-6-117 (Effective 07/01/11), as last amended by Laws of Utah 2010, Chapter 276
233 78A-11-108, as renumbered and amended by Laws of Utah 2008, Chapter 3
234 78B-3-110, as renumbered and amended by Laws of Utah 2008, Chapter 3
236 Be it enacted by the Legislature of the state of Utah:
237 Section 1. Section 9-4-801 is amended to read:
238 9-4-801. Creation.
239 (1) There is created the Homeless Coordinating Committee.
240 (2) (a) The committee shall consist of the state planning coordinator, the state
241 superintendent of public instruction, the chair of the board of trustees of the Utah Housing
242 Corporation, and the executive directors of the Department of Human Services, the Department
243 of Corrections, the Department of Community and Culture, the Department of Workforce
244 Services, and the Department of Health, or their designees.
245 (b) The governor shall appoint the chair from among these members.
246 (3) The governor may also appoint as members of the committee representatives of
247 local governments, local housing authorities, local law enforcement agencies, and of federal
248 and private agencies and organizations concerned with the homeless, [
249 with a mental illness, the elderly, single-parent families, substance abusers, and persons with a
251 (4) (a) Except as required by Subsection (4)(b), as terms of current committee members
252 expire, the governor shall appoint each new member or reappointed member to a four-year
254 (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
255 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
256 committee members are staggered so that approximately half of the committee is appointed
257 every two years.
258 (c) A person appointed under this Subsection (4) may not be appointed to serve more
259 than three consecutive terms.
260 (5) When a vacancy occurs in the membership for any reason, the replacement shall be
261 appointed for the unexpired term.
262 (6) A member may not receive compensation or benefits for the member's service, but
263 may receive per diem and travel expenses in accordance with:
264 (a) Section 63A-3-106 ;
265 (b) Section 63A-3-107 ; and
266 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
267 63A-3-107 .
268 Section 2. Section 9-4-802 is amended to read:
269 9-4-802. Purposes of Homeless Coordinating Committee -- Uses of Pamela
270 Atkinson Homeless Account.
271 (1) (a) The Homeless Coordinating Committee shall work to ensure that services
272 provided to the homeless by state agencies, local governments, and private organizations are
273 provided in a cost-effective manner.
274 (b) Programs funded by the committee shall emphasize emergency housing and
275 self-sufficiency, including placement in meaningful employment or occupational training
276 activities and, where needed, special services to meet the unique needs of the homeless who:
277 (i) have families with children[
278 (ii) have a disability or a mental illness; or
279 (iii) suffer from other serious challenges to employment and self-sufficiency.
280 (c) The committee may also fund treatment programs to ameliorate the effects of
281 substance abuse or a disability.
282 (2) The committee members designated in Subsection 9-4-801 (2) shall:
283 (a) award contracts funded by the Pamela Atkinson Homeless Account with the advice
284 and input of those designated in Subsection 9-4-801 (3);
285 (b) consider need, diversity of geographic location, coordination with or enhancement
286 of existing services, and the extensive use of volunteers; and
287 (c) give priority for funding to programs that serve the homeless who [
288 have a mental illness and who are in families with children.
289 (3) (a) In any fiscal year, no more than 80% of the funds in the Pamela Atkinson
290 Homeless Account may be allocated to organizations that provide services only in Salt Lake,
291 Davis, Weber, and Utah Counties.
292 (b) The committee may:
293 (i) expend up to 3% of its annual appropriation for administrative costs associated with
294 the allocation of funds from the Pamela Atkinson Homeless Account, and up to 2% of its
295 annual appropriation for marketing the account and soliciting donations to the account; and
296 (ii) pay for the initial costs of the State Tax Commission in implementing Section
297 59-10-1306 from the account.
298 (4) (a) The committee may not expend, except as provided in Subsection (4)(b), an
299 amount equal to the greater of $50,000 or 20% of the amount donated to the Pamela Atkinson
300 Homeless Account during fiscal year 1988-89.
301 (b) If there are decreases in contributions to the account, the committee may expend
302 funds held in the account to provide program stability, but the committee shall reimburse the
303 amounts of those expenditures to the account.
304 (5) The committee shall make an annual report to the Economic Development and
305 Human Resources Appropriations Subcommittee regarding the programs and services funded
306 by contributions to the Pamela Atkinson Homeless Account.
307 (6) The money in the Pamela Atkinson Homeless Account shall be invested by the
308 state treasurer according to the procedures and requirements of Title 51, Chapter 7, State
309 Money Management Act, except that all interest or other earnings derived from the restricted
310 account shall be deposited in the restricted account.
311 Section 3. Section 9-4-903 is amended to read:
312 9-4-903. Definitions.
313 As used in this part the following words and terms have the following meanings, unless
314 a different meaning clearly appears from the context:
315 (1) "Bonds," "notes," and "other obligations" mean any bonds, notes, debentures,
316 interim certificates, or other evidences of financial indebtedness of the corporation authorized
317 to be issued under the provisions of this part.
318 (2) "Construction loan" means a short-term advance of money for the purpose of
319 constructing residential housing for low and moderate income persons.
320 (3) "Corporation" means the Utah Housing Corporation created by Section 9-4-904 ,
321 which, prior to July 1, 2001, was named the Utah Housing Finance Agency.
322 (4) "Employee of the corporation" means any individual who is employed by the
323 corporation but who is not a trustee of the corporation.
324 (5) "Financial assistance" includes:
325 (a) a loan, whether interest or noninterest bearing, secured or unsecured;
326 (b) a loan that converts to a grant upon the occurrence of specified conditions;
327 (c) a development loan;
328 (d) a grant;
329 (e) an award;
330 (f) a subsidy;
331 (g) a guarantee;
332 (h) a warranty;
333 (i) a lease;
334 (j) a payment on behalf of a borrower of an amount usually paid by a borrower,
335 including a down payment;
336 (k) any other form of financial assistance that helps provide affordable housing for low
337 and moderate income persons; or
338 (l) any combination of the foregoing.
339 (6) "Housing development" means a residential housing project, which includes
340 residential housing for low and moderate income persons.
341 (7) "Housing sponsor" includes a person who constructs, develops, rehabilitates,
342 purchases, or owns a housing development that is or will be subject to legally enforceable
343 restrictive covenants that require the housing development to provide, at least in part,
344 residential housing to low and moderate income persons, including a local public body, a
345 nonprofit, limited profit, or for profit corporation, a limited partnership, a limited liability
346 company, a joint venture, a subsidiary of the corporation, or any subsidiary of the subsidiary, a
347 cooperative, a mutual housing organization, or any other type of entity or arrangement that
348 helps provide affordable housing for low and moderate income persons.
349 (8) "Interest rate contract" means interest rate exchange contracts, interest rate floor
350 contracts, interest rate ceiling contracts, and other similar contracts authorized in a resolution
351 or policy adopted or approved by the trustees.
352 (9) "Local public body" means the state, any municipality, county, district, or other
353 subdivision or instrumentality of the state, including redevelopment agencies and housing
354 authorities created under Part 6, Housing Authorities.
355 (10) "Low and moderate income persons" means persons, irrespective of race, religion,
356 creed, national origin, or sex, as determined by the corporation to require such assistance as is
357 made available by this part on account of insufficient personal or family income taking into
358 consideration factors, including:
359 (a) the amount of income that persons and families have available for housing needs;
360 (b) the size of family;
361 (c) whether or not a person is a single head of household;
362 (d) the cost and condition of residential housing available; and
363 (e) the ability of persons and families to compete successfully in the normal private
364 housing market and to pay the amounts at which private enterprise is providing decent, safe,
365 and sanitary housing.
367 mortgage loan and constituting a lien on real property (the property being held in fee simple or
368 on a leasehold under a lease having a remaining term, at the time the mortgage is acquired, of
369 not less than the term for repayment of the mortgage loan secured by the mortgage) improved
370 or to be improved by residential housing, creating a lien which may be first priority or
373 association, credit union, mortgage banker, or other financial institution authorized to transact
374 business in the state, any local public body, or any other entity, profit or nonprofit, that makes
375 mortgage loans.
377 interest at either a fixed or variable rate or which may be noninterest bearing, the proceeds of
378 which are used for the purpose of financing the construction, development, rehabilitation, or
379 purchase of residential housing for low and moderate income persons, including low and
380 moderate income persons who:
381 (a) are first-time homebuyers[
382 (b) are single heads of household[
383 (c) are elderly[
384 (d) are homeless[
385 (e) have a disability.
386 (14) "Rehabilitation" includes the reconstruction, rehabilitation, improvement, and
387 repair of residential housing.
388 (15) "Residential housing" means a specific work or improvement within this state
389 undertaken primarily to provide dwelling accommodations, including land, buildings, and
390 improvements to land and buildings, whether in one to four family units or multifamily units,
391 and other incidental or appurtenant nonhousing facilities, or as otherwise specified by the
393 (16) "State" means the state of Utah.
394 (17) "State housing credit ceiling" means the amount specified in Subsection
395 42(h)(3)(C) of the Internal Revenue Code for each calendar year.
396 Section 4. Section 17B-2a-823 is amended to read:
397 17B-2a-823. Public transit district special services.
398 (1) As used in this section, "bureau" means a recreational, tourist, or convention bureau
399 established under Section 17-31-2 .
400 (2) (a) A public transit district may lease its buses to private certified public carriers or
401 operate transit services requested by a public entity if a bureau certifies that privately owned
402 carriers furnishing like services or operating like equipment within the area served by the
404 (i) have declined to provide the service; or
405 (ii) do not have the equipment necessary to provide the service.
406 (b) A public transit district may lease its buses or operate services as authorized under
407 Subsection (2)(a) outside of the area served by the district.
408 (3) If part or all of the transportation services are paid for by public funds, a public
409 transit district may:
410 (a) provide school bus services for transportation of pupils and supervisory personnel
411 between homes and school and other related school activities within the area served by the
412 district; or
413 (b) provide the transportation of passengers covered by [
414 a program within the district for people who are elderly or who have a disability.
415 (4) Notwithstanding the provisions in Subsection (3), a municipality or county is not
416 prohibited from providing the transportation services identified in Subsection (3).
417 Section 5. Section 19-6-102 is amended to read:
418 19-6-102. Definitions.
419 As used in this part:
420 (1) "Board" means the Solid and Hazardous Waste Control Board created in Section
421 19-1-106 .
422 (2) "Closure plan" means a plan under Section 19-6-108 to close a facility or site at
423 which the owner or operator has disposed of nonhazardous solid waste or has treated, stored, or
424 disposed of hazardous waste including, if applicable, a plan to provide postclosure care at the
425 facility or site.
426 (3) (a) "Commercial nonhazardous solid waste treatment, storage, or disposal facility"
427 means a facility that receives, for profit, nonhazardous solid waste for treatment, storage, or
429 (b) "Commercial nonhazardous solid waste treatment, storage, or disposal facility"
430 does not include a facility that:
431 (i) receives waste for recycling;
432 (ii) receives waste to be used as fuel, in compliance with federal and state
433 requirements; or
434 (iii) is solely under contract with a local government within the state to dispose of
435 nonhazardous solid waste generated within the boundaries of the local government.
436 (4) "Construction waste or demolition waste":
437 (a) means waste from building materials, packaging, and rubble resulting from
438 construction, demolition, remodeling, and repair of pavements, houses, commercial buildings,
439 and other structures, and from road building and land clearing; and
440 (b) does not include: asbestos; contaminated soils or tanks resulting from remediation
441 or cleanup at any release or spill; waste paints; solvents; sealers; adhesives; or similar
442 hazardous or potentially hazardous materials.
443 (5) "Demolition waste" has the same meaning as the definition of construction waste in
444 this section.
445 (6) "Disposal" means the discharge, deposit, injection, dumping, spilling, leaking, or
446 placing of any solid or hazardous waste into or on any land or water so that the waste or any
447 constituent of the waste may enter the environment, be emitted into the air, or discharged into
448 any waters, including groundwaters.
449 (7) "Executive secretary" means the executive secretary of the board.
450 (8) "Generation" or "generated" means the act or process of producing nonhazardous
451 solid or hazardous waste.
452 (9) "Hazardous waste" means a solid waste or combination of solid wastes other than
453 household waste which, because of its quantity, concentration, or physical, chemical, or
454 infectious characteristics may cause or significantly contribute to an increase in mortality or an
455 increase in serious irreversible or incapacitating reversible illness or may pose a substantial
456 present or potential hazard to human health or the environment when improperly treated,
457 stored, transported, disposed of, or otherwise managed.
458 (10) "Health facility" means hospitals, psychiatric hospitals, home health agencies,
459 hospices, skilled nursing facilities, intermediate care facilities, intermediate care facilities for
461 maternity homes or birthing centers, free standing ambulatory surgical centers, facilities owned
462 or operated by health maintenance organizations, and state renal disease treatment centers
463 including free standing hemodialysis units, the offices of private physicians and dentists
464 whether for individual or private practice, veterinary clinics, and mortuaries.
465 (11) "Household waste" means any waste material, including garbage, trash, and
466 sanitary wastes in septic tanks, derived from households, including single-family and
467 multiple-family residences, hotels and motels, bunk houses, ranger stations, crew quarters,
468 campgrounds, picnic grounds, and day-use recreation areas.
469 (12) "Infectious waste" means a solid waste that contains or may reasonably be
470 expected to contain pathogens of sufficient virulence and quantity that exposure to the waste by
471 a susceptible host could result in an infectious disease.
472 (13) "Manifest" means the form used for identifying the quantity, composition, origin,
473 routing, and destination of hazardous waste during its transportation from the point of
474 generation to the point of disposal, treatment, or storage.
475 (14) "Mixed waste" means any material that is a hazardous waste as defined in this
476 chapter and is also radioactive as defined in Section 19-3-102 .
477 (15) "Modification plan" means a plan under Section 19-6-108 to modify a facility or
478 site for the purpose of disposing of nonhazardous solid waste or treating, storing, or disposing
479 of hazardous waste.
480 (16) "Operation plan" or "nonhazardous solid or hazardous waste operation plan"
481 means a plan or approval under Section 19-6-108 , including:
482 (a) a plan to own, construct, or operate a facility or site for the purpose of disposing of
483 nonhazardous solid waste or treating, storing, or disposing of hazardous waste;
484 (b) a closure plan;
485 (c) a modification plan; or
486 (d) an approval that the executive secretary is authorized to issue.
487 (17) "Permittee" means a person who is obligated under an operation plan.
488 (18) (a) "Solid waste" means any garbage, refuse, sludge, including sludge from a
489 waste treatment plant, water supply treatment plant, or air pollution control facility, or other
490 discarded material, including solid, liquid, semi-solid, or contained gaseous material resulting
491 from industrial, commercial, mining, or agricultural operations and from community activities
492 but does not include solid or dissolved materials in domestic sewage or in irrigation return
493 flows or discharges for which a permit is required under Title 19, Chapter 5, Water Quality
494 Act, or under the Water Pollution Control Act, 33 U.S.C., Section 1251, et seq.
495 (b) "Solid waste" does not include any of the following wastes unless the waste causes
496 a public nuisance or public health hazard or is otherwise determined to be a hazardous waste:
497 (i) certain large volume wastes, such as inert construction debris used as fill material;
498 (ii) drilling muds, produced waters, and other wastes associated with the exploration,
499 development, or production of oil, gas, or geothermal energy;
500 (iii) fly ash waste, bottom ash waste, slag waste, and flue gas emission control waste
501 generated primarily from the combustion of coal or other fossil fuels;
502 (iv) solid wastes from the extraction, beneficiation, and processing of ores and
503 minerals; or
504 (v) cement kiln dust.
505 (19) "Storage" means the actual or intended containment of solid or hazardous waste
506 either on a temporary basis or for a period of years in such a manner as not to constitute
507 disposal of the waste.
508 (20) "Transportation" means the off-site movement of solid or hazardous waste to any
509 intermediate point or to any point of storage, treatment, or disposal.
510 (21) "Treatment" means a method, technique, or process designed to change the
511 physical, chemical, or biological character or composition of any solid or hazardous waste so as
512 to neutralize the waste or render the waste nonhazardous, safer for transport, amenable for
513 recovery, amenable to storage, or reduced in volume.
514 (22) "Underground storage tank" means a tank which is regulated under Subtitle I of
515 the Resource Conservation and Recovery Act, 42 U.S.C., Section 6991, et seq.
516 Section 6. Section 20A-1-501 is amended to read:
517 20A-1-501. Candidate vacancies -- Procedure for filling.
518 (1) The state central committee of a political party, for candidates for United States
519 senator, United States representative, governor, lieutenant governor, attorney general, state
520 treasurer, and state auditor, and for legislative candidates whose legislative districts encompass
521 more than one county, and the county central committee of a political party, for all other party
522 candidates seeking an office elected at a regular general election, may certify the name of
523 another candidate to the appropriate election officer if:
524 (a) after the close of the period for filing declarations of candidacy and continuing
525 through the date 15 days before the date of the primary election:
526 (i) only one or two candidates from that party have filed a declaration of candidacy for
527 that office; and
528 (ii) one or both:
529 (A) dies;
530 (B) resigns because of [
531 or mental disability as certified by a physician; or
532 (C) is disqualified by an election officer for improper filing or nominating procedures;
534 (b) after the close of the primary election and continuing through the date of the voter
535 registration deadline for the general election as established in Section 20A-2-102.5 , the party's
537 (i) dies;
538 (ii) resigns because of [
539 or mental disability as certified by a physician;
540 (iii) is disqualified by an election officer for improper filing or nominating procedures;
542 (iv) resigns to become a candidate for President or Vice President of the United States.
543 (2) If no more than two candidates from a political party have filed a declaration of
544 candidacy for an office elected at a regular general election and one resigns to become the party
545 candidate for another position, the state central committee of that political party, for candidates
546 for governor, lieutenant governor, attorney general, state treasurer, and state auditor, and for
547 legislative candidates whose legislative districts encompass more than one county, and the
548 county central committee of that political party, for all other party candidates, may certify the
549 name of another candidate to the appropriate election officer.
550 (3) Each replacement candidate shall file a declaration of candidacy as required by
551 Title 20A, Chapter 9, Part 2, Candidate Qualifications and Declarations of Candidacy.
552 (4) A replacement candidate may not be certified for an election during the period
553 beginning on the day after the date of the voter registration deadline and continuing through the
554 date of the election.
555 Section 7. Section 20A-3-108 is amended to read:
556 20A-3-108. Assisting disabled, illiterate, or blind voters.
557 (1) Any voter who has a disability, or is blind, [
558 unable to read or write the English language, or is physically unable to enter a polling place,
559 may be given assistance by a person of the voter's choice.
560 (2) The person providing assistance may not be:
561 (a) the voter's employer;
562 (b) an agent of the employer;
563 (c) an officer or agent of the voter's union; or
564 (d) a candidate.
565 (3) The person providing assistance may not request, persuade, or otherwise induce the
566 voter to vote for or vote against any particular candidate or issue or release any information
567 regarding the voter's selection.
568 (4) Each time a voter is assisted, the poll worker shall note that fact in the official
569 register and the pollbook.
570 Section 8. Section 20A-3-403 is amended to read:
571 20A-3-403. Definitions.
