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Second Substitute H.B. 287

Representative Wayne A. Harper proposes the following substitute bill:


             1     
RESTRUCTURING OF THE DEPARTMENT OF COMMUNITY

             2     
AND CULTURE

             3     
2011 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Wayne A. Harper

             6     
Senate Sponsor: Stuart C. Reid

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill provides a mechanism for the restructuring of the Department of Community
             11      and Culture and distributes and transitions certain of its powers, duties, functions, and
             12      programs to other governmental departments and agencies.
             13      Highlighted Provisions:
             14          This bill:
             15          .    provides a mechanism for the restructuring of the Department of Community and
             16      Culture and the transitioning of certain powers, duties, functions, and programs;
             17          .    moves the Utah Science Center Authority, the Heber Valley Historic Railroad
             18      Authority, and the Utah State Railroad Museum Authority to Title 63H,
             19      Independent State Entities;
             20          .    moves the Bond Volume Cap Allocation program to the Governor's Office of
             21      Economic Development; and
             22          .    makes certain technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:


             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          59-12-104, as last amended by Laws of Utah 2010, Chapters 88, 209, and 364
             30          63A-5-306, as last amended by Laws of Utah 2010, Chapter 343
             31          63E-1-102, as last amended by Laws of Utah 2010, Chapters 152 and 364
             32          63I-1-209, as last amended by Laws of Utah 2010, Chapter 364
             33          63I-1-263, as last amended by Laws of Utah 2010, Chapters 319 and 358
             34          63I-4-102, as last amended by Laws of Utah 2010, Chapters 152, 353, and 364
             35          63J-7-102, as last amended by Laws of Utah 2010, Chapters 152, 364, and 370
             36          63M-1-201, as renumbered and amended by Laws of Utah 2008, Chapter 382
             37          63M-7-301, as last amended by Laws of Utah 2010, Chapter 39
             38      RENUMBERS AND AMENDS:
             39          63H-3-101, (Renumbered from 9-3-401, as enacted by Laws of Utah 1993, Chapter
             40      309)
             41          63H-3-102, (Renumbered from 9-3-402, as last amended by Laws of Utah 2001,
             42      Chapter 151)
             43          63H-3-103, (Renumbered from 9-3-403, as last amended by Laws of Utah 2010,
             44      Chapter 286)
             45          63H-3-104, (Renumbered from 9-3-404, as enacted by Laws of Utah 1993, Chapter
             46      309)
             47          63H-3-105, (Renumbered from 9-3-405, as enacted by Laws of Utah 1993, Chapter
             48      309)
             49          63H-3-106, (Renumbered from 9-3-406, as enacted by Laws of Utah 1993, Chapter
             50      309)
             51          63H-3-107, (Renumbered from 9-3-407, as last amended by Laws of Utah 2010,
             52      Chapter 378)
             53          63H-3-108, (Renumbered from 9-3-409, as last amended by Laws of Utah 2009, First
             54      Special Session, Chapter 5)
             55          63H-3-109, (Renumbered from 9-3-410, as last amended by Laws of Utah 2010,
             56      Chapter 324)


             57          63H-3-110, (Renumbered from 9-3-411, as enacted by Laws of Utah 1993, Chapter
             58      309)
             59          63H-4-101, (Renumbered from 9-3-501, as enacted by Laws of Utah 2010, Chapter
             60      364)
             61          63H-4-102, (Renumbered from 9-3-502, as enacted by Laws of Utah 2010, Chapter
             62      364)
             63          63H-4-103, (Renumbered from 9-3-503, as enacted by Laws of Utah 2010, Chapter
             64      364)
             65          63H-4-104, (Renumbered from 9-3-504, as enacted by Laws of Utah 2010, Chapter
             66      364)
             67          63H-4-105, (Renumbered from 9-3-505, as enacted by Laws of Utah 2010, Chapter
             68      364)
             69          63H-4-106, (Renumbered from 9-3-506, as enacted by Laws of Utah 2010, Chapter
             70      364)
             71          63H-4-107, (Renumbered from 9-3-507, as enacted by Laws of Utah 2010, Chapter
             72      364)
             73          63H-4-108, (Renumbered from 9-3-508, as enacted by Laws of Utah 2010, Chapter
             74      364)
             75          63H-4-109, (Renumbered from 9-3-509, as enacted by Laws of Utah 2010, Chapter
             76      364)
             77          63H-4-110, (Renumbered from 9-3-510, as enacted by Laws of Utah 2010, Chapter
             78      364)
             79          63H-4-111, (Renumbered from 9-3-511, as enacted by Laws of Utah 2010, Chapter
             80      364)
             81          63H-5-101, (Renumbered from 9-3-601, as enacted by Laws of Utah 2010, Chapter
             82      152)
             83          63H-5-102, (Renumbered from 9-3-602, as enacted by Laws of Utah 2010, Chapter
             84      152)
             85          63H-5-103, (Renumbered from 9-3-603, as enacted by Laws of Utah 2010, Chapter
             86      152)
             87          63H-5-104, (Renumbered from 9-3-604, as enacted by Laws of Utah 2010, Chapter


             88      152)
             89          63H-5-105, (Renumbered from 9-3-605, as enacted by Laws of Utah 2010, Chapter
             90      152)
             91          63H-5-106, (Renumbered from 9-3-606, as enacted by Laws of Utah 2010, Chapter
             92      152)
             93          63H-5-107, (Renumbered from 9-3-607, as enacted by Laws of Utah 2010, Chapter
             94      152)
             95          63H-5-108, (Renumbered from 9-3-608, as enacted by Laws of Utah 2010, Chapter
             96      152)
             97          63H-5-109, (Renumbered from 9-3-609, as enacted by Laws of Utah 2010, Chapter
             98      152)
             99          63H-5-110, (Renumbered from 9-3-610, as enacted by Laws of Utah 2010, Chapter
             100      152)
             101          63H-6-101, (Renumbered from 9-4-1101, as enacted by Laws of Utah 1995, Chapter
             102      260)
             103          63H-6-102, (Renumbered from 9-4-1102, as enacted by Laws of Utah 1995, Chapter
             104      260)
             105          63H-6-103, (Renumbered from 9-4-1103, as last amended by Laws of Utah 2008,
             106      Chapter 382)
             107          63H-6-104, (Renumbered from 9-4-1104, as last amended by Laws of Utah 2002,
             108      Chapter 176)
             109          63H-6-105, (Renumbered from 9-4-1105, as enacted by Laws of Utah 1995, Chapter
             110      260)
             111          63H-6-106, (Renumbered from 9-4-1106, as enacted by Laws of Utah 1995, Chapter
             112      260)
             113          63H-6-107, (Renumbered from 9-4-1107, as enacted by Laws of Utah 1995, Chapter
             114      260)
             115          63M-1-2901, (Renumbered from 9-4-501, as enacted by Laws of Utah 1992, Chapter
             116      287)
             117          63M-1-2902, (Renumbered from 9-4-502, as enacted by Laws of Utah 1992, Chapter
             118      287)


             119          63M-1-2903, (Renumbered from 9-4-503, as last amended by Laws of Utah 2010,
             120      Chapter 286)
             121          63M-1-2904, (Renumbered from 9-4-504, as last amended by Laws of Utah 1997,
             122      Chapter 192)
             123          63M-1-2905, (Renumbered from 9-4-505, as last amended by Laws of Utah 2004,
             124      Chapter 90)
             125          63M-1-2906, (Renumbered from 9-4-506, as last amended by Laws of Utah 2000,
             126      Chapter 95)
             127          63M-1-2907, (Renumbered from 9-4-507, as enacted by Laws of Utah 1992, Chapter
             128      287)
             129          63M-1-2908, (Renumbered from 9-4-508, as last amended by Laws of Utah 2005,
             130      Chapter 170)
             131          63M-1-2909, (Renumbered from 9-4-509, as last amended by Laws of Utah 2008,
             132      Chapter 382)
             133      Uncodified Material Affected:
             134      ENACTS UNCODIFIED MATERIAL
             135     
             136      Be it enacted by the Legislature of the state of Utah:
             137          Section 1. Section 59-12-104 is amended to read:
             138           59-12-104. Exemptions.
             139          The following sales and uses are exempt from the taxes imposed by this chapter:
             140          (1) sales of aviation fuel, motor fuel, and special fuel subject to a Utah state excise tax
             141      under Chapter 13, Motor and Special Fuel Tax Act;
             142          (2) sales to the state, its institutions, and its political subdivisions; however, this
             143      exemption does not apply to sales of:
             144          (a) construction materials except:
             145          (i) construction materials purchased by or on behalf of institutions of the public
             146      education system as defined in Utah Constitution Article X, Section 2, provided the
             147      construction materials are clearly identified and segregated and installed or converted to real
             148      property which is owned by institutions of the public education system; and
             149          (ii) construction materials purchased by the state, its institutions, or its political


             150      subdivisions which are installed or converted to real property by employees of the state, its
             151      institutions, or its political subdivisions; or
             152          (b) tangible personal property in connection with the construction, operation,
             153      maintenance, repair, or replacement of a project, as defined in Section 11-13-103 , or facilities
             154      providing additional project capacity, as defined in Section 11-13-103 ;
             155          (3) (a) sales of an item described in Subsection (3)(b) from a vending machine if:
             156          (i) the proceeds of each sale do not exceed $1; and
             157          (ii) the seller or operator of the vending machine reports an amount equal to 150% of
             158      the cost of the item described in Subsection (3)(b) as goods consumed; and
             159          (b) Subsection (3)(a) applies to:
             160          (i) food and food ingredients; or
             161          (ii) prepared food;
             162          (4) (a) sales of the following to a commercial airline carrier for in-flight consumption:
             163          (i) alcoholic beverages;
             164          (ii) food and food ingredients; or
             165          (iii) prepared food;
             166          (b) sales of tangible personal property or a product transferred electronically:
             167          (i) to a passenger;
             168          (ii) by a commercial airline carrier; and
             169          (iii) during a flight for in-flight consumption or in-flight use by the passenger; or
             170          (c) services related to Subsection (4)(a) or (b);
             171          (5) (a) (i) beginning on July 1, 2008, and ending on September 30, 2008, sales of parts
             172      and equipment:
             173          (A) (I) by an establishment described in NAICS Code 336411 or 336412 of the 2002
             174      North American Industry Classification System of the federal Executive Office of the
             175      President, Office of Management and Budget; and
             176          (II) for:
             177          (Aa) installation in an aircraft, including services relating to the installation of parts or
             178      equipment in the aircraft;
             179          (Bb) renovation of an aircraft; or
             180          (Cc) repair of an aircraft; or


             181          (B) for installation in an aircraft operated by a common carrier in interstate or foreign
             182      commerce; or
             183          (ii) beginning on October 1, 2008, sales of parts and equipment for installation in an
             184      aircraft operated by a common carrier in interstate or foreign commerce; and
             185          (b) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             186      a person may claim the exemption allowed by Subsection (5)(a)(i)(B) for a sale by filing for a
             187      refund:
             188          (i) if the sale is made on or after July 1, 2008, but on or before September 30, 2008;
             189          (ii) as if Subsection (5)(a)(i)(B) were in effect on the day on which the sale is made;
             190          (iii) if the person did not claim the exemption allowed by Subsection (5)(a)(i)(B) for
             191      the sale prior to filing for the refund;
             192          (iv) for sales and use taxes paid under this chapter on the sale;
             193          (v) in accordance with Section 59-1-1410 ; and
             194          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if
             195      the person files for the refund on or before September 30, 2011;
             196          (6) sales of commercials, motion picture films, prerecorded audio program tapes or
             197      records, and prerecorded video tapes by a producer, distributor, or studio to a motion picture
             198      exhibitor, distributor, or commercial television or radio broadcaster;
             199          (7) (a) subject to Subsection (7)(b), sales of cleaning or washing of tangible personal
             200      property if the cleaning or washing of the tangible personal property is not assisted cleaning or
             201      washing of tangible personal property;
             202          (b) if a seller that sells at the same business location assisted cleaning or washing of
             203      tangible personal property and cleaning or washing of tangible personal property that is not
             204      assisted cleaning or washing of tangible personal property, the exemption described in
             205      Subsection (7)(a) applies if the seller separately accounts for the sales of the assisted cleaning
             206      or washing of the tangible personal property; and
             207          (c) for purposes of Subsection (7)(b) and in accordance with Title 63G, Chapter 3,
             208      Utah Administrative Rulemaking Act, the commission may make rules:
             209          (i) governing the circumstances under which sales are at the same business location;
             210      and
             211          (ii) establishing the procedures and requirements for a seller to separately account for


             212      sales of assisted cleaning or washing of tangible personal property;
             213          (8) sales made to or by religious or charitable institutions in the conduct of their regular
             214      religious or charitable functions and activities, if the requirements of Section 59-12-104.1 are
             215      fulfilled;
             216          (9) sales of a vehicle of a type required to be registered under the motor vehicle laws of
             217      this state if the vehicle is:
             218          (a) not registered in this state; and
             219          (b) (i) not used in this state; or
             220          (ii) used in this state:
             221          (A) if the vehicle is not used to conduct business, for a time period that does not
             222      exceed the longer of:
             223          (I) 30 days in any calendar year; or
             224          (II) the time period necessary to transport the vehicle to the borders of this state; or
             225          (B) if the vehicle is used to conduct business, for the time period necessary to transport
             226      the vehicle to the borders of this state;
             227          (10) (a) amounts paid for an item described in Subsection (10)(b) if:
             228          (i) the item is intended for human use; and
             229          (ii) (A) a prescription was issued for the item; or
             230          (B) the item was purchased by a hospital or other medical facility; and
             231          (b) (i) Subsection (10)(a) applies to:
             232          (A) a drug;
             233          (B) a syringe; or
             234          (C) a stoma supply; and
             235          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             236      commission may by rule define the terms:
             237          (A) "syringe"; or
             238          (B) "stoma supply";
             239          (11) sales or use of property, materials, or services used in the construction of or
             240      incorporated in pollution control facilities allowed by Sections 19-2-123 through 19-2-127 ;
             241          (12) (a) sales of an item described in Subsection (12)(c) served by:
             242          (i) the following if the item described in Subsection (12)(c) is not available to the


             243      general public:
             244          (A) a church; or
             245          (B) a charitable institution;
             246          (ii) an institution of higher education if:
             247          (A) the item described in Subsection (12)(c) is not available to the general public; or
             248          (B) the item described in Subsection (12)(c) is prepaid as part of a student meal plan
             249      offered by the institution of higher education; or
             250          (b) sales of an item described in Subsection (12)(c) provided for a patient by:
             251          (i) a medical facility; or
             252          (ii) a nursing facility; and
             253          (c) Subsections (12)(a) and (b) apply to:
             254          (i) food and food ingredients;
             255          (ii) prepared food; or
             256          (iii) alcoholic beverages;
             257          (13) (a) except as provided in Subsection (13)(b), the sale of tangible personal property
             258      or a product transferred electronically by a person:
             259          (i) regardless of the number of transactions involving the sale of that tangible personal
             260      property or product transferred electronically by that person; and
             261          (ii) not regularly engaged in the business of selling that type of tangible personal
             262      property or product transferred electronically;
             263          (b) this Subsection (13) does not apply if:
             264          (i) the sale is one of a series of sales of a character to indicate that the person is
             265      regularly engaged in the business of selling that type of tangible personal property or product
             266      transferred electronically;
             267          (ii) the person holds that person out as regularly engaged in the business of selling that
             268      type of tangible personal property or product transferred electronically;
             269          (iii) the person sells an item of tangible personal property or product transferred
             270      electronically that the person purchased as a sale that is exempt under Subsection (25); or
             271          (iv) the sale is of a vehicle or vessel required to be titled or registered under the laws of
             272      this state in which case the tax is based upon:
             273          (A) the bill of sale or other written evidence of value of the vehicle or vessel being


             274      sold; or
             275          (B) in the absence of a bill of sale or other written evidence of value, the fair market
             276      value of the vehicle or vessel being sold at the time of the sale as determined by the
             277      commission; and
             278          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             279      commission shall make rules establishing the circumstances under which:
             280          (i) a person is regularly engaged in the business of selling a type of tangible personal
             281      property or product transferred electronically;
             282          (ii) a sale of tangible personal property or a product transferred electronically is one of
             283      a series of sales of a character to indicate that a person is regularly engaged in the business of
             284      selling that type of tangible personal property or product transferred electronically; or
             285          (iii) a person holds that person out as regularly engaged in the business of selling a type
             286      of tangible personal property or product transferred electronically;
             287          (14) (a) except as provided in Subsection (14)(b), amounts paid or charged on or after
             288      July 1, 2006, for a purchase or lease by a manufacturing facility except for a cogeneration
             289      facility, of the following:
             290          (i) machinery and equipment that:
             291          (A) are used:
             292          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             293      recycler described in Subsection 59-12-102 (54)(b):
             294          (Aa) in the manufacturing process;
             295          (Bb) to manufacture an item sold as tangible personal property; and
             296          (Cc) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             297      (14)(a)(i)(A)(I) in the state; or
             298          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             299      59-12-102 (54)(b):
             300          (Aa) to process an item sold as tangible personal property; and
             301          (Bb) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             302      (14)(a)(i)(A)(II) in the state; and
             303          (B) have an economic life of three or more years; and
             304          (ii) normal operating repair or replacement parts that:


