S.B. 95

             1     

REVISOR'S STATUTE

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Ralph Okerlund

             5     
House Sponsor: Brad L. Dee

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies parts of the Utah Code to make technical corrections, including
             10      eliminating references to repealed provisions, making minor wording changes, updating
             11      cross-references, and correcting numbering.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies parts of the Utah Code to make technical corrections, including
             15      eliminating references to repealed provisions, making minor wording changes,
             16      updating cross-references, correcting numbering, and fixing errors that were created
             17      from the previous year's session.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides effective dates.
             22      Utah Code Sections Affected:
             23      AMENDS:
             24           4-20-3 , as last amended by Laws of Utah 2012, Chapter 331
             25           4-32-11 , as last amended by Laws of Utah 2010, Chapter 242
             26           4-37-202 , as last amended by Laws of Utah 2010, Chapter 378
             27           4-37-302 , as last amended by Laws of Utah 2010, Chapter 378


             28           4-39-401 , as enacted by Laws of Utah 1997, Chapter 302
             29           7-1-103 , as last amended by Laws of Utah 2013, Chapter 73
             30           7-1-403 , as last amended by Laws of Utah 1986, Fourth Special Session, Chapter 1
             31           7-1-616 , as last amended by Laws of Utah 1996, Chapter 182
             32           7-1-703 , as last amended by Laws of Utah 1995, Chapter 49
             33           7-1-710 , as enacted by Laws of Utah 1983, Chapter 8
             34           7-1-802 , as last amended by Laws of Utah 2000, Chapter 260
             35           7-2-1 , as last amended by Laws of Utah 1994, Chapter 200
             36           7-2-2 , as last amended by Laws of Utah 1994, Chapter 200
             37           7-2-12 , as last amended by Laws of Utah 2010, Chapter 378
             38           7-3-1 , as enacted by Laws of Utah 1981, Chapter 16
             39           7-5-2 , as last amended by Laws of Utah 2010, Chapter 378
             40           7-5-6 , as last amended by Laws of Utah 1982, Chapter 6
             41           7-5-7 , as last amended by Laws of Utah 2010, Chapter 378
             42           7-5-8 , as last amended by Laws of Utah 2010, Chapter 378
             43           7-5-11 , as last amended by Laws of Utah 2010, Chapter 378
             44           7-5-15 , as last amended by Laws of Utah 1994, Chapter 200
             45           7-9-25 , as last amended by Laws of Utah 1983, Chapter 8
             46           7-9-39.5 , as last amended by Laws of Utah 2003, Chapter 327
             47           7-9-42 , as enacted by Laws of Utah 1981, Chapter 16
             48           7-9-45 , as last amended by Laws of Utah 1999, Chapter 329
             49           7-9-55 , as enacted by Laws of Utah 2003, Chapter 327
             50           7-9-58 , as last amended by Laws of Utah 2008, Chapter 126
             51           7-14-1 , as last amended by Laws of Utah 1995, Chapter 20
             52           7-19-1 , as last amended by Laws of Utah 1995, Chapter 49
             53           9-1-801 , as enacted by Laws of Utah 1994, Chapter 119
             54           9-6-205 , as last amended by Laws of Utah 2012, Chapter 212
             55           9-7-501 , as last amended by Laws of Utah 1993, Chapter 227
             56           9-8-301 , as last amended by Laws of Utah 2005, Chapter 145
             57           9-8-307 , as last amended by Laws of Utah 1995, Chapter 170
             58           9-8-405 , as last amended by Laws of Utah 2008, Chapter 382


             59           10-1-114 , as last amended by Laws of Utah 1999, Chapter 21
             60           10-1-119 , as last amended by Laws of Utah 2013, Chapter 325
             61           10-1-203 , as last amended by Laws of Utah 2012, Chapter 289
             62           10-2-125 , as last amended by Laws of Utah 2012, Chapter 359
             63           10-2-126 , as enacted by Laws of Utah 2012, Chapter 359
             64           10-8-62 , as last amended by Laws of Utah 2001, Chapter 9
             65           10-8-63 , as last amended by Laws of Utah 2001, Chapter 9
             66           10-18-104 , as enacted by Laws of Utah 2001, Chapter 83
             67           11-13-303 , as last amended by Laws of Utah 2008, Chapter 382
             68           11-13-315 , as enacted by Laws of Utah 2013, Chapter 230
             69           11-14-301 , as last amended by Laws of Utah 2012, Chapter 204
             70           11-17-14 , as enacted by Laws of Utah 1967, Chapter 29
             71           11-32-4 , as last amended by Laws of Utah 1995, Chapter 181
             72           11-42-604 , as last amended by Laws of Utah 2009, Chapter 388
             73           13-1a-5 , as last amended by Laws of Utah 2008, Chapter 382
             74           13-22-8 , as last amended by Laws of Utah 2009, Chapter 183
             75           13-23-5 , as last amended by Laws of Utah 2013, Chapter 124
             76           13-26-4 , as last amended by Laws of Utah 1996, Chapter 170
             77           13-32a-104 , as last amended by Laws of Utah 2012, Chapter 284
             78           13-32a-115 , as enacted by Laws of Utah 2012, Chapter 284
             79           13-32a-117 , as last amended by Laws of Utah 2013, Chapter 124
             80           13-47-102 (Contingently Repealed), as enacted by Laws of Utah 2010, Chapter 403
             81           13-47-201 (Contingently Repealed), as enacted by Laws of Utah 2010, Chapter 403
             82           15-8-4 , as last amended by Laws of Utah 2007, Chapter 272
             83           15-9-103 , as last amended by Laws of Utah 2010, Chapter 74
             84           15-10-201 , as last amended by Laws of Utah 2011, Chapter 262
             85           15A-1-204 , as enacted by Laws of Utah 2011, Chapter 14
             86           15A-2-102 , as enacted by Laws of Utah 2011, Chapter 14
             87           15A-2-104 , as last amended by Laws of Utah 2013, Chapter 297
             88           15A-3-201 , as enacted by Laws of Utah 2011, Chapter 14
             89           15A-3-306 , as last amended by Laws of Utah 2013, Chapter 297