572 As used in this part:
573 (1) (a) "Ballot," [
574 "official Utah military ballot" [
575 by other voters of Utah at the primary or general election.
576 (b) "Ballot" includes any official federal ballot provided by any Act of Congress to
577 allow voting by voters in the military service of the United States.
578 (2) "Federal postcard application form" means the form created by the Federal Voting
579 Assistance Program (FVAP) which allows military and overseas citizens to register to vote and
580 apply for an absentee ballot.
581 (3) "Hostile fire zone" means a geographical area in which forces are assigned on
582 official temporary duty and placed in imminent danger of being exposed to hostile fire or
583 explosion of hostile mines.
584 (4) "Military voter" means each person who is qualified as a voter under the Utah
585 Constitution and laws or who is eligible for registration and who would, by registration, be
586 qualified to vote, and who is:
587 (a) a member of the armed forces of the United States while in the active service or is
588 the spouse or dependent of that member;
589 (b) a member of the merchant marine of the United States or is the spouse or dependent
590 of that member;
591 (c) a civilian employee of the United States in all categories who is serving outside the
592 territorial limits of the United States whether or not the employee is subject to the civil service
593 laws and the Classification Act of 1949, and whether or not the employee is paid from funds
594 appropriated by the Congress or is the spouse or dependent of that member when residing with
595 or accompanying them; and
596 (d) a member of religious groups or welfare agencies assisting members of the armed
597 forces, who is officially attached to and serving with the armed forces, or is the spouse or
598 dependent of that member.
599 (5) "Overseas citizen voter" means:
600 (a) a member of the armed forces of the United States while in the active service or the
601 spouse or dependent of that member;
602 (b) a member of the merchant marines of the United States or the spouse or dependent
603 of that member; and
604 (c) a citizen of the United States residing outside the territorial limits of the United
605 States or the spouse or dependent of that member when residing with them or accompanying
607 Section 9. Section 20A-3-406 is amended to read:
608 20A-3-406. Absentee ballots for military personnel and citizens living overseas --
609 Federal postcard applications for ballot.
610 (1) (a) An application for an absentee ballot for a military voter who is located in the
611 United States shall be filed in the county clerk's office no later than the Friday immediately
612 before the day of election.
613 (b) A member of the military voting an absentee ballot at the office of the clerk shall
614 apply and cast the absentee ballot no later than the day before the election.
615 (2) (a) (i) A military voter stationed overseas and an overseas citizen voter shall file an
616 application for a ballot with the county clerk no later than 20 days before the date of the
618 (ii) The application for an overseas military voter under Subsection (2)(a)(i) may be
619 filed electronically as provided in Section 20A-3-408.5 .
620 (b) Upon receipt of a properly completed application for an absentee ballot signed by a
621 military voter or an overseas citizen voter, the county clerk shall mail an appropriate ballot to
622 the military voter or overseas citizen voter.
623 (c) At the time the ballot is furnished, the county clerk shall record, in a record book
624 provided for that purpose:
625 (i) the name and home address of the military voter or overseas citizen voter to whom
626 the ballot is mailed;
627 (ii) the address to which the ballot was mailed; and
628 (iii) the date the ballot was mailed.
629 (d) If the military voter or overseas citizen voter sends the absentee ballot application
630 to the lieutenant governor, the lieutenant governor shall forward the application to the county
631 clerk of the county where the military voter or overseas citizen voter is entitled to vote.
632 (e) If the county clerk rejects the application for an absentee ballot from a military or
633 overseas citizen voter, the county clerk shall inform the voter of the reasons for rejecting the
635 (3) A military voter or overseas citizen voter who [
636 disability and is unable to see or write may apply for a ballot by having a commissioned,
637 noncommissioned, or petty officer not below the rank of sergeant or other person authorized to
638 administer oaths to apply for a ballot on the voter's behalf.
639 (4) (a) A federal postcard application issued under the authority of any Act of Congress
640 or federal regulation is acceptable, when properly executed, as an application for a ballot under
641 this chapter.
642 (b) The county clerk shall accept the completed postcard application as an application
643 for ballots for each election for federal office held in the next general election and shall send
644 the applicant a ballot for each of those elections, as required by Section 20A-3-407 .
645 (5) The county clerk shall retain the application for use at the time the ballot is received
646 from the military voter or overseas citizen voter.
647 Section 10. Section 20A-3-408 is amended to read:
648 20A-3-408. Voting of ballot by military or overseas citizen voter.
649 (1) (a) The military or overseas citizen voter shall:
650 (i) upon receipt of the ballot, mark it in secret;
651 (ii) seal it in the ballot envelope provided for that purpose; and
652 (iii) execute the registration and voting certificate and mailing affidavit on the back of
653 the envelope.
654 (b) (i) If the military or overseas citizen voter [
655 disability that renders the voter unable to see or write, [
656 from two persons, each of whom shall be qualified to certify to the registration and voting
658 (ii) The military or overseas citizen voter shall tell those persons how [
659 wishes [
660 (iii) Those persons shall mark the ballot as directed by the military or overseas citizen
661 voter in [
662 (iv) One of the persons assisting the military or overseas citizen voter shall:
663 (A) read to the voter the registration and voting certificate upon the ballot;
664 (B) fill in its blanks as the voter directs; and
665 (C) sign, on the line provided for the signature of the voter, the name of the voter and
667 (2) (a) The ballot shall be sent by any available mail service to the county clerk who
668 issued it.
669 (b) The military or overseas citizen voter is not required to return the ballot by
670 registered mail.
671 (3) The ballot is not valid unless:
672 (a) (i) it is clearly postmarked by the appropriate military post office, the Fleet Post
673 Office (FPO) or the Army/Air Force Post Office (APO), before election day and received in the
674 office of the election officer before noon on the day of the official canvass following the
675 election; or
676 (ii) the voter has signed the mailing affidavit on the back of the ballot envelope and the
677 ballot is received in the office of the election officer before noon on the day of the official
678 canvass following the election.
679 (b) The county clerk shall cause a mailing affidavit to be printed on the back of the
680 ballot envelope that is in substantially the following form:
681 "I certify that I am/may be unable to obtain a proper postmark and, subject to penalty of
682 law for false statements, swear or affirm that this ballot was voted and mailed before the day of
683 the election.
684 Signature of
687 To be signed when voter is physically unable to see or write:
688 ______________________________________________________Signature of
689 additional witness who is a commissioned, noncommissioned, or petty officer not below the
690 rank of sergeant or its equivalent, or another person authorized to administer oaths who does
691 swear, under penalty of law for false statements, that at the request of
692 _____________________(name of the voter), I completed the mailing affidavit because the
693 voter was unable to see or write because of a physical disability."
694 Section 11. Section 20A-3-410 is amended to read:
695 20A-3-410. Duty of election judges.
696 (1) (a) Voting precinct election judges shall open envelopes containing military or
697 overseas citizen voter ballots that are in their custody on election day at the polling places
698 during the time the polls are open as provided in this subsection.
699 (b) The election judges shall:
700 (i) first, open the outer envelope only; and
701 (ii) unless the ballot is a [
703 application with the signature on the registration and voting certificate.
704 (2) (a) The judges shall register the military or overseas citizen voter to vote if the
705 voter is not already registered if the judges find that:
706 (i) the registration and voting certificate appears to be executed in proper form and
707 contains information qualifying the military or overseas citizen voter to be registered as a voter;
709 (ii) the signatures on the certificate and the application correspond, where a
710 comparison is required.
711 (b) If the election judges determine that the registration and voting certificate is
712 insufficient or that the signatures do not correspond, they shall:
713 (i) disallow the registration; and
714 (ii) without opening the ballot envelope, mark across the face of the envelope
715 "Rejected as defective because of __________ ." with the reason for the rejection placed in the
717 (c) When a military or overseas citizen voter's name is entered upon the registration
718 books, the voter is considered to be registered and the registration and voting certificate, signed
719 and sworn to by the military or overseas citizen voter on the back of the ballot envelope,
720 together with [
721 constitute [
722 (d) Nothing in this title may abridge the right of the military or overseas citizen voter to
723 be registered as provided in this section.
724 (3) (a) After registering the voter, the judges shall carefully open the ballot envelope so
725 as not to destroy the information printed on it if they find that:
726 (i) the registration and voting certificate is sufficient; and
727 (ii) the signatures on the certificate and the application correspond, where a
728 comparison is required.
729 (b) The election judges shall:
730 (i) remove the ballot from the envelope without unfolding it or permitting it to be
731 opened or examined;
732 (ii) initial the stub in the same manner as for other ballots;
733 (iii) deposit the ballot in the proper ballot box; and
734 (iv) mark the official register and pollbook to show that the voter has voted.
735 (c) If the election judges determine that the registration and voting certificate is
736 insufficient or that the signatures do not correspond, they shall:
737 (i) disallow the vote; and
738 (ii) without opening the ballot envelope, mark across the face of the envelope
739 "Rejected as defective because of __________ ." with the reason for the rejection placed in the
741 (4) The election judges shall deposit the envelope, when the ballot is voted, and the
742 envelope with its contents unopened, when the absent vote is rejected, in the ballot box
743 containing the ballots.
744 (5) The county clerk shall retain and preserve the envelopes in the manner provided by
745 law for the retention and preservation of official ballots voted at that election.
746 Section 12. Section 20A-8-401 is amended to read:
747 20A-8-401. Registered political parties -- Bylaws.
748 (1) (a) Each registered state political party shall file a copy of its constitution and
749 bylaws with the lieutenant governor by January 1, 1995.
750 (b) Each new or unregistered state political party that seeks to become a registered
751 political party under the authority of this chapter shall file a copy of its proposed constitution
752 and bylaws at the time it files its registration information.
753 (c) Each registered state political party shall file revised copies of its constitution or
754 bylaws with the lieutenant governor within 15 days after the constitution or bylaws are adopted
755 or amended.
756 (2) Each state political party, each new political party seeking registration, and each
757 unregistered political party seeking registration shall ensure that its constitution or bylaws
759 (a) provisions establishing party organization, structure, membership, and governance
760 that include:
761 (i) a description of the position, selection process, qualifications, duties, and terms of
762 each party officer and committees defined by constitution and bylaws;
763 (ii) a provision requiring a designated party officer to serve as liaison with the
764 lieutenant governor on all matters relating to the political party's relationship with the state;
765 (iii) a description of the requirements for participation in party processes;
766 (iv) the dates, times, and quorum of any regularly scheduled party meetings,
767 conventions, or other conclaves; and
768 (v) a mechanism for making the names of delegates, candidates, and elected party
769 officers available to the public shortly after they are selected;
770 (b) a procedure for selecting party officers that allows active participation by party
772 (c) a procedure for selecting party candidates at the federal, state, and county levels that
773 allows active participation by party members;
774 (d) (i) a procedure for selecting electors who are pledged to cast their votes in the
775 electoral college for the party's candidates for President and Vice President of the United
776 States; and
777 (ii) a procedure for filling vacancies in the office of presidential elector because of
778 death, refusal to act, failure to attend, ineligibility, or any other cause;
779 (e) a procedure for filling vacancies in the office of representative or senator because of
780 death, resignation, or ineligibility;
781 (f) a provision requiring the governor and lieutenant governor to run as a joint ticket;
782 (g) a procedure for replacing party candidates who die, [
783 disability, or are disqualified before a primary or regular general election;
784 (h) provisions governing the deposit and expenditure of party funds, and governing the
785 accounting for, reporting, and audit of party financial transactions;
786 (i) provisions governing access to party records;
787 (j) a procedure for amending the constitution or bylaws that allows active participation
788 by party members or their representatives;
789 (k) a process for resolving grievances against the political party; and
790 (l) if desired by the political party, a process for consulting with, and obtaining the
791 opinion of, the political party's Utah Senate and Utah House members about:
792 (i) the performance of the two United States Senators from Utah, including
794 (A) their views and actions regarding the defense of state's rights and federalism; and
795 (B) their performance in representing Utah's interests;
796 (ii) the members' opinion about, or rating of, and support or opposition to the policy
797 positions of any candidates for United States Senate from Utah, including incumbents,
798 including specifically:
799 (A) their views and actions regarding the defense of state's rights and federalism; and
800 (B) their performance in representing Utah's interests; and
801 (iii) the members' collective or individual endorsement or rating of a particular
802 candidate for United States Senate from Utah.
803 Section 13. Section 23-19-1 is amended to read:
804 23-19-1. Possession of licenses, certificates of registration, permits, and tags
805 required -- Nonassignability -- Exceptions -- Free fishing day.
806 (1) A person may not engage in hunting, trapping, fishing, or seining protected wildlife
807 or in the sale, trade, or barter of protected wildlife or their parts without first having procured
808 the necessary licenses, certificates of registration, permits, and tags as provided under this
809 chapter and having at the same time the licenses, certificates of registration, permits, and tags
810 on his or her person, except as provided under Subsection (3).
811 (2) (a) Except as provided in Subsection (2)(b) a person may not:
812 (i) lend, transfer, sell, give, or assign licenses, certificates of registration, permits, or
813 tags belonging to the person or the rights granted by licenses, certificates of registration,
814 permits, or tags; or
815 (ii) use or attempt to use a license, certificate of registration, permit, or tag of another
817 (b) The Wildlife Board may make exceptions to the prohibitions specified in
818 Subsection (2)(a) for purposes of:
819 (i) transporting wildlife;
820 (ii) taking protected wildlife for a person who has a permanent physical impairment
821 due to injury or disease, congenital or acquired, [
823 to use a legal hunting weapon or fishing device; or
824 (iii) transferring a certificate of registration to harvest brine shrimp and brine shrimp
825 eggs to another person, if the certificate is transferred in connection with the sale or transfer of
826 the brine shrimp harvest operation or the harvesting equipment, subject to the restrictions
827 referred to under Subsection (2)(c).
828 (c) (i) A certificate of registration to harvest brine shrimp and brine shrimp eggs may
829 not be transferred without the approval of the division.
830 (ii) Application to allow the transfer of a certificate of registration to harvest brine
831 shrimp and brine shrimp eggs shall be made to the division on a form prescribed and furnished
832 by it.
833 (iii) The division may grant a transfer of a certificate of registration to harvest brine
834 shrimp and brine shrimp eggs if the proposed transferee meets all the requirements necessary to
835 obtain an original certificate of registration.
836 (3) No license, certificate of registration, permit, or tag is required to:
837 (a) fish on a free fishing day which the Wildlife Board may establish each year under
838 rules prescribed by the board;
839 (b) fish at a private fish pond operated in accordance with Section 23-15-10 ; or
840 (c) hunt birds on a commercial hunting area that the owner or operator is authorized to
841 propagate, keep, and release for shooting pursuant to a certificate of registration issued under
842 Section 23-17-6 .
843 Section 14. Section 23-19-14 is amended to read:
844 23-19-14. Persons residing in certain institutions authorized to fish without
846 (1) The Division of Wildlife Resources shall permit a person to fish without a license
848 (a) (i) the person resides in:
849 (A) the Utah State Developmental Center in American Fork;
850 (B) the state hospital;
851 (C) a veteran's hospital;
852 (D) a veteran's nursing home;
853 (E) a mental health center;
854 (F) an intermediate care facility for [
856 (G) a group home licensed by the Department of Human Services and operated under
857 contract with the Division of Services for People with Disabilities;
858 (H) a group home or other community-based placement licensed by the Department of
859 Human Services and operated under contract with the Division of Juvenile Justice Services;
860 (I) a private residential facility for at-risk youth licensed by the Department of Human
861 Services; or
862 (J) another similar institution approved by the division; or
863 (ii) the person is a youth who participates in a work camp operated by the Division of
864 Juvenile Justice Services;
865 (b) the person is properly supervised by a representative of the institution; and
866 (c) the institution obtains from the division a certificate of registration that specifies:
867 (i) the date and place where the person will fish; and
868 (ii) the name of the institution's representative who will supervise the person fishing.
869 (2) The institution must apply for the certificate of registration at least 10 days before
870 the fishing outing.
871 (3) (a) An institution that receives a certificate of registration authorizing at-risk youth
872 to fish shall provide instruction to the youth on fishing laws and regulations.
873 (b) The division shall provide educational materials to the institution to assist it in
874 complying with Subsection (3)(a).
875 Section 15. Section 23-19-36 is amended to read:
876 23-19-36. Persons with a physical or intellectual disability, terminally ill persons,
877 and children in the custody of the state -- License to fish for free.
878 (1) A resident who is blind, [
879 paraplegia, or has another permanent disability so as to be permanently confined to a
880 wheelchair or the use of crutches, or who has lost either or both lower extremities, may receive
881 a free license to fish upon furnishing satisfactory proof of this fact to the Division of Wildlife
883 (2) A resident who [
884 not eligible under Section 23-19-14 to fish without a license may receive a free license to fish
885 upon furnishing verification [
886 physician that the person has an intellectual disability.
887 (3) A resident who is terminally ill, and has less than five years to live, may receive a
888 free license to fish:
889 (a) upon furnishing verification from a physician; and
890 (b) if [
891 program administered by a state agency.
892 (4) A child placed in the custody of the state by a court order may receive a free fishing
893 license upon furnishing verification of custody to the Division of Wildlife Resources.
894 Section 16. Section 23-19-38.3 is amended to read:
895 23-19-38.3. Fishing licenses for disabled veterans -- Free or reduced price.
896 (1) The division may make rules in accordance with Title 63G, Chapter 3, Utah
897 Administrative Rulemaking Act, under which a [
898 a fishing license free or at a reduced price.
899 (2) In making rules under this section, the division shall utilize the same guidelines for
900 disability as the United States Department of Veterans Affairs.
901 Section 17. Section 23-20-12 is amended to read:
902 23-20-12. Airplanes or terrestrial or aquatic vehicles -- Use in taking wildlife
903 unlawful -- Exceptions.
904 (1) It is unlawful for any person to take any wildlife from an airplane or any other
905 airborne vehicle or device or any motorized terrestrial or aquatic vehicle, including
906 snowmobiles and other recreational vehicles, except as provided by this code or in the rules
907 and regulations of the Wildlife Board. [
908 (2) Notwithstanding Subsection (1), an individual validly licensed to hunt [
911 specified by the Wildlife Board[
912 (a) paraplegia; or
913 (b) a disability that permanently confines the individual to a wheelchair or the use of
915 Section 18. Section 24-1-7 is amended to read:
916 24-1-7. Hardship release of seized property.
917 (1) After property is seized for forfeiture, a person or entity may not alienate, convey,
918 sequester, or attach that property until the court issues a final order of dismissal or an order of
919 forfeiture regarding the property.
920 (2) The seizing agency or the prosecuting attorney may authorize the release of
921 property seized for forfeiture to its owner if retention of actual custody is unnecessary.
922 (3) With the consent of a court of competent jurisdiction, the prosecuting attorney may
923 discontinue forfeiture proceedings and transfer the action to another state or federal agency
924 which has initiated forfeiture proceedings involving the same property.
925 (4) Property seized for forfeiture is considered to be in the custody of the district court
926 and subject only to:
927 (a) the orders and decrees of the court having jurisdiction over the property or the
928 forfeiture proceedings; and
929 (b) the acts of the seizing agency or the prosecuting attorney pursuant to this chapter.