             305          (A) have an economic life of three or more years; and
             306          (B) are used:
             307          (I) for a manufacturing facility except for a manufacturing facility that is a scrap
             308      recycler described in Subsection 59-12-102 (54)(b):
             309          (Aa) in the manufacturing process; and
             310          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(I) in the
             311      state; or
             312          (II) for a manufacturing facility that is a scrap recycler described in Subsection
             313      59-12-102 (54)(b):
             314          (Aa) to process an item sold as tangible personal property; and
             315          (Bb) in a manufacturing facility described in this Subsection (14)(a)(ii)(B)(II) in the
             316      state;
             317          (b) amounts paid or charged on or after July 1, 2005, for a purchase or lease by a
             318      manufacturing facility that is a cogeneration facility placed in service on or after May 1, 2006,
             319      of the following:
             320          (i) machinery and equipment that:
             321          (A) are used:
             322          (I) in the manufacturing process;
             323          (II) to manufacture an item sold as tangible personal property; and
             324          (III) beginning on July 1, 2009, in a manufacturing facility described in this Subsection
             325      (14)(b) in the state; and
             326          (B) have an economic life of three or more years; and
             327          (ii) normal operating repair or replacement parts that:
             328          (A) are used:
             329          (I) in the manufacturing process; and
             330          (II) in a manufacturing facility described in this Subsection (14)(b) in the state; and
             331          (B) have an economic life of three or more years;
             332          (c) amounts paid or charged for a purchase or lease made on or after January 1, 2008,
             333      by an establishment described in NAICS Subsector 212, Mining (except Oil and Gas), or
             334      NAICS Code 213113, Support Activities for Coal Mining, 213114, Support Activities for
             335      Metal Mining, or 213115, Support Activities for Nonmetallic Minerals (except Fuels) Mining,


             336      of the 2002 North American Industry Classification System of the federal Executive Office of
             337      the President, Office of Management and Budget, of the following:
             338          (i) machinery and equipment that:
             339          (A) are used:
             340          (I) (Aa) in the production process, other than the production of real property; or
             341          (Bb) in research and development; and
             342          (II) beginning on July 1, 2009, in an establishment described in this Subsection (14)(c)
             343      in the state; and
             344          (B) have an economic life of three or more years; and
             345          (ii) normal operating repair or replacement parts that:
             346          (A) have an economic life of three or more years; and
             347          (B) are used in:
             348          (I) (Aa) the production process, except for the production of real property; and
             349          (Bb) an establishment described in this Subsection (14)(c) in the state; or
             350          (II) (Aa) research and development; and
             351          (Bb) in an establishment described in this Subsection (14)(c) in the state;
             352          (d) (i) amounts paid or charged for a purchase or lease made on or after July 1, 2010,
             353      but on or before June 30, 2014, by an establishment described in NAICS Code 518112, Web
             354      Search Portals, of the 2002 North American Industry Classification System of the federal
             355      Executive Office of the President, Office of Management and Budget, of the following:
             356          (A) machinery and equipment that:
             357          (I) are used in the operation of the web search portal;
             358          (II) have an economic life of three or more years; and
             359          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             360      in the state; and
             361          (B) normal operating repair or replacement parts that:
             362          (I) are used in the operation of the web search portal;
             363          (II) have an economic life of three or more years; and
             364          (III) are used in a new or expanding establishment described in this Subsection (14)(d)
             365      in the state; or
             366          (ii) amounts paid or charged for a purchase or lease made on or after July 1, 2014, by


             367      an establishment described in NAICS Code 518112, Web Search Portals, of the 2002 North
             368      American Industry Classification System of the federal Executive Office of the President,
             369      Office of Management and Budget, of the following:
             370          (A) machinery and equipment that:
             371          (I) are used in the operation of the web search portal; and
             372          (II) have an economic life of three or more years; and
             373          (B) normal operating repair or replacement parts that:
             374          (I) are used in the operation of the web search portal; and
             375          (II) have an economic life of three or more years;
             376          (e) for purposes of this Subsection (14) and in accordance with Title 63G, Chapter 3,
             377      Utah Administrative Rulemaking Act, the commission:
             378          (i) shall by rule define the term "establishment"; and
             379          (ii) may by rule define what constitutes:
             380          (A) processing an item sold as tangible personal property;
             381          (B) the production process, except for the production of real property;
             382          (C) research and development; or
             383          (D) a new or expanding establishment described in Subsection (14)(d) in the state; and
             384          (f) on or before October 1, 2011, and every five years after October 1, 2011, the
             385      commission shall:
             386          (i) review the exemptions described in this Subsection (14) and make
             387      recommendations to the Revenue and Taxation Interim Committee concerning whether the
             388      exemptions should be continued, modified, or repealed; and
             389          (ii) include in its report:
             390          (A) an estimate of the cost of the exemptions;
             391          (B) the purpose and effectiveness of the exemptions; and
             392          (C) the benefits of the exemptions to the state;
             393          (15) (a) sales of the following if the requirements of Subsection (15)(b) are met:
             394          (i) tooling;
             395          (ii) special tooling;
             396          (iii) support equipment;
             397          (iv) special test equipment; or


             398          (v) parts used in the repairs or renovations of tooling or equipment described in
             399      Subsections (15)(a)(i) through (iv); and
             400          (b) sales of tooling, equipment, or parts described in Subsection (15)(a) are exempt if:
             401          (i) the tooling, equipment, or parts are used or consumed exclusively in the
             402      performance of any aerospace or electronics industry contract with the United States
             403      government or any subcontract under that contract; and
             404          (ii) under the terms of the contract or subcontract described in Subsection (15)(b)(i),
             405      title to the tooling, equipment, or parts is vested in the United States government as evidenced
             406      by:
             407          (A) a government identification tag placed on the tooling, equipment, or parts; or
             408          (B) listing on a government-approved property record if placing a government
             409      identification tag on the tooling, equipment, or parts is impractical;
             410          (16) sales of newspapers or newspaper subscriptions;
             411          (17) (a) except as provided in Subsection (17)(b), tangible personal property or a
             412      product transferred electronically traded in as full or part payment of the purchase price, except
             413      that for purposes of calculating sales or use tax upon vehicles not sold by a vehicle dealer,
             414      trade-ins are limited to other vehicles only, and the tax is based upon:
             415          (i) the bill of sale or other written evidence of value of the vehicle being sold and the
             416      vehicle being traded in; or
             417          (ii) in the absence of a bill of sale or other written evidence of value, the then existing
             418      fair market value of the vehicle being sold and the vehicle being traded in, as determined by the
             419      commission; and
             420          (b) notwithstanding Subsection (17)(a), Subsection (17)(a) does not apply to the
             421      following items of tangible personal property or products transferred electronically traded in as
             422      full or part payment of the purchase price:
             423          (i) money;
             424          (ii) electricity;
             425          (iii) water;
             426          (iv) gas; or
             427          (v) steam;
             428          (18) (a) (i) except as provided in Subsection (18)(b), sales of tangible personal property


             429      or a product transferred electronically used or consumed primarily and directly in farming
             430      operations, regardless of whether the tangible personal property or product transferred
             431      electronically:
             432          (A) becomes part of real estate; or
             433          (B) is installed by a:
             434          (I) farmer;
             435          (II) contractor; or
             436          (III) subcontractor; or
             437          (ii) sales of parts used in the repairs or renovations of tangible personal property or a
             438      product transferred electronically if the tangible personal property or product transferred
             439      electronically is exempt under Subsection (18)(a)(i); and
             440          (b) notwithstanding Subsection (18)(a), amounts paid or charged for the following are
             441      subject to the taxes imposed by this chapter:
             442          (i) (A) subject to Subsection (18)(b)(i)(B), the following if used in a manner that is
             443      incidental to farming:
             444          (I) machinery;
             445          (II) equipment;
             446          (III) materials; or
             447          (IV) supplies; and
             448          (B) tangible personal property that is considered to be used in a manner that is
             449      incidental to farming includes:
             450          (I) hand tools; or
             451          (II) maintenance and janitorial equipment and supplies;
             452          (ii) (A) subject to Subsection (18)(b)(ii)(B), tangible personal property or a product
             453      transferred electronically if the tangible personal property or product transferred electronically
             454      is used in an activity other than farming; and
             455          (B) tangible personal property or a product transferred electronically that is considered
             456      to be used in an activity other than farming includes:
             457          (I) office equipment and supplies; or
             458          (II) equipment and supplies used in:
             459          (Aa) the sale or distribution of farm products;


             460          (Bb) research; or
             461          (Cc) transportation; or
             462          (iii) a vehicle required to be registered by the laws of this state during the period
             463      ending two years after the date of the vehicle's purchase;
             464          (19) sales of hay;
             465          (20) exclusive sale during the harvest season of seasonal crops, seedling plants, or
             466      garden, farm, or other agricultural produce if the seasonal crops are, seedling plants are, or
             467      garden, farm, or other agricultural produce is sold by:
             468          (a) the producer of the seasonal crops, seedling plants, or garden, farm, or other
             469      agricultural produce;
             470          (b) an employee of the producer described in Subsection (20)(a); or
             471          (c) a member of the immediate family of the producer described in Subsection (20)(a);
             472          (21) purchases made using a coupon as defined in 7 U.S.C. Sec. 2012 that is issued
             473      under the Food Stamp Program, 7 U.S.C. Sec. 2011 et seq.;
             474          (22) sales of nonreturnable containers, nonreturnable labels, nonreturnable bags,
             475      nonreturnable shipping cases, and nonreturnable casings to a manufacturer, processor,
             476      wholesaler, or retailer for use in packaging tangible personal property to be sold by that
             477      manufacturer, processor, wholesaler, or retailer;
             478          (23) a product stored in the state for resale;
             479          (24) (a) purchases of a product if:
             480          (i) the product is:
             481          (A) purchased outside of this state;
             482          (B) brought into this state:
             483          (I) at any time after the purchase described in Subsection (24)(a)(i)(A); and
             484          (II) by a nonresident person who is not living or working in this state at the time of the
             485      purchase;
             486          (C) used for the personal use or enjoyment of the nonresident person described in
             487      Subsection (24)(a)(i)(B)(II) while that nonresident person is within the state; and
             488          (D) not used in conducting business in this state; and
             489          (ii) for:
             490          (A) a product other than a boat described in Subsection (24)(a)(ii)(B), the first use of


             491      the product for a purpose for which the product is designed occurs outside of this state;
             492          (B) a boat, the boat is registered outside of this state; or
             493          (C) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             494      outside of this state;
             495          (b) the exemption provided for in Subsection (24)(a) does not apply to:
             496          (i) a lease or rental of a product; or
             497          (ii) a sale of a vehicle exempt under Subsection (33); and
             498          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             499      purposes of Subsection (24)(a), the commission may by rule define what constitutes the
             500      following:
             501          (i) conducting business in this state if that phrase has the same meaning in this
             502      Subsection (24) as in Subsection (63);
             503          (ii) the first use of a product if that phrase has the same meaning in this Subsection (24)
             504      as in Subsection (63); or
             505          (iii) a purpose for which a product is designed if that phrase has the same meaning in
             506      this Subsection (24) as in Subsection (63);
             507          (25) a product purchased for resale in this state, in the regular course of business, either
             508      in its original form or as an ingredient or component part of a manufactured or compounded
             509      product;
             510          (26) a product upon which a sales or use tax was paid to some other state, or one of its
             511      subdivisions, except that the state shall be paid any difference between the tax paid and the tax
             512      imposed by this part and Part 2, Local Sales and Use Tax Act, and no adjustment is allowed if
             513      the tax paid was greater than the tax imposed by this part and Part 2, Local Sales and Use Tax
             514      Act;
             515          (27) any sale of a service described in Subsections 59-12-103 (1)(b), (c), and (d) to a
             516      person for use in compounding a service taxable under the subsections;
             517          (28) purchases made in accordance with the special supplemental nutrition program for
             518      women, infants, and children established in 42 U.S.C. Sec. 1786;
             519          (29) beginning on July 1, 1999, through June 30, 2014, sales or leases of rolls, rollers,
             520      refractory brick, electric motors, or other replacement parts used in the furnaces, mills, or ovens
             521      of a steel mill described in SIC Code 3312 of the 1987 Standard Industrial Classification


             522      Manual of the federal Executive Office of the President, Office of Management and Budget;
             523          (30) sales of a boat of a type required to be registered under Title 73, Chapter 18, State
             524      Boating Act, a boat trailer, or an outboard motor if the boat, boat trailer, or outboard motor is:
             525          (a) not registered in this state; and
             526          (b) (i) not used in this state; or
             527          (ii) used in this state:
             528          (A) if the boat, boat trailer, or outboard motor is not used to conduct business, for a
             529      time period that does not exceed the longer of:
             530          (I) 30 days in any calendar year; or
             531          (II) the time period necessary to transport the boat, boat trailer, or outboard motor to
             532      the borders of this state; or
             533          (B) if the boat, boat trailer, or outboard motor is used to conduct business, for the time
             534      period necessary to transport the boat, boat trailer, or outboard motor to the borders of this
             535      state;
             536          (31) sales of aircraft manufactured in Utah;
             537          (32) amounts paid for the purchase of telecommunications service for purposes of
             538      providing telecommunications service;
             539          (33) sales, leases, or uses of the following:
             540          (a) a vehicle by an authorized carrier; or
             541          (b) tangible personal property that is installed on a vehicle:
             542          (i) sold or leased to or used by an authorized carrier; and
             543          (ii) before the vehicle is placed in service for the first time;
             544          (34) (a) 45% of the sales price of any new manufactured home; and
             545          (b) 100% of the sales price of any used manufactured home;
             546          (35) sales relating to schools and fundraising sales;
             547          (36) sales or rentals of durable medical equipment if:
             548          (a) a person presents a prescription for the durable medical equipment; and
             549          (b) the durable medical equipment is used for home use only;
             550          (37) (a) sales to a ski resort of electricity to operate a passenger ropeway as defined in
             551      Section 72-11-102 ; and
             552          (b) the commission shall by rule determine the method for calculating sales exempt


             553      under Subsection (37)(a) that are not separately metered and accounted for in utility billings;
             554          (38) sales to a ski resort of:
             555          (a) snowmaking equipment;
             556          (b) ski slope grooming equipment;
             557          (c) passenger ropeways as defined in Section 72-11-102 ; or
             558          (d) parts used in the repairs or renovations of equipment or passenger ropeways
             559      described in Subsections (38)(a) through (c);
             560          (39) sales of natural gas, electricity, heat, coal, fuel oil, or other fuels for industrial use;
             561          (40) (a) subject to Subsection (40)(b), sales or rentals of the right to use or operate for
             562      amusement, entertainment, or recreation an unassisted amusement device as defined in Section
             563      59-12-102 ;
             564          (b) if a seller that sells or rents at the same business location the right to use or operate
             565      for amusement, entertainment, or recreation one or more unassisted amusement devices and
             566      one or more assisted amusement devices, the exemption described in Subsection (40)(a)
             567      applies if the seller separately accounts for the sales or rentals of the right to use or operate for
             568      amusement, entertainment, or recreation for the assisted amusement devices; and
             569          (c) for purposes of Subsection (40)(b) and in accordance with Title 63G, Chapter 3,
             570      Utah Administrative Rulemaking Act, the commission may make rules:
             571          (i) governing the circumstances under which sales are at the same business location;
             572      and
             573          (ii) establishing the procedures and requirements for a seller to separately account for
             574      the sales or rentals of the right to use or operate for amusement, entertainment, or recreation for
             575      assisted amusement devices;
             576          (41) (a) sales of photocopies by:
             577          (i) a governmental entity; or
             578          (ii) an entity within the state system of public education, including:
             579          (A) a school; or
             580          (B) the State Board of Education; or
             581          (b) sales of publications by a governmental entity;
             582          (42) amounts paid for admission to an athletic event at an institution of higher
             583      education that is subject to the provisions of Title IX of the Education Amendments of 1972,


             584      20 U.S.C. Sec. 1681 et seq.;
             585          (43) (a) sales made to or by:
             586          (i) an area agency on aging; or
             587          (ii) a senior citizen center owned by a county, city, or town; or
             588          (b) sales made by a senior citizen center that contracts with an area agency on aging;
             589          (44) sales or leases of semiconductor fabricating, processing, research, or development
             590      materials regardless of whether the semiconductor fabricating, processing, research, or
             591      development materials:
             592          (a) actually come into contact with a semiconductor; or
             593          (b) ultimately become incorporated into real property;
             594          (45) an amount paid by or charged to a purchaser for accommodations and services
             595      described in Subsection 59-12-103 (1)(i) to the extent the amount is exempt under Section
             596      59-12-104.2 ;
             597          (46) beginning on September 1, 2001, the lease or use of a vehicle issued a temporary
             598      sports event registration certificate in accordance with Section 41-3-306 for the event period
             599      specified on the temporary sports event registration certificate;
             600          (47) sales or uses of electricity, if the sales or uses are:
             601          (a) made under a tariff adopted by the Public Service Commission of Utah only for
             602      purchase of electricity produced from a new wind, geothermal, biomass, or solar power energy
             603      source, as designated in the tariff by the Public Service Commission of Utah; and
             604          (b) for an amount of electricity that is:
             605          (i) unrelated to the amount of electricity used by the person purchasing the electricity
             606      under the tariff described in Subsection (47)(a); and
             607          (ii) equivalent to the number of kilowatthours specified in the tariff described in
             608      Subsection (47)(a) that may be purchased under the tariff described in Subsection (47)(a);
             609          (48) sales or rentals of mobility enhancing equipment if a person presents a
             610      prescription for the mobility enhancing equipment;
             611          (49) sales of water in a:
             612          (a) pipe;
             613          (b) conduit;
             614          (c) ditch; or


