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First Substitute H.B. 230

Representative Paul Ray proposes the following substitute bill:


             1     
DISABILITY AMENDMENTS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Paul Ray

             5     
Senate Sponsor: Lyle W. Hillyard

             6     
             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             9          To the extent possible, this bill replaces outdated terms relating to persons with a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
             17      disability";
             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


             26      illness";
             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:
             31          None
             32      Other Special Clauses:
             33          This bill provides an effective date.
             34      Utah Code Sections Affected:
             35      AMENDS:
             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
             235     
             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, [mentally ill,] persons
             249      with a mental illness, the elderly, single-parent families, substance abusers, and persons with a
             250      disability.
             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
             253      term.
             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[, or who are mentally ill, disabled, or];
             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 [are mentally ill]
             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.
             366          [(13)] (11) "Mortgage" means a mortgage, deed of trust, or other instrument securing a


             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
             371      subordinate.
             372          [(11)] (12) "Mortgage lender" means any bank, trust company, savings and loan
             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.
             376          [(12)] (13) "Mortgage loan" means a loan secured by a mortgage, which loan may bear
             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[, or disabled.]; or
             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
             392      agency.
             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
             403      bureau:
             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 [an elderly or disabled persons]
             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
             428      disposal.


             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


             460      [the mentally retarded] people with an intellectual disability, residential health care facilities,
             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 [becoming physically or mentally disabled] acquiring a physical
             531      or mental disability as certified by a physician; or
             532          (C) is disqualified by an election officer for improper filing or nominating procedures;
             533      or
             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
             536      candidate:
             537          (i) dies;
             538          (ii) resigns because of [becoming physically or mentally disabled] acquiring a physical
             539      or mental disability as certified by a physician;
             540          (iii) is disqualified by an election officer for improper filing or nominating procedures;
             541      or
             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, [disabled,] unable to read or write,
             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," ["disabled voter's ballot"] "ballot of a person with a disability," and
             574      "official Utah military ballot" [means] mean the same ballots that will be submitted to and used
             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
             606      them.
             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
             617      election.
             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
             634      application.
             635          (3) A military voter or overseas citizen voter who [is physically disabled and] has a
             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 [is physically disabled so as to be] has a
             655      disability that renders the voter unable to see or write, [he] the voter may request assistance
             656      from two persons, each of whom shall be qualified to certify to the registration and voting
             657      certificate.
             658          (ii) The military or overseas citizen voter shall tell those persons how [he] the citizen
             659      wishes [his] the citizen's ballot marked.
             660          (iii) Those persons shall mark the ballot as directed by the military or overseas citizen
             661      voter in [his] the voter's presence.
             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
             666      [his] the person's own name.
             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
             685          Voter______________________________________________________________
             686          Date_______________________________________________________________
             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 [disabled] ballot of a military or overseas citizen [voter's
             702      ballot] with a disability, compare the signature of the military or overseas citizen voter on the
             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;


             708      and
             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
             716      blank.
             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 [his] the military or overseas citizen voter's name upon the registration books,
             721      constitute [his] the military or overseas citizen voter's registration record.
             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
             740      blank.
             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
             758      contain:
             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
             771      members;
             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, [become disabled] acquire a
             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
             793      specifically:
             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
             816      person.
             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, [which renders the person so severely disabled
             822      as to be] that results in the person having a disability that renders the person physically unable
             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
             845      license.
             846          (1) The Division of Wildlife Resources shall permit a person to fish without a license
             847      if:
             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 [the mentally retarded] people with an intellectual
             855      disability;
             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, [paraplegic, or otherwise permanently disabled] has
             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
             882      Resources.
             883          (2) A resident who [is a mentally retarded person] has an intellectual disability and is
             884      not eligible under Section 23-19-14 to fish without a license may receive a free license to fish
             885      upon furnishing verification [of mental retardation, as defined in Section 62A-5-101 ,] from a
             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 [he] the resident qualifies for assistance under any low income public assistance
             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 [disabled] veteran with a disability may receive
             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. [Provided, however, that an]
             908          (2) Notwithstanding Subsection (1), an individual validly licensed to hunt [who is a
             909      paraplegic, or otherwise permanently disabled so as to be permanently confined to a wheelchair
             910      or the use of crutches,] may be authorized to hunt from a vehicle under terms and conditions
             911      specified by the Wildlife Board[.] if the individual has:
             912          (a) paraplegia; or
             913          (b) a disability that permanently confines the individual to a wheelchair or the use of
             914      crutches.
             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'
             933      stipulation.
             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
             938      forfeiture.
             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 [or disabled] dependent adult;
             967          (B) a dependent child [or adult;] with a disability; or
             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
             1016      chapter.
             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, [crippled children's services]
             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
             1030      [his] the person's home environment or a temporary placement facility for any reason, and
             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 [his] the person's home environment; and [is: (i) physically or
             1034      mentally disabled;]
             1035          (ii) (A) has a physical or mental disability;
             1036          [(ii)] (B) is missing under circumstances that indicate that [they are] the person is
             1037      endangered, missing involuntarily, or a victim of a catastrophe; or
             1038          [(iii)] (C) is a missing child.
             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
             1048      division.


             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 [his] that person's name, address, telephone number, and
             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 [him] the requester.
             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 [his] personnel of the state or local
             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
             1065      was:
             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 [the mentally ill,] persons with a
             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) ["Crippled children's services"] "Services for children with a disability" means:
             1102          (a) the early location of [crippled] children with a disability, provided that any program
             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 [such] children described in Subsection (2)(a) of preventive,
             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 [such] those children or toward the restoration of the children to
             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
             1118      disability.
             1119          The department shall provide for maternal and child health services and [crippled
             1120      children's] services for children with a disability to individuals who need [such] these services
             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 [mental retardation] an intellectual
             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
             1141      infants.