930 (5) (a) An owner of property seized pursuant to this chapter may obtain release of the
931 property by posting with the district court a surety bond or cash in an amount equal to the
932 current fair market value of the property as determined by the court or by the parties'
934 (b) The district court may refuse to order the release of the property if:
935 (i) the bond tendered is inadequate;
936 (ii) the property is contraband or is retained as evidence; or
937 (iii) the property is particularly altered or designed for use in conduct giving cause for
939 (c) If a surety bond or cash is posted and the property seized and then released on a
940 bond or cash is forfeited, the court shall order the forfeiture of the surety bond or cash in lieu of
941 the property.
942 (6) (a) As soon as practicable after seizure for forfeiture, and in no case later than 30
943 days after seizure for forfeiture, the seizing agency shall conduct a written inventory of the
944 property seized.
945 (b) The seizing agency shall deposit property that is in the form of cash or other readily
946 negotiable instruments into a restricted account maintained by the agency solely for the purpose
947 of managing and protecting the property from commingling, loss, or devaluation during the
948 pendency of the forfeiture proceedings.
949 (c) The seizing agency shall have in place written policy for the identification, tracking,
950 management, and safekeeping of seized property, which shall include a prohibition against the
951 transfer, sale, or auction of forfeited property to any employee of the seizing agency.
952 (d) An agency may not be awarded any funds from forfeiture through the Crime
953 Reduction Assistance Program under Section 24-1-19 if the agency has not established or
954 maintained the inventory policy, restricted account, and written policies required by this
955 Subsection (6).
956 (7) An owner is entitled to the immediate release of seized property from the seizing
957 agency pending the final determination of forfeiture if:
958 (a) the owner had a possessory interest in the property at the time of seizure;
959 (b) continued possession by the agency or the state pending the final disposition of the
960 forfeiture proceedings will cause substantial hardship to the owner, such as:
961 (i) preventing the functioning of a legitimate business;
962 (ii) preventing any individual from working;
963 (iii) preventing any minor child or student from attending school;
964 (iv) preventing or hindering any person from receiving necessary medical care;
965 (v) hindering the care of:
966 (A) an elderly [
967 (B) a dependent child [
968 (C) a dependent adult with a disability;
969 (vi) preventing an owner from retaining counsel to provide a defense in the forfeiture
970 proceeding; or
971 (vii) leaving any individual homeless, or any other condition that the court determines
972 causes a substantial hardship;
973 (c) the hardship from the continued possession by the agency of the seized property
974 outweighs the risk that the property will be destroyed, damaged, lost, concealed, or transferred
975 if it is returned to the owner during the pendency of the proceeding; and
976 (d) determination of substantial hardship under this Subsection (7) is based upon the
977 property's use prior to the seizure.
978 (8) The right to appointed counsel under Section 24-1-9 applies throughout civil
979 forfeiture proceedings, including an owner's motion for hardship release.
980 (9) An owner may file a motion for hardship release:
981 (a) in the court in which forfeiture proceedings have commenced; or
982 (b) in any district court having jurisdiction over the property, if forfeiture proceedings
983 have not yet commenced.
984 (10) The motion for hardship release shall also be served upon the prosecuting attorney
985 or the seizing agency within 10 days after filing the motion.
986 (11) The court shall render a decision on a motion for hardship filed under this section
987 not later than 20 days after the date of filing, or 10 days after service upon the prosecuting
988 attorney or seizing agency, whichever is earlier, unless this period is extended by the parties or
989 by the court for good cause shown.
990 (12) (a) If the owner demonstrates substantial hardship pursuant to this section, the
991 court shall order the property immediately released to the owner pending completion of
992 proceedings by the government to obtain forfeiture of the property.
993 (b) The court may place conditions on release of the property as it finds necessary and
994 appropriate to preserve the availability of the property or its equivalent for forfeiture.
995 (13) The hardship release does not apply if the seized property is:
996 (a) contraband;
997 (b) currency or other monetary instrument or electronic funds, unless the property is
998 used to pay for the reasonable costs of defending against the forfeiture proceeding or
999 constitutes the assets of a legitimate business; or
1000 (c) likely to be used to commit additional illegal acts if returned to the owner.
1001 (14) (a) The court may order property which has been seized for forfeiture to be sold as
1002 allowed by Subsection (15), leased, rented, or operated to satisfy a specified interest of any
1003 owner or interest holder, or to preserve the interests of any party on motion of that party.
1004 (b) The court may enter orders under Subsection (14)(a) after notice to persons known
1005 to have an interest in the property, and after an opportunity for a hearing.
1006 (15) (a) A sale may be ordered under Subsection (14) when the property is liable to
1007 perish, waste, or be significantly reduced in value, or when the expenses of maintaining the
1008 property are disproportionate to its value.
1009 (b) A third party designated by the court shall dispose of the property by commercially
1010 reasonable public sale and distribute the proceeds in the following order of priority:
1011 (i) first, for the payment of reasonable expenses incurred in connection with the sale;
1012 (ii) second, for the satisfaction of any interests, including those of interest holders, in
1013 the order of their priority as determined by Title 70A, Uniform Commercial Code; and
1014 (iii) third, any balance of the proceeds shall be preserved in the actual or constructive
1015 custody of the court, in an interest-bearing account, subject to further proceedings under this
1017 Section 19. Section 26-1-18 is amended to read:
1018 26-1-18. Authority of department generally.
1019 The department is the health, health planning, and medical assistance authority of the
1020 state and is the sole state agency for administration of federally assisted state programs or plans
1021 for public health, health planning, maternal and child health, [
1022 services for children with a disability, and medical assistance.
1023 Section 20. Section 26-2-27 is amended to read:
1024 26-2-27. Identifying birth certificates of missing persons -- Procedures.
1025 (1) As used in this section:
1026 (a) "Division" means the Criminal Investigations and Technical Services Division,
1027 Department of Public Safety, in Title 53, Chapter 10, Criminal Investigation and Technical
1028 Services Act.
1029 (b) "Missing child" means a person younger than 18 years of age who is missing from
1031 whose whereabouts cannot be determined by the person responsible for the child's care.
1032 (c) "Missing person" means a person who:
1033 (i) is missing from [
1035 (ii) (A) has a physical or mental disability;
1037 endangered, missing involuntarily, or a victim of a catastrophe; or
1039 (2) (a) In accordance with Section 53-10-203 , upon the state registrar's notification by
1040 the division that a person who was born in this state is missing, the state and local registrars
1041 shall flag the registered birth certificate of that person so that when a copy of the registered
1042 birth certificate or information regarding the birth record is requested, the state and local
1043 registrars are alerted to the fact the registered birth certificate is that of a missing person.
1044 (b) Upon notification by the division the missing person has been recovered, the state
1045 and local registrars shall remove the flag from that person's registered birth certificate.
1046 (3) The state and local registrars may not provide a copy of a registered birth certificate
1047 of any person whose record is flagged under Subsection (2), except as approved by the
1049 (4) (a) When a copy of the registered birth certificate of a person whose record has
1050 been flagged is requested in person, the state or local registrar shall require that person to
1051 complete a form supplying [
1052 relationship to the missing person, and the name and birth date of the missing person.
1053 (b) The state or local registrar shall inform the requester that a copy of the registered
1054 birth certificate will be mailed to [
1055 (c) The state or local registrar shall note the physical description of the person making
1056 the request, and shall immediately notify the division of the request and the information
1057 obtained pursuant to this Subsection (4).
1058 (5) When a copy of the registered birth certificate of a person whose record has been
1059 flagged is requested in writing, the state or local registrar or [
1060 registrar shall immediately notify the division, and provide it with a copy of the written request.
1061 Section 21. Section 26-4-7 is amended to read:
1062 26-4-7. Custody by medical examiner.
1063 Upon notification under Section 26-4-8 or investigation by the medical examiner's
1064 office, the medical examiner shall assume custody of a deceased body if it appears that death
1066 (1) by violence, gunshot, suicide, or accident unless the accident is a highway accident.
1067 If the death was from a highway accident, custody shall only be assumed if an autopsy is
1068 required or permitted under the provisions of Section 26-4-13 or if requested by the law
1069 enforcement agency with jurisdiction over the highway accident;
1070 (2) sudden death while in apparent good health;
1071 (3) unattended deaths, except that an autopsy may only be performed in accordance
1072 with the provisions of Subsection 26-4-9 (3);
1073 (4) under suspicious or unusual circumstances;
1074 (5) resulting from poisoning or overdose of drugs;
1075 (6) resulting from diseases that may constitute a threat to the public health;
1076 (7) resulting from disease, injury, toxic effect, or unusual exertion incurred within the
1077 scope of the decedent's employment;
1078 (8) due to sudden infant death syndrome;
1079 (9) resulting while the decedent was in prison, jail, police custody, the state hospital, or
1080 in a detention or medical facility operated for the treatment of [
1081 mental illness, persons who are emotionally disturbed, or delinquent persons;
1082 (10) associated with diagnostic or therapeutic procedures; or
1083 (11) described in this section when request is made to assume custody by a county or
1084 district attorney or law enforcement agency in connection with a potential homicide
1085 investigation or prosecution.
1086 Section 22. Section 26-10-1 is amended to read:
1087 26-10-1. Definitions.
1088 As used in this chapter:
1089 (1) "Maternal and child health services" means:
1090 (a) the provision of educational, preventative, diagnostic, and treatment services,
1091 including medical care, hospitalization, and other institutional care and aftercare, appliances,
1092 and facilitating services directed toward reducing infant mortality and improving the health of
1093 mothers and children provided, however, that nothing in this section shall be construed to
1094 allow any agency of the state to interfere with the rights of the parent of an unmarried minor in
1095 decisions about the providing of health information or services;
1096 (b) the development, strengthening, and improvement of standards and techniques
1097 relating to the services and care;
1098 (c) the training of personnel engaged in the provision, development, strengthening, or
1099 improvement of the services and care; and
1100 (d) necessary administrative services connected with Subsections (1)(a), (b), and (c).
1101 (2) [
1102 (a) the early location of [
1103 of prenatal diagnosis for the purpose of detecting the possible disease or disabilities of an
1104 unborn child will not be used for screening, but rather will be utilized only when there are
1105 medical or genetic indications that warrant diagnosis;
1106 (b) the provision for [
1107 diagnosis, and treatment services, including medical care, hospitalization, and other
1108 institutional care and aftercare, appliances, and facilitating services directed toward the
1109 diagnosis of the condition of [
1110 maximum physical and mental health;
1111 (c) the development, strengthening, and improvement of standards and techniques
1112 relating to such services and care;
1113 (d) the training of personnel engaged in the provision, development, strengthening, or
1114 improvement of such services and care; and
1115 (e) necessary administrative services connected with Subsections (2)(a), (b), and (c).
1116 Section 23. Section 26-10-2 is amended to read:
1117 26-10-2. Maternal and child health services -- Services for children with a
1119 The department shall provide for maternal and child health services and [
1121 and cannot reasonably obtain them from other sources.
1122 Section 24. Section 26-10-6 is amended to read:
1123 26-10-6. Testing of newborn infants.
1124 (1) Except in the case where parents object on the grounds that they are members of a
1125 specified, well-recognized religious organization whose teachings are contrary to the tests
1126 required by this section, each newborn infant shall be tested for:
1127 (a) phenylketonuria (PKU);
1128 (b) other metabolic diseases which may result in [
1129 disability or brain damage and for which:
1130 (i) a preventive measure or treatment is available; and
1131 (ii) there exists a reliable laboratory diagnostic test method; and
1132 (c) (i) beginning July 1, 1998, for an infant born in a hospital with 100 or more live
1133 births annually, hearing loss; and
1134 (ii) beginning July 1, 1999, for an infant born in a setting other than a hospital with 100
1135 or more live births annually, hearing loss.
1136 (2) In accordance with Section 26-1-6 , the department may charge fees for:
1137 (a) materials supplied by the department to conduct tests required under Subsection (1);
1138 (b) tests required under Subsection (1) conducted by the department;
1139 (c) laboratory analyses by the department of tests conducted under Subsection (1); and
1140 (d) the administrative cost of follow-up contacts with the parents or guardians of tested
1142 (3) Tests for hearing loss under Subsection (1) shall be based on one or more methods
1143 approved by the Newborn Hearing Screening Committee, including:
1144 (a) auditory brainstem response;
1145 (b) automated auditory brainstem response; and
1146 (c) evoked otoacoustic emissions.
1147 (4) Results of tests for hearing loss under Subsection (1) shall be reported to:
1148 (a) parents when results of tests for hearing loss under Subsection (1) suggest that
1149 additional diagnostic procedures or medical interventions are necessary; and
1150 (b) the department.
1151 (5) (a) There is established the Newborn Hearing Screening Committee.
1152 (b) The committee shall advise the department on:
1153 (i) the validity and cost of newborn infant hearing loss testing procedures; and
1154 (ii) rules promulgated by the department to implement this section.
1155 (c) The committee shall be composed of at least 11 members appointed by the
1156 executive director, including:
1157 (i) one representative of the health insurance industry;
1158 (ii) one pediatrician;
1159 (iii) one family practitioner;
1160 (iv) one ear, nose, and throat specialist nominated by the Utah Medical Association;
1161 (v) two audiologists nominated by the Utah Speech-Language-Hearing Association;
1162 (vi) one representative of hospital neonatal nurseries;
1163 (vii) one representative of the Early Intervention Baby Watch Program administered by
1164 the department;
1165 (viii) one public health nurse;
1166 (ix) one consumer; and
1167 (x) the executive director or his designee.
1168 (d) Of the initial members of the committee, the executive director shall appoint as
1169 nearly as possible half to two-year terms and half to four-year terms. Thereafter, appointments
1170 shall be for four-year terms except:
1171 (i) for those members who have been appointed to complete an unexpired term; and
1172 (ii) as necessary to ensure that as nearly as possible the terms of half the appointments
1173 expire every two years.
1174 (e) A majority of the members constitute a quorum and a vote of the majority of the
1175 members present constitutes an action of the committee.
1176 (f) The committee shall appoint a chairman from its membership.
1177 (g) The committee shall meet at least quarterly.
1178 (h) A member may not receive compensation or benefits for the member's service, but
1179 may receive per diem and travel expenses in accordance with:
1180 (i) Section 63A-3-106 ;
1181 (ii) Section 63A-3-107 ; and
1182 (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1183 63A-3-107 .
1184 (i) The department shall provide staff for the committee.
1185 Section 25. Section 26-18-3 is amended to read:
1186 26-18-3. Administration of Medicaid program by department -- Reporting to the
1187 Legislature -- Disciplinary measures and sanctions -- Funds collected -- Eligibility
1188 standards -- Internal audits -- Studies -- Health opportunity accounts.
1189 (1) The department shall be the single state agency responsible for the administration
1190 of the Medicaid program in connection with the United States Department of Health and
1191 Human Services pursuant to Title XIX of the Social Security Act.
1192 (2) (a) The department shall implement the Medicaid program through administrative
1193 rules in conformity with this chapter, Title 63G, Chapter 3, Utah Administrative Rulemaking
1194 Act, the requirements of Title XIX, and applicable federal regulations.
1195 (b) The rules adopted under Subsection (2)(a) shall include, in addition to other rules
1196 necessary to implement the program:
1197 (i) the standards used by the department for determining eligibility for Medicaid
1199 (ii) the services and benefits to be covered by the Medicaid program; and
1200 (iii) reimbursement methodologies for providers under the Medicaid program.
1201 (3) (a) The department shall, in accordance with Subsection (3)(b), report to the Health
1202 and Human Services Appropriations Subcommittee when the department:
1203 (i) implements a change in the Medicaid State Plan;
1204 (ii) initiates a new Medicaid waiver;
1205 (iii) initiates an amendment to an existing Medicaid waiver;
1206 (iv) applies for an extension of an application for a waiver or an existing Medicaid
1207 waiver; or
1208 (v) initiates a rate change that requires public notice under state or federal law.
1209 (b) The report required by Subsection (3)(a) shall:
1210 (i) be submitted to the Health and Human Services Appropriations Subcommittee prior
1211 to the department implementing the proposed change; and
1212 (ii) include:
1213 (A) a description of the department's current practice or policy that the department is
1214 proposing to change;
1215 (B) an explanation of why the department is proposing the change;
1216 (C) the proposed change in services or reimbursement, including a description of the
1217 effect of the change;
1218 (D) the effect of an increase or decrease in services or benefits on individuals and
1220 (E) the degree to which any proposed cut may result in cost-shifting to more expensive
1221 services in health or human service programs; and
1222 (F) the fiscal impact of the proposed change, including:
1223 (I) the effect of the proposed change on current or future appropriations from the
1224 Legislature to the department;
1225 (II) the effect the proposed change may have on federal matching dollars received by
1226 the state Medicaid program;
1227 (III) any cost shifting or cost savings within the department's budget that may result
1228 from the proposed change; and
1229 (IV) identification of the funds that will be used for the proposed change, including any
1230 transfer of funds within the department's budget.
1231 (4) (a) The Department of Human Services shall report to the Legislative Health and
1232 Human Services Appropriations Subcommittee no later than December 31, 2010 in accordance
1233 with Subsection (4)(b).
1234 (b) The report required by Subsection (4)(a) shall include:
1235 (i) changes made by the division or the department beginning July 1, 2010 that effect
1236 the Medicaid program, a waiver under the Medicaid program, or an interpretation of Medicaid
1237 services or funding, that relate to care for children and youth in the custody of the Division of
1238 Child and Family Services or the Division of Juvenile Justice Services;
1239 (ii) the history and impact of the changes under Subsection (4)(b)(i);
1240 (iii) the Department of Human Service's plans for addressing the impact of the changes
1241 under Subsection (4)(b)(i); and
1242 (iv) ways to consolidate administrative functions within the Department of Human
1243 Services, the Department of Health, the Division of Child and Family Services, and the
1244 Division of Juvenile Justice Services to more efficiently meet the needs of children and youth
1245 with mental health and substance disorder treatment needs.
1246 (5) Any rules adopted by the department under Subsection (2) are subject to review and
1247 reauthorization by the Legislature in accordance with Section 63G-3-502 .
1248 (6) The department may, in its discretion, contract with the Department of Human
1249 Services or other qualified agencies for services in connection with the administration of the
1250 Medicaid program, including:
1251 (a) the determination of the eligibility of individuals for the program;
1252 (b) recovery of overpayments; and
1253 (c) consistent with Section 26-20-13 , and to the extent permitted by law and quality
1254 control services, enforcement of fraud and abuse laws.
1255 (7) The department shall provide, by rule, disciplinary measures and sanctions for
1256 Medicaid providers who fail to comply with the rules and procedures of the program, provided
1257 that sanctions imposed administratively may not extend beyond:
1258 (a) termination from the program;
1259 (b) recovery of claim reimbursements incorrectly paid; and
1260 (c) those specified in Section 1919 of Title XIX of the federal Social Security Act.
1261 (8) Funds collected as a result of a sanction imposed under Section 1919 of Title XIX
1262 of the federal Social Security Act shall be deposited in the General Fund as dedicated credits to
1263 be used by the division in accordance with the requirements of Section 1919 of Title XIX of
1264 the federal Social Security Act.