             615          (d) reservoir;
             616          (50) sales of currency or coinage that constitute legal tender of the United States or of a
             617      foreign nation;
             618          (51) (a) sales of an item described in Subsection (51)(b) if the item:
             619          (i) does not constitute legal tender of any nation; and
             620          (ii) has a gold, silver, or platinum content of 80% or more; and
             621          (b) Subsection (51)(a) applies to a gold, silver, or platinum:
             622          (i) ingot;
             623          (ii) bar;
             624          (iii) medallion; or
             625          (iv) decorative coin;
             626          (52) amounts paid on a sale-leaseback transaction;
             627          (53) sales of a prosthetic device:
             628          (a) for use on or in a human; and
             629          (b) (i) for which a prescription is required; or
             630          (ii) if the prosthetic device is purchased by a hospital or other medical facility;
             631          (54) (a) except as provided in Subsection (54)(b), purchases, leases, or rentals of
             632      machinery or equipment by an establishment described in Subsection (54)(c) if the machinery
             633      or equipment is primarily used in the production or postproduction of the following media for
             634      commercial distribution:
             635          (i) a motion picture;
             636          (ii) a television program;
             637          (iii) a movie made for television;
             638          (iv) a music video;
             639          (v) a commercial;
             640          (vi) a documentary; or
             641          (vii) a medium similar to Subsections (54)(a)(i) through (vi) as determined by the
             642      commission by administrative rule made in accordance with Subsection (54)(d); or
             643          (b) notwithstanding Subsection (54)(a), purchases, leases, or rentals of machinery or
             644      equipment by an establishment described in Subsection (54)(c) that is used for the production
             645      or postproduction of the following are subject to the taxes imposed by this chapter:


             646          (i) a live musical performance;
             647          (ii) a live news program; or
             648          (iii) a live sporting event;
             649          (c) the following establishments listed in the 1997 North American Industry
             650      Classification System of the federal Executive Office of the President, Office of Management
             651      and Budget, apply to Subsections (54)(a) and (b):
             652          (i) NAICS Code 512110; or
             653          (ii) NAICS Code 51219; and
             654          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             655      commission may by rule:
             656          (i) prescribe what constitutes a medium similar to Subsections (54)(a)(i) through (vi);
             657      or
             658          (ii) define:
             659          (A) "commercial distribution";
             660          (B) "live musical performance";
             661          (C) "live news program"; or
             662          (D) "live sporting event";
             663          (55) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             664      or before June 30, 2019, of machinery or equipment that:
             665          (i) is leased or purchased for or by a facility that:
             666          (A) is a renewable energy production facility;
             667          (B) is located in the state; and
             668          (C) (I) becomes operational on or after July 1, 2004; or
             669          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             670      2004 as a result of the use of the machinery or equipment;
             671          (ii) has an economic life of five or more years; and
             672          (iii) is used to make the facility or the increase in capacity of the facility described in
             673      Subsection (55)(a)(i) operational up to the point of interconnection with an existing
             674      transmission grid including:
             675          (A) a wind turbine;
             676          (B) generating equipment;


             677          (C) a control and monitoring system;
             678          (D) a power line;
             679          (E) substation equipment;
             680          (F) lighting;
             681          (G) fencing;
             682          (H) pipes; or
             683          (I) other equipment used for locating a power line or pole; and
             684          (b) this Subsection (55) does not apply to:
             685          (i) machinery or equipment used in construction of:
             686          (A) a new renewable energy production facility; or
             687          (B) the increase in the capacity of a renewable energy production facility;
             688          (ii) contracted services required for construction and routine maintenance activities;
             689      and
             690          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             691      of the facility described in Subsection (55)(a)(i)(C)(II), machinery or equipment used or
             692      acquired after:
             693          (A) the renewable energy production facility described in Subsection (55)(a)(i) is
             694      operational as described in Subsection (55)(a)(iii); or
             695          (B) the increased capacity described in Subsection (55)(a)(i) is operational as described
             696      in Subsection (55)(a)(iii);
             697          (56) (a) leases of seven or more years or purchases made on or after July 1, 2004 but on
             698      or before June 30, 2019, of machinery or equipment that:
             699          (i) is leased or purchased for or by a facility that:
             700          (A) is a waste energy production facility;
             701          (B) is located in the state; and
             702          (C) (I) becomes operational on or after July 1, 2004; or
             703          (II) has its generation capacity increased by one or more megawatts on or after July 1,
             704      2004 as a result of the use of the machinery or equipment;
             705          (ii) has an economic life of five or more years; and
             706          (iii) is used to make the facility or the increase in capacity of the facility described in
             707      Subsection (56)(a)(i) operational up to the point of interconnection with an existing


             708      transmission grid including:
             709          (A) generating equipment;
             710          (B) a control and monitoring system;
             711          (C) a power line;
             712          (D) substation equipment;
             713          (E) lighting;
             714          (F) fencing;
             715          (G) pipes; or
             716          (H) other equipment used for locating a power line or pole; and
             717          (b) this Subsection (56) does not apply to:
             718          (i) machinery or equipment used in construction of:
             719          (A) a new waste energy facility; or
             720          (B) the increase in the capacity of a waste energy facility;
             721          (ii) contracted services required for construction and routine maintenance activities;
             722      and
             723          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             724      described in Subsection (56)(a)(i)(C)(II), machinery or equipment used or acquired after:
             725          (A) the waste energy facility described in Subsection (56)(a)(i) is operational as
             726      described in Subsection (56)(a)(iii); or
             727          (B) the increased capacity described in Subsection (56)(a)(i) is operational as described
             728      in Subsection (56)(a)(iii);
             729          (57) (a) leases of five or more years or purchases made on or after July 1, 2004 but on
             730      or before June 30, 2019, of machinery or equipment that:
             731          (i) is leased or purchased for or by a facility that:
             732          (A) is located in the state;
             733          (B) produces fuel from biomass energy including:
             734          (I) methanol; or
             735          (II) ethanol; and
             736          (C) (I) becomes operational on or after July 1, 2004; or
             737          (II) has its capacity to produce fuel increase by 25% or more on or after July 1, 2004 as
             738      a result of the installation of the machinery or equipment;


             739          (ii) has an economic life of five or more years; and
             740          (iii) is installed on the facility described in Subsection (57)(a)(i);
             741          (b) this Subsection (57) does not apply to:
             742          (i) machinery or equipment used in construction of:
             743          (A) a new facility described in Subsection (57)(a)(i); or
             744          (B) the increase in capacity of the facility described in Subsection (57)(a)(i); or
             745          (ii) contracted services required for construction and routine maintenance activities;
             746      and
             747          (iii) unless the machinery or equipment is used or acquired for an increase in capacity
             748      described in Subsection (57)(a)(i)(C)(II), machinery or equipment used or acquired after:
             749          (A) the facility described in Subsection (57)(a)(i) is operational; or
             750          (B) the increased capacity described in Subsection (57)(a)(i) is operational;
             751          (58) (a) subject to Subsection (58)(b) or (c), sales of tangible personal property or a
             752      product transferred electronically to a person within this state if that tangible personal property
             753      or product transferred electronically is subsequently shipped outside the state and incorporated
             754      pursuant to contract into and becomes a part of real property located outside of this state;
             755          (b) the exemption under Subsection (58)(a) is not allowed to the extent that the other
             756      state or political entity to which the tangible personal property is shipped imposes a sales, use,
             757      gross receipts, or other similar transaction excise tax on the transaction against which the other
             758      state or political entity allows a credit for sales and use taxes imposed by this chapter; and
             759          (c) notwithstanding the time period of Subsection 59-1-1410 (8) for filing for a refund,
             760      a person may claim the exemption allowed by this Subsection (58) for a sale by filing for a
             761      refund:
             762          (i) if the sale is made on or after July 1, 2004, but on or before June 30, 2008;
             763          (ii) as if this Subsection (58) as in effect on July 1, 2008, were in effect on the day on
             764      which the sale is made;
             765          (iii) if the person did not claim the exemption allowed by this Subsection (58) for the
             766      sale prior to filing for the refund;
             767          (iv) for sales and use taxes paid under this chapter on the sale;
             768          (v) in accordance with Section 59-1-1410 ; and
             769          (vi) subject to any extension allowed for filing for a refund under Section 59-1-1410 , if


             770      the person files for the refund on or before June 30, 2011;
             771          (59) purchases:
             772          (a) of one or more of the following items in printed or electronic format:
             773          (i) a list containing information that includes one or more:
             774          (A) names; or
             775          (B) addresses; or
             776          (ii) a database containing information that includes one or more:
             777          (A) names; or
             778          (B) addresses; and
             779          (b) used to send direct mail;
             780          (60) redemptions or repurchases of a product by a person if that product was:
             781          (a) delivered to a pawnbroker as part of a pawn transaction; and
             782          (b) redeemed or repurchased within the time period established in a written agreement
             783      between the person and the pawnbroker for redeeming or repurchasing the product;
             784          (61) (a) purchases or leases of an item described in Subsection (61)(b) if the item:
             785          (i) is purchased or leased by, or on behalf of, a telecommunications service provider;
             786      and
             787          (ii) has a useful economic life of one or more years; and
             788          (b) the following apply to Subsection (61)(a):
             789          (i) telecommunications enabling or facilitating equipment, machinery, or software;
             790          (ii) telecommunications equipment, machinery, or software required for 911 service;
             791          (iii) telecommunications maintenance or repair equipment, machinery, or software;
             792          (iv) telecommunications switching or routing equipment, machinery, or software; or
             793          (v) telecommunications transmission equipment, machinery, or software;
             794          (62) (a) beginning on July 1, 2006, and ending on June 30, 2016, purchases of tangible
             795      personal property or a product transferred electronically that are used in the research and
             796      development of coal-to-liquids, oil shale, or tar sands technology; and
             797          (b) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             798      commission may, for purposes of Subsection (62)(a), make rules defining what constitutes
             799      purchases of tangible personal property or a product transferred electronically that are used in
             800      the research and development of coal-to-liquids, oil shale, and tar sands technology;


             801          (63) (a) purchases of tangible personal property or a product transferred electronically
             802      if:
             803          (i) the tangible personal property or product transferred electronically is:
             804          (A) purchased outside of this state;
             805          (B) brought into this state at any time after the purchase described in Subsection
             806      (63)(a)(i)(A); and
             807          (C) used in conducting business in this state; and
             808          (ii) for:
             809          (A) tangible personal property or a product transferred electronically other than the
             810      tangible personal property described in Subsection (63)(a)(ii)(B), the first use of the property
             811      for a purpose for which the property is designed occurs outside of this state; or
             812          (B) a vehicle other than a vehicle sold to an authorized carrier, the vehicle is registered
             813      outside of this state;
             814          (b) the exemption provided for in Subsection (63)(a) does not apply to:
             815          (i) a lease or rental of tangible personal property or a product transferred electronically;
             816      or
             817          (ii) a sale of a vehicle exempt under Subsection (33); and
             818          (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for
             819      purposes of Subsection (63)(a), the commission may by rule define what constitutes the
             820      following:
             821          (i) conducting business in this state if that phrase has the same meaning in this
             822      Subsection (63) as in Subsection (24);
             823          (ii) the first use of tangible personal property or a product transferred electronically if
             824      that phrase has the same meaning in this Subsection (63) as in Subsection (24); or
             825          (iii) a purpose for which tangible personal property or a product transferred
             826      electronically is designed if that phrase has the same meaning in this Subsection (63) as in
             827      Subsection (24);
             828          (64) sales of disposable home medical equipment or supplies if:
             829          (a) a person presents a prescription for the disposable home medical equipment or
             830      supplies;
             831          (b) the disposable home medical equipment or supplies are used exclusively by the


             832      person to whom the prescription described in Subsection (64)(a) is issued; and
             833          (c) the disposable home medical equipment and supplies are listed as eligible for
             834      payment under:
             835          (i) Title XVIII, federal Social Security Act; or
             836          (ii) the state plan for medical assistance under Title XIX, federal Social Security Act;
             837          (65) sales:
             838          (a) to a public transit district under Title 17B, Chapter 2a, Part 8, Public Transit
             839      District Act; or
             840          (b) of tangible personal property to a subcontractor of a public transit district, if the
             841      tangible personal property is:
             842          (i) clearly identified; and
             843          (ii) installed or converted to real property owned by the public transit district;
             844          (66) sales of construction materials:
             845          (a) purchased on or after July 1, 2010;
             846          (b) purchased by, on behalf of, or for the benefit of an international airport:
             847          (i) located within a county of the first class; and
             848          (ii) that has a United States customs office on its premises; and
             849          (c) if the construction materials are:
             850          (i) clearly identified;
             851          (ii) segregated; and
             852          (iii) installed or converted to real property:
             853          (A) owned or operated by the international airport described in Subsection (66)(b); and
             854          (B) located at the international airport described in Subsection (66)(b);
             855          (67) sales of construction materials:
             856          (a) purchased on or after July 1, 2008;
             857          (b) purchased by, on behalf of, or for the benefit of a new airport:
             858          (i) located within a county of the second class; and
             859          (ii) that is owned or operated by a city in which an airline as defined in Section
             860      59-2-102 is headquartered; and
             861          (c) if the construction materials are:
             862          (i) clearly identified;


             863          (ii) segregated; and
             864          (iii) installed or converted to real property:
             865          (A) owned or operated by the new airport described in Subsection (67)(b);
             866          (B) located at the new airport described in Subsection (67)(b); and
             867          (C) as part of the construction of the new airport described in Subsection (67)(b);
             868          (68) sales of fuel to a common carrier that is a railroad for use in a locomotive engine;
             869          (69) purchases and sales described in Section [ 9-3-511 ] 63H-4-111 ; and
             870          (70) (a) sales of tangible personal property to an aircraft maintenance, repair, and
             871      overhaul provider for use in the maintenance, repair, overhaul, or refurbishment in this state of
             872      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             873      lists a state or country other than this state as the location of registry of the fixed wing turbine
             874      powered aircraft; or
             875          (b) sales of tangible personal property by an aircraft maintenance, repair, and overhaul
             876      provider in connection with the maintenance, repair, overhaul, or refurbishment in this state of
             877      a fixed wing turbine powered aircraft if that fixed wing turbine powered aircraft's registration
             878      lists a state or country other than this state as the location of registry of the fixed wing turbine
             879      powered aircraft.
             880          Section 2. Section 63A-5-306 is amended to read:
             881           63A-5-306. Leasing of state fair park -- Lease -- Terms -- Demolition of facilities
             882      -- Limits on debt or obligations.
             883          (1) As used in this section:
             884          (a) "Corporation" means the Utah State Fair Corporation created in Section [ 9-4-1103 ]
             885      63H-6-103 .
             886          (b) "Division" means the Division of Facilities Construction and Management.
             887          (c) "State fair park" means the property and buildings owned by the state located at 155
             888      North 1000 West, Salt Lake City, Utah.
             889          (2) The division:
             890          (a) may lease the state fair park to the corporation for a period not to exceed 50 years:
             891          (i) subject to the corporation satisfying the requirements of Subsection (5)(b)(i); and
             892          (ii) except that on June 30, 2017, that portion of the state fair park known as the White
             893      Ball Field located on the south side of North Temple Street shall revert to the division and not


             894      be a part of any continuing lease agreement between the division and the corporation, unless
             895      otherwise agreed upon by the division and the corporation prior to June 30, 2017;
             896          (b) shall ensure that any lease entered into under Subsection (2)(a):
             897          (i) defines which party is responsible for repairs and maintenance to the grounds and
             898      buildings;
             899          (ii) defines any restrictions on the use of the property or buildings, including the
             900      construction of any new buildings or facilities at the state fair park;
             901          (iii) requires that for each year under the lease the corporation holds a state fair meeting
             902      the requirements of Subsection [ 9-4-1103 ] 63H-6-103 (5)(a)(vi); and
             903          (iv) provides for the renegotiation or termination of the lease if the corporation:
             904          (A) no longer operates as an independent public nonprofit corporation as provided in
             905      Title [9] 63H, Chapter [4] 6, [Part 11,] Utah State Fair Corporation Act; or
             906          (B) engages in any activity inconsistent with Title [9] 63H, Chapter [4] 6, [Part 11,]
             907      Utah State Fair Corporation Act;
             908          (c) may:
             909          (i) require that any lease entered into under Subsection (2)(a) grants the division the
             910      right to unilaterally terminate the lease at its discretion; and
             911          (ii) provide a process to determine compensation, if any, the division shall pay the
             912      corporation for termination of the lease under Subsection (2)(c)(i); and
             913          (d) if the lease described in Subsection (2)(a) is amended or renewed after the effective
             914      date of this act and except as provided in Subsection (3), shall require the corporation under the
             915      lease to:
             916          (i) obtain the approval of the State Building Board before demolishing a facility at the
             917      state fair park; and
             918          (ii) include the approval requirement described in Subsection (2)(d)(i) in any sublease
             919      entered into, renewed, or amended after the effective date of this act.
             920          (3) (a) The approval required under Subsection (2)(d) does not apply to a facility
             921      demolished in accordance with a contract entered into but not amended before the effective
             922      date of this act.
             923          (b) Notwithstanding Subsection (3)(a), before a facility described in Subsection (3)(a)
             924      is demolished, the corporation shall notify the division concerning any demolishing of the