             90           15A-4-201 , as enacted by Laws of Utah 2011, Chapter 14
             91           15A-5-103 , as last amended by Laws of Utah 2013, Chapter 199
             92           16-6a-1011 , as enacted by Laws of Utah 2000, Chapter 300
             93           16-6a-1202 , as enacted by Laws of Utah 2000, Chapter 300
             94           16-6a-1701 , as enacted by Laws of Utah 2000, Chapter 300
             95           16-6a-1702 , as last amended by Laws of Utah 2008, Chapter 250
             96           16-10a-402 , as enacted by Laws of Utah 1992, Chapter 277
             97           16-10a-901 , as enacted by Laws of Utah 1992, Chapter 277
             98           16-10a-1106 , as enacted by Laws of Utah 1992, Chapter 277
             99           16-10a-1301 , as enacted by Laws of Utah 1992, Chapter 277
             100           16-10a-1405 , as enacted by Laws of Utah 1992, Chapter 277
             101           16-16-113 , as last amended by Laws of Utah 2010, Chapter 378
             102           17-18a-405 , as enacted by Laws of Utah 2013, Chapter 237
             103           17-23-17.5 , as last amended by Laws of Utah 2001, Chapter 241
             104           17-23-19 , as last amended by Laws of Utah 1993, Chapter 227
             105           17-27a-205 , as last amended by Laws of Utah 2013, Chapter 324
             106           17-27a-301 , as last amended by Laws of Utah 2011, Chapters 107 and 305
             107           17-27a-512 , as last amended by Laws of Utah 2009, Chapters 170 and 233
             108           17-36-3 , as last amended by Laws of Utah 2012, Chapter 17
             109           17-36-39 , as last amended by Laws of Utah 2004, Chapter 206
             110           17-53-301 , as last amended by Laws of Utah 2001, Chapter 241
             111           17B-1-121 , as enacted by Laws of Utah 2011, Chapter 205
             112           17B-1-512 , as last amended by Laws of Utah 2011, Chapter 297
             113           17B-2a-902 , as last amended by Laws of Utah 2012, Chapter 97
             114           17B-2a-905 , as last amended by Laws of Utah 2013, Chapter 70
             115           17C-4-202 , as last amended by Laws of Utah 2010, Chapters 90 and 279
             116           17D-3-105 , as enacted by Laws of Utah 2012, Chapter 103
             117           20A-1-306 , as enacted by Laws of Utah 2011, Chapter 17
             118           26-28-112 , as enacted by Laws of Utah 2007, Chapter 60
             119           36-23-109 , as enacted by Laws of Utah 2013, Chapter 323
             120           38-8-3.5 , as enacted by Laws of Utah 2013, Chapter 163