1265 (9) (a) In determining whether an applicant or recipient is eligible for a service or
1266 benefit under this part or Chapter 40, Utah Children's Health Insurance Act, the department
1267 shall, if Subsection (9)(b) is satisfied, exclude from consideration one passenger vehicle
1268 designated by the applicant or recipient.
1269 (b) Before Subsection (9)(a) may be applied:
1270 (i) the federal government must:
1271 (A) determine that Subsection (9)(a) may be implemented within the state's existing
1272 public assistance-related waivers as of January 1, 1999;
1273 (B) extend a waiver to the state permitting the implementation of Subsection (9)(a); or
1274 (C) determine that the state's waivers that permit dual eligibility determinations for
1275 cash assistance and Medicaid are no longer valid; and
1276 (ii) the department must determine that Subsection (9)(a) can be implemented within
1277 existing funding.
1278 (10) (a) For purposes of this Subsection (10):
1279 (i) "aged, blind, or [
1280 means an aged, blind, or disabled individual, as defined in 42 U.S.C. 1382c(a)(1); and
1281 (ii) "spend down" means an amount of income in excess of the allowable income
1282 standard that must be paid in cash to the department or incurred through the medical services
1283 not paid by Medicaid.
1284 (b) In determining whether an applicant or recipient who is aged, blind, or [
1285 has a disability is eligible for a service or benefit under this chapter, the department shall use
1286 100% of the federal poverty level as:
1287 (i) the allowable income standard for eligibility for services or benefits; and
1288 (ii) the allowable income standard for eligibility as a result of spend down.
1289 (11) The department shall conduct internal audits of the Medicaid program, in
1290 proportion to at least the level of funding it receives from Medicaid to conduct internal audits.
1291 (12) In order to determine the feasibility of contracting for direct Medicaid providers
1292 for primary care services, the department shall:
1293 (a) issue a request for information for direct contracting for primary services that shall
1294 provide that a provider shall exclusively serve all Medicaid clients:
1295 (i) in a geographic area;
1296 (ii) for a defined range of primary care services; and
1297 (iii) for a predetermined total contracted amount; and
1298 (b) by February 1, 2011, report to the Health and Human Services Appropriations
1299 Subcommittee on the response to the request for information under Subsection (12)(a).
1300 (13) (a) By December 31, 2010, the department shall:
1301 (i) determine the feasibility of implementing a three year patient-centered medical
1302 home demonstration project in an area of the state using existing budget funds; and
1303 (ii) report the department's findings and recommendations under Subsection (13)(a)(i)
1304 to the Health and Human Services Appropriations Subcommittee.
1305 (b) If the department determines that the medical home demonstration project
1306 described in Subsection (13)(a) is feasible, and the Health and Human Services Appropriations
1307 Subcommittee recommends that the demonstration project be implemented, the department
1309 (i) implement the demonstration project; and
1310 (ii) by December 1, 2012, make recommendations to the Health and Human Services
1311 Appropriations Subcommittee regarding the:
1312 (A) continuation of the demonstration project;
1313 (B) expansion of the demonstration project to other areas of the state; and
1314 (C) cost savings incurred by the implementation of the demonstration project.
1315 (14) (a) The department may apply for and, if approved, implement a demonstration
1316 program for health opportunity accounts, as provided for in 42 U.S.C. Sec. 1396u-8.
1317 (b) A health opportunity account established under Subsection (14)(a) shall be an
1318 alternative to the existing benefits received by an individual eligible to receive Medicaid under
1319 this chapter.
1320 (c) Subsection (14)(a) is not intended to expand the coverage of the Medicaid program.
1321 Section 26. Section 26-18-3.1 is amended to read:
1322 26-18-3.1. Medicaid expansion.
1323 (1) The purpose of this section is to expand the coverage of the Medicaid program to
1324 persons who are in categories traditionally not served by that program.
1325 (2) Within appropriations from the Legislature, the department may amend the state
1326 plan for medical assistance to provide for eligibility for Medicaid:
1327 (a) on or after July 1, 1994, for children 12 to 17 years old who live in households
1328 below the federal poverty income guideline; and
1329 (b) on or after July 1, 1995, for persons who have incomes below the federal poverty
1330 income guideline and who are aged, blind, or [
1331 (3) (a) Within appropriations from the Legislature, on or after July 1, 1996, the
1332 Medicaid program may provide for eligibility for persons who have incomes below the federal
1333 poverty income guideline.
1334 (b) In order to meet the provisions of this subsection, the department may seek
1335 approval for a demonstration project under 42 U.S.C. Section 1315 from the secretary of the
1336 United States Department of Health and Human Services. This demonstration project may also
1337 provide for the voluntary participation of private firms that:
1338 (i) are newly established or marginally profitable;
1339 (ii) do not provide health insurance to their employees;
1340 (iii) employ predominantly low wage workers; and
1341 (iv) are unable to obtain adequate and affordable health care insurance in the private
1343 (4) Services available for persons described in this section shall include required
1344 Medicaid services and may include one or more optional Medicaid services if those services
1345 are funded by the Legislature. The department may also require persons described in this
1346 section to meet an asset test.
1347 Section 27. Section 26-18-501 is amended to read:
1348 26-18-501. Definitions.
1349 As used in this part:
1350 (1) "Certified program" means a nursing care facility program with Medicaid
1352 (2) "Director" means the director of the Division of Health Care Financing.
1353 (3) "Medicaid certification" means the right to Medicaid reimbursement as a provider
1354 of a nursing care facility program as established by division rule.
1355 (4) (a) "Nursing care facility" means the following facilities licensed by the department
1356 under Chapter 21, Health Care Facility Licensing and Inspection Act:
1357 (i) skilled nursing homes;
1358 (ii) intermediate care facilities; and
1359 (iii) an intermediate care [
1360 intellectual disability.
1361 (b) "Nursing care facility" does not mean a critical access hospital that meets the
1362 criteria of 42 U.S.C. 1395i-4(c)(2) (1998).
1363 (5) "Nursing care facility program" means the personnel, licenses, services, contracts
1364 and all other requirements that must be met for a nursing care facility to be eligible for
1365 Medicaid certification under this part and division rule.
1366 (6) "Physical facility" means the buildings or other physical structures where a nursing
1367 care facility program is operated.
1368 (7) "Service area" means the boundaries of the distinct geographic area served by a
1369 certified program as determined by the division in accordance with this part and division rule.
1370 Section 28. Section 26-19-13.5 is amended to read:
1371 26-19-13.5. Estate and trust recovery.
1372 (1) Upon a recipient's death, the department may recover from the recipient's estate and
1373 any trust, in which the recipient is the grantor and a beneficiary, medical assistance correctly
1374 provided for the benefit of the recipient when [
1375 at the time of death, the recipient has no:
1376 (a) surviving spouse; or
1377 (b) child:
1378 (i) younger than 21 years of age; or
1379 (ii) who is blind or [
1381 (2) (a) The amount of medial assistance correctly provided for the benefit of a recipient
1382 and recoverable under this section is a lien against the estate of the deceased recipient or any
1383 trust when the recipient is the grantor and a beneficiary.
1384 (b) The lien holds the same priority as reasonable and necessary medical expenses of
1385 the last illness as provided in Section 75-3-805 .
1386 (3) (a) The department shall perfect the lien by filing a notice in the court of
1387 appropriate jurisdiction for the amount of the lien, in the same manner as a creditor's claim is
1388 filed, prior to final distribution.
1389 (b) The department may file an amended lien prior to the entry of the final order
1390 closing the estate.
1391 (4) Claims against a deceased recipient's inter vivos trust shall be presented in
1392 accordance with Sections 75-7-509 and 75-7-510 .
1393 (5) Any trust provision that denies recovery for medical assistance is void at the time of
1394 its making.
1395 (6) Nothing in this section affects the right of the department to recover Medicaid
1396 assistance before a recipient's death under Section 26-19-4.5 or Section 26-19-13.7 .
1397 Section 29. Section 26-21-3 is amended to read:
1398 26-21-3. Health Facility Committee -- Members -- Terms -- Organization --
1400 (1) The Health Facility Committee created by Section 26-1-7 consists of 15 members
1401 appointed by the governor with the consent of the Senate. The appointed members shall be
1402 knowledgeable about health care facilities and issues. The membership of the committee is:
1403 (a) one physician, licensed to practice medicine and surgery under Title 58, Chapter 67,
1404 Utah Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act,
1405 who is a graduate of a regularly chartered medical school;
1406 (b) one hospital administrator;
1407 (c) one hospital trustee;
1408 (d) one representative of a freestanding ambulatory surgical facility;
1409 (e) one representative of an ambulatory surgical facility that is affiliated with a
1411 (f) two representatives of the nursing care facility industry;
1412 (g) one registered nurse, licensed to practice under Title 58, Chapter 31b, Nurse
1413 Practice Act;
1414 (h) one professional in the field of [
1415 affiliated with a nursing care facility;
1416 (i) one licensed architect or engineer with expertise in health care facilities;
1417 (j) two representatives of assisted living facilities licensed under this chapter;
1418 (k) two consumers, one of whom has an interest in or expertise in geriatric care; and
1419 (l) one representative from either a home health care provider or a hospice provider.
1420 (2) (a) Except as required by Subsection (2)(b), members shall be appointed for a term
1421 of four years.
1422 (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
1423 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
1424 committee members are staggered so that approximately half of the committee is appointed
1425 every two years.
1426 (c) When a vacancy occurs in the membership for any reason, the replacement shall be
1427 appointed for the unexpired term by the governor, giving consideration to recommendations
1428 made by the committee, with the consent of the Senate.
1429 (d) A member may not serve more than two consecutive full terms or 10 consecutive
1430 years, whichever is less. However, a member may continue to serve as a member until he is
1432 (e) The committee shall annually elect from its membership a chair and vice chair.
1433 (f) The committee shall meet at least quarterly, or more frequently as determined by the
1434 chair or five members of the committee.
1435 (g) Eight members constitute a quorum. A vote of the majority of the members present
1436 constitutes action of the committee.
1437 Section 30. Section 26-21-9.5 is amended to read:
1438 26-21-9.5. Criminal background check and Licensing Information System check.
1439 (1) For purposes of this section:
1440 (a) "Covered employer" means an individual who:
1441 (i) is not a covered health care facility;
1442 (ii) is not a licensed business within the state; and
1443 (iii) is hiring an individual to provide services to an elderly [
1444 person with a disability in the person's home [
1445 (b) "Covered health care facility" means:
1446 (i) home health care agencies;
1447 (ii) hospices;
1448 (iii) nursing care facilities;
1449 (iv) assisted-living facilities;
1450 (v) small health care facilities; and
1451 (vi) end stage renal disease facilities.
1452 (c) "Covered person" includes:
1453 (i) the following people who provide direct patient care:
1454 (A) employees;
1455 (B) volunteers; and
1456 (C) people under contract with the covered health care facility; and
1457 (ii) for residential settings, any individual residing in the home where the assisted
1458 living or small health care program is to be licensed who:
1459 (A) is 18 years of age or older; or
1460 (B) is a child between the age of 12 and 17 years of age[
1462 (2) In addition to the licensing requirements of Sections 26-21-8 and 26-21-9 , a
1463 covered health care facility at the time of initial application for a license and license renewal
1465 (a) submit the name and other identifying information of each covered person at the
1466 covered facility who:
1467 (i) provides direct care to a patient; and
1468 (ii) has been the subject of a criminal background check within the preceding
1469 three-year period by a public or private entity recognized by the department; and
1470 (b) submit the name and other identifying information, which, except as provided in
1471 Subsection (3)(c), may include fingerprints, of each covered person at the covered facility who
1472 has not been the subject of a criminal background check in accordance with Subsection
1474 (3) (a) The department shall forward the information received under Subsection (2)(b)
1475 or (6)(b) to the Criminal Investigations and Technical Services Division of the Department of
1476 Public Safety for processing to determine whether the individual has been convicted of any
1478 (b) Except for individuals described in Subsection (1)(c)(ii)(B), if an individual has not
1479 had residency in Utah for the last five years, the individual shall submit fingerprints for an FBI
1480 national criminal history record check. The fingerprints shall be submitted to the FBI through
1481 the Criminal Investigations and Technical Services Division. The individual or licensee is
1482 responsible for the cost of the fingerprinting and national criminal history check.
1483 (c) Identifying information required under this section for a covered person who is
1484 between the age of 12 and 17 does not include fingerprints.
1485 (4) The department may determine whether:
1486 (a) an individual whose name and other identifying information has been submitted
1487 pursuant to Subsection (2) and who provides direct care to children is listed in the Licensing
1488 Information System described in Section 62A-4a-1006 or has a substantiated finding by a court
1489 of a severe type of child abuse or neglect under Section 78A-6-323 , if identification as a
1490 possible perpetrator of child abuse or neglect is relevant to the employment activities of that
1492 (b) an individual whose name and other identifying information has been submitted
1493 pursuant to Subsection (2) or (6)(b) and who provides direct care to [
1494 an elderly person or an adult with a disability, or who is residing in a residential home that is a
1495 facility licensed to provide direct care to [
1496 with a disability, has a substantiated finding of abuse, neglect, or exploitation of [
1498 Subsection (5) the database created in Section 62A-3-311.1 if identification as a possible
1499 perpetrator of disabled or elder adult abuse, neglect, or exploitation is relevant to the
1500 employment activities or residence of that person; or
1501 (c) an individual whose name or other identifying information has been submitted
1502 pursuant to Subsection (2) or (6)(b) has been adjudicated in a juvenile court of committing an
1503 act which if committed by an adult would be a felony or a misdemeanor if:
1504 (i) the individual is under the age of 28 years; or
1505 (ii) the individual is over the age of 28 and has been convicted, has pleaded no contest,
1506 or is currently subject to a plea in abeyance or diversion agreement for any felony or
1508 (5) (a) The department shall:
1509 (i) designate persons within the department to access:
1510 (A) the Licensing Information System described in Section 62A-4a-1006 ;
1511 (B) court records under Subsection 78A-6-323 (6);
1512 (C) the database described in Subsection (4)(b); and
1513 (D) juvenile court records as permitted by Subsection (4)(c); and
1514 (ii) adopt measures to:
1515 (A) protect the security of the Licensing Information System, the court records, and the
1516 database; and
1517 (B) strictly limit access to the Licensing Information System, the court records, and the
1518 database to those designated under Subsection (5)(a)(i).
1519 (b) Those designated under Subsection (5)(a)(i) shall receive training from the
1520 Department of Human Services with respect to:
1521 (i) accessing the Licensing Information System, the court records, and the database;
1522 (ii) maintaining strict security; and
1523 (iii) the criminal provisions in Section 62A-4a-412 for the improper release of
1525 (c) Those designated under Subsection (5)(a)(i):
1526 (i) are the only ones in the department with the authority to access the Licensing
1527 Information System, the court records, and database; and
1528 (ii) may only access the Licensing Information System, the court records, and the
1529 database for the purpose of licensing and in accordance with the provisions of Subsection (4).
1530 (6) (a) Within 10 days of initially hiring a covered individual, a covered health care
1531 facility shall submit the covered individual's information to the department in accordance with
1532 Subsection (2).
1533 (b) (i) [
1534 care to an elderly [
1535 the [
1536 individual's information to the department.
1537 (ii) The department shall:
1538 (A) in accordance with Subsections (4) and (6)(c) [
1539 62A-3-311.1 [
1540 neglect, or exploitation of a minor or an elderly [
1541 (B) in accordance with Subsection (9), inform the covered employer of the
1542 department's findings.
1543 (c) A covered employer:
1544 (i) must certify to the department that the covered employer intends to hire, or has
1545 hired, the individual whose information the covered employer has submitted to the department
1546 for the purpose of providing care to an elderly [
1547 disability in the home of the [
1548 (ii) must pay the reasonable fees established by the department under Subsection (8);
1550 (iii) commits an infraction if the covered employer intentionally misrepresents any fact
1551 certified under Subsection (6)(c)(i).
1552 (7) The department shall adopt rules under Title 63G, Chapter 3, Utah Administrative
1553 Rulemaking Act, consistent with this chapter, defining the circumstances under which a person
1554 who has been convicted of a criminal offense, or a person described in Subsection (4), may
1555 provide direct care to a patient in a covered health care facility, taking into account the nature
1556 of the criminal conviction or substantiated finding and its relation to patient care.
1557 (8) The department may, in accordance with Section 26-1-6 , assess reasonable fees for
1558 a criminal background check processed pursuant to this section.
1559 (9) The department may inform the covered health care facility or a covered employer
1560 of information discovered under Subsection (4) with respect to a covered individual, or an
1561 individual whose name is submitted by a covered employer.
1562 (10) (a) A covered health care facility is not civilly liable for submitting information to
1563 the department as required by this section.
1564 (b) A covered employer is not civilly liable for submitting information to the
1565 department as permitted by this section if the covered employer:
1566 (i) complies with Subsection (6)(c)(i); and
1567 (ii) does not use the information obtained about an individual under this section for any
1568 purpose other than hiring decisions directly related to the care of the elderly [
1569 person or the person with a disability.
1570 Section 31. Section 26-21-13.5 is amended to read:
1571 26-21-13.5. Intermediate care facilities for people with an intellectual disability --
1573 (1) (a) It is the Legislature's intent that [
1574 with a developmental disability be provided with an environment and surrounding that, as
1575 closely as possible, resembles small community-based, homelike settings, to allow those
1576 persons to have the opportunity, to the maximum extent feasible, to exercise their full rights
1577 and responsibilities as citizens.
1578 (b) It is the Legislature's purpose, in enacting this section, to provide assistance and
1579 opportunities to enable [
1580 achieve [
1581 and integration into the community.
1582 (2) After July 1, 1990, the department may only license intermediate care beds for [
1584 (3) The department may define by rule "small health care facility" for purposes of
1585 licensure under this section and adopt rules necessary to carry out the requirements and
1586 purposes of this section.
1587 (4) This section does not apply to the renewal of a license or the licensure to a new
1588 owner of any facility that was licensed on or before July 1, 1990, and that licensure has been
1589 maintained without interruption.
1590 Section 32. Section 26-35a-102 is amended to read:
1591 26-35a-102. Legislative findings.
1592 (1) The Legislature finds that there is an important state purpose to improve the quality
1593 of care given to [
1594 who have a disability, in long-term care nursing facilities.
1595 (2) The Legislature finds that in order to improve the quality of care to those persons
1596 described in Subsection (1), the rates paid to the nursing care facilities by the Medicaid
1597 program must be adequate to encourage and support quality care.
1598 (3) The Legislature finds that in order to meet the objectives in Subsections (1) and (2),
1599 adequate funding must be provided to increase the rates paid to nursing care facilities providing
1600 services pursuant to the Medicaid program.
1601 Section 33. Section 26-35a-103 is amended to read:
1602 26-35a-103. Definitions.
1603 As used in this chapter:
1604 (1) (a) "Nursing care facility" means:
1605 (i) a nursing care facility described in Subsection 26-21-2 (17);
1606 (ii) beginning January 1, 2006, a designated swing bed in:
1607 (A) a general acute hospital as defined in Subsection 26-21-2 (11); and
1608 (B) a critical access hospital which meets the criteria of 42[
1609 (1998); and
1610 (iii) an intermediate care facility for [
1611 disability that is licensed under Section 26-21-13.5 .