             925      facility.
             926          (4) The State Building Board shall notify the state historic preservation office of any
             927      State Building Board meeting at which consideration will be given to a proposal to demolish
             928      facilities at the state fair park.
             929          (5) (a) Notwithstanding Subsection (2), the division may review and adjust the amount
             930      of any payments made by the corporation under the lease every three years beginning July 1,
             931      2000.
             932          (b) (i) The division may lease the state fair park to the corporation for a period not to
             933      exceed 50 years, if the corporation demonstrates to the satisfaction of the division that the lease
             934      period will result in significant capital improvements at the state fair park by a private or public
             935      entity.
             936          (ii) The corporation may enter into a sublease of up to 50 years, subject to satisfying
             937      the requirements of Subsections (2)(d)(i) and (5)(b)(i).
             938          (6) The state shall assume the responsibilities of the corporation under any contract that
             939      is in effect on the day a lease between the division and the corporation terminates if:
             940          (a) the contract is for the lease or construction of a building or facility at the state park;
             941      and
             942          (b) the lease between the division and the corporation is terminated in accordance with
             943      Subsection (2)(b)(iv).
             944          (7) (a) Payments made by the corporation under a lease with the division shall be
             945      deposited into the Capital Project Fund.
             946          (b) If, in accordance with Subsection (5), the payments made by the corporation under
             947      a lease with the division are increased from the amount paid on July 1, 1997, the lease
             948      payments made by the division shall be dedicated to capital improvements at the state fair park
             949      unless, as part of the capital budget, the Legislature directs that the money be used for other
             950      capital improvements.
             951          (8) (a) A debt or obligation contracted by the corporation is a debt or obligation of the
             952      corporation.
             953          (b) The state is not liable for and assumes no legal or moral responsibility for any debt
             954      or obligation described in Subsection (8)(a), unless the Legislature through statute or an
             955      appropriation act specifically:


             956          (i) authorizes the corporation to contract for that debt or obligation; and
             957          (ii) accepts liability for or assumes responsibility for the debt or obligation.
             958          Section 3. Section 63E-1-102 is amended to read:
             959           63E-1-102. Definitions.
             960          As used in this title:
             961          (1) "Authorizing statute" means the statute creating an entity as an independent entity.
             962          (2) "Committee" means the Retirement and Independent Entities Committee created in
             963      Section 63E-1-201 .
             964          (3) "Independent corporation" means a corporation incorporated in accordance with
             965      Chapter 2, Independent Corporations Act.
             966          (4) (a) "Independent entity" means an entity having a public purpose relating to the
             967      state or its citizens that is individually created by the state or is given by the state the right to
             968      exist and conduct its affairs as an:
             969          (i) independent state agency; or
             970          (ii) independent corporation.
             971          (b) "Independent entity" includes the:
             972          (i) Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             973          (ii) Heber Valley Railroad Authority created in [Title 9, Chapter 3, Part 5,] Title 63H,
             974      Chapter 4, Heber Valley Historic Railroad Authority;
             975          (iii) Utah State Railroad Museum Authority created in [Title 9, Chapter 3, Part 6] Title
             976      63H, Chapter 5, Utah State Railroad Museum Authority;
             977          (iv) Utah Science Center Authority created in [Title 9, Chapter 3, Part 4] Title 63H,
             978      Chapter 3, Utah Science Center Authority;
             979          (v) Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing
             980      Corporation Act;
             981          (vi) Utah State Fair Corporation created in [Title 9, Chapter 4, Part 11] Title 63H,
             982      Chapter 6, Utah State Fair Corporation Act;
             983          (vii) Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             984      Compensation Fund;
             985          (viii) Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             986      Retirement Systems Administration;


             987          (ix) School and Institutional Trust Lands Administration created in Title 53C, Chapter
             988      1, Part 2, School and Institutional Trust Lands Administration;
             989          (x) Utah Communications Agency Network created in Title 63C, Chapter 7, Utah
             990      Communications Agency Network Act;
             991          (xi) Utah Generated Renewable Energy Electricity Network Authority created in Title
             992      63H, Chapter 2, Utah Generated Renewable Energy Electricity Network Authority Act; and
             993          (xii) Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part 12,
             994      Utah Venture Capital Enhancement Act.
             995          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
             996          (i) the Public Service Commission of Utah created in Section 54-1-1 ;
             997          (ii) an institution within the state system of higher education;
             998          (iii) a city, county, or town;
             999          (iv) a local school district;
             1000          (v) a local district under Title 17B, Limited Purpose Local Government Entities - Local
             1001      Districts; or
             1002          (vi) a special service district under Title 17D, Chapter 1, Special Service District Act.
             1003          (5) "Independent state agency" means an entity that is created by the state, but is
             1004      independent of the governor's direct supervisory control.
             1005          (6) "Money held in trust" means money maintained for the benefit of:
             1006          (a) one or more private individuals, including public employees;
             1007          (b) one or more public or private entities; or
             1008          (c) the owners of a quasi-public corporation.
             1009          (7) "Public corporation" means an artificial person, public in ownership, individually
             1010      created by the state as a body politic and corporate for the administration of a public purpose
             1011      relating to the state or its citizens.
             1012          (8) "Quasi-public corporation" means an artificial person, private in ownership,
             1013      individually created as a corporation by the state which has accepted from the state the grant of
             1014      a franchise or contract involving the performance of a public purpose relating to the state or its
             1015      citizens.
             1016          Section 4. Section 63H-3-101 , which is renumbered from Section 9-3-401 is
             1017      renumbered and amended to read:


             1018     
CHAPTER 3. UTAH SCIENCE CENTER AUTHORITY

             1019           [9-3-401].     63H-3-101. Short title.
             1020          This [part] chapter is known as the "Utah Science Center Authority."
             1021          Section 5. Section 63H-3-102 , which is renumbered from Section 9-3-402 is
             1022      renumbered and amended to read:
             1023           [9-3-402].     63H-3-102. Legislative findings -- State purpose.
             1024          (1) The Legislature finds and declares that:
             1025          (a) a Utah Science Center Authority can promote science, Utah's effort in high
             1026      technology, engineering, the arts, culture, Utah's unique origins, and can enhance tourism and
             1027      provide a valuable educational forum, and other benefits for Utah's citizens; and
             1028          (b) fostering the development of science, arts, tourism, culture, and educational
             1029      facilities is a state purpose affecting the welfare of all state citizens and the growth of the
             1030      economy statewide.
             1031          (2) It is therefore the purpose of this [part] chapter that the state provide a means to
             1032      foster the development of science, technology, engineering, arts, tourism, cultural, and
             1033      educational facilities in order to further the welfare of the citizens of the state and its economic
             1034      growth.
             1035          Section 6. Section 63H-3-103 , which is renumbered from Section 9-3-403 is
             1036      renumbered and amended to read:
             1037           [9-3-403].     63H-3-103. Creation -- Members -- Chair -- Powers -- Quorum --
             1038      Per diem and expenses.
             1039          (1) There is created an independent state agency and a body politic and corporate
             1040      known as the "Utah Science Center Authority."
             1041          (2) (a) The authority [shall be] is composed of 13 members.
             1042          (b) The governor shall appoint:
             1043          (i) three members representing the informal science and arts community that could
             1044      include members from the board of directors of the Hansen Planetarium, the Hogle Zoo, the
             1045      Children's Museum of Utah, the Utah Museum of Natural History, and other related museums,
             1046      centers, and agencies;
             1047          (ii) one member of the State Board of Education;
             1048          (iii) one member of the Division of Housing and Community Development of the


             1049      Department of Community and Culture;
             1050          (iv) one member of the Board of Tourism Development;
             1051          (v) one member of the State Board of Regents; and
             1052          (vi) three public members representing Utah industry, the diverse regions of the state,
             1053      and the public at large.
             1054          (c) The county legislative body of Salt Lake County shall appoint one member to
             1055      represent Salt Lake County.
             1056          (d) The mayor of Salt Lake City shall appoint one member to represent Salt Lake City
             1057      Corporation.
             1058          (e) The State Science Advisor or the advisor's designee is also a member of the
             1059      authority.
             1060          (f) In appointing the three public members, the governor shall ensure that there is
             1061      representation from the science, technology, and business communities.
             1062          (3) All members shall be residents of Utah.
             1063          (4) Each member [shall be] is appointed for four-year terms beginning July 1 of the
             1064      year appointed.
             1065          (5) (a) Except as required by Subsection (5)(b), as terms of current authority members
             1066      expire, the governor shall appoint each new member or reappointed member to a four-year
             1067      term.
             1068          (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
             1069      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1070      authority members are staggered so that approximately half of the authority is appointed every
             1071      two years.
             1072          (6) A member may be removed from office by the governor or for cause by an
             1073      affirmative vote of nine members of the authority.
             1074          (7) When a vacancy occurs in the membership for any reason, the replacement [shall
             1075      be] is appointed by the governor for the unexpired term.
             1076          (8) Each public member shall hold office for the term of [his] the member's
             1077      appointment and until the member's successor has been appointed and qualified.
             1078          (9) A public member is eligible for reappointment, but may not serve more than two
             1079      full consecutive terms.


             1080          (10) The governor shall appoint the chair of the authority from among its members.
             1081          (11) The members shall elect from among their number a vice chair and other officers
             1082      they may determine.
             1083          (12) The chair and vice chair [shall be] are elected for two-year terms.
             1084          (13) The powers of the authority [shall be] are vested in its members.
             1085          (14) Seven members constitute a quorum for transaction of authority business.
             1086          (15) A member may not receive compensation or benefits for the member's service, but
             1087      may receive per diem and travel expenses in accordance with:
             1088          (a) Section 63A-3-106 ;
             1089          (b) Section 63A-3-107 ; and
             1090          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             1091      63A-3-107 .
             1092          Section 7. Section 63H-3-104 , which is renumbered from Section 9-3-404 is
             1093      renumbered and amended to read:
             1094           [9-3-404].     63H-3-104. Executive director -- Powers and duties.
             1095          (1) (a) The members shall appoint an executive director who shall be an employee of
             1096      the authority, but who may not be a member of the authority[, and who shall serve].
             1097          (b) The executive director serves at the pleasure of the members and [receive] receives
             1098      compensation as set by the members and approved by the governor.
             1099          (2) The executive director shall:
             1100          (a) administer, manage, and direct the affairs and activities of the authority in
             1101      accordance with the policies, control, and direction of the members;
             1102          (b) approve all accounts for allowable expenses of the authority or of any of its
             1103      employees and expenses incidental to the operation of the authority;
             1104          (c) attend the meetings of the authority;
             1105          (d) keep a record of the proceedings of the authority;
             1106          (e) maintain and be custodian of all books, documents, and papers filed with the
             1107      authority; and
             1108          (f) perform other duties as directed by the members in carrying out the purposes of this
             1109      part.
             1110          Section 8. Section 63H-3-105 , which is renumbered from Section 9-3-405 is


             1111      renumbered and amended to read:
             1112           [9-3-405].     63H-3-105. Member or employee -- Disclosure of interest.
             1113          [Any] (1) A member or employee of the authority who has, will have, or later acquires
             1114      an interest, direct or indirect, in [any] a transaction with the authority shall immediately
             1115      disclose the nature and extent of that interest in writing to the authority as soon as the member
             1116      has knowledge of the actual or prospective interest.
             1117          (2) This disclosure shall be entered upon the minutes of the authority.
             1118          (3) Upon this disclosure that member or employee may participate in any action by the
             1119      authority authorizing the transaction.
             1120          Section 9. Section 63H-3-106 , which is renumbered from Section 9-3-406 is
             1121      renumbered and amended to read:
             1122           [9-3-406].     63H-3-106. Officer or employee -- No forfeiture of office or
             1123      employment.
             1124          Notwithstanding the provisions of any other law, [no] an officer or employee of this
             1125      state [shall be deemed to have forfeited or shall forfeit his] does not forfeit an office of or
             1126      employment within the state by reason of [his] the person's acceptance of membership on the
             1127      authority or [his] service on it.
             1128          Section 10. Section 63H-3-107 , which is renumbered from Section 9-3-407 is
             1129      renumbered and amended to read:
             1130           [9-3-407].     63H-3-107. Authority -- Powers.
             1131          (1) (a) The authority shall create, operate, and maintain a center that [shall promote]
             1132      promotes the purposes described in Section [ 9-3-402 ] 63H-3-102 .
             1133          (b) The center shall:
             1134          (i) have an extensive outreach program that serves all regions of the state; and
             1135          (ii) collaborate and coordinate with education, arts, technology, and engineering
             1136      entities, including schools and industries.
             1137          (2) The authority has perpetual succession as a body politic and corporate and may:
             1138          (a) adopt, amend, and repeal rules, policies, and procedures for the regulation of its
             1139      affairs and the conduct of its business;
             1140          (b) sue and be sued in its own name;
             1141          (c) maintain an office at [any] a place [or places] within this state it [may designate]


             1142      designates;
             1143          (d) adopt, amend, and repeal bylaws and rules, not inconsistent with this [part] chapter,
             1144      to carry into effect the powers and purposes of the authority and the conduct of its business;
             1145          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;
             1146          (f) employ experts, advisory groups, and other professionals it considers necessary;
             1147          (g) employ and retain independent legal counsel;
             1148          (h) make and execute contracts and all other instruments necessary or convenient for
             1149      the performance of its duties and the exercise of its duties under this [part] chapter to create,
             1150      operate, and maintain a Science Center in Utah;
             1151          (i) procure insurance for liability and against any loss in connection with its property
             1152      and other assets in amounts and from insurers it considers desirable;
             1153          (j) borrow money, receive [appropriation] appropriations from the Legislature, and
             1154      receive other public money and accept aid or contributions from any source of money,
             1155      property, labor, or other things of value to be held, used, and applied to carry out the purposes
             1156      of this [part] chapter subject to the conditions upon which the grants and contributions are
             1157      made, including gifts or grants from any department, agency, or instrumentality of the United
             1158      States or of this state for any purpose consistent with this [part] chapter;
             1159          (k) enter into agreements with any department, agency, or instrumentality or political
             1160      subdivision of the United States or this state for the purpose of providing for the creation,
             1161      operation, and maintenance of a Science Center in Utah; and
             1162          (l) to do any act necessary or convenient to the exercise of the powers granted by this
             1163      [part] chapter.
             1164          (3) (a) All money received by the authority under Subsection (2)(j) and from any other
             1165      source [shall be] is for the exclusive use of the authority to create, operate, maintain, improve,
             1166      and provide for a Science Center in Utah.
             1167          (b) The money received by the authority may not be used for any other purpose or by
             1168      any other entity.
             1169          Section 11. Section 63H-3-108 , which is renumbered from Section 9-3-409 is
             1170      renumbered and amended to read:
             1171           [9-3-409].     63H-3-108. Actions on validity or enforceability of bonds -- Time
             1172      for bringing action.


             1173          (1) In [any] a suit, action, or proceeding involving the validity or enforceability of
             1174      [any] a bond issued under this chapter or the security for them, [any such] the bond reciting in
             1175      substance that it has been issued by the authority in connection with the Utah Science Center
             1176      [shall be] is conclusively considered to have been issued for that purpose.
             1177          (2) (a) After receiving notice described in Subsection (2)(a)(ii), a person may contest:
             1178          (i) (A) the legality of a resolution;
             1179          (B) notice of bonds to be issued; or
             1180          (C) a provision made for the security and payment of the bonds; and
             1181          (ii) for a period of 30 days after the publication of the resolution authorizing the bonds,
             1182      or a notice of bonds to be issued by the authority containing those items described in Section
             1183      11-14-316 :
             1184          (A) in a newspaper having general circulation in the area of operation; and
             1185          (B) as required in Section 45-1-101 .
             1186          (b) After the 30-day period no one has any cause of action to contest the regularity,
             1187      formality, or legality of the notice of bonds to be issued or the bonds for any cause whatsoever.
             1188          Section 12. Section 63H-3-109 , which is renumbered from Section 9-3-410 is
             1189      renumbered and amended to read:
             1190           [9-3-410].     63H-3-109. Relation to certain acts.
             1191          (1) The authority is exempt from:
             1192          (a) Title 51, Chapter 5, Funds Consolidation Act;
             1193          (b) Title 63A, Chapter 1, Department of Administrative Services;
             1194          (c) Title 63G, Chapter 6, Utah Procurement Code;
             1195          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             1196          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             1197          (2) The authority [shall be] is subject to audit by:
             1198          (a) the state auditor pursuant to Title 67, Chapter 3, Auditor; and
             1199          (b) the legislative auditor general pursuant to Section 36-12-15 .
             1200          (3) The authority shall annually report to the Retirement and Independent Entities
             1201      Committee created under Section 63E-1-201 concerning the authority's implementation of this
             1202      part.
             1203          Section 13. Section 63H-3-110 , which is renumbered from Section 9-3-411 is


             1204      renumbered and amended to read:
             1205           [9-3-411].     63H-3-110. Sales tax exemption.
             1206          The authority and its operators are exempt from sales and use tax imposed under Title
             1207      59, Chapter 12, Sales and Use Tax Act.
             1208          Section 14. Section 63H-4-101 , which is renumbered from Section 9-3-501 is
             1209      renumbered and amended to read:
             1210     
CHAPTER 4. HEBER VALLEY HISTORIC RAILROAD AUTHORITY

             1211           [9-3-501].     63H-4-101. Title.
             1212          This [part] chapter is known as the "Heber Valley Historic Railroad Authority."
             1213          Section 15. Section 63H-4-102 , which is renumbered from Section 9-3-502 is
             1214      renumbered and amended to read:
             1215           [9-3-502].     63H-4-102. Creation -- Members -- Chair -- Powers -- Quorum --
             1216      Per diem and expenses.
             1217          (1) There is created an independent state agency and a body politic and corporate
             1218      known as the "Heber Valley Historic Railroad Authority."
             1219          (2) The authority [shall be] is composed of eight members as follows:
             1220          (a) one member of the county legislative body of Wasatch County;
             1221          (b) the mayor of Heber City;
             1222          (c) the mayor of Midway;
             1223          (d) the executive director of the Department of Transportation or the executive
             1224      director's designee;
             1225          (e) the executive director of Parks and Recreation, or the executive director's designee;
             1226      and
             1227          (f) three public members appointed by the governor with the consent of the Senate,
             1228      being private citizens of the state, as follows:
             1229          (i) two people representing the tourism industry, one each from Wasatch and Utah
             1230      counties; and
             1231          (ii) one person representing the public at large.
             1232          (3) All members shall be residents of the state.
             1233          (4) (a) Except as required by Subsection (4)(b), the three public members [shall be] are
             1234      appointed for four-year terms beginning July 1, 2010.