             121           39-6-36 , as enacted by Laws of Utah 1988, Chapter 210
             122           48-1d-1305 , as enacted by Laws of Utah 2013, Chapter 412
             123           53-5-707 , as last amended by Laws of Utah 2013, Chapter 280
             124           53-13-110 , as renumbered and amended by Laws of Utah 1998, Chapter 282
             125           53A-1a-521 , as last amended by Laws of Utah 2013, Chapter 239
             126           53A-3-701 , as last amended by Laws of Utah 2003, Chapter 221
             127           53A-16-107 , as last amended by Laws of Utah 2011, Chapters 153, 369, and 371
             128           53A-16-114 , as last amended by Laws of Utah 2011, Chapter 342 and renumbered and
             129      amended by Laws of Utah 2011, Chapter 371
             130           53A-17a-133 , as last amended by Laws of Utah 2013, Chapters 178 and 313
             131           53A-25a-102 , as enacted by Laws of Utah 1994, Chapter 280
             132           54-3-31 , as enacted by Laws of Utah 2013, Chapter 242
             133          57-8-7.5 (Effective 07/01/14), as last amended by Laws of Utah 2013, Chapters 152,
             134      419 and last amended by Coordination Clause, Laws of Utah 2013, Chapter 152
             135          57-8-43, as last amended by Laws of Utah 2013, Chapter 152
             136          57-8a-211 (Superseded 07/01/14), as last amended by Laws of Utah 2013, Chapter 419
             137          58-40-302, as enacted by Laws of Utah 2012, Chapter 82
             138          58-60-506, as last amended by Laws of Utah 2013, Chapter 123
             139          58-77-601, as last amended by Laws of Utah 2008, Chapter 365
             140          59-14-302, as last amended by Laws of Utah 2013, Chapter 148
             141          63C-13-107, as enacted by Laws of Utah 2013, Chapter 228
             142          63G-12-306, as enacted by Laws of Utah 2011, Chapter 18
             143          63I-1-253, as last amended by Laws of Utah 2012, Chapter 369
             144          63I-1-263, as last amended by Laws of Utah 2013, Chapters 28, 62, 101, 167, 250, and
             145      413
             146          63I-2-217, as last amended by Laws of Utah 2012, Chapter 17
             147          63I-2-236, as last amended by Laws of Utah 2013, Chapter 283
             148          63I-2-253, as lst amended by Laws of Utah 2013, Chapters 173 and 434
             149          63I-2-277, as last amended by Laws of Utah 2012, Chapter 17
             150          63I-4a-202, as renumbered and amended by Laws of Utah 2013, Chapter 325
             151          63J-1-206, as last amended by Laws of Utah 2013, Chapter 310


             152          63J-1-505, as renumbered and amended by Laws of Utah 2009, Chapter 183
             153          63J-1-602.3, as last amended by Laws of Utah 2013, Chapters 117, 295 and last
             154      amended by Coordination Clause, Laws of Utah 2013, Chapter 117
             155          63J-1-602.4, as last amended by Laws of Utah 2013, Chapter 28
             156          63M-1-3203, as enacted by Laws of Utah 2013, Chapter 336
             157          70A-2a-533, as enacted by Laws of Utah 1990, Chapter 197
             158          76-1-501, as last amended by Laws of Utah 2013, Chapter 278
             159          76-5-102.4, as last amended by Laws of Utah 2013, Chapter 156
             160          78A-2-301, as last amended by Laws of Utah 2012, Chapter 247
             161          78A-7-301, as last amended by Laws of Utah 2011, Chapter 143
             162          78B-3-421, as renumbered and amended by Laws of Utah 2008, Chapter 3
             163      RENUMBERS AND AMENDS:
             164           4-18-108 , (Renumbered from 4-18-6.5, as last amended by Laws of Utah 2008, Chapter
             165      382)
             166      REPEALS:
             167           63G-13-203 , as enacted by Laws of Utah 2011, Chapter 19
             168     
             169      Be it enacted by the Legislature of the state of Utah:
             170          Section 1. Section 4-18-108 , which is renumbered from Section 4-18-6.5 is
             171      renumbered and amended to read:
             172           [4-18-6.5].     4-18-108. Grants to improve manure management or control runoff
             173      at animal feeding operations.
             174          (1) (a) The commission may make grants to owners or operators of animal feeding
             175      operations to pay for costs of plans or projects to improve manure management or control
             176      surface water runoff, including costs of preparing or implementing comprehensive nutrient
             177      management plans.
             178          (b) The commission shall make the grants described in Subsection (1)(a) from funds
             179      appropriated by the Legislature for that purpose.
             180          (2) (a) In awarding grants, the commission shall consider the following criteria:
             181          (i) the ability of the grantee to pay for costs of plans or projects to improve manure
             182      management or control surface water runoff;


             183          (ii) the availability of:
             184          (A) matching funds provided by the grantee or another source; or
             185          (B) material, labor, or other items of value provided in lieu of money by the grantee or
             186      another source; and
             187          (iii) the benefits that accrue to the general public by the awarding of a grant.
             188          (b) The commission may establish by rule additional criteria for the awarding of grants.
             189          (3) The commission shall make rules in accordance with Title 63G, Chapter 3, Utah
             190      Administrative Rulemaking Act, to implement this section.
             191          Section 2. Section 4-20-3 is amended to read:
             192           4-20-3. Rangeland Improvement Account distribution.
             193          (1) The department shall distribute restricted account money as provided in this
             194      section.
             195          (a) The department shall:
             196          (i) distribute pro rata to each school district the money received by the state under
             197      Subsection 4-20-2 (1)(b)(i) from the sale or lease of public lands based upon the amount of
             198      revenue generated from the sale or lease of public lands within the district; and
             199          (ii) ensure that all money generated from the sale or lease of public lands within a
             200      school district is credited and deposited to the general school fund of that school district.
             201          (b) (i) After the commissioner approves a request from a regional board, the
             202      department shall distribute pro rata to each regional board money received by the state under
             203      Subsection 4-20-2 (1)(b)(i) from fees based upon the amount of revenue generated from the
             204      imposition of fees within that grazing district.
             205          (ii) The regional