1612 (b) "Nursing care facility" does not include:
1613 (i) the Utah State Developmental Center;
1614 (ii) the Utah State Hospital;
1615 (iii) a general acute hospital, specialty hospital, or small health care facility as defined
1616 in Section 26-21-2 ; or
1617 (iv) a Utah State Veterans' Home.
1618 (2) "Patient day" means each calendar day in which an individual patient is admitted to
1619 the nursing care facility during a calendar month, even if on a temporary leave of absence from
1620 the facility.
1621 Section 34. Section 26-35a-108 is amended to read:
1622 26-35a-108. Intermediate care facility for people with an intellectual disability --
1623 Uniform rate.
1624 An intermediate care facility for [
1625 disability is subject to all the provisions of this chapter, except that the department shall
1626 establish a uniform rate for [
1627 intermediate care facility for people with an intellectual disability that:
1628 (1) is based on the same formula specified for nursing care facilities under the
1629 provisions of Subsection 26-35a-104 (1)(b); and
1630 (2) may be different than the uniform rate established for other nursing care facilities.
1631 Section 35. Section 31A-1-301 is amended to read:
1632 31A-1-301. Definitions.
1633 As used in this title, unless otherwise specified:
1634 (1) (a) "Accident and health insurance" means insurance to provide protection against
1635 economic losses resulting from:
1636 (i) a medical condition including:
1637 (A) a medical care expense; or
1638 (B) the risk of disability;
1639 (ii) accident; or
1640 (iii) sickness.
1641 (b) "Accident and health insurance":
1642 (i) includes a contract with disability contingencies including:
1643 (A) an income replacement contract;
1644 (B) a health care contract;
1645 (C) an expense reimbursement contract;
1646 (D) a credit accident and health contract;
1647 (E) a continuing care contract; and
1648 (F) a long-term care contract; and
1649 (ii) may provide:
1650 (A) hospital coverage;
1651 (B) surgical coverage;
1652 (C) medical coverage;
1653 (D) loss of income coverage;
1654 (E) prescription drug coverage;
1655 (F) dental coverage; or
1656 (G) vision coverage.
1657 (c) "Accident and health insurance" does not include workers' compensation insurance.
1658 (2) "Actuary" is as defined by the commissioner by rule, made in accordance with Title
1659 63G, Chapter 3, Utah Administrative Rulemaking Act.
1660 (3) "Administrator" is defined in Subsection (159).
1661 (4) "Adult" means an individual who has attained the age of at least 18 years.
1662 (5) "Affiliate" means a person who controls, is controlled by, or is under common
1663 control with, another person. A corporation is an affiliate of another corporation, regardless of
1664 ownership, if substantially the same group of individuals manage the corporations.
1665 (6) "Agency" means:
1666 (a) a person other than an individual, including a sole proprietorship by which an
1667 individual does business under an assumed name; and
1668 (b) an insurance organization licensed or required to be licensed under Section
1669 31A-23a-301 .
1670 (7) "Alien insurer" means an insurer domiciled outside the United States.
1671 (8) "Amendment" means an endorsement to an insurance policy or certificate.
1672 (9) "Annuity" means an agreement to make periodical payments for a period certain or
1673 over the lifetime of one or more individuals if the making or continuance of all or some of the
1674 series of the payments, or the amount of the payment, is dependent upon the continuance of
1675 human life.
1676 (10) "Application" means a document:
1677 (a) (i) completed by an applicant to provide information about the risk to be insured;
1679 (ii) that contains information that is used by the insurer to evaluate risk and decide
1680 whether to:
1681 (A) insure the risk under:
1682 (I) the coverage as originally offered; or
1683 (II) a modification of the coverage as originally offered; or
1684 (B) decline to insure the risk; or
1685 (b) used by the insurer to gather information from the applicant before issuance of an
1686 annuity contract.
1687 (11) "Articles" or "articles of incorporation" means:
1688 (a) the original articles;
1689 (b) a special law;
1690 (c) a charter;
1691 (d) an amendment;
1692 (e) restated articles;
1693 (f) articles of merger or consolidation;
1694 (g) a trust instrument;
1695 (h) another constitutive document for a trust or other entity that is not a corporation;
1697 (i) an amendment to an item listed in Subsections (11)(a) through (h).
1698 (12) "Bail bond insurance" means a guarantee that a person will attend court when
1699 required, up to and including surrender of the person in execution of a sentence imposed under
1700 Subsection 77-20-7 (1), as a condition to the release of that person from confinement.
1701 (13) "Binder" is defined in Section 31A-21-102 .
1702 (14) "Blanket insurance policy" means a group policy covering a defined class of
1704 (a) without individual underwriting or application; and
1705 (b) that is determined by definition with or without designating each person covered.
1706 (15) "Board," "board of trustees," or "board of directors" means the group of persons
1707 with responsibility over, or management of, a corporation, however designated.
1708 (16) "Business entity" means:
1709 (a) a corporation;
1710 (b) an association;
1711 (c) a partnership;
1712 (d) a limited liability company;
1713 (e) a limited liability partnership; or
1714 (f) another legal entity.
1715 (17) "Business of insurance" is defined in Subsection (85).
1716 (18) "Business plan" means the information required to be supplied to the
1717 commissioner under Subsections 31A-5-204 (2)(i) and (j), including the information required
1718 when these subsections apply by reference under:
1719 (a) Section 31A-7-201 ;
1720 (b) Section 31A-8-205 ; or
1721 (c) Subsection 31A-9-205 (2).
1722 (19) (a) "Bylaws" means the rules adopted for the regulation or management of a
1723 corporation's affairs, however designated.
1724 (b) "Bylaws" includes comparable rules for a trust or other entity that is not a
1726 (20) "Captive insurance company" means:
1727 (a) an insurer:
1728 (i) owned by another organization; and
1729 (ii) whose exclusive purpose is to insure risks of the parent organization and an
1730 affiliated company; or
1731 (b) in the case of a group or association, an insurer:
1732 (i) owned by the insureds; and
1733 (ii) whose exclusive purpose is to insure risks of:
1734 (A) a member organization;
1735 (B) a group member; or
1736 (C) an affiliate of:
1737 (I) a member organization; or
1738 (II) a group member.
1739 (21) "Casualty insurance" means liability insurance.
1740 (22) "Certificate" means evidence of insurance given to:
1741 (a) an insured under a group insurance policy; or
1742 (b) a third party.
1743 (23) "Certificate of authority" is included within the term "license."
1744 (24) "Claim," unless the context otherwise requires, means a request or demand on an
1745 insurer for payment of a benefit according to the terms of an insurance policy.
1746 (25) "Claims-made coverage" means an insurance contract or provision limiting
1747 coverage under a policy insuring against legal liability to claims that are first made against the
1748 insured while the policy is in force.
1749 (26) (a) "Commissioner" or "commissioner of insurance" means Utah's insurance
1751 (b) When appropriate, the terms listed in Subsection (26)(a) apply to the equivalent
1752 supervisory official of another jurisdiction.
1753 (27) (a) "Continuing care insurance" means insurance that:
1754 (i) provides board and lodging;
1755 (ii) provides one or more of the following:
1756 (A) a personal service;
1757 (B) a nursing service;
1758 (C) a medical service; or
1759 (D) any other health-related service; and
1760 (iii) provides the coverage described in this Subsection (27)(a) under an agreement
1762 (A) for the life of the insured; or
1763 (B) for a period in excess of one year.
1764 (b) Insurance is continuing care insurance regardless of whether or not the board and
1765 lodging are provided at the same location as a service described in Subsection (27)(a)(ii).
1766 (28) (a) "Control," "controlling," "controlled," or "under common control" means the
1767 direct or indirect possession of the power to direct or cause the direction of the management
1768 and policies of a person. This control may be:
1769 (i) by contract;
1770 (ii) by common management;
1771 (iii) through the ownership of voting securities; or
1772 (iv) by a means other than those described in Subsections (28)(a)(i) through (iii).
1773 (b) There is no presumption that an individual holding an official position with another
1774 person controls that person solely by reason of the position.
1775 (c) A person having a contract or arrangement giving control is considered to have
1776 control despite the illegality or invalidity of the contract or arrangement.
1777 (d) There is a rebuttable presumption of control in a person who directly or indirectly
1778 owns, controls, holds with the power to vote, or holds proxies to vote 10% or more of the
1779 voting securities of another person.
1780 (29) "Controlled insurer" means a licensed insurer that is either directly or indirectly
1781 controlled by a producer.
1782 (30) "Controlling person" means a person that directly or indirectly has the power to
1783 direct or cause to be directed, the management, control, or activities of a reinsurance
1785 (31) "Controlling producer" means a producer who directly or indirectly controls an
1787 (32) (a) "Corporation" means an insurance corporation, except when referring to:
1788 (i) a corporation doing business:
1789 (A) as:
1790 (I) an insurance producer;
1791 (II) a limited line producer;
1792 (III) a consultant;
1793 (IV) a managing general agent;
1794 (V) a reinsurance intermediary;
1795 (VI) a third party administrator; or
1796 (VII) an adjuster; and
1797 (B) under:
1798 (I) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
1799 Reinsurance Intermediaries;
1800 (II) Chapter 25, Third Party Administrators; or
1801 (III) Chapter 26, Insurance Adjusters; or
1802 (ii) a noninsurer that is part of a holding company system under Chapter 16, Insurance
1803 Holding Companies.
1804 (b) "Stock corporation" means a stock insurance corporation.
1805 (c) "Mutual" or "mutual corporation" means a mutual insurance corporation.
1806 (33) (a) "Creditable coverage" has the same meaning as provided in federal regulations
1807 adopted pursuant to the Health Insurance Portability and Accountability Act of 1996, Pub. L.
1808 104-191, 110 Stat. 1936.
1809 (b) "Creditable coverage" includes coverage that is offered through a public health plan
1810 such as:
1811 (i) the Primary Care Network Program under a Medicaid primary care network
1812 demonstration waiver obtained subject to Section 26-18-3 ;
1813 (ii) the Children's Health Insurance Program under Section 26-40-106 ; or
1814 (iii) the Ryan White Program Comprehensive AIDS Resources Emergency Act, Pub. L.
1815 101-381, and Ryan White HIV/AIDS Treatment Modernization Act of 2006, Pub. L. 109-415.
1816 (34) "Credit accident and health insurance" means insurance on a debtor to provide
1817 indemnity for payments coming due on a specific loan or other credit transaction while the
1818 debtor [
1819 (35) (a) "Credit insurance" means insurance offered in connection with an extension of
1820 credit that is limited to partially or wholly extinguishing that credit obligation.
1821 (b) "Credit insurance" includes:
1822 (i) credit accident and health insurance;
1823 (ii) credit life insurance;
1824 (iii) credit property insurance;
1825 (iv) credit unemployment insurance;
1826 (v) guaranteed automobile protection insurance;
1827 (vi) involuntary unemployment insurance;
1828 (vii) mortgage accident and health insurance;
1829 (viii) mortgage guaranty insurance; and
1830 (ix) mortgage life insurance.
1831 (36) "Credit life insurance" means insurance on the life of a debtor in connection with
1832 an extension of credit that pays a person if the debtor dies.
1833 (37) "Credit property insurance" means insurance:
1834 (a) offered in connection with an extension of credit; and
1835 (b) that protects the property until the debt is paid.
1836 (38) "Credit unemployment insurance" means insurance:
1837 (a) offered in connection with an extension of credit; and
1838 (b) that provides indemnity if the debtor is unemployed for payments coming due on a:
1839 (i) specific loan; or
1840 (ii) credit transaction.
1841 (39) "Creditor" means a person, including an insured, having a claim, whether:
1842 (a) matured;
1843 (b) unmatured;
1844 (c) liquidated;
1845 (d) unliquidated;
1846 (e) secured;
1847 (f) unsecured;
1848 (g) absolute;
1849 (h) fixed; or
1850 (i) contingent.
1851 (40) (a) "Customer service representative" means a person that provides an insurance
1852 service and insurance product information:
1853 (i) for the customer service representative's:
1854 (A) producer; or
1855 (B) consultant employer; and
1856 (ii) to the customer service representative's employer's:
1857 (A) customer;
1858 (B) client; or
1859 (C) organization.
1860 (b) A customer service representative may only operate within the scope of authority of
1861 the customer service representative's producer or consultant employer.
1862 (41) "Deadline" means a final date or time:
1863 (a) imposed by:
1864 (i) statute;
1865 (ii) rule; or
1866 (iii) order; and
1867 (b) by which a required filing or payment must be received by the department.
1868 (42) "Deemer clause" means a provision under this title under which upon the
1869 occurrence of a condition precedent, the commissioner is considered to have taken a specific
1870 action. If the statute so provides, a condition precedent may be the commissioner's failure to
1871 take a specific action.
1872 (43) "Degree of relationship" means the number of steps between two persons
1873 determined by counting the generations separating one person from a common ancestor and
1874 then counting the generations to the other person.
1875 (44) "Department" means the Insurance Department.
1876 (45) "Director" means a member of the board of directors of a corporation.
1877 (46) "Disability" means a physiological or psychological condition that partially or
1878 totally limits an individual's ability to:
1879 (a) perform the duties of:
1880 (i) that individual's occupation; or
1881 (ii) any occupation for which the individual is reasonably suited by education, training,
1882 or experience; or
1883 (b) perform two or more of the following basic activities of daily living:
1884 (i) eating;
1885 (ii) toileting;
1886 (iii) transferring;
1887 (iv) bathing; or
1888 (v) dressing.
1889 (47) "Disability income insurance" is defined in Subsection (76).
1890 (48) "Domestic insurer" means an insurer organized under the laws of this state.
1891 (49) "Domiciliary state" means the state in which an insurer:
1892 (a) is incorporated;
1893 (b) is organized; or
1894 (c) in the case of an alien insurer, enters into the United States.
1895 (50) (a) "Eligible employee" means:
1896 (i) an employee who:
1897 (A) works on a full-time basis; and
1898 (B) has a normal work week of 30 or more hours; or
1899 (ii) a person described in Subsection (50)(b).
1900 (b) "Eligible employee" includes, if the individual is included under a health benefit
1901 plan of a small employer:
1902 (i) a sole proprietor;
1903 (ii) a partner in a partnership; or
1904 (iii) an independent contractor.
1905 (c) "Eligible employee" does not include, unless eligible under Subsection (50)(b):
1906 (i) an individual who works on a temporary or substitute basis for a small employer;
1907 (ii) an employer's spouse; or
1908 (iii) a dependent of an employer.
1909 (51) "Employee" means an individual employed by an employer.
1910 (52) "Employee benefits" means one or more benefits or services provided to:
1911 (a) an employee; or
1912 (b) a dependent of an employee.
1913 (53) (a) "Employee welfare fund" means a fund:
1914 (i) established or maintained, whether directly or through a trustee, by:
1915 (A) one or more employers;
1916 (B) one or more labor organizations; or
1917 (C) a combination of employers and labor organizations; and
1918 (ii) that provides employee benefits paid or contracted to be paid, other than income
1919 from investments of the fund:
1920 (A) by or on behalf of an employer doing business in this state; or
1921 (B) for the benefit of a person employed in this state.
1922 (b) "Employee welfare fund" includes a plan funded or subsidized by a user fee or tax
1924 (54) "Endorsement" means a written agreement attached to a policy or certificate to
1925 modify the policy or certificate coverage.
1926 (55) "Enrollment date," with respect to a health benefit plan, means:
1927 (a) the first day of coverage; or
1928 (b) if there is a waiting period, the first day of the waiting period.
1929 (56) (a) "Escrow" means:
1930 (i) a real estate settlement or real estate closing conducted by a third party pursuant to
1931 the requirements of a written agreement between the parties in a real estate transaction; or
1932 (ii) a settlement or closing involving:
1933 (A) a mobile home;
1934 (B) a grazing right;
1935 (C) a water right; or
1936 (D) other personal property authorized by the commissioner.
1937 (b) "Escrow" includes the act of conducting a:
1938 (i) real estate settlement; or
1939 (ii) real estate closing.
1940 (57) "Escrow agent" means:
1941 (a) an insurance producer with:
1942 (i) a title insurance line of authority; and
1943 (ii) an escrow subline of authority; or
1944 (b) a person defined as an escrow agent in Section 7-22-101 .
1945 (58) (a) "Excludes" is not exhaustive and does not mean that another thing is not also
1947 (b) The items listed in a list using the term "excludes" are representative examples for
1948 use in interpretation of this title.
1949 (59) "Exclusion" means for the purposes of accident and health insurance that an
1950 insurer does not provide insurance coverage, for whatever reason, for one of the following:
1951 (a) a specific physical condition;
1952 (b) a specific medical procedure;
1953 (c) a specific disease or disorder; or
1954 (d) a specific prescription drug or class of prescription drugs.
1955 (60) "Expense reimbursement insurance" means insurance:
1956 (a) written to provide a payment for an expense relating to hospital confinement
1957 resulting from illness or injury; and
1958 (b) written:
1959 (i) as a daily limit for a specific number of days in a hospital; and
1960 (ii) to have a one or two day waiting period following a hospitalization.
1961 (61) "Fidelity insurance" means insurance guaranteeing the fidelity of a person holding
1962 a position of public or private trust.
1963 (62) (a) "Filed" means that a filing is:
1964 (i) submitted to the department as required by and in accordance with applicable
1965 statute, rule, or filing order;
1966 (ii) received by the department within the time period provided in applicable statute,
1967 rule, or filing order; and
1968 (iii) accompanied by the appropriate fee in accordance with:
1969 (A) Section 31A-3-103 ; or
1970 (B) rule.
1971 (b) "Filed" does not include a filing that is rejected by the department because it is not
1972 submitted in accordance with Subsection (62)(a).
1973 (63) "Filing," when used as a noun, means an item required to be filed with the
1974 department including:
1975 (a) a policy;
1976 (b) a rate;
1977 (c) a form;
1978 (d) a document;
1979 (e) a plan;
1980 (f) a manual;
1981 (g) an application;
1982 (h) a report;
1983 (i) a certificate;
1984 (j) an endorsement;
1985 (k) an actuarial certification;
1986 (l) a licensee annual statement;
1987 (m) a licensee renewal application;
1988 (n) an advertisement; or
1989 (o) an outline of coverage.
1990 (64) "First party insurance" means an insurance policy or contract in which the insurer
1991 agrees to pay a claim submitted to it by the insured for the insured's losses.
1992 (65) "Foreign insurer" means an insurer domiciled outside of this state, including an
1993 alien insurer.
1994 (66) (a) "Form" means one of the following prepared for general use:
1995 (i) a policy;
1996 (ii) a certificate;
1997 (iii) an application;
1998 (iv) an outline of coverage; or
1999 (v) an endorsement.
2000 (b) "Form" does not include a document specially prepared for use in an individual
2002 (67) "Franchise insurance" means an individual insurance policy provided through a
2003 mass marketing arrangement involving a defined class of persons related in some way other
2004 than through the purchase of insurance.