             1235          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             1236      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1237      authority members are staggered so that approximately half of the authority is appointed every
             1238      two years.
             1239          (5) Any of the three public members may be removed from office by the governor or
             1240      for cause by an affirmative vote of any four members of the authority.
             1241          (6) When a vacancy occurs in the membership for any reason, the replacement [shall
             1242      be] is appointed for the unexpired term by the governor with consent of the Senate for the
             1243      unexpired term.
             1244          (7) Each public member shall hold office for the term of appointment and until a
             1245      successor has been appointed and qualified.
             1246          (8) [Any] A public member is eligible for reappointment, but may not serve more than
             1247      two full consecutive terms.
             1248          (9) The governor shall appoint the chair of the authority from among its members.
             1249          (10) The members shall elect from among their number a vice chair and other officers
             1250      they may determine.
             1251          (11) The powers of the authority [shall be] are vested in its members.
             1252          (12) (a) Four members constitute a quorum for transaction of authority business.
             1253          (b) An affirmative vote of at least four members is necessary for any action [to be]
             1254      taken by the authority.
             1255          (13) (a) (i) Members who are not government employees [shall] may not receive [no]
             1256      compensation or benefits for their services, but may receive per diem and expenses incurred in
             1257      the performance of the member's official duties at the rates established by the Division of
             1258      Finance under Sections 63A-3-106 and 63A-3-107 .
             1259          (ii) Members may decline to receive per diem and expenses for their service.
             1260          (b) (i) State government officer and employee members who do not receive salary, per
             1261      diem, or expenses from their agency for their service may receive per diem and expenses
             1262      incurred in the performance of their official duties from the authority at the rates established by
             1263      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1264          (ii) State government officer and employee members may decline to receive per diem
             1265      and expenses for their service.


             1266          (c) (i) Local government members who do not receive salary, per diem, or expenses
             1267      from the entity that they represent for their service may receive per diem and expenses incurred
             1268      in the performance of their official duties at the rates established by the Division of Finance
             1269      under Sections 63A-3-106 and 63A-3-107 .
             1270          (ii) Local government members may decline to receive per diem and expenses for their
             1271      service.
             1272          Section 16. Section 63H-4-103 , which is renumbered from Section 9-3-503 is
             1273      renumbered and amended to read:
             1274           [9-3-503].     63H-4-103. Executive director -- Powers and duties.
             1275          (1) (a) The members shall appoint an executive director who [shall be] is an employee
             1276      of the authority, but who [may] is not [be] a member of the authority[, and who shall serve].
             1277          (b) The executive director serves at the pleasure of the members and [receive] receives
             1278      compensation as set by the members and approved by the governor.
             1279          (2) The executive director shall:
             1280          (a) administer, manage, and direct the affairs and activities of the authority in
             1281      accordance with the policies, control, and direction of the members;
             1282          (b) approve all accounts for allowable expenses of the authority or of any of its
             1283      employees and expenses incidental to the operation of the authority;
             1284          (c) attend the meetings of the authority;
             1285          (d) keep a record of the proceedings of the authority;
             1286          (e) maintain and be custodian of all books, documents, and papers filed with the
             1287      authority; and
             1288          (f) perform other duties as directed by the members in carrying out the purposes of this
             1289      [part] chapter.
             1290          Section 17. Section 63H-4-104 , which is renumbered from Section 9-3-504 is
             1291      renumbered and amended to read:
             1292           [9-3-504].     63H-4-104. Member or employee -- Disclosure of interest.
             1293          [Any] (1) A member or employee of the authority who has, will have, or later acquires
             1294      an interest, direct or indirect, in [any] a transaction with the authority shall immediately
             1295      disclose the nature and extent of that interest in writing to the authority as soon as the member
             1296      or employee has knowledge of the actual or prospective interest.


             1297          (2) This disclosure shall be entered upon the minutes of the authority.
             1298          (3) Upon this disclosure that member or employee may participate in any action by the
             1299      authority authorizing the transaction.
             1300          Section 18. Section 63H-4-105 , which is renumbered from Section 9-3-505 is
             1301      renumbered and amended to read:
             1302           [9-3-505].     63H-4-105. Officer or employee -- No forfeiture of office or
             1303      employment.
             1304          Notwithstanding the provisions of any other law, [no] an officer or employee of this
             1305      state [shall be considered to have forfeited or shall] does not forfeit an officer's or employee's
             1306      office or employment by reason of acceptance of membership on the authority or service on it.
             1307          Section 19. Section 63H-4-106 , which is renumbered from Section 9-3-506 is
             1308      renumbered and amended to read:
             1309           [9-3-506].     63H-4-106. Authority -- Powers.
             1310          (1) The authority shall operate and maintain a scenic and historic railroad in and
             1311      around the Heber Valley.
             1312          (2) The authority has perpetual succession as a body politic and corporate and may:
             1313          (a) adopt, amend, and repeal rules, policies, and procedures for the regulation of its
             1314      affairs and the conduct of its business;
             1315          (b) sue and be sued in its own name;
             1316          (c) maintain an office at [any] a place [or places] within this state it [may designate]
             1317      designates;
             1318          (d) adopt, amend, and repeal bylaws and rules, not inconsistent with this [part] chapter,
             1319      to carry into effect the powers and purposes of the authority and the conduct of its business;
             1320          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;
             1321          (f) employ experts and other professionals it considers necessary;
             1322          (g) employ and retain independent legal counsel;
             1323          (h) make and execute contracts and all other instruments necessary or convenient for
             1324      the performance of its duties and the exercise of its duties under this [part] chapter to operate
             1325      and maintain a scenic railroad in and around the Heber Valley;
             1326          (i) procure insurance for liability and against any loss in connection with its property
             1327      and other assets in amounts and from insurers it considers desirable;


             1328          (j) receive [appropriation] appropriations from the Legislature and receive other public
             1329      money and accept aid or contributions from any source of money, property, labor, or other
             1330      things of value to be held, used, and applied to carry out the purposes of this [part] chapter,
             1331      subject to the conditions upon which the grants and contributions are made, including[, but not
             1332      limited to,] gifts or grants from any department, agency, or instrumentality of the United States
             1333      or of this state for any purpose consistent with this [part] chapter;
             1334          (k) enter into agreements with any department, agency, or instrumentality of the United
             1335      States or this state for the purpose of providing for the operation and maintenance of a scenic
             1336      railway in and around the Heber Valley; and
             1337          (l) do any act necessary or convenient to the exercise of the powers granted by this
             1338      [part] chapter.
             1339          (3) (a) All money received by the authority under Subsection (2)(j) and from any other
             1340      source [shall be] is for the exclusive use of the authority to operate, maintain, improve, and
             1341      provide for a scenic and historic railway in and around the Heber Valley.
             1342          (b) The money received by the authority may not be used for any other purpose or by
             1343      any other entity.
             1344          Section 20. Section 63H-4-107 , which is renumbered from Section 9-3-507 is
             1345      renumbered and amended to read:
             1346           [9-3-507].     63H-4-107. Notes, bonds, other obligation -- Not debt liability --
             1347      Expenses payable from funds provided -- Agency without authority to incur liability on
             1348      behalf of state.
             1349          (1) (a) An obligation or liability of the authority does not constitute a debt or liability
             1350      of this state or of any of its political subdivisions nor does any obligation or liability constitute
             1351      the loaning of credit of the state or of any of its political subdivisions nor may any obligation or
             1352      liability of the authority be payable from funds other than those of the authority.
             1353          (b) All obligations of the authority shall contain a statement to the effect that the
             1354      authority is obligated to pay them solely from the revenues or other funds of the authority and
             1355      that this state or its political subdivisions are not obligated to pay them and that neither the
             1356      faith and credit nor the taxing power of this state or any of its political subdivisions is pledged
             1357      to the payment of them.
             1358          (2) All expenses incurred in carrying out this part [shall be] are payable solely from


             1359      [funds] money of the authority provided under this [part] chapter, and nothing in this [part]
             1360      chapter may be construed to authorize the authority to incur indebtedness or liability on behalf
             1361      of or payable by this state or any of its political subdivisions.
             1362          Section 21. Section 63H-4-108 , which is renumbered from Section 9-3-508 is
             1363      renumbered and amended to read:
             1364           [9-3-508].     63H-4-108. Relation to certain acts.
             1365          (1) The authority is exempt from:
             1366          (a) Title 51, Chapter 5, Funds Consolidation Act;
             1367          (b) Title 63A, Utah Administrative Services Code;
             1368          (c) Title 63G, Chapter 6, Utah Procurement Code;
             1369          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             1370          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             1371          (2) The authority [shall be] is subject to audit by the state auditor pursuant to Title 67,
             1372      Chapter 3, Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             1373          Section 22. Section 63H-4-109 , which is renumbered from Section 9-3-509 is
             1374      renumbered and amended to read:
             1375           [9-3-509].     63H-4-109. Duty to maintain rails.
             1376          The authority shall maintain the rails, bed, right-of-way, and related property upon
             1377      which the authority's train shall operate in compliance with state and federal statutes, rules, and
             1378      regulations.
             1379          Section 23. Section 63H-4-110 , which is renumbered from Section 9-3-510 is
             1380      renumbered and amended to read:
             1381           [9-3-510].     63H-4-110. Lease of rails from Department of Transportation and
             1382      Division of Parks and Recreation.
             1383          The Department of Transportation and the Division of Parks and Recreation shall
             1384      jointly lease the rails, bed, right-of-way, and related property for not more than $1 per year to
             1385      the authority.
             1386          Section 24. Section 63H-4-111 , which is renumbered from Section 9-3-511 is
             1387      renumbered and amended to read:
             1388           [9-3-511].     63H-4-111. Sales tax exemption.
             1389          The authority and its operators are exempt from sales and use tax imposed under Title


             1390      59, Chapter 12, Sales and Use Tax Act, for their purchases and sales related to the operation
             1391      and maintenance of a scenic and historic railroad in and around the Heber Valley.
             1392          Section 25. Section 63H-5-101 , which is renumbered from Section 9-3-601 is
             1393      renumbered and amended to read:
             1394     
CHAPTER 5. UTAH STATE RAILROAD MUSEUM AUTHORITY

             1395           [9-3-601].     63H-5-101. Title.
             1396          This [part] chapter is known as the "Utah State Railroad Museum Authority."
             1397          Section 26. Section 63H-5-102 , which is renumbered from Section 9-3-602 is
             1398      renumbered and amended to read:
             1399           [9-3-602].     63H-5-102. Creation -- Members -- Chair -- Powers -- Quorum --
             1400      Per diem and expenses.
             1401          (1) There is created an independent body politic and corporate known as the "Utah
             1402      State Railroad Museum Authority," hereafter referred to in this [part] chapter as "the authority."
             1403          (2) The authority is composed of 11 members as follows:
             1404          (a) one member of the county legislative body of Weber County appointed by that
             1405      legislative body;
             1406          (b) two members of the county legislative body of Box Elder County appointed by that
             1407      legislative body;
             1408          (c) the executive director of the Department of Transportation or the director's
             1409      designee; and
             1410          (d) seven public members appointed by the governor, as follows:
             1411          (i) two individuals representing the tourism industry, one each from Weber and Box
             1412      Elder Counties;
             1413          (ii) one individual representing the public at large; and
             1414          (iii) four individuals representing railroad historic and heritage preservation
             1415      organizations active in Weber and Box Elder Counties, as follows:
             1416          (A) one individual representing the Railroad and Locomotive Historical Society
             1417      Golden Spike Chapter;
             1418          (B) one individual representing the Golden Spike Heritage Foundation;
             1419          (C) one individual representing the Golden Spike Association; and
             1420          (D) one individual representing the Corinne Historical Society.


             1421          (3) All members shall be residents of the state.
             1422          (4) (a) Except as required by Subsection (4)(b), the governor shall appoint the seven
             1423      public members for four-year terms beginning July 1.
             1424          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             1425      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1426      authority members appointed under Subsection (2)(d) are staggered so that approximately
             1427      one-half of the seven public members are appointed every two years.
             1428          (5) Any of the seven public members may be removed from office by the governor or
             1429      for cause by an affirmative vote of six members of the authority.
             1430          (6) When a vacancy occurs in the public membership for any reason, the governor shall
             1431      appoint a replacement for the unexpired term.
             1432          (7) Each public member shall hold office for the term of the member's appointment and
             1433      until a successor has been appointed and qualified.
             1434          (8) A public member is eligible for reappointment, but may not serve more than two
             1435      full consecutive terms.
             1436          (9) The governor shall appoint the chair of the authority from among its members.
             1437          (10) (a) The members shall elect from among their membership a vice chair and other
             1438      officers as they may determine.
             1439          (b) The officers serve as the executive committee for the authority.
             1440          (11) The powers of the authority are vested in its members.
             1441          (12) (a) Six members constitute a quorum for transaction of authority business.
             1442          (b) An affirmative vote of at least six members is necessary for an action to be taken
             1443      by the authority.
             1444          (13) (a) A member who is not a government employee receives no compensation or
             1445      benefits for the member's services, but may receive per diem and expenses incurred in the
             1446      performance of the member's official duties at rates established by the Division of Finance
             1447      under Sections 63A-3-106 and 63A-3-107 .
             1448          (b) A state government officer or employee member who does not receive salary, per
             1449      diem, or expenses from the member's agency for the member's service may receive per diem
             1450      and expenses incurred in the performance of official duties from the authority at rates
             1451      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .


             1452          (c) A local government member who does not receive salary, per diem, or expenses for
             1453      the member's service from the entity that the member represents may receive per diem and
             1454      expenses incurred in the performance of the member's official duties at rates established by the
             1455      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1456          (d) A member may decline to receive per diem and expenses for the member's services.
             1457          Section 27. Section 63H-5-103 , which is renumbered from Section 9-3-603 is
             1458      renumbered and amended to read:
             1459           [9-3-603].     63H-5-103. Executive director -- Powers and duties.
             1460          (1) (a) The members of the authority shall appoint an executive director who is an
             1461      employee of the authority, but who is not a member of the authority.
             1462          (b) The executive director serves at the pleasure of the members and receives
             1463      compensation as set by the members and approved by the governor.
             1464          (2) The executive director shall:
             1465          (a) administer, manage, and direct the affairs and activities of the authority in
             1466      accordance with the policies, control, and direction of the members of the authority;
             1467          (b) approve all accounts for allowable expenses of the authority or of any of its
             1468      employees and expenses incidental to the operation of the authority;
             1469          (c) attend meetings of the authority;
             1470          (d) keep a record of the proceedings of the authority;
             1471          (e) maintain and be the custodian of all books, documents, and papers filed with the
             1472      authority;
             1473          (f) document and maintain records concerning ownership of all assets owned or under
             1474      the control of the authority; and
             1475          (g) perform other duties as directed by the members of the authority in carrying out the
             1476      purposes of this [part] chapter.
             1477          Section 28. Section 63H-5-104 , which is renumbered from Section 9-3-604 is
             1478      renumbered and amended to read:
             1479           [9-3-604].     63H-5-104. Member or employee -- Disclosure of interest.
             1480          (1) A member or employee of the authority who has, will have, or later acquires an
             1481      interest, direct or indirect, in a transaction with the authority shall immediately disclose the
             1482      nature and extent of that interest in writing to the authority as soon as the individual has


             1483      knowledge of the actual or prospective interest.
             1484          (2) The disclosure shall be entered upon the minutes of the authority.
             1485          (3) After making the disclosure, the member or employee may participate in any action
             1486      by the authority authorizing the transaction.
             1487          Section 29. Section 63H-5-105 , which is renumbered from Section 9-3-605 is
             1488      renumbered and amended to read:
             1489           [9-3-605].     63H-5-105. Officer or employee -- No forfeiture of office or
             1490      employment.
             1491          Notwithstanding any other provision of law, an officer or employee of this state does
             1492      not forfeit the office or employment with the state by reason of acceptance of membership on
             1493      the authority or service on it.
             1494          Section 30. Section 63H-5-106 , which is renumbered from Section 9-3-606 is
             1495      renumbered and amended to read:
             1496           [9-3-606].     63H-5-106. Authority -- Powers.
             1497          (1) The authority shall:
             1498          (a) facilitate or operate and maintain a scenic and historic railroad in and around Weber
             1499      and Box Elder Counties;
             1500          (b) facilitate or operate and maintain one or more railroad history museums in and
             1501      around Weber and Box Elder Counties;
             1502          (c) facilitate the restoration, preservation, and public display of railroad artifacts and
             1503      heritage in and around Weber and Box Elder Counties; and
             1504          (d) facilitate the restoration, preservation, and operation of historically significant
             1505      railroad related properties in and around Weber and Box Elder Counties for public benefit.
             1506          (2) The authority has perpetual succession as a body politic and corporate and may:
             1507          (a) adopt, amend, and repeal policies and procedures for the regulation of its affairs and
             1508      the conduct of its business;
             1509          (b) sue and be sued in its own name;
             1510          (c) maintain an office at a place [or places] it designates within the state;
             1511          (d) adopt, amend, and repeal bylaws and rules, consistent with this [part] chapter, to
             1512      carry into effect the powers and purposes of the authority and the conduct of its business;
             1513          (e) purchase, lease, sell, and otherwise dispose of property and rights-of-way;