             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
             1198      services;
             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
             1219      families;
             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 [disabled" shall be defined by administrative rule] has a disability"
             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 [disabled]
             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
             1308      shall:
             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 [disabled] have a disability.
             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
             1342      market.
             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
             1351      certification.
             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 [facilities for the mentally retarded] facility for people with an
             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 [he] the recipient was 55 years of age or older if,
             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 [permanently and totally disabled] has a permanent and total
             1380      disability.
             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 --
             1399      Meetings.
             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
             1410      hospital;
             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 [mental retardation] intellectual disabilities not
             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
             1431      replaced.
             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 [or disabled] person or a
             1444      person with a disability in the person's home [of the elderly or disabled person].
             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[; however, the identifying
             1461      information required for a child between the age of 12 and 17 does not include fingerprints].
             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
             1464      shall:
             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
             1473      (2)(a)(ii).
             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
             1477      crime.
             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
             1491      individual;
             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 [disabled or elder adults]
             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 [disabled or elder adults] an elderly person or an adult
             1496      with a disability, has a substantiated finding of abuse, neglect, or exploitation of [a disabled or
             1497      elder adult] an elderly person or an adult with a disability by accessing in accordance with
             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
             1507      misdemeanor.
             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
             1524      information.
             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) [Prior to] Before, or within 10 days of initially hiring an individual to provide
             1534      care to an elderly [adult] person or a [disabled person] person with a disability in the home of
             1535      the [elderly adult or disabled] person, a covered employer may submit the employed
             1536      individual's information to the department.
             1537          (ii) The department shall:
             1538          (A) in accordance with Subsections (4) and (6)(c) [of this section], and Subsection
             1539      62A-3-311.1 [(4)] (2)(b), determine whether the individual has a substantiated finding of abuse,
             1540      neglect, or exploitation of a minor or an elderly [adult] person; and
             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 [adult or a disabled] person or a person with a
             1547      disability in the home of the [elderly adult or disabled] person;
             1548          (ii) must pay the reasonable fees established by the department under Subsection (8);
             1549      and
             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 [adult or disabled]
             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 --
             1572      Licensing.
             1573          (1) (a) It is the Legislature's intent that [developmentally disabled persons] a person
             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 [persons] a person with a developmental [disabilities] disability to
             1580      achieve [their] the person's maximum potential through increased independence, productivity,
             1581      and integration into the community.
             1582          (2) After July 1, 1990, the department may only license intermediate care beds for [the
             1583      mentally retarded] people with an intellectual disability in small health care facilities.
             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 [the elderly and the physically disabled] persons who are elderly and to people
             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[,] U.S.C. Sec. 1395i-4(c)(2)
             1609      (1998); and
             1610          (iii) an intermediate care facility for [the mentally retarded] people with an intellectual
             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 [the mentally retarded] people with an intellectual
             1625      disability is subject to all the provisions of this chapter, except that the department shall
             1626      establish a uniform rate for [intermediate care facilities for the mentally retarded] an
             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;
             1678      and
             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;
             1696      and
             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
             1703      persons:
             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
             1725      corporation.
             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
             1750      commissioner.
             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
             1761      effective:


             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
             1784      intermediary.
             1785          (31) "Controlling producer" means a producer who directly or indirectly controls an
             1786      insurer.
             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 [is disabled] has a disability.
             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
             1923      revenues.
             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
             1946      excluded.
             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
             2001      case.
             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
             2030      issued:
             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
             2033      in:
             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
             2037      dependent.
             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
             2087      loss.
             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


             2134      (113);
             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
             2175      certificate.
             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
             2344      corporation.
             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 [is disabled] has a disability.
             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;
             2425      or
             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
             2432      that:
             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
             2449      policy.
             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;
             2453      and
             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
             2488      Code.
             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
             2501      Commissioners.
             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
             2532      person;
             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
             2629      others.


             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
             2636      liabilities.
             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
             2641      surplus.
             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,
             2663      except:
             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
             2667      1974;
             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
             2693      corporation.
             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;
             2701      or
             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) ["Disabled dependent"] "Dependent with a disability" means a child who is and
             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).
             2735          [(c)] (b) "Mental impairment" means a mental or psychological disorder such as:
             2736          (i) [mental retardation] an intellectual disability;
             2737          (ii) organic brain syndrome;
             2738          (iii) emotional or mental illness; or
             2739          (iv) specific learning disabilities as determined by the insurer.
             2740          [(b)] (c) "Physical impairment" means a physiological disorder, condition, or
             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 [disabled] dependent with a disability.
             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 [disabled] dependents
             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
             2765      [disabled] dependent with a disability shall not terminate the policy due to an age limitation.
             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 [be disabled] have a
             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
             2810      conditions.
             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
             2813      conditions.
             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) [mental retardation] an intellectual disability.
             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
             2856      conditions.
             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
             2860      unless:
             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
             2864      guidelines.
             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
             2892      policy.
             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 [Part 8] part:
             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 [is disabled] has a disability.
             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
             2916      termination.
             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 [becomes mentally or physically disabled] acquires a mental or physical disability to
             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 [or disabled] licensee or licensee with a
             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
             2965      (vi).
             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[, disabled] person, person with a disability, or unlicensed
             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
             2988      creditors.
             2989          (iv) (A) The commissioner or the state may not be held liable for errors or omissions
             2990      of:
             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 [becomes mentally or physically disabled] acquires a mental 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.
         &nb