2005 (68) "General lines of authority" include:
2006 (a) the general lines of insurance in Subsection (69);
2007 (b) title insurance under one of the following sublines of authority:
2008 (i) search, including authority to act as a title marketing representative;
2009 (ii) escrow, including authority to act as a title marketing representative; and
2010 (iii) title marketing representative only;
2011 (c) surplus lines;
2012 (d) workers' compensation; and
2013 (e) any other line of insurance that the commissioner considers necessary to recognize
2014 in the public interest.
2015 (69) "General lines of insurance" include:
2016 (a) accident and health;
2017 (b) casualty;
2018 (c) life;
2019 (d) personal lines;
2020 (e) property; and
2021 (f) variable contracts, including variable life and annuity.
2022 (70) "Group health plan" means an employee welfare benefit plan to the extent that the
2023 plan provides medical care:
2024 (a) (i) to an employee; or
2025 (ii) to a dependent of an employee; and
2026 (b) (i) directly;
2027 (ii) through insurance reimbursement; or
2028 (iii) through another method.
2029 (71) (a) "Group insurance policy" means a policy covering a group of persons that is
2031 (i) to a policyholder on behalf of the group; and
2032 (ii) for the benefit of a member of the group who is selected under a procedure defined
2034 (A) the policy; or
2035 (B) an agreement that is collateral to the policy.
2036 (b) A group insurance policy may include a member of the policyholder's family or a
2038 (72) "Guaranteed automobile protection insurance" means insurance offered in
2039 connection with an extension of credit that pays the difference in amount between the
2040 insurance settlement and the balance of the loan if the insured automobile is a total loss.
2041 (73) (a) Except as provided in Subsection (73)(b), "health benefit plan" means a policy
2042 or certificate that:
2043 (i) provides health care insurance;
2044 (ii) provides major medical expense insurance; or
2045 (iii) is offered as a substitute for hospital or medical expense insurance, such as:
2046 (A) a hospital confinement indemnity; or
2047 (B) a limited benefit plan.
2048 (b) "Health benefit plan" does not include a policy or certificate that:
2049 (i) provides benefits solely for:
2050 (A) accident;
2051 (B) dental;
2052 (C) income replacement;
2053 (D) long-term care;
2054 (E) a Medicare supplement;
2055 (F) a specified disease;
2056 (G) vision; or
2057 (H) a short-term limited duration; or
2058 (ii) is offered and marketed as supplemental health insurance.
2059 (74) "Health care" means any of the following intended for use in the diagnosis,
2060 treatment, mitigation, or prevention of a human ailment or impairment:
2061 (a) a professional service;
2062 (b) a personal service;
2063 (c) a facility;
2064 (d) equipment;
2065 (e) a device;
2066 (f) supplies; or
2067 (g) medicine.
2068 (75) (a) "Health care insurance" or "health insurance" means insurance providing:
2069 (i) a health care benefit; or
2070 (ii) payment of an incurred health care expense.
2071 (b) "Health care insurance" or "health insurance" does not include accident and health
2072 insurance providing a benefit for:
2073 (i) replacement of income;
2074 (ii) short-term accident;
2075 (iii) fixed indemnity;
2076 (iv) credit accident and health;
2077 (v) supplements to liability;
2078 (vi) workers' compensation;
2079 (vii) automobile medical payment;
2080 (viii) no-fault automobile;
2081 (ix) equivalent self-insurance; or
2082 (x) a type of accident and health insurance coverage that is a part of or attached to
2083 another type of policy.
2084 (76) "Income replacement insurance" or "disability income insurance" means insurance
2085 written to provide payments to replace income lost from accident or sickness.
2086 (77) "Indemnity" means the payment of an amount to offset all or part of an insured
2088 (78) "Independent adjuster" means an insurance adjuster required to be licensed under
2089 Section 31A-26-201 who engages in insurance adjusting as a representative of an insurer.
2090 (79) "Independently procured insurance" means insurance procured under Section
2091 31A-15-104 .
2092 (80) "Individual" means a natural person.
2093 (81) "Inland marine insurance" includes insurance covering:
2094 (a) property in transit on or over land;
2095 (b) property in transit over water by means other than boat or ship;
2096 (c) bailee liability;
2097 (d) fixed transportation property such as bridges, electric transmission systems, radio
2098 and television transmission towers and tunnels; and
2099 (e) personal and commercial property floaters.
2100 (82) "Insolvency" means that:
2101 (a) an insurer is unable to pay its debts or meet its obligations as the debts and
2102 obligations mature;
2103 (b) an insurer's total adjusted capital is less than the insurer's mandatory control level
2104 RBC under Subsection 31A-17-601 (8)(c); or
2105 (c) an insurer is determined to be hazardous under this title.
2106 (83) (a) "Insurance" means:
2107 (i) an arrangement, contract, or plan for the transfer of a risk or risks from one or more
2108 persons to one or more other persons; or
2109 (ii) an arrangement, contract, or plan for the distribution of a risk or risks among a
2110 group of persons that includes the person seeking to distribute that person's risk.
2111 (b) "Insurance" includes:
2112 (i) a risk distributing arrangement providing for compensation or replacement for
2113 damages or loss through the provision of a service or a benefit in kind;
2114 (ii) a contract of guaranty or suretyship entered into by the guarantor or surety as a
2115 business and not as merely incidental to a business transaction; and
2116 (iii) a plan in which the risk does not rest upon the person who makes an arrangement,
2117 but with a class of persons who have agreed to share the risk.
2118 (84) "Insurance adjuster" means a person who directs the investigation, negotiation, or
2119 settlement of a claim under an insurance policy other than life insurance or an annuity, on
2120 behalf of an insurer, policyholder, or a claimant under an insurance policy.
2121 (85) "Insurance business" or "business of insurance" includes:
2122 (a) providing health care insurance by an organization that is or is required to be
2123 licensed under this title;
2124 (b) providing a benefit to an employee in the event of a contingency not within the
2125 control of the employee, in which the employee is entitled to the benefit as a right, which
2126 benefit may be provided either:
2127 (i) by a single employer or by multiple employer groups; or
2128 (ii) through one or more trusts, associations, or other entities;
2129 (c) providing an annuity:
2130 (i) including an annuity issued in return for a gift; and
2131 (ii) except an annuity provided by a person specified in Subsections 31A-22-1305 (2)
2132 and (3);
2133 (d) providing the characteristic services of a motor club as outlined in Subsection
2135 (e) providing another person with insurance;
2136 (f) making as insurer, guarantor, or surety, or proposing to make as insurer, guarantor,
2137 or surety, a contract or policy of title insurance;
2138 (g) transacting or proposing to transact any phase of title insurance, including:
2139 (i) solicitation;
2140 (ii) negotiation preliminary to execution;
2141 (iii) execution of a contract of title insurance;
2142 (iv) insuring;
2143 (v) transacting matters subsequent to the execution of the contract and arising out of
2144 the contract, including reinsurance; and
2145 (vi) transacting or proposing a life settlement; and
2146 (h) doing, or proposing to do, any business in substance equivalent to Subsections
2147 (85)(a) through (g) in a manner designed to evade this title.
2148 (86) "Insurance consultant" or "consultant" means a person who:
2149 (a) advises another person about insurance needs and coverages;
2150 (b) is compensated by the person advised on a basis not directly related to the insurance
2151 placed; and
2152 (c) except as provided in Section 31A-23a-501 , is not compensated directly or
2153 indirectly by an insurer or producer for advice given.
2154 (87) "Insurance holding company system" means a group of two or more affiliated
2155 persons, at least one of whom is an insurer.
2156 (88) (a) "Insurance producer" or "producer" means a person licensed or required to be
2157 licensed under the laws of this state to sell, solicit, or negotiate insurance.
2158 (b) With regards to the selling, soliciting, or negotiating of an insurance product to an
2159 insurance customer or an insured:
2160 (i) "producer for the insurer" means a producer who is compensated directly or
2161 indirectly by an insurer for selling, soliciting, or negotiating a product of that insurer; and
2162 (ii) "producer for the insured" means a producer who:
2163 (A) is compensated directly and only by an insurance customer or an insured; and
2164 (B) receives no compensation directly or indirectly from an insurer for selling,
2165 soliciting, or negotiating a product of that insurer to an insurance customer or insured.
2166 (89) (a) "Insured" means a person to whom or for whose benefit an insurer makes a
2167 promise in an insurance policy and includes:
2168 (i) a policyholder;
2169 (ii) a subscriber;
2170 (iii) a member; and
2171 (iv) a beneficiary.
2172 (b) The definition in Subsection (89)(a):
2173 (i) applies only to this title; and
2174 (ii) does not define the meaning of this word as used in an insurance policy or
2176 (90) (a) "Insurer" means a person doing an insurance business as a principal including:
2177 (i) a fraternal benefit society;
2178 (ii) an issuer of a gift annuity other than an annuity specified in Subsections
2179 31A-22-1305 (2) and (3);
2180 (iii) a motor club;
2181 (iv) an employee welfare plan; and
2182 (v) a person purporting or intending to do an insurance business as a principal on that
2183 person's own account.
2184 (b) "Insurer" does not include a governmental entity to the extent the governmental
2185 entity is engaged in an activity described in Section 31A-12-107 .
2186 (91) "Interinsurance exchange" is defined in Subsection (142).
2187 (92) "Involuntary unemployment insurance" means insurance:
2188 (a) offered in connection with an extension of credit; and
2189 (b) that provides indemnity if the debtor is involuntarily unemployed for payments
2190 coming due on a:
2191 (i) specific loan; or
2192 (ii) credit transaction.
2193 (93) "Large employer," in connection with a health benefit plan, means an employer
2194 who, with respect to a calendar year and to a plan year:
2195 (a) employed an average of at least 51 eligible employees on each business day during
2196 the preceding calendar year; and
2197 (b) employs at least two employees on the first day of the plan year.
2198 (94) "Late enrollee," with respect to an employer health benefit plan, means an
2199 individual whose enrollment is a late enrollment.
2200 (95) "Late enrollment," with respect to an employer health benefit plan, means
2201 enrollment of an individual other than:
2202 (a) on the earliest date on which coverage can become effective for the individual
2203 under the terms of the plan; or
2204 (b) through special enrollment.
2205 (96) (a) Except for a retainer contract or legal assistance described in Section
2206 31A-1-103 , "legal expense insurance" means insurance written to indemnify or pay for a
2207 specified legal expense.
2208 (b) "Legal expense insurance" includes an arrangement that creates a reasonable
2209 expectation of an enforceable right.
2210 (c) "Legal expense insurance" does not include the provision of, or reimbursement for,
2211 legal services incidental to other insurance coverage.
2212 (97) (a) "Liability insurance" means insurance against liability:
2213 (i) for death, injury, or disability of a human being, or for damage to property,
2214 exclusive of the coverages under:
2215 (A) Subsection (107) for medical malpractice insurance;
2216 (B) Subsection (134) for professional liability insurance; and
2217 (C) Subsection (168) for workers' compensation insurance;
2218 (ii) for a medical, hospital, surgical, and funeral benefit to a person other than the
2219 insured who is injured, irrespective of legal liability of the insured, when issued with or
2220 supplemental to insurance against legal liability for the death, injury, or disability of a human
2221 being, exclusive of the coverages under:
2222 (A) Subsection (107) for medical malpractice insurance;
2223 (B) Subsection (134) for professional liability insurance; and
2224 (C) Subsection (168) for workers' compensation insurance;
2225 (iii) for loss or damage to property resulting from an accident to or explosion of a
2226 boiler, pipe, pressure container, machinery, or apparatus;
2227 (iv) for loss or damage to property caused by:
2228 (A) the breakage or leakage of a sprinkler, water pipe, or water container; or
2229 (B) water entering through a leak or opening in a building; or
2230 (v) for other loss or damage properly the subject of insurance not within another kind
2231 of insurance as defined in this chapter, if the insurance is not contrary to law or public policy.
2232 (b) "Liability insurance" includes:
2233 (i) vehicle liability insurance;
2234 (ii) residential dwelling liability insurance; and
2235 (iii) making inspection of, and issuing a certificate of inspection upon, an elevator,
2236 boiler, machinery, or apparatus of any kind when done in connection with insurance on the
2237 elevator, boiler, machinery, or apparatus.
2238 (98) (a) "License" means authorization issued by the commissioner to engage in an
2239 activity that is part of or related to the insurance business.
2240 (b) "License" includes a certificate of authority issued to an insurer.
2241 (99) (a) "Life insurance" means:
2242 (i) insurance on a human life; and
2243 (ii) insurance pertaining to or connected with human life.
2244 (b) The business of life insurance includes:
2245 (i) granting a death benefit;
2246 (ii) granting an annuity benefit;
2247 (iii) granting an endowment benefit;
2248 (iv) granting an additional benefit in the event of death by accident;
2249 (v) granting an additional benefit to safeguard the policy against lapse; and
2250 (vi) providing an optional method of settlement of proceeds.
2251 (100) "Limited license" means a license that:
2252 (a) is issued for a specific product of insurance; and
2253 (b) limits an individual or agency to transact only for that product or insurance.
2254 (101) "Limited line credit insurance" includes the following forms of insurance:
2255 (a) credit life;
2256 (b) credit accident and health;
2257 (c) credit property;
2258 (d) credit unemployment;
2259 (e) involuntary unemployment;
2260 (f) mortgage life;
2261 (g) mortgage guaranty;
2262 (h) mortgage accident and health;
2263 (i) guaranteed automobile protection; and
2264 (j) another form of insurance offered in connection with an extension of credit that:
2265 (i) is limited to partially or wholly extinguishing the credit obligation; and
2266 (ii) the commissioner determines by rule should be designated as a form of limited line
2267 credit insurance.
2268 (102) "Limited line credit insurance producer" means a person who sells, solicits, or
2269 negotiates one or more forms of limited line credit insurance coverage to an individual through
2270 a master, corporate, group, or individual policy.
2271 (103) "Limited line insurance" includes:
2272 (a) bail bond;
2273 (b) limited line credit insurance;
2274 (c) legal expense insurance;
2275 (d) motor club insurance;
2276 (e) rental car-related insurance;
2277 (f) travel insurance;
2278 (g) crop insurance;
2279 (h) self-service storage insurance; and
2280 (i) another form of limited insurance that the commissioner determines by rule should
2281 be designated a form of limited line insurance.
2282 (104) "Limited lines authority" includes:
2283 (a) the lines of insurance listed in Subsection (103); and
2284 (b) a customer service representative.
2285 (105) "Limited lines producer" means a person who sells, solicits, or negotiates limited
2286 lines insurance.
2287 (106) (a) "Long-term care insurance" means an insurance policy or rider advertised,
2288 marketed, offered, or designated to provide coverage:
2289 (i) in a setting other than an acute care unit of a hospital;
2290 (ii) for not less than 12 consecutive months for a covered person on the basis of:
2291 (A) expenses incurred;
2292 (B) indemnity;
2293 (C) prepayment; or
2294 (D) another method;
2295 (iii) for one or more necessary or medically necessary services that are:
2296 (A) diagnostic;
2297 (B) preventative;
2298 (C) therapeutic;
2299 (D) rehabilitative;
2300 (E) maintenance; or
2301 (F) personal care; and
2302 (iv) that may be issued by:
2303 (A) an insurer;
2304 (B) a fraternal benefit society;
2305 (C) (I) a nonprofit health hospital; and
2306 (II) a medical service corporation;
2307 (D) a prepaid health plan;
2308 (E) a health maintenance organization; or
2309 (F) an entity similar to the entities described in Subsections (106)(a)(iv)(A) through (E)
2310 to the extent that the entity is otherwise authorized to issue life or health care insurance.
2311 (b) "Long-term care insurance" includes:
2312 (i) any of the following that provide directly or supplement long-term care insurance:
2313 (A) a group or individual annuity or rider; or
2314 (B) a life insurance policy or rider;
2315 (ii) a policy or rider that provides for payment of benefits on the basis of:
2316 (A) cognitive impairment; or
2317 (B) functional capacity; or
2318 (iii) a qualified long-term care insurance contract.
2319 (c) "Long-term care insurance" does not include:
2320 (i) a policy that is offered primarily to provide basic Medicare supplement coverage;
2321 (ii) basic hospital expense coverage;
2322 (iii) basic medical/surgical expense coverage;
2323 (iv) hospital confinement indemnity coverage;
2324 (v) major medical expense coverage;
2325 (vi) income replacement or related asset-protection coverage;
2326 (vii) accident only coverage;
2327 (viii) coverage for a specified:
2328 (A) disease; or
2329 (B) accident;
2330 (ix) limited benefit health coverage; or
2331 (x) a life insurance policy that accelerates the death benefit to provide the option of a
2332 lump sum payment:
2333 (A) if the following are not conditioned on the receipt of long-term care:
2334 (I) benefits; or
2335 (II) eligibility; and
2336 (B) the coverage is for one or more the following qualifying events:
2337 (I) terminal illness;
2338 (II) medical conditions requiring extraordinary medical intervention; or
2339 (III) permanent institutional confinement.
2340 (107) "Medical malpractice insurance" means insurance against legal liability incident
2341 to the practice and provision of a medical service other than the practice and provision of a
2342 dental service.
2343 (108) "Member" means a person having membership rights in an insurance
2345 (109) "Minimum capital" or "minimum required capital" means the capital that must be
2346 constantly maintained by a stock insurance corporation as required by statute.
2347 (110) "Mortgage accident and health insurance" means insurance offered in connection
2348 with an extension of credit that provides indemnity for payments coming due on a mortgage
2349 while the debtor [
2350 (111) "Mortgage guaranty insurance" means surety insurance under which a mortgagee
2351 or other creditor is indemnified against losses caused by the default of a debtor.
2352 (112) "Mortgage life insurance" means insurance on the life of a debtor in connection
2353 with an extension of credit that pays if the debtor dies.
2354 (113) "Motor club" means a person:
2355 (a) licensed under:
2356 (i) Chapter 5, Domestic Stock and Mutual Insurance Corporations;
2357 (ii) Chapter 11, Motor Clubs; or
2358 (iii) Chapter 14, Foreign Insurers; and
2359 (b) that promises for an advance consideration to provide for a stated period of time
2360 one or more:
2361 (i) legal services under Subsection 31A-11-102 (1)(b);
2362 (ii) bail services under Subsection 31A-11-102 (1)(c); or
2363 (iii) (A) trip reimbursement;
2364 (B) towing services;
2365 (C) emergency road services;
2366 (D) stolen automobile services;
2367 (E) a combination of the services listed in Subsections (113)(b)(iii)(A) through (D); or
2368 (F) other services given in Subsections 31A-11-102 (1)(b) through (f).
2369 (114) "Mutual" means a mutual insurance corporation.
2370 (115) "Network plan" means health care insurance:
2371 (a) that is issued by an insurer; and
2372 (b) under which the financing and delivery of medical care is provided, in whole or in
2373 part, through a defined set of providers under contract with the insurer, including the financing
2374 and delivery of an item paid for as medical care.
2375 (116) "Nonparticipating" means a plan of insurance under which the insured is not
2376 entitled to receive a dividend representing a share of the surplus of the insurer.
2377 (117) "Ocean marine insurance" means insurance against loss of or damage to:
2378 (a) ships or hulls of ships;
2379 (b) goods, freight, cargoes, merchandise, effects, disbursements, profits, money,
2380 securities, choses in action, evidences of debt, valuable papers, bottomry, respondentia
2381 interests, or other cargoes in or awaiting transit over the oceans or inland waterways;
2382 (c) earnings such as freight, passage money, commissions, or profits derived from
2383 transporting goods or people upon or across the oceans or inland waterways; or
2384 (d) a vessel owner or operator as a result of liability to employees, passengers, bailors,
2385 owners of other vessels, owners of fixed objects, customs or other authorities, or other persons
2386 in connection with maritime activity.
2387 (118) "Order" means an order of the commissioner.
2388 (119) "Outline of coverage" means a summary that explains an accident and health
2389 insurance policy.
2390 (120) "Participating" means a plan of insurance under which the insured is entitled to
2391 receive a dividend representing a share of the surplus of the insurer.
2392 (121) "Participation," as used in a health benefit plan, means a requirement relating to
2393 the minimum percentage of eligible employees that must be enrolled in relation to the total
2394 number of eligible employees of an employer reduced by each eligible employee who
2395 voluntarily declines coverage under the plan because the employee:
2396 (a) has other group health care insurance coverage; or
2397 (b) receives:
2398 (i) Medicare, under the Health Insurance for the Aged Act, Title XVIII of the Social
2399 Security Amendments of 1965; or
2400 (ii) another government health benefit.
2401 (122) "Person" includes:
2402 (a) an individual;
2403 (b) a partnership;
2404 (c) a corporation;
2405 (d) an incorporated or unincorporated association;
2406 (e) a joint stock company;
2407 (f) a trust;
2408 (g) a limited liability company;
2409 (h) a reciprocal;
2410 (i) a syndicate; or
2411 (j) another similar entity or combination of entities acting in concert.
2412 (123) "Personal lines insurance" means property and casualty insurance coverage sold
2413 for primarily noncommercial purposes to:
2414 (a) an individual; or
2415 (b) a family.
2416 (124) "Plan sponsor" is as defined in 29 U.S.C. Sec. 1002(16)(B).
2417 (125) "Plan year" means:
2418 (a) the year that is designated as the plan year in:
2419 (i) the plan document of a group health plan; or
2420 (ii) a summary plan description of a group health plan;
2421 (b) if the plan document or summary plan description does not designate a plan year or
2422 there is no plan document or summary plan description:
2423 (i) the year used to determine deductibles or limits;
2424 (ii) the policy year, if the plan does not impose deductibles or limits on a yearly basis;
2426 (iii) the employer's taxable year if:
2427 (A) the plan does not impose deductibles or limits on a yearly basis; and
2428 (B) (I) the plan is not insured; or
2429 (II) the insurance policy is not renewed on an annual basis; or
2430 (c) in a case not described in Subsection (125)(a) or (b), the calendar year.
2431 (126) (a) "Policy" means a document, including an attached endorsement or application
2433 (i) purports to be an enforceable contract; and
2434 (ii) memorializes in writing some or all of the terms of an insurance contract.
2435 (b) "Policy" includes a service contract issued by:
2436 (i) a motor club under Chapter 11, Motor Clubs;
2437 (ii) a service contract provided under Chapter 6a, Service Contracts; and
2438 (iii) a corporation licensed under:
2439 (A) Chapter 7, Nonprofit Health Service Insurance Corporations; or
2440 (B) Chapter 8, Health Maintenance Organizations and Limited Health Plans.
2441 (c) "Policy" does not include:
2442 (i) a certificate under a group insurance contract; or
2443 (ii) a document that does not purport to have legal effect.
2444 (127) "Policyholder" means a person who controls a policy, binder, or oral contract by
2445 ownership, premium payment, or otherwise.
2446 (128) "Policy illustration" means a presentation or depiction that includes
2447 nonguaranteed elements of a policy of life insurance over a period of years.
2448 (129) "Policy summary" means a synopsis describing the elements of a life insurance
2450 (130) "Preexisting condition," with respect to a health benefit plan:
2451 (a) means a condition that was present before the effective date of coverage, whether or
2452 not medical advice, diagnosis, care, or treatment was recommended or received before that day;
2454 (b) does not include a condition indicated by genetic information unless an actual
2455 diagnosis of the condition by a physician has been made.
2456 (131) (a) "Premium" means the monetary consideration for an insurance policy.
2457 (b) "Premium" includes, however designated:
2458 (i) an assessment;
2459 (ii) a membership fee;
2460 (iii) a required contribution; or
2461 (iv) monetary consideration.
2462 (c) (i) "Premium" does not include consideration paid to a third party administrator for
2463 the third party administrator's services.
2464 (ii) "Premium" includes an amount paid by a third party administrator to an insurer for
2465 insurance on the risks administered by the third party administrator.
2466 (132) "Principal officers" for a corporation means the officers designated under
2467 Subsection 31A-5-203 (3).
2468 (133) "Proceeding" includes an action or special statutory proceeding.
2469 (134) "Professional liability insurance" means insurance against legal liability incident
2470 to the practice of a profession and provision of a professional service.
2471 (135) (a) Except as provided in Subsection (135)(b), "property insurance" means
2472 insurance against loss or damage to real or personal property of every kind and any interest in
2473 that property:
2474 (i) from all hazards or causes; and
2475 (ii) against loss consequential upon the loss or damage including vehicle
2476 comprehensive and vehicle physical damage coverages.
2477 (b) "Property insurance" does not include:
2478 (i) inland marine insurance; and
2479 (ii) ocean marine insurance.
2480 (136) "Qualified long-term care insurance contract" or "federally tax qualified
2481 long-term care insurance contract" means:
2482 (a) an individual or group insurance contract that meets the requirements of Section
2483 7702B(b), Internal Revenue Code; or
2484 (b) the portion of a life insurance contract that provides long-term care insurance:
2485 (i) (A) by rider; or
2486 (B) as a part of the contract; and
2487 (ii) that satisfies the requirements of Sections 7702B(b) and (e), Internal Revenue
2489 (137) "Qualified United States financial institution" means an institution that:
2490 (a) is:
2491 (i) organized under the laws of the United States or any state; or
2492 (ii) in the case of a United States office of a foreign banking organization, licensed
2493 under the laws of the United States or any state;
2494 (b) is regulated, supervised, and examined by a United States federal or state authority
2495 having regulatory authority over a bank or trust company; and
2496 (c) meets the standards of financial condition and standing that are considered
2497 necessary and appropriate to regulate the quality of a financial institution whose letters of credit
2498 will be acceptable to the commissioner as determined by:
2499 (i) the commissioner by rule; or
2500 (ii) the Securities Valuation Office of the National Association of Insurance
2502 (138) (a) "Rate" means:
2503 (i) the cost of a given unit of insurance; or
2504 (ii) for property or casualty insurance, that cost of insurance per exposure unit either
2505 expressed as:
2506 (A) a single number; or
2507 (B) a pure premium rate, adjusted before the application of individual risk variations
2508 based on loss or expense considerations to account for the treatment of:
2509 (I) expenses;
2510 (II) profit; and
2511 (III) individual insurer variation in loss experience.
2512 (b) "Rate" does not include a minimum premium.
2513 (139) (a) Except as provided in Subsection (139)(b), "rate service organization" means
2514 a person who assists an insurer in rate making or filing by:
2515 (i) collecting, compiling, and furnishing loss or expense statistics;
2516 (ii) recommending, making, or filing rates or supplementary rate information; or
2517 (iii) advising about rate questions, except as an attorney giving legal advice.
2518 (b) "Rate service organization" does not mean:
2519 (i) an employee of an insurer;
2520 (ii) a single insurer or group of insurers under common control;
2521 (iii) a joint underwriting group; or
2522 (iv) an individual serving as an actuarial or legal consultant.
2523 (140) "Rating manual" means any of the following used to determine initial and
2524 renewal policy premiums:
2525 (a) a manual of rates;
2526 (b) a classification;
2527 (c) a rate-related underwriting rule; and
2528 (d) a rating formula that describes steps, policies, and procedures for determining
2529 initial and renewal policy premiums.
2530 (141) "Received by the department" means:
2531 (a) the date delivered to and stamped received by the department, if delivered in
2533 (b) the post mark date, if delivered by mail;
2534 (c) the delivery service's post mark or pickup date, if delivered by a delivery service;
2535 (d) the received date recorded on an item delivered, if delivered by:
2536 (i) facsimile;
2537 (ii) email; or
2538 (iii) another electronic method; or
2539 (e) a date specified in:
2540 (i) a statute;
2541 (ii) a rule; or
2542 (iii) an order.
2543 (142) "Reciprocal" or "interinsurance exchange" means an unincorporated association
2544 of persons:
2545 (a) operating through an attorney-in-fact common to all of the persons; and
2546 (b) exchanging insurance contracts with one another that provide insurance coverage
2547 on each other.
2548 (143) "Reinsurance" means an insurance transaction where an insurer, for
2549 consideration, transfers any portion of the risk it has assumed to another insurer. In referring to
2550 reinsurance transactions, this title sometimes refers to:
2551 (a) the insurer transferring the risk as the "ceding insurer"; and
2552 (b) the insurer assuming the risk as the:
2553 (i) "assuming insurer"; or
2554 (ii) "assuming reinsurer."
2555 (144) "Reinsurer" means a person licensed in this state as an insurer with the authority
2556 to assume reinsurance.
2557 (145) "Residential dwelling liability insurance" means insurance against liability
2558 resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is
2559 a detached single family residence or multifamily residence up to four units.
2560 (146) (a) "Retrocession" means reinsurance with another insurer of a liability assumed
2561 under a reinsurance contract.
2562 (b) A reinsurer "retrocedes" when the reinsurer reinsures with another insurer part of a
2563 liability assumed under a reinsurance contract.
2564 (147) "Rider" means an endorsement to:
2565 (a) an insurance policy; or
2566 (b) an insurance certificate.
2567 (148) (a) "Security" means a:
2568 (i) note;
2569 (ii) stock;
2570 (iii) bond;
2571 (iv) debenture;
2572 (v) evidence of indebtedness;
2573 (vi) certificate of interest or participation in a profit-sharing agreement;
2574 (vii) collateral-trust certificate;
2575 (viii) preorganization certificate or subscription;
2576 (ix) transferable share;
2577 (x) investment contract;
2578 (xi) voting trust certificate;
2579 (xii) certificate of deposit for a security;
2580 (xiii) certificate of interest of participation in an oil, gas, or mining title or lease or in
2581 payments out of production under such a title or lease;
2582 (xiv) commodity contract or commodity option;
2583 (xv) certificate of interest or participation in, temporary or interim certificate for,
2584 receipt for, guarantee of, or warrant or right to subscribe to or purchase any of the items listed
2585 in Subsections (148)(a)(i) through (xiv); or
2586 (xvi) another interest or instrument commonly known as a security.
2587 (b) "Security" does not include:
2588 (i) any of the following under which an insurance company promises to pay money in a
2589 specific lump sum or periodically for life or some other specified period:
2590 (A) insurance;
2591 (B) an endowment policy; or
2592 (C) an annuity contract; or
2593 (ii) a burial certificate or burial contract.
2594 (149) "Secondary medical condition" means a complication related to an exclusion
2595 from coverage in accident and health insurance.
2596 (150) "Self-insurance" means an arrangement under which a person provides for
2597 spreading its own risks by a systematic plan.
2598 (a) Except as provided in this Subsection (150), "self-insurance" does not include an
2599 arrangement under which a number of persons spread their risks among themselves.
2600 (b) "Self-insurance" includes:
2601 (i) an arrangement by which a governmental entity undertakes to indemnify an
2602 employee for liability arising out of the employee's employment; and
2603 (ii) an arrangement by which a person with a managed program of self-insurance and
2604 risk management undertakes to indemnify its affiliates, subsidiaries, directors, officers, or
2605 employees for liability or risk that is related to the relationship or employment.
2606 (c) "Self-insurance" does not include an arrangement with an independent contractor.
2607 (151) "Sell" means to exchange a contract of insurance:
2608 (a) by any means;
2609 (b) for money or its equivalent; and
2610 (c) on behalf of an insurance company.
2611 (152) "Short-term care insurance" means an insurance policy or rider advertised,
2612 marketed, offered, or designed to provide coverage that is similar to long-term care insurance,
2613 but that provides coverage for less than 12 consecutive months for each covered person.
2614 (153) "Significant break in coverage" means a period of 63 consecutive days during
2615 each of which an individual does not have creditable coverage.
2616 (154) "Small employer," in connection with a health benefit plan, means an employer
2617 who, with respect to a calendar year and to a plan year:
2618 (a) employed an average of at least two employees but not more than 50 eligible
2619 employees on each business day during the preceding calendar year; and
2620 (b) employs at least two employees on the first day of the plan year.
2621 (155) "Special enrollment period," in connection with a health benefit plan, has the
2622 same meaning as provided in federal regulations adopted pursuant to the Health Insurance
2623 Portability and Accountability Act of 1996, Pub. L. 104-191, 110 Stat. 1936.
2624 (156) (a) "Subsidiary" of a person means an affiliate controlled by that person either
2625 directly or indirectly through one or more affiliates or intermediaries.
2626 (b) "Wholly owned subsidiary" of a person is a subsidiary of which all of the voting
2627 shares are owned by that person either alone or with its affiliates, except for the minimum
2628 number of shares the law of the subsidiary's domicile requires to be owned by directors or
2630 (157) Subject to Subsection (83)(b), "surety insurance" includes:
2631 (a) a guarantee against loss or damage resulting from the failure of a principal to pay or
2632 perform the principal's obligations to a creditor or other obligee;
2633 (b) bail bond insurance; and
2634 (c) fidelity insurance.
2635 (158) (a) "Surplus" means the excess of assets over the sum of paid-in capital and
2637 (b) (i) "Permanent surplus" means the surplus of a mutual insurer that is designated by
2638 the insurer as permanent.
2639 (ii) Sections 31A-5-211 , 31A-7-201 , 31A-8-209 , 31A-9-209 , and 31A-14-209 require
2640 that mutuals doing business in this state maintain specified minimum levels of permanent
2642 (iii) Except for assessable mutuals, the minimum permanent surplus requirement is the
2643 same as the minimum required capital requirement that applies to stock insurers.
2644 (c) "Excess surplus" means:
2645 (i) for a life insurer, accident and health insurer, health organization, or property and
2646 casualty insurer as defined in Section 31A-17-601 , the lesser of:
2647 (A) that amount of an insurer's or health organization's total adjusted capital that
2648 exceeds the product of:
2649 (I) 2.5; and
2650 (II) the sum of the insurer's or health organization's minimum capital or permanent
2651 surplus required under Section 31A-5-211 , 31A-9-209 , or 31A-14-205 ; or
2652 (B) that amount of an insurer's or health organization's total adjusted capital that
2653 exceeds the product of:
2654 (I) 3.0; and
2655 (II) the authorized control level RBC as defined in Subsection 31A-17-601 (8)(a); and
2656 (ii) for a monoline mortgage guaranty insurer, financial guaranty insurer, or title insurer
2657 that amount of an insurer's paid-in-capital and surplus that exceeds the product of:
2658 (A) 1.5; and
2659 (B) the insurer's total adjusted capital required by Subsection 31A-17-609 (1).
2660 (159) "Third party administrator" or "administrator" means a person who collects
2661 charges or premiums from, or who, for consideration, adjusts or settles claims of residents of
2662 the state in connection with insurance coverage, annuities, or service insurance coverage,
2664 (a) a union on behalf of its members;
2665 (b) a person administering a:
2666 (i) pension plan subject to the federal Employee Retirement Income Security Act of
2668 (ii) governmental plan as defined in Section 414(d), Internal Revenue Code; or
2669 (iii) nonelecting church plan as described in Section 410(d), Internal Revenue Code;
2670 (c) an employer on behalf of the employer's employees or the employees of one or
2671 more of the subsidiary or affiliated corporations of the employer;
2672 (d) an insurer licensed under Chapter 5, 7, 8, 9, or 14, but only for a line of insurance
2673 for which the insurer holds a license in this state; or
2674 (e) a person:
2675 (i) licensed or exempt from licensing under:
2676 (A) Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and
2677 Reinsurance Intermediaries; or
2678 (B) Chapter 26, Insurance Adjusters; and
2679 (ii) whose activities are limited to those authorized under the license the person holds
2680 or for which the person is exempt.
2681 (160) "Title insurance" means the insuring, guaranteeing, or indemnifying of an owner
2682 of real or personal property or the holder of liens or encumbrances on that property, or others
2683 interested in the property against loss or damage suffered by reason of liens or encumbrances
2684 upon, defects in, or the unmarketability of the title to the property, or invalidity or
2685 unenforceability of any liens or encumbrances on the property.
2686 (161) "Total adjusted capital" means the sum of an insurer's or health organization's
2687 statutory capital and surplus as determined in accordance with:
2688 (a) the statutory accounting applicable to the annual financial statements required to be
2689 filed under Section 31A-4-113 ; and
2690 (b) another item provided by the RBC instructions, as RBC instructions is defined in
2691 Section 31A-17-601 .
2692 (162) (a) "Trustee" means "director" when referring to the board of directors of a
2694 (b) "Trustee," when used in reference to an employee welfare fund, means an
2695 individual, firm, association, organization, joint stock company, or corporation, whether acting
2696 individually or jointly and whether designated by that name or any other, that is charged with
2697 or has the overall management of an employee welfare fund.
2698 (163) (a) "Unauthorized insurer," "unadmitted insurer," or "nonadmitted insurer"
2699 means an insurer:
2700 (i) not holding a valid certificate of authority to do an insurance business in this state;
2702 (ii) transacting business not authorized by a valid certificate.
2703 (b) "Admitted insurer" or "authorized insurer" means an insurer:
2704 (i) holding a valid certificate of authority to do an insurance business in this state; and
2705 (ii) transacting business as authorized by a valid certificate.
2706 (164) "Underwrite" means the authority to accept or reject risk on behalf of the insurer.
2707 (165) "Vehicle liability insurance" means insurance against liability resulting from or
2708 incident to ownership, maintenance, or use of a land vehicle or aircraft, exclusive of a vehicle
2709 comprehensive or vehicle physical damage coverage under Subsection (135).
2710 (166) "Voting security" means a security with voting rights, and includes a security
2711 convertible into a security with a voting right associated with the security.
2712 (167) "Waiting period" for a health benefit plan means the period that must pass before
2713 coverage for an individual, who is otherwise eligible to enroll under the terms of the health
2714 benefit plan, can become effective.
2715 (168) "Workers' compensation insurance" means:
2716 (a) insurance for indemnification of an employer against liability for compensation
2717 based on:
2718 (i) a compensable accidental injury; and
2719 (ii) occupational disease disability;
2720 (b) employer's liability insurance incidental to workers' compensation insurance and
2721 written in connection with workers' compensation insurance; and
2722 (c) insurance assuring to a person entitled to workers' compensation benefits the
2723 compensation provided by law.
2724 Section 36. Section 31A-22-611 is amended to read:
2725 31A-22-611. Coverage for children with a disability.
2726 (1) For the purposes of this section:
2727 (a) [
2728 continues to be both:
2729 (i) unable to engage in substantial gainful employment to the degree that the child can
2730 achieve economic independence due to a medically determinable physical or mental
2731 impairment which can be expected to result in death, or which has lasted or can be expected to
2732 last for a continuous period of not less than 12 months; and
2733 (ii) chiefly dependent upon an insured for support and maintenance since the child
2734 reached the age specified in Subsection 31A-22-610.5 (2).
2736 (i) [
2737 (ii) organic brain syndrome;
2738 (iii) emotional or mental illness; or
2739 (iv) specific learning disabilities as determined by the insurer.
2741 disfigurement, or anatomical loss affecting one or more of the following body systems:
2742 (i) neurological;
2743 (ii) musculoskeletal;
2744 (iii) special sense organs;
2745 (iv) respiratory organs;
2746 (v) speech organs;
2747 (vi) cardiovascular;
2748 (vii) reproductive;
2749 (viii) digestive;
2750 (ix) genito-urinary;
2751 (x) hemic and lymphatic;
2752 (xi) skin; or
2753 (xii) endocrine.
2754 (2) The insurer may require proof of the incapacity and dependency be furnished by the
2755 person insured under the policy within 30 days of the effective date or the date the child attains
2756 the age specified in Subsection 31A-22-610.5 (2), and at any time thereafter, except that the
2757 insurer may not require proof more often than annually after the two-year period immediately
2758 following attainment of the limiting age by the [
2759 (3) Any individual or group accident and health insurance policy or health maintenance
2760 organization contract that provides coverage for a policyholder's or certificate holder's
2761 dependent shall, upon application, provide coverage for all unmarried [
2762 with a disability who have been continuously covered, with no break of more than 63 days,
2763 under any accident and health insurance since the age specified in Subsection 31A-22-610.5 (2).
2764 (4) Every accident and health insurance policy or contract that provides coverage of a
2766 Section 37. Section 31A-22-614 is amended to read:
2767 31A-22-614. Claims under accident and health policies.
2768 (1) Section 31A-21-312 applies generally to claims under accident and health policies.
2769 (2) (a) Subject to Subsection (1), an accident and health insurance policy may not
2770 contain a claim notice requirement less favorable to the insured than one which requires written
2771 notice of the claim within 20 days after the occurrence or commencement of any loss covered
2772 by the policy. The policy shall specify to whom claim notices may be given.
2773 (b) If a loss of time benefit under a policy may be paid for a period of at least two
2774 years, an insurer may require periodic notices that the insured continues to [
2775 disability, unless the insured is legally incapacitated. The insured's delay in giving that notice
2776 does not impair the insured's or beneficiary's right to any indemnity which would otherwise
2777 have accrued during the six months preceding the date on which that notice is actually given.
2778 (3) An accident and health insurance policy may not contain a time limit on proof of
2779 loss which is more restrictive to the insured than a provision requiring written proof of loss,
2780 delivered to the insurer, within the following time:
2781 (a) for a claim where periodic payments are contingent upon continuing loss, within 90
2782 days after the termination of the period for which the insurer is liable; or
2783 (b) for any other claim, within 90 days after the date of the loss.
2784 (4) (a) (i) Section 31A-26-301 applies generally to the payment of claims.
2785 (ii) Indemnity for loss of life is paid in accordance with the beneficiary designation
2786 effective at the time of payment. If no valid beneficiary designation exists, the indemnity is
2787 paid to the insured's estate. Any other accrued indemnities unpaid at the insured's death are
2788 paid to the insured's estate.
2789 (b) Reasonable facility of payment clauses, specified by the commissioner by rule or in
2790 approving the policy form, are permitted. Payment made in good faith and in accordance with
2791 those clauses discharges the insurer's obligation to pay those claims.
2792 (c) All or a portion of any indemnities provided under an accident and health policy on
2793 account of hospital, nursing, medical, or surgical services may, at the insurer's option, be paid
2794 directly to the hospital or person rendering the services.
2795 Section 38. Section 31A-22-625 is amended to read:
2796 31A-22-625. Catastrophic coverage of mental health conditions.
2797 (1) As used in this section:
2798 (a) (i) "Catastrophic mental health coverage" means coverage in a health benefit plan
2799 that does not impose a lifetime limit, annual payment limit, episodic limit, inpatient or
2800 outpatient service limit, or maximum out-of-pocket limit that places a greater financial burden
2801 on an insured for the evaluation and treatment of a mental health condition than for the
2802 evaluation and treatment of a physical health condition.
2803 (ii) "Catastrophic mental health coverage" may include a restriction on cost sharing
2804 factors, such as deductibles, copayments, or coinsurance, before reaching a maximum
2805 out-of-pocket limit.
2806 (iii) "Catastrophic mental health coverage" may include one maximum out-of-pocket
2807 limit for physical health conditions and another maximum out-of-pocket limit for mental health
2808 conditions, except that if separate out-of-pocket limits are established, the out-of-pocket limit
2809 for mental health conditions may not exceed the out-of-pocket limit for physical health
2811 (b) (i) "50/50 mental health coverage" means coverage in a health benefit plan that
2812 pays for at least 50% of covered services for the diagnosis and treatment of mental health
2814 (ii) "50/50 mental health coverage" may include a restriction on:
2815 (A) episodic limits;
2816 (B) inpatient or outpatient service limits; or
2817 (C) maximum out-of-pocket limits.
2818 (c) "Large employer" is as defined in 42 U.S.C. Sec. 300gg-91.
2819 (d) (i) "Mental health condition" means a condition or disorder involving mental illness
2820 that falls under a diagnostic category listed in the Diagnostic and Statistical Manual, as
2821 periodically revised.
2822 (ii) "Mental health condition" does not include the following when diagnosed as the
2823 primary or substantial reason or need for treatment:
2824 (A) a marital or family problem;
2825 (B) a social, occupational, religious, or other social maladjustment;
2826 (C) a conduct disorder;
2827 (D) a chronic adjustment disorder;
2828 (E) a psychosexual disorder;
2829 (F) a chronic organic brain syndrome;
2830 (G) a personality disorder;
2831 (H) a specific developmental disorder or learning disability; or
2832 (I) [
2833 (e) "Small employer" is as defined in 42 U.S.C. Sec. 300gg-91.
2834 (2) (a) At the time of purchase and renewal, an insurer shall offer to a small employer
2835 that it insures or seeks to insure a choice between catastrophic mental health coverage and
2836 50/50 mental health coverage.
2837 (b) In addition to complying with Subsection (2)(a), an insurer may offer to provide:
2838 (i) catastrophic mental health coverage, 50/50 mental health coverage, or both at levels
2839 that exceed the minimum requirements of this section; or
2840 (ii) coverage that excludes benefits for mental health conditions.
2841 (c) A small employer may, at its option, choose either catastrophic mental health
2842 coverage, 50/50 mental health coverage, or coverage offered under Subsection (2)(b),
2843 regardless of the employer's previous coverage for mental health conditions.
2844 (d) An insurer is exempt from the 30% index rating restriction in Section
2845 31A-30-106.1 and, for the first year only that catastrophic mental health coverage is chosen, the
2846 15% annual adjustment restriction in Section 31A-30-106.1 , for any small employer with 20 or
2847 less enrolled employees who chooses coverage that meets or exceeds catastrophic mental
2848 health coverage.
2849 (3) An insurer shall offer a large employer mental health and substance use disorder
2850 benefit in compliance with Section 2705 of the Public Health Service Act, 42 U.S.C. Sec.
2851 300gg-5, and federal regulations adopted pursuant to that act.
2852 (4) (a) An insurer may provide catastrophic mental health coverage to a small employer
2853 through a managed care organization or system in a manner consistent with Chapter 8, Health
2854 Maintenance Organizations and Limited Health Plans, regardless of whether the insurance
2855 policy uses a managed care organization or system for the treatment of physical health
2857 (b) (i) Notwithstanding any other provision of this title, an insurer may:
2858 (A) establish a closed panel of providers for catastrophic mental health coverage; and
2859 (B) refuse to provide a benefit to be paid for services rendered by a nonpanel provider
2861 (I) the insured is referred to a nonpanel provider with the prior authorization of the
2862 insurer; and
2863 (II) the nonpanel provider agrees to follow the insurer's protocols and treatment
2865 (ii) If an insured receives services from a nonpanel provider in the manner permitted by
2866 Subsection (4)(b)(i)(B), the insurer shall reimburse the insured for not less than 75% of the
2867 average amount paid by the insurer for comparable services of panel providers under a
2868 noncapitated arrangement who are members of the same class of health care providers.
2869 (iii) This Subsection (4)(b) may not be construed as requiring an insurer to authorize a
2870 referral to a nonpanel provider.
2871 (c) To be eligible for catastrophic mental health coverage, a diagnosis or treatment of a
2872 mental health condition must be rendered:
2873 (i) by a mental health therapist as defined in Section 58-60-102 ; or
2874 (ii) in a health care facility:
2875 (A) licensed or otherwise authorized to provide mental health services pursuant to:
2876 (I) Title 26, Chapter 21, Health Care Facility Licensing and Inspection Act; or
2877 (II) Title 62A, Chapter 2, Licensure of Programs and Facilities; and
2878 (B) that provides a program for the treatment of a mental health condition pursuant to a
2879 written plan.
2880 (5) The commissioner may prohibit an insurance policy that provides mental health
2881 coverage in a manner that is inconsistent with this section.
2882 (6) The commissioner shall:
2883 (a) adopt rules, in accordance with Title 63G, Chapter 3, Utah Administrative
2884 Rulemaking Act, as necessary to ensure compliance with this section; and
2885 (b) provide general figures on the percentage of insurance policies that include:
2886 (i) no mental health coverage;
2887 (ii) 50/50 mental health coverage;
2888 (iii) catastrophic mental health coverage; and
2889 (iv) coverage that exceeds the minimum requirements of this section.
2890 (7) This section may not be construed as discouraging or otherwise preventing an
2891 insurer from providing mental health coverage in connection with an individual insurance
2893 (8) This section shall be repealed in accordance with Section 63I-1-231 .
2894 Section 39. Section 31A-22-802 is amended to read:
2895 31A-22-802. Definitions.
2896 As used in this [
2897 (1) "Credit accident and health insurance" means insurance on a debtor to provide
2898 indemnity for payments coming due on a specific loan or other credit transaction while the
2899 debtor [
2900 (2) "Credit life insurance" means life insurance on the life of a debtor in connection
2901 with a specific loan or credit transaction.
2902 (3) "Credit transaction" means any transaction under which the payment for money
2903 loaned or for goods, services, or properties sold or leased is to be made on future dates.
2904 (4) "Creditor" means the lender of money or the vendor or lessor of goods, services, or
2905 property, for which payment is arranged through a credit transaction, or any successor to the
2906 right, title, or interest of any lender or vendor.
2907 (5) "Debtor" means a borrower of money or a purchaser, including a lessee under a
2908 lease intended as security, of goods, services, or property, for which payment is arranged
2909 through a credit transaction.
2910 (6) "Indebtedness" means the total amount payable by a debtor to a creditor in
2911 connection with a credit transaction, including principal finance charges and interest.
2912 (7) "Net indebtedness" means the total amount required to liquidate the indebtedness,
2913 exclusive of any unearned interest, any insurance on the monthly outstanding balance coverage,
2914 or any finance charge.
2915 (8) "Net written premiums" means gross written premiums minus refunds on
2917 Section 40. Section 31A-23a-114 is amended to read:
2918 31A-23a-114. Temporary individual or agency license -- Trustee for terminated
2919 licensee's business.
2920 (1) (a) The commissioner may issue a temporary individual or agency license:
2921 (i) to a person listed in Subsection (1)(b):
2922 (A) if the commissioner considers that the temporary license is necessary:
2923 (I) for the servicing of an insurance business in the public interest; and
2924 (II) to provide continued service to the insureds who procured insurance in a
2925 circumstance described in Subsection (1)(b);
2926 (B) for a period not to exceed 180 days; and
2927 (C) without requiring an examination; or
2928 (ii) in any other circumstance:
2929 (A) if the commissioner considers the public interest will best be served by issuing the
2930 temporary license;
2931 (B) for a period not to exceed 180 days; and
2932 (C) without requiring an examination.
2933 (b) The commissioner may issue a temporary individual or agency license in
2934 accordance with Subsection (1)(a) to:
2935 (i) the surviving spouse or court-appointed personal representative of a licensee who
2936 dies or [
2937 allow adequate time for:
2938 (A) the sale of the insurance business owned by the licensee;
2939 (B) recovery or return of the licensee to the business; or
2940 (C) the training and licensing of new personnel to operate the licensee's business;
2941 (ii) to a member or employee of a business entity licensed as an agency upon the death
2942 or disability of an individual designated in:
2943 (A) the business entity application; or
2944 (B) the license; or
2945 (iii) the designee of a licensed agency entering active service in the armed forces of the
2946 United States of America.
2947 (2) If a person's license is terminated under Section 31A-23a-111 or 31A-23a-113 , the
2948 commissioner may appoint a trustee to provide in the public interest continuing service to the
2949 insureds who procured insurance through the person whose license is terminated:
2950 (a) at the request of the person whose license is terminated; or
2951 (b) upon the commissioner's own initiative.
2952 (3) This section does not apply if the deceased [
2953 disability does not or did not own any ownership interest in the accounts and associated
2954 expiration lists that were previously serviced by the licensee.
2955 (4) (a) A person issued a temporary license under Subsection (1) receives the license
2956 and shall perform the duties under the license subject to the commissioner's authority to:
2957 (i) require a temporary licensee to have a suitable sponsor who:
2958 (A) is a licensee; and
2959 (B) assumes responsibility for all acts of the temporary licensee; or
2960 (ii) impose other requirements that are:
2961 (A) designed to protect the insureds and the public; and
2962 (B) similar to the condition described in Subsection (4)(a)(i).
2963 (b) A trustee appointed under Subsection (2) shall be appointed and perform the
2964 trustee's duties subject to the terms and conditions described in Subsections (4)(b)(i) through
2966 (i) (A) A trustee appointed under Subsection (2) shall be licensed under this chapter to
2967 perform the services required by the trustor's clients.
2968 (B) When possible, the commissioner shall appoint a trustee who is no longer actively
2969 engaged on the trustee's own behalf in business as a licensee.
2970 (C) The commissioner shall only select a person to act as trustee who is trustworthy
2971 and competent to perform the necessary services.
2972 (ii) (A) If the deceased[
2973 person for whom the trustee is acting was a producer, the insurers through which the former
2974 producer's business was written shall cooperate with the trustee in allowing the trustee to
2975 service the policies written through the insurer.
2976 (B) The trustee shall abide by the terms of the agency agreement between the former
2977 producer and the issuing insurer, except that terms in those agreements terminating the
2978 agreement upon the death, disability, or license termination of the former producer do not bar
2979 the trustee from continuing to act under the agreement.
2980 (iii) (A) The commissioner shall set the trustee's compensation, which:
2981 (I) may be stated in terms of a percentage of commissions; and
2982 (II) shall be equitable.
2983 (B) The compensation shall be paid exclusively from:
2984 (I) the commissions generated by the former licensee's insurance accounts serviced by
2985 the trustee; and
2986 (II) other funds the former licensee or the licensee's successor in interest agree to pay.
2987 (C) The trustee has no special priority to commissions over the former licensee's
2989 (iv) (A) The commissioner or the state may not be held liable for errors or omissions
2991 (I) the former licensee; or
2992 (II) the trustee.
2993 (B) The trustee may not be held liable for errors and omissions that were caused in any
2994 material way by the negligence of the former licensee.
2995 (C) The trustee may be held liable for errors and omissions which arise solely from the
2996 trustee's negligence.
2997 (D) The trustee's compensation level shall be sufficient to allow the trustee to purchase
2998 errors and omissions coverage, if that coverage is not provided the trustee by:
2999 (I) the former licensee; or
3000 (II) the licensee's successor in interest.
3001 (v) (A) It is a breach of the trustee's fiduciary duty to capture the accounts of trustor's
3002 clients, either directly or indirectly.
3003 (B) The trustee may not purchase the accounts or expiration lists of the former
3004 licensee, unless the commissioner expressly ratifies the terms of the sale.
3005 (C) The commissioner may adopt rules that:
3006 (I) further define the trustee's fiduciary duties; and
3007 (II) explain how the trustee is to carry out the trustee's responsibilities.
3008 (vi) (A) The trust may be terminated by:
3009 (I) the commissioner; or
3010 (II) the person that requested the trust be established.
3011 (B) The trust is terminated by written notice being delivered to:
3012 (I) the trustee; and
3013 (II) the commissioner.
3014 (5) (a) The commissioner may by order:
3015 (i) limit the authority of any temporary licensee or trustee in any way the commissioner
3016 considers necessary to protect insureds and the public; and
3017 (ii) revoke a temporary license or trustee's appointment if the commissioner finds that
3018 the insureds or the public are endangered.
3019 (b) A temporary license or trustee's appointment may not continue after the owner or
3020 personal representative disposes of the business.
3021 Section 41. Section 31A-26-215 is amended to read:
3022 31A-26-215. Temporary license -- Appointment of trustee for terminated
3023 licensee's business.
3024 (1) (a) The commissioner may issue a temporary insurance adjuster license:
3025 (i) to a person listed in Subsection (1)(b):
3026 (A) if the commissioner considers that the temporary license is necessary:
3027 (I) for the servicing of an insurance business in the public interest; and
3028 (II) to provide continued service to the insureds who are being serviced in a
3029 circumstance described in Subsection (1)(b);
3030 (B) for a period not to exceed 180 days; and
3031 (C) without requiring an examination; or
3032 (ii) in any other circumstance:
3033 (A) if the commissioner considers the public interest will best be served by issuing the
3034 temporary license;
3035 (B) for a period not to exceed 180 days; and
3036 (C) without requiring an examination.
3037 (b) The commissioner may issue a temporary insurance producer license in accordance
3038 with Subsection (1)(a) to:
3039 (i) the surviving spouse or court-appointed personal representative of a licensed
3040 insurance adjuster who dies or [
3041 physical disability to allow adequate time for:
3042 (A) the sale of the insurance business owned by the adjuster;
3043 (B) recovery or return of the adjuster to the business; or
3044 (C) the training and licensing of new personnel to operate the adjuster's business;
3045 (ii) to a member or employee of a business entity licensed as an insurance adjuster
3046 upon the death or disability of an individual designated in:
3047 (A) the business entity application; or
3048 (B) the license; or
3049 (iii) the designee of a licensed insurance adjuster entering active service in the armed
3050 forces of the United States of America.
3051 (2) If a person's license is terminated under Section 31A-26-213 , the commissioner
3052 may appoint a trustee to provide in the public interest continuing service to the insureds who
3053 procured insurance through the person whose license is terminated:
3054 (a) at the request of the person whose license is terminated; or
3055 (b) upon the commissioner's own initiative.
3056 (3) This section does not apply if the deceased or disabled adjuster has not owned or
3057 does not own an ownership interest in the accounts and associated expiration lists that were
3058 previously serviced by the adjuster.