             1514          (f) employ experts and other professionals it considers necessary;
             1515          (g) employ and retain independent legal counsel;
             1516          (h) make and execute contracts and all other instruments necessary or convenient for
             1517      the performance of its duties under this [part] chapter as described in Subsection (1);
             1518          (i) procure insurance for liability and against any loss in connection with its property
             1519      and other assets in amounts and from insurers it considers desirable;
             1520          (j) receive appropriations from the Legislature and receive other public [moneys]
             1521      money and accept aid or contributions from any source of money, property, labor, or other
             1522      things of value to be held, used, and applied to carry out the purposes of this [part] chapter,
             1523      subject to the conditions upon which the grants and contributions are made, including gifts or
             1524      grants from a department, agency, or instrumentality of the United States or of this state for any
             1525      purpose consistent with this [part] chapter;
             1526          (k) enter into agreements with a department, agency, or instrumentality of the United
             1527      States or this state for the purpose of providing for the operation and maintenance of a scenic
             1528      railway in and around Weber and Box Elder Counties; and
             1529          (l) do any act necessary or convenient to the exercise of the powers granted to the
             1530      authority by this [part] chapter.
             1531          (3) (a) All [monies] money received by the authority under Subsection (2)(j) and from
             1532      any other source [are] is for the exclusive use of the authority in the performance and exercise
             1533      of its duties under this [part] chapter as described in Subsection (1).
             1534          (b) [Monies] Money received by the authority may not be used for any other purpose or
             1535      by any other entity.
             1536          Section 31. Section 63H-5-107 , which is renumbered from Section 9-3-607 is
             1537      renumbered and amended to read:
             1538           [9-3-607].     63H-5-107. Notes, bonds, other obligation -- Not debt liability --
             1539      Expenses payable from funds provided -- Agency without authority to incur liability on
             1540      behalf of state.
             1541          (1) (a) An obligation or liability of the authority does not constitute:
             1542          (i) a debt or liability of the state or of any of its political subdivisions; or
             1543          (ii) the loaning of credit of the state or of any of its political subdivisions.
             1544          (b) An obligation or liability of the authority is payable only from [funds] money of the


             1545      authority.
             1546          (2) An obligation of the authority shall contain a statement to the effect:
             1547          (a) that the authority is obligated to pay the obligation solely from the revenues or other
             1548      [funds] money of the authority;
             1549          (b) that neither the state nor its political subdivisions are obligated to pay it; and
             1550          (c) that neither the faith and credit nor the taxing power of the state or any of its
             1551      political subdivisions is pledged to the payment of the obligation.
             1552          (3) (a) Expenses incurred in carrying out this [part] chapter are payable solely from
             1553      [funds] money of the authority provided under this [part] chapter.
             1554          (b) Nothing in this [part] chapter authorizes the authority to incur indebtedness or
             1555      liability on behalf of or payable by the state or any of its political subdivisions.
             1556          Section 32. Section 63H-5-108 , which is renumbered from Section 9-3-608 is
             1557      renumbered and amended to read:
             1558           [9-3-608].     63H-5-108. Relation to certain acts.
             1559          (1) The authority is exempt from:
             1560          (a) Title 51, Chapter 5, Funds Consolidation Act;
             1561          (b) Title 63A, Chapter 1, Department of Administrative Services;
             1562          (c) Title 63G, Chapter 6, Utah Procurement Code;
             1563          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
             1564          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
             1565          (2) The authority is subject to audit by the state auditor pursuant to Title 67, Chapter 3,
             1566      Auditor, and by the legislative auditor general pursuant to Section 36-12-15 .
             1567          Section 33. Section 63H-5-109 , which is renumbered from Section 9-3-609 is
             1568      renumbered and amended to read:
             1569           [9-3-609].     63H-5-109. Duty to maintain rails and operating equipment.
             1570          The authority shall maintain the rails, bed, right-of-way, and related property owned by
             1571      the authority upon which the authority's train operates in compliance with state and federal
             1572      statutes, rules, and regulations.
             1573          Section 34. Section 63H-5-110 , which is renumbered from Section 9-3-610 is
             1574      renumbered and amended to read:
             1575           [9-3-610].     63H-5-110. Lease of rails or equipment from Department of


             1576      Transportation and Division of Parks and Recreation.
             1577          The Department of Transportation and the Division of Parks and Recreation may jointly
             1578      lease the rails, bed, right-of-way, and related property for the operation of a scenic and historic
             1579      railroad in and around Weber and Box Elder Counties, for not more than $1 per year to the
             1580      authority.
             1581          Section 35. Section 63H-6-101 , which is renumbered from Section 9-4-1101 is
             1582      renumbered and amended to read:
             1583     
CHAPTER 6. UTAH STATE FAIR CORPORATION ACT

             1584           [9-4-1101].     63H-6-101. Title.
             1585          This [part] chapter is known as the "Utah State Fair Corporation Act."
             1586          Section 36. Section 63H-6-102 , which is renumbered from Section 9-4-1102 is
             1587      renumbered and amended to read:
             1588           [9-4-1102].     63H-6-102. Definitions.
             1589          As used in this [part] chapter:
             1590          (1) "Board" means the board of directors of the corporation.
             1591          (2) "Corporation" means the Utah State Fair Corporation created by this [part] chapter.
             1592          (3) "State fair park" means the property owned by the state located at 155 North 1000
             1593      West, Salt Lake City, Utah.    
             1594          Section 37. Section 63H-6-103 , which is renumbered from Section 9-4-1103 is
             1595      renumbered and amended to read:
             1596           [9-4-1103].     63H-6-103. Utah State Fair Corporation -- Legal status -- Powers.
             1597          (1) There is created an independent public nonprofit corporation known as the "Utah
             1598      State Fair Corporation."
             1599          (2) The board shall file articles of incorporation for the corporation with the Division
             1600      of Corporations and Commercial Code.
             1601          (3) The corporation [shall], subject to this [part] chapter, [have] has all powers and
             1602      authority permitted nonprofit corporations by law.
             1603          (4) The corporation shall, subject to approval of the board:
             1604          (a) have general management, supervision, and control over all activities relating to the
             1605      state fair and have charge of all state expositions except as otherwise provided by statute;
             1606          (b) for public entertainment, displays, and exhibits or similar events:


             1607          (i) provide, sponsor, or arrange the events;
             1608          (ii) publicize and promote the events; and
             1609          (iii) secure funds to cover the cost of the exhibits from:
             1610          (A) private contributions;
             1611          (B) public appropriations;
             1612          (C) admission charges; and
             1613          (D) other lawful means;
             1614          (c) establish the time, place, and purpose of state expositions; and
             1615          (d) acquire and designate exposition sites.
             1616          (5) (a) The corporation shall:
             1617          (i) use generally accepted accounting principals in accounting for its assets, liabilities,
             1618      and operations;
             1619          (ii) seek corporate sponsorships for the state fair park and for individual buildings or
             1620      facilities within the fair park;
             1621          (iii) work with county and municipal governments, the Salt Lake Convention and
             1622      Visitor's Bureau, the Utah Travel Council, and other entities to develop and promote
             1623      expositions and the use of the state fair park;
             1624          (iv) develop and maintain a marketing program to promote expositions and the use of
             1625      the state fair park;
             1626          (v) in cooperation with the Division of Facilities Construction and Management,
             1627      maintain the physical appearance and structural integrity of the state fair park and the buildings
             1628      located at the state fair park;
             1629          (vi) hold an annual exhibition that:
             1630          (A) is called the state fair or a similar name;
             1631          (B) includes expositions of livestock, poultry, agricultural, domestic science,
             1632      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             1633      domestic animals that, in the corporation's opinion will best stimulate agricultural, industrial,
             1634      artistic, and educational pursuits and the sharing of talents among the people of Utah;
             1635          (C) includes the award of premiums for the best specimens of the exhibited articles and
             1636      animals;
             1637          (D) permits competition by livestock exhibited by citizens of other states and territories


             1638      of the United States; and
             1639          (E) is arranged according to plans approved by the board;
             1640          (vii) fix the conditions of entry to the exposition described in Subsection (5)(a)(vi); and
             1641          (viii) publish a list of premiums that will be awarded at the exhibition described in
             1642      Subsection (5)(a)(vi) for the best specimens of exhibited articles and animals.
             1643          (b) In addition to the state fair to be held in accordance with Subsection (5)(a)(vi), the
             1644      corporation may hold other exhibitions of livestock, poultry, agricultural, domestic science,
             1645      horticultural, floricultural, mineral, and industrial products, manufactured articles, and
             1646      domestic animals that, in its opinion, will best stimulate agricultural, industrial, artistic, and
             1647      educational pursuits and the sharing of talents among the people of Utah.
             1648          (6) The corporation may:
             1649          (a) employ advisers, consultants, and agents, including financial experts and
             1650      independent legal counsel, and fix their compensation;
             1651          (b) procure insurance against any loss in connection with its property and other assets,
             1652      including mortgage loans;
             1653          (c) receive and accept aid or contributions of money, property, labor, or other things of
             1654      value from any source, including any grants or appropriations from any department, agency, or
             1655      instrumentality of the United States or Utah;
             1656          (d) hold, use, loan, grant, and apply that aid and those contributions to carry out the
             1657      purposes of the corporation, subject to the conditions, if any, upon which the aid and
             1658      contributions were made;
             1659          (e) enter into management agreements with any person or entity for the performance of
             1660      its functions or powers;
             1661          (f) establish whatever accounts and procedures as necessary to budget, receive, and
             1662      disburse, account for, and audit all funds received, appropriated, or generated;
             1663          (g) enter into agreements for the leasing of any of the facilities at the state fair park, if
             1664      approved by the board; and
             1665          (h) sponsor events as approved by the board.
             1666          (7) (a) Except as provided in Subsection (7)(c), as an independent agency of Utah, the
             1667      corporation is exempt from:
             1668          (i) Title 51, Chapter 5, Funds Consolidation Act;


             1669          (ii) Title 51, Chapter 7, State Money Management Act;
             1670          (iii) Title 63A, Utah Administrative Services Code;
             1671          (iv) Title 63G, Chapter 6, Utah Procurement Code;
             1672          (v) Title 63J, Chapter 1, Budgetary Procedures Act; and
             1673          (vi) Title 67, Chapter 19, Utah State Personnel Management Act.
             1674          (b) The board shall adopt policies parallel to and consistent with:
             1675          (i) Title 51, Chapter 5, Funds Consolidation Act;
             1676          (ii) Title 51, Chapter 7, State Money Management Act;
             1677          (iii) Title 63A, Utah Administrative Services Code;
             1678          (iv) Title 63G, Chapter 6, Utah Procurement Code; and
             1679          (v) Title 63J, Chapter 1, Budgetary Procedures Act.
             1680          (c) The corporation shall comply with the legislative approval requirements for new
             1681      facilities established in Subsection 63A-5-104 (3).
             1682          Section 38. Section 63H-6-104 , which is renumbered from Section 9-4-1104 is
             1683      renumbered and amended to read:
             1684           [9-4-1104].     63H-6-104. Board of Directors -- Membership -- Term -- Quorum --
             1685      Vacancies.
             1686          (1) The corporation [shall be] is governed by a board of directors.
             1687          (2) The board [shall be] is composed of 11 members appointed by the governor with
             1688      the consent of the Senate.
             1689          (3) The governor shall ensure that:
             1690          (a) two members of the board are residents of Salt Lake County in which the state fair
             1691      is held;
             1692          (b) there is at least one member of the board from each judicial district;
             1693          (c) two members of the board are residents of the First Congressional District;
             1694          (d) two members of the board are residents of the Second Congressional District;
             1695          (e) two members of the board are residents of the Third Congressional District; and
             1696          (f) two members of the board represent agricultural interests.
             1697          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the governor shall appoint board
             1698      members to serve terms that expire on the December 1 four years after the year that the board
             1699      member was appointed.


             1700          (ii) In making appointments to the board, the governor shall ensure that the terms of
             1701      approximately 1/4 of the board expire each year.
             1702          (b) Except as provided in Subsection (4)(c), board members [shall] serve until their
             1703      successors are appointed and qualified.
             1704          (c) (i) If a board member is absent from three consecutive board meetings without
             1705      excuse, that member's appointment is terminated, the position is vacant, and the governor shall
             1706      appoint a replacement.
             1707          (ii) The governor may remove any member of the board at will.
             1708          (d) The governor shall fill any vacancy that occurs on the board for any reason by
             1709      appointing a person according to the procedures of this section for the unexpired term of the
             1710      vacated member.
             1711          (5) The governor shall select the board's chair.
             1712          (6) Six members of the board are a quorum for the transaction of business.
             1713          (7) The board may elect a vice chair and any other board offices.
             1714          Section 39. Section 63H-6-105 , which is renumbered from Section 9-4-1105 is
             1715      renumbered and amended to read:
             1716           [9-4-1105].     63H-6-105. Executive director.
             1717          (1) (a) The board shall:
             1718          (i) hire an executive director for the corporation as provided in this subsection;
             1719          (ii) conduct a national search to find applicants for the position of executive director;
             1720      and
             1721          (iii) establish the salary, benefits, and other compensation of the executive director.
             1722          (b) The board may appoint an interim director while searching for a permanent
             1723      executive director.
             1724          (c) The executive director serves at the pleasure of the board and may be terminated by
             1725      the board at will.
             1726          (d) The executive director is an employee of the corporation.
             1727          (e) The executive director may not be a member of the board.
             1728          (2) The executive director shall:
             1729          (a) act as the executive officer of the board and the corporation;
             1730          (b) administer, manage, and direct the affairs and activities of the corporation in


             1731      accordance with the policies and under the control and direction of the board;
             1732          (c) keep the board, the governor, the Legislature, and its agencies, and other affected
             1733      officers, associations, and groups informed about the operations of the corporation;
             1734          (d) recommend to the board any necessary or desirable changes in the statutes
             1735      governing the corporation;
             1736          (e) recommend to the board an annual administrative budget covering the operations
             1737      of the corporation and, upon approval, submit the budget to the governor and the Legislature
             1738      for their examination and approval;
             1739          (f) after approval, direct and control the subsequent expenditures of the budget;
             1740          (g) employ, within the limitations of the budget, staff personnel and consultants to
             1741      accomplish the purpose of the corporation, and establish their qualifications, duties, and
             1742      compensation;
             1743          (h) keep in convenient form all records and accounts of the corporation, including
             1744      those necessary for the administration of the state fair;
             1745          (i) in cooperation with the board, create:
             1746          (i) business plans for the corporation;
             1747          (ii) a financial plan for the corporation that projects self-sufficiency for the corporation
             1748      within two years; and
             1749          (iii) a master plan for the state fair park;
             1750          (j) approve all accounts for:
             1751          (i) salaries;
             1752          (ii) allowable expenses of the corporation and its employees and consultants; and
             1753          (iii) expenses incidental to the operation of the corporation; and
             1754          (k) perform other duties as directed by the board.
             1755          Section 40. Section 63H-6-106 , which is renumbered from Section 9-4-1106 is
             1756      renumbered and amended to read:
             1757           [9-4-1106].     63H-6-106. Financial reports -- Audit -- Surety bonds.
             1758          (1) (a) The corporation shall, following the close of each fiscal year, submit an annual
             1759      report of its activities for the preceding year to the governor and the Legislature.
             1760          (b) The report shall contain:
             1761          (i) a complete operating report detailing the corporation's activities; and


             1762          (ii) financial statements of the corporation audited by a certified public accountant
             1763      according to generally accepted auditing standards.
             1764          (2) (a) At least once [per] a year, the state auditor shall:
             1765          (i) audit the books and accounts of the corporation; or
             1766          (ii) contract with a nationally recognized independent certified public accountant to
             1767      conduct the audit and review the audit report when it is completed.
             1768          (b) The corporation shall reimburse the state auditor for the costs of the audit.
             1769          (c) If the audit is conducted by an independent auditor, the independent auditor shall
             1770      submit a copy of the audit to the state auditor for review within 90 days after the end of the
             1771      fiscal year covered by the audit.
             1772          (3) (a) The corporation shall maintain a surety bond in the penal sum of $25,000 for
             1773      each member of the board.
             1774          (b) The corporation shall maintain a surety bond in the penal sum of $50,000 for the
             1775      executive director.
             1776          (c) The corporation shall ensure that each surety bond is:
             1777          (i) conditioned upon the faithful performance of the duties of office to which it
             1778      attaches;
             1779          (ii) [is] issued by a surety company authorized to transact business in Utah as a surety;
             1780      and
             1781          (iii) filed in the office of the State Treasurer.
             1782          (d) The corporation shall pay the cost of the surety bonds.
             1783          Section 41. Section 63H-6-107 , which is renumbered from Section 9-4-1107 is
             1784      renumbered and amended to read:
             1785           [9-4-1107].     63H-6-107. Enterprise Fund -- Creation -- Revenue -- Uses.
             1786          (1) (a) There is created an enterprise fund entitled the Utah State Fair Fund.
             1787          (b) The executive director shall administer the fund under the direction of the board.
             1788          (2) The fund consists of money generated from the following revenue sources:
             1789          (a) lease payments from person or entities leasing the state fair park or any other
             1790      facilities owned by the corporation;
             1791          (b) revenues received from any expositions or other events wholly or partially
             1792      sponsored by the corporation;


             1793          (c) aid or contributions of money, property, labor, or other things of value from any
             1794      source, including any grants or appropriations from any department, agency, or instrumentality
             1795      of the United States or Utah;
             1796          (d) appropriations made to the fund by the Legislature; and
             1797          (e) any other income obtained by the corporation.
             1798          (3) (a) The fund shall earn interest.
             1799          (b) All interest earned on fund money shall be deposited into the fund.
             1800          (4) The executive director may use fund money to operate, maintain, and support the
             1801      Utah state fair, the state fair park, and other expositions sponsored by the corporation.
             1802          Section 42. Section 63I-1-209 is amended to read:
             1803           63I-1-209. Repeal dates, Title 9.
             1804          (1) Title 9, Chapter 1, Part 8, Commission on National and Community Service Act, is
             1805      repealed July 1, 2014.
             1806          [(2) Title 9, Chapter 3, Part 5, Heber Valley Historic Railroad Authority, is repealed
             1807      July 1, 2020.]
             1808          [(3)] (2) Title 9, Chapter 4, Part 9, Utah Housing Corporation Act, is repealed July 1,
             1809      2016.
             1810          Section 43. Section 63I-1-263 is amended to read:
             1811           63I-1-263. Repeal dates, Titles 63 to 63M.
             1812          (1) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage to
             1813      any public school district which chooses to participate, is repealed July 1, 2016.
             1814          (2) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1, 2016.
             1815          (3) Section 63C-8-106 , Rural residency training program, is repealed July 1, 2015.
             1816          (4) Subsection 63G-6-502 (5)(b)(ii) authorizing certain transportation agencies to award
             1817      a contract for a design-build transportation project in certain circumstances, is repealed July 1,
             1818      2015.
             1819          (5) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
             1820      2020.
             1821          [(5)] (6) The Resource Development Coordinating Committee, created in Section
             1822      63J-4-501 , is repealed July 1, 2015.
             1823          [(6)] (7) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.


             1824          [(7)] (8) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act,
             1825      is repealed July 1, 2020.
             1826          (b) Sections 59-7-610 and 59-10-1007 regarding tax credits for certain persons in
             1827      recycling market development zones, are repealed for taxable years beginning on or after
             1828      January 1, 2011.
             1829          (c) Notwithstanding Subsection [(7)] (8)(b), a person may not claim a tax credit under
             1830      Section 59-7-610 or 59-10-1007 :
             1831          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             1832      59-10-1007 , if the machinery or equipment is purchased on or after July 1, 2010; or
             1833          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             1834      the expenditure is made on or after July 1, 2010.
             1835          (d) Notwithstanding Subsections [(7)] (8)(b) and (c), a person may carry forward a tax
             1836      credit in accordance with Section 59-7-610 or 59-10-1007 if:
             1837          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             1838          (ii) (A) for the purchase price of machinery or equipment described in Section
             1839      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before June 30, 2010;
             1840      or
             1841          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             1842      expenditure is made on or before June 30, 2010.
             1843          [(8)] (9) Title 63M, Chapter 7, Part 4, Sentencing Commission, is repealed January 1,
             1844      2012.
             1845          [(9)] (10) The Crime Victim Reparations Board, created in Section 63M-7-504 , is
             1846      repealed July 1, 2017.
             1847          [(10)] (11) Title 63M, Chapter 8, Utah Commission for Women and Families Act, is
             1848      repealed July 1, 2011.
             1849          [(11)] (12) Title 63M, Chapter 9, Families, Agencies, and Communities Together for
             1850      Children and Youth At Risk Act, is repealed July 1, 2016.
             1851          [(12)] (13) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
             1852      2012.
             1853          Section 44. Section 63I-4-102 is amended to read:
             1854           63I-4-102. Definitions.


             1855          (1) (a) "Activity" means to provide a good or service.
             1856          (b) "Activity" includes to:
             1857          (i) manufacture a good or service;
             1858          (ii) process a good or service;
             1859          (iii) sell a good or service;
             1860          (iv) offer for sale a good or service;
             1861          (v) rent a good or service;
             1862          (vi) lease a good or service;
             1863          (vii) deliver a good or service;
             1864          (viii) distribute a good or service; or
             1865          (ix) advertise a good or service.
             1866          (2) (a) Except as provided in Subsection (2)(b), "agency" means:
             1867          (i) the state; or
             1868          (ii) an entity of the state including a department, office, division, authority,
             1869      commission, or board.
             1870          (b) "Agency" does not include:
             1871          (i) the Legislature;
             1872          (ii) an entity or agency of the Legislature;
             1873          (iii) the state auditor;
             1874          (iv) the state treasurer;
             1875          (v) the Office of the Attorney General;
             1876          (vi) the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion Act;
             1877          [(vii) the Heber Valley Railroad Authority created in Title 9, Chapter 3, Part 5, Heber
             1878      Valley Historic Railroad Authority;]
             1879          [(viii)] (vii) the Utah Science Center Authority created in [Title 9, Chapter 3, Part 4]
             1880      Title 63H, Chapter 3, Utah Science Center Authority;
             1881          (viii) the Heber Valley Railroad Authority created in Title 63H, Chapter 4, Heber
             1882      Valley Historic Railroad Authority;
             1883          (ix) the Utah State Railroad Museum Authority created in [Title 9, Chapter 3, Part 6]
             1884      Title 63H, Chapter 5, Utah State Railroad Museum Authority;
             1885          (x) the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah Housing


             1886      Corporation Act;
             1887          (xi) the Utah State Fair Corporation created in [Title 9, Chapter 4, Part 11] Title 63H,
             1888      Chapter 6, Utah State Fair Corporation Act;
             1889          (xii) the Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
             1890      Compensation Fund;
             1891          (xiii) the Utah State Retirement Office created in Title 49, Chapter 11, Utah State
             1892      Retirement Systems Administration;
             1893          (xiv) a charter school chartered by the State Charter School Board or a board of
             1894      trustees of a higher education institution under Title 53A, Chapter 1a, Part 5, The Utah Charter
             1895      Schools Act;
             1896          (xv) the Utah Schools for the Deaf and the Blind created in Title 53A, Chapter 25b,
             1897      Utah Schools for the Deaf and the Blind;
             1898          (xvi) an institution of higher education as defined in Section 53B-3-102 ;
             1899          (xvii) the School and Institutional Trust Lands Administration created in Title 53C,
             1900      Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             1901          (xviii) the Utah Communications Agency Network created in Title 63C, Chapter 7,
             1902      Utah Communications Agency Network Act; or
             1903          (xix) the Utah Capital Investment Corporation created in Title 63M, Chapter 1, Part 12,
             1904      Utah Venture Capital Enhancement Act.
             1905          (3) "Agency head" means the chief administrative officer of an agency.
             1906          (4) "Board" means the Privatization Policy Board created in Section 63I-4-201 .
             1907          (5) "Commercial activity" means to engage in an activity that can be obtained in whole
             1908      or in part from a private enterprise.
             1909          (6) "Local entity" means:
             1910          (a) a political subdivision of the state, including a:
             1911          (i) county;
             1912          (ii) city;
             1913          (iii) town;
             1914          (iv) local school district;
             1915          (v) local district; or
             1916          (vi) special service district;


             1917          (b) an agency of an entity described in this Subsection (6), including a department,
             1918      office, division, authority, commission, or board; and
             1919          (c) an entity created by an interlocal cooperative agreement under Title 11, Chapter 13,
             1920      Interlocal Cooperation Act, between two or more entities described in this Subsection (6).
             1921          (7) "Private enterprise" means a person that for profit:
             1922          (a) manufactures a good or service;
             1923          (b) processes a good or service;
             1924          (c) sells a good or service;
             1925          (d) offers for sale a good or service;
             1926          (e) rents a good or service;
             1927          (f) leases a good or service;
             1928          (g) delivers a good or service;
             1929          (h) distributes a good or service; or
             1930          (i) advertises a good or service.
             1931          (8) "Privatize" means that an activity engaged in by an agency is transferred so that a
             1932      private enterprise engages in the activity including a transfer by:
             1933          (a) contract;
             1934          (b) transfer of property; or
             1935          (c) another arrangement.
             1936          Section 45. Section 63J-7-102 is amended to read:
             1937           63J-7-102. Scope and applicability of chapter.
             1938          (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
             1939      superseding provisions of this chapter by explicit reference to this chapter, the provisions of
             1940      this chapter apply to each agency and govern each grant received on or after May 5, 2008.
             1941          (2) This chapter does not govern:
             1942          (a) a grant deposited into a General Fund restricted account;
             1943          (b) a grant deposited into a Trust and Agency Fund as defined in Section 51-5-4 ;
             1944          (c) a grant deposited into an Enterprise Fund as defined in Section 51-5-4 ;
             1945          (d) a grant made to the state without a restriction or other designated purpose that is
             1946      deposited into the General Fund as free revenue;
             1947          (e) a grant made to the state that is restricted only to "education" and that is deposited


             1948      into the Education Fund or Uniform School Fund as free revenue;
             1949          (f) in-kind donations;
             1950          (g) a tax, fees, penalty, fine, surcharge, money judgment, or other money due the state
             1951      when required by state law or application of state law;
             1952          (h) a contribution made under Title 59, Chapter 10, Part 13, Individual Income Tax
             1953      Contribution Act;
             1954          (i) a grant received by an agency from another agency or political subdivision;
             1955          (j) a grant to the Dairy Commission created in Title 4, Chapter 22, Dairy Promotion
             1956      Act;
             1957          (k) a grant to the Utah Science Center Authority created in Title 63H, Chapter 3, Utah
             1958      Science Center Authority;
             1959          [(k)] (l) a grant to the Heber Valley Railroad Authority created in [Title 9, Chapter 3,
             1960      Part 5,] Title 63H, Chapter 4, Heber Valley Historic Railroad Authority;
             1961          [(l) a grant to the Utah Science Center Authority created in Title 9, Chapter 3, Part 4,
             1962      Utah Science Center Authority;]
             1963          (m) a grant to the Utah State Railroad Museum Authority created in [Title 9, Chapter 3,
             1964      Part 6] Title 63H, Chapter 5, Utah State Railroad Museum Authority;
             1965          (n) a grant to the Utah Housing Corporation created in Title 9, Chapter 4, Part 9, Utah
             1966      Housing Corporation Act;
             1967          (o) a grant to the Utah State Fair Corporation created in [Title 9, Chapter 4, Part 11]
             1968      Title 63H, Chapter 6, Utah State Fair Corporation Act;
             1969          (p) a grant to the Workers' Compensation Fund created in Title 31A, Chapter 33,
             1970      Workers' Compensation Fund;
             1971          (q) a grant to the Utah State Retirement Office created in Title 49, Chapter 11, Utah
             1972      State Retirement Systems Administration;
             1973          (r) a grant to the School and Institutional Trust Lands Administration created in Title
             1974      53C, Chapter 1, Part 2, School and Institutional Trust Lands Administration;
             1975          (s) a grant to the Utah Communications Agency Network created in Title 63C, Chapter
             1976      7, Utah Communications Agency Network Act;
             1977          (t) a grant to the Medical Education Program created in Section 63C-8-102 ;
             1978          (u) a grant to the Utah Capital Investment Corporation created in Title 63M, Chapter 1,


             1979      Part 12, Utah Venture Capital Enhancement Act;
             1980          (v) a grant to the State Charter School Finance Authority created in Section
             1981      53A-20b-103 ;
             1982          (w) a grant to the State Building Ownership Authority created in Section 63B-1-304 ;
             1983          (x) a grant to the Utah Comprehensive Health Insurance Pool created in Section
             1984      31A-29-104 ; or
             1985          (y) a grant to the Military Installation Development Authority created in Section
             1986      63H-1-201 .
             1987          (3) An agency need not seek legislative review or approval of grants under Part 2,
             1988      Grant Approval Requirements, if:
             1989          (a) the governor has declared a state of emergency; and
             1990          (b) the grant is donated to the agency to assist victims of the state of emergency under
             1991      Subsection 63K-4-201 (1).
             1992          Section 46. Section 63M-1-201 is amended to read:
             1993           63M-1-201. Creation of office.
             1994          (1) There is created the Governor's Office of Economic Development.
             1995          (2) The office shall:
             1996          (a) be responsible for economic development within the state;
             1997          (b) perform economic development planning for the state;
             1998          (c) administer and coordinate all state or federal grant programs which are, or become
             1999      available, for economic development;
             2000          (d) administer any other programs over which the office is given administrative
             2001      supervision by the governor;
             2002          (e) annually submit a report to the Legislature by October 1; and
             2003          (f) perform any other duties as provided by the Legislature.
             2004          (3) The office may solicit and accept contributions of money, services, and facilities
             2005      from any other source, public or private, but may not use the money for publicizing the
             2006      exclusive interest of the donor.
             2007          (4) Money received under Subsection (3) shall be deposited in the General Fund as
             2008      dedicated credits of the office.
             2009          (5) (a) The office is recognized as an issuing authority as defined in Subsection


             2010      63M-1-2902 (7), entitled to issue bonds from the Small Issue Bond Account created in
             2011      Subsection 63M-1-2906 (1)(c) as a part of the state's private activity bond volume cap
             2012      authorized by the Internal Revenue Code of 1986 and computed under Section 146 of the code.
             2013          (b) To promote and encourage the issuance of bonds from the Small Issue Bond
             2014      Account for manufacturing projects, the office may:
             2015          (i) develop campaigns and materials that inform qualified small manufacturing
             2016      businesses about the existence of the program and the application process;
             2017          (ii) assist small businesses in applying for and qualifying for these bonds; or
             2018          (iii) develop strategies to lower the cost to small businesses of applying for and
             2019      qualifying for these bonds, including making arrangements with financial advisors,
             2020      underwriters, bond counsel, and other professionals involved in the issuance process to provide
             2021      their services at a reduced rate when the division can provide them with a high volume of
             2022      applicants or issues.
             2023          Section 47. Section 63M-1-2901 , which is renumbered from Section 9-4-501 is
             2024      renumbered and amended to read:
             2025     
Part 29. Bond Volume Cap Allocation

             2026           [9-4-501].     63M-1-2901. Legislative intent.
             2027          It is the intent of the Legislature to establish procedures to most effectively and
             2028      equitably allocate this state's private activity bond volume cap authorized by the Internal
             2029      Revenue Code of 1986 in order to maximize the social and economic benefits to this state.
             2030          Section 48. Section 63M-1-2902 , which is renumbered from Section 9-4-502 is
             2031      renumbered and amended to read:
             2032           [9-4-502].     63M-1-2902. Definitions.
             2033          As used in this part:
             2034          (1) "Allocated volume cap" means [any] a volume cap for which a certificate of
             2035      allocation is in effect or for which bonds have been issued.
             2036          (2) "Allotment accounts" means the various accounts created in Section [ 9-4-506 ]
             2037      63M-1-2906 .
             2038          (3) "Board of review" means the Private Activity Bond Review Board created in
             2039      Section [ 9-4-503 ] 63M-1-2903 .
             2040          (4) "Bond" means any obligation for which an allocation of volume cap is required by


             2041      the code.
             2042          (5) "Code" means the Internal Revenue Code of 1986, as amended, and any related
             2043      Internal Revenue Service regulations.
             2044          (6) "Form 8038" means the Department of the Treasury tax form 8038 (OMB No.
             2045      1545-0720) or any other federal tax form or other method of reporting required by the
             2046      Department of the Treasury under Section 149(e) of the code.
             2047          (7) "Issuing authority" means:
             2048          (a) any county, city, or town in the state;
             2049          (b) any not-for-profit corporation or joint agency, or other entity acting on behalf of
             2050      one or more counties, cities, towns, or any combination of these;
             2051          (c) the state; or
             2052          (d) any other entity authorized to issue bonds under state law.
             2053          (8) "State" means the state of Utah and any of its agencies, institutions, and divisions
             2054      authorized to issue bonds or certificates under state law.
             2055          (9) "Volume cap" means the private activity bond volume cap for the state as computed
             2056      under Section 146 of the code.
             2057          (10) "Year" means each calendar year [beginning calendar year 1992].
             2058          Section 49. Section 63M-1-2903 , which is renumbered from Section 9-4-503 is
             2059      renumbered and amended to read:
             2060           [9-4-503].     63M-1-2903. Private Activity Bond Review Board.
             2061          (1) There is created within the [department] office the Private Activity Bond Review
             2062      Board, composed of 11 members as follows:
             2063          (a) five ex officio members who [shall be] are:
             2064          (i) the [executive] director of the [department] office or the [executive] director's
             2065      designee;
             2066          (ii) the director of the Division of Business and Economic Development or the
             2067      director's designee;
             2068          (iii) the state treasurer or the treasurer's designee;
             2069          (iv) the chair of the Board of Regents or the chair's designee; and
             2070          (v) the chair of the Utah Housing Corporation or the chair's designee; and
             2071          (b) six local government members who [shall be] are:


             2072          (i) three elected or appointed county officials, nominated by the Utah Association of
             2073      Counties and appointed by the governor with the consent of the Senate; and
             2074          (ii) three elected or appointed municipal officials, nominated by the Utah League of
             2075      Cities and Towns and appointed by the governor with the consent of the Senate.
             2076          (2) (a) Except as required by Subsection (2)(b), the terms of office for the local
             2077      government members of the board of review shall be four-year terms.
             2078          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
             2079      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             2080      board members are staggered so that approximately half of the board is appointed every two
             2081      years.
             2082          (c) Members may be reappointed only once.
             2083          (3) (a) If a local government member ceases to be an elected or appointed official of
             2084      the city or county the member is appointed to represent, that membership on the board of
             2085      review terminates immediately and there shall be a vacancy in the membership.
             2086          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             2087      appointed within 30 days in the manner of the regular appointment for the unexpired term, and
             2088      until his successor is appointed and qualified.
             2089          (4) (a) The chair of the board of review [shall be] is the [executive] director of the
             2090      [department] office or the [executive] director's designee.
             2091          (b) The chair is nonvoting except in the case of a tie vote.
             2092          (5) Six members of the board of review constitute a quorum.
             2093          (6) Formal action by the board of review requires a majority vote of a quorum.
             2094          (7) A member may not receive compensation or benefits for the member's service, but
             2095      may receive per diem and travel expenses in accordance with:
             2096          (a) Section 63A-3-106 ;
             2097          (b) Section 63A-3-107 ; and
             2098          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
             2099      63A-3-107 .
             2100          (8) The chair of the board of review serves as the state official designated under state
             2101      law to make certifications required to be made under Section 146 of the code including the
             2102      certification required by Section 149(e)(2)(F) of the code.


             2103          Section 50. Section 63M-1-2904 , which is renumbered from Section 9-4-504 is
             2104      renumbered and amended to read:
             2105           [9-4-504].     63M-1-2904. Powers, functions, and duties of board of review.
             2106          The board of review shall:
             2107          (1) make, subject to the limitations of the code, allocations of volume cap to issuing
             2108      authorities;
             2109          (2) determine the amount of volume cap to be allocated with respect to approved
             2110      applications;
             2111          (3) maintain a record of all applications filed by issuing authorities under Section
             2112      [ 9-4-505 ] 63M-1-2905 and all certificates of allocation issued under Section [ 9-4-507 ]
             2113      63M-1-2907 ;
             2114          (4) maintain a record of all bonds issued by issuing authorities during each year;
             2115          (5) determine the amount of volume cap to be treated as a carryforward under Section
             2116      146(f) of the code and allocate this carryforward to one or more qualified carryforward
             2117      purposes;
             2118          (6) make available upon reasonable request a certified copy of all or any part of the
             2119      records maintained by the board of review under this part or a summary of them, including
             2120      information relating to the volume cap for each year and any amounts available for allocation
             2121      under this part;
             2122          (7) promulgate rules for the allocation of volume cap under this part; and
             2123          (8) charge reasonable fees for the performance of duties prescribed by this part,
             2124      including application, filing, and processing fees.
             2125          Section 51. Section 63M-1-2905 , which is renumbered from Section 9-4-505 is
             2126      renumbered and amended to read:
             2127           [9-4-505].     63M-1-2905. Allocation of volume cap.
             2128          (1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed
             2129      by the board of review to the various allotment accounts as set forth in Section [ 9-4-506 ]
             2130      63M-1-2906 .
             2131          (b) The board of review may distribute up to 50% of each increase in the volume cap
             2132      that occurs after March 11, 1999, for use in development that occurs in quality growth areas,
             2133      depending upon the board's analysis of the relative need for additional volume cap between


             2134      development in quality growth areas and the allotment accounts under Section [ 9-4-506 ]
             2135      63M-1-2906 .
             2136          (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the
             2137      board of review an application containing information required by the procedures and
             2138      processes of the board of review.
             2139          (3) (a) The board of review shall establish criteria for making allocations of volume
             2140      cap that are consistent with the purposes of the code and this part.
             2141          (b) In making an allocation of volume cap the board of review shall consider the
             2142      following:
             2143          [(a)] (i) the principal amount of the bonds proposed to be issued;
             2144          [(b)] (ii) the nature and the location of the project or the type of program;
             2145          [(c)] (iii) the likelihood that the bonds will be sold and the timeframe of bond issuance;
             2146          [(d)] (iv) whether the project or program could obtain adequate financing without an
             2147      allocation of volume cap;
             2148          [(e)] (v) the degree to which an allocation of volume cap is required for the project or
             2149      program to proceed or continue;
             2150          [(f)] (vi) the social, health, economic, and educational effects of the project or program
             2151      on the local community and state as a whole;
             2152          [(g)] (vii) the anticipated economic development created or retained within the local
             2153      community and the state as a whole;
             2154          [(h)] (viii) the anticipated number of jobs, both temporary and permanent, created or
             2155      retained within the local community and the state as a whole;
             2156          [(i)] (ix) if the project is a residential rental project, the degree to which the residential
             2157      rental project:
             2158          [(i)] (A) targets lower income populations; and
             2159          [(ii)] (B) is accessible housing; and
             2160          [(j)] (x) whether the project meets the principles of quality growth recommended by the
             2161      Quality Growth Commission created under Section 11-38-201 .
             2162          (4) The board of review shall evidence an allocation of volume cap by issuing a
             2163      certificate in accordance with Section [ 9-4-507 ] 63M-1-2907 .
             2164          (5) (a) From January 1 to June 30, the board shall set aside at least 50% of the Small


             2165      Issue Bond Account that may be allocated only to manufacturing projects.
             2166          (b) From July 1 to August 15, the board shall set aside at least 50% of the Pool
             2167      Account that may be allocated only to manufacturing projects.
             2168          Section 52. Section 63M-1-2906 , which is renumbered from Section 9-4-506 is
             2169      renumbered and amended to read:
             2170           [9-4-506].     63M-1-2906. Allotment accounts.
             2171          (1) There are created the following allotment accounts:
             2172          (a) the Single Family Housing Account, for which eligible issuing authorities are those
             2173      authorized under the code and state statute to issue qualified mortgage bonds under Section 143
             2174      of the code;
             2175          (b) the Student Loan Account, for which eligible issuing authorities are those
             2176      authorized under the code and state statute to issue qualified student loan bonds under Section
             2177      144(b) of the code;
             2178          (c) the Small Issue Bond Account, for which eligible issuing authorities are those
             2179      authorized under the code and state statute to issue:
             2180          (i) qualified small issue bonds under Section 144(a) of the code; or
             2181          (ii) qualified exempt facility bonds for qualified residential rental projects under
             2182      Section 142(d) of the code;
             2183          (d) the Exempt Facilities Account, for which eligible issuing authorities are those
             2184      authorized under the code and state statute to issue bonds requiring an allocation of volume cap
             2185      other than for purposes described in Subsections (1)(a), (b), or (c);
             2186          (e) the Pool Account, for which eligible issuing authorities are those authorized under
             2187      the code and state statute to issue bonds requiring an allocation of volume cap; and
             2188          (f) the Carryforward Account, for which eligible issuing authorities are those with
             2189      projects or programs qualifying under Section 146(f) of the code.
             2190          (2) (a) The volume cap shall be distributed to the various allotment accounts on
             2191      January 1 of each year on the following basis:
             2192          (i) 42% to the Single Family Housing Account;
             2193          (ii) 33% to the Student Loan Account;
             2194          (iii) 1% to the Exempt Facilities Account; and
             2195          (iv) 24% to the Small Issue Bond Account.


             2196          (b) From July 1 to September 30 of each year, the board of review may transfer any
             2197      unallocated volume cap from the Exempt Facilities Account or the Small Issue Bond Account
             2198      to the Pool Account.
             2199          (c) The board of review, upon written notification by the issuing authorities eligible for
             2200      volume cap allocation from the Single Family Housing Account or the Student Loan Account
             2201      that all or a portion of volume cap distributed into that allotment account will not be used, may
             2202      transfer the unused volume cap between the Single Family Housing Account and the Student
             2203      Loan Account.
             2204          (d) From October 1 to the third Friday of December of each year, the board of review
             2205      shall transfer all unallocated volume cap [shall be transferred] into the Pool Account.
             2206          (e) [Unallocated] On the third Saturday of December, the board of review shall transfer
             2207      uncollected volume cap or allocated volume cap for which bonds have not been issued prior to
             2208      the third Saturday of December [shall be transferred on that date] into the Carryforward
             2209      Account.
             2210          (f) If the authority to issue bonds designated in any allotment account is rescinded by
             2211      amendment to the code, the board of review may transfer any unallocated volume cap from that
             2212      allotment account to any other allotment account.
             2213          Section 53. Section 63M-1-2907 , which is renumbered from Section 9-4-507 is
             2214      renumbered and amended to read:
             2215           [9-4-507].     63M-1-2907. Certificates of allocation.
             2216          (1) (a) After an allocation of volume cap for a project or program is approved by the
             2217      board of review, the board shall issue a numbered certificate of allocation [shall be issued]
             2218      stating the amount of the allocation, the allotment account for which the allocation is being
             2219      made, and the expiration date of the allocation.
             2220          (b) The certificates of allocation shall be mailed to the issuing authority within 10
             2221      working days of the date of approval.
             2222          (c) No bonds are entitled to any allocation of the volume cap unless the issuing
             2223      authority received a certificate of allocation with respect to the bonds.
             2224          (d) (i) Certificates of allocation shall remain in effect for a period of 90 days from the
             2225      date of approval.
             2226          (ii) If bonds for which a certificate has been approved are not issued within the 90-day


             2227      period, the certificate of allocation is void and volume cap shall be returned to the applicable
             2228      allotment account for reallocation by the board of review.
             2229          (2) (a) An issuing authority receiving an allocation of volume cap from the
             2230      Carryforward Account shall receive a certificate of allocation similar to the certificates of
             2231      allocation described in Subsection (1) from the board of review stating the amount of allocation
             2232      from the Carryforward Account that [have] has been allocated to the issuing authority and the
             2233      expiration of the allocation.
             2234          (b) If in the judgment of the board of review [any] an issuing authority or [any] a
             2235      person or entity responsible for a project or program receiving an allocation from the
             2236      Carryforward Account does not proceed with diligence in providing for the issuance of the
             2237      bonds with respect to the project or program, and because of the lack of [such] diligence the
             2238      volume cap cannot be used, the board of review may exclude from its consideration for a given
             2239      period of time, determined by the board of review, [applications] an application of [these] the
             2240      issuing [authorities or persons or entities] authority, person, or entity. The board of review
             2241      may, at any time, review and modify its decisions relating to this exclusion.
             2242          Section 54. Section 63M-1-2908 , which is renumbered from Section 9-4-508 is
             2243      renumbered and amended to read:
             2244           [9-4-508].     63M-1-2908. Issuing authorities -- Limitations -- Duties.
             2245          (1) (a) Any law to the contrary notwithstanding, an issuing authority issuing bonds
             2246      without a certificate of allocation issued under Section [ 9-4-507 ] 63M-1-2907 , or an issuing
             2247      authority issuing bonds after the expiration of a certificate of allocation, is not entitled to an
             2248      allocation of the volume cap for those bonds.
             2249          (b) An issuing authority issuing bonds in excess of the amount set forth in the related
             2250      certificate of allocation is not entitled to an allocation of the volume cap for the excess.
             2251          (2) Each issuing authority shall:
             2252          (a) advise the board of review, within 15 days after the issuance of bonds, of the
             2253      principal amount of bonds issued under each certificate of allocation by delivering to the board
             2254      of review a copy of the Form 8038 that was delivered or shall be delivered to the Internal
             2255      Revenue Service in connection with the bonds, or, if no Form 8038 is required to be delivered
             2256      to the Internal Revenue Service, a completed copy of a Form 8038 prepared for the board of
             2257      review with respect to the bonds; and


             2258          (b) if all or a stated portion of the bonds for which a certificate of allocation was
             2259      received will not be issued, advise the board of review in writing, within 15 days of the earlier
             2260      of:
             2261          (i) the final decision not to issue all or a stated portion of the bonds; or
             2262          (ii) the expiration of the certificate of allocation.
             2263          (3) Failure by an issuing authority to notify the board of review under Subsection (2),
             2264      including failure to timely deliver a Form 8038, may, in the sole discretion of the board of
             2265      review, result in the issuing authority being denied further consideration of applications.
             2266          Section 55. Section 63M-1-2909 , which is renumbered from Section 9-4-509 is
             2267      renumbered and amended to read:
             2268           [9-4-509].     63M-1-2909. Procedures -- Adjudicative proceedings.
             2269          The board of review shall comply with the procedures and requirements of Title 63G,
             2270      Chapter 4, Administrative Procedures Act, in its adjudicative proceedings.
             2271          Section 56. Section 63M-7-301 is amended to read:
             2272           63M-7-301. Definitions -- Creation of council -- Membership -- Terms.
             2273          (1) (a) As used in this part, "council" means the Utah Substance Abuse Advisory
             2274      Council created in this section.
             2275          (b) There is created within the governor's office the Utah Substance Abuse Advisory
             2276      Council.
             2277          (2) The council shall be comprised of the following voting members:
             2278          (a) the attorney general or the attorney general's designee;
             2279          (b) a county commissioner designated by the Utah Association of Counties;
             2280          (c) the commissioner of public safety or the commissioner's designee;
             2281          (d) the director of the Division of Substance Abuse and Mental Health or the director's
             2282      designee;
             2283          (e) the state superintendent of public instruction or the superintendent's designee;
             2284          (f) the director of the Department of Health or the director's designee;
             2285          (g) the executive director of the Commission on Criminal and Juvenile Justice or the
             2286      executive director's designee;
             2287          (h) the governor or the governor's designee;
             2288          (i) the executive director of the Department of Corrections or the executive director's


             2289      designee;
             2290          (j) the director of the Division of Juvenile Justice Services or the director's designee;
             2291          (k) the executive director of the private nonprofit Utah Domestic Violence Council or
             2292      the executive director's designee;
             2293          (l) the director of the Division of Indian Affairs or the director's designee;
             2294          (m) the state court administrator or the state court administrator's designee;
             2295          (n) the following members designated to serve four-year terms:
             2296          (i) a member of the House of Representatives designated by the speaker of the House
             2297      of Representatives;
             2298          (ii) a member of the Senate designated by the president of the Senate;
             2299          (iii) a representative designated by the Utah League of Cities and Towns; and
             2300          (iv) a representative from the [Office of Ethnic Affairs within the] Department of
             2301      Community and Culture designated by the director of the office or a designee;
             2302          (o) the following members appointed by the governor to serve four-year terms:
             2303          (i) a representative of the Utah National Guard;
             2304          (ii) one resident of the state who has been personally affected by alcohol or other drug
             2305      abuse; and
             2306          (iii) one citizen representative;
             2307          (p) in addition to the voting members described in Subsections (2)(a) through (o), the
             2308      following voting members may be appointed by a majority of the members described in
             2309      Subsections (2)(a) through (o) to serve four-year terms:
             2310          (i) a person knowledgeable in criminal justice issues;
             2311          (ii) a person knowledgeable in substance abuse treatment issues;
             2312          (iii) a person knowledgeable in substance abuse prevention issues; and
             2313          (iv) a person knowledgeable in judiciary issues; and
             2314          (q) in addition to the voting members described in Subsections (2)(a) through (p), one
             2315      or more chairs or co-chairs of a committee established by the council under Subsection
             2316      63M-7-302 (5) may be appointed as a voting member by a majority of the members described in
             2317      Subsections (2)(a) through (p).
             2318          (3) A person other than a person described in Subsection (2) may not be appointed as a
             2319      voting member of the council.


             2320          Section 57. Legislative findings -- Interim study --Report.
             2321          (1) The Legislature finds that it is in the best interest of the state for the Department of
             2322      Community and Culture, through its executive director, to conduct an in-depth assessment of
             2323      the department to determine what internal restructuring or assignment of its functions,
             2324      divisions, and programs to other entities of state government would:
             2325          (a) improve the efficiency of government;
             2326          (b) reduce the cost of government; and
             2327          (c) better focus the state and its employees:
             2328          (i) on providing community and cultural development opportunities throughout the
             2329      state; and
             2330          (ii) in administering and coordinating all state and federal grant programs that are, or
             2331      become, available for community and cultural development.
             2332          (2) (a) It is the further intent of the Legislature that the reorganization or restructuring
             2333      process for the department shall begin with movement of:
             2334          (i) the bond volume cap allocation, including the Private Activity Bond Review Board,
             2335      to the Governor's Office of Economic Development; and
             2336          (ii) the Utah Science Center Authority, the Heber Valley Historic Railroad Authority,
             2337      the Utah State Railroad Museum Authority, and the Utah State Fair Corporation to Title 63H,
             2338      Independent State Entities.
             2339          (b) The moves shall be finalized by July 1, 2011.
             2340          (3) (a) It is the further intent of the Legislature that the executive director immediately
             2341      conduct a study involving all stakeholders of the various ethnic groups throughout the state, as
             2342      to the state's changing demographics and how the needs of these groups might best be met by
             2343      and represented in state government.
             2344          (4) (a) It is the further intent of the Legislature that the executive director to the
             2345      Department of Community and Culture coordinate and direct the assessment, restructuring, and
             2346      movement, if any, of its functions, division, and programs to other entities of state government.
             2347          (b) In conducting the activities under Subsection (4)(a), the director or the director's
             2348      designee shall hold meetings and solicit input from stakeholders throughout the state,
             2349      including:
             2350          (i) representatives from community, ethnic, and cultural entities;


             2351          (ii) representatives of the arts, libraries, history, and museums;
             2352          (iii) Indian tribal leaders;
             2353          (iv) communities and individuals served by the department; and
             2354          (v) business and community leaders.
             2355          (c) The director or the director's designee shall conduct a study of various options for
             2356      assessing or restructuring the department and its divisions, including:
             2357          (i) retaining or moving the Division of Housing and Community Development or its
             2358      major components; and
             2359          (ii) retaining or moving the Divisions of Arts and Museums, State History, and
             2360      Libraries.
             2361          (d) The director or the director's designee may request assistance from agencies
             2362      identified as recipients of restructuring, and request assistance, support, and involvement from
             2363      local government, private business, and other affected parties in conducting the assessment,
             2364      restructuring, and dispersion.
             2365          (5) (a) It is the further intent of the Legislature that the interim director shall prepare
             2366      and present a report regarding the assessment, restructuring, and dispersion to:
             2367          (i) the governor by August 31, 2011;
             2368          (ii) the Legislature's Workforce Services and Community and Economic Development
             2369      Interim Committee by October 19, 2011; and
             2370          (iii) the Legislative Management Committee by December 15, 2011.
             2371          (b) The report shall include any anticipated cost savings, stakeholder
             2372      recommendations, and statutory or rule changes required to implement restructuring and
             2373      transitioning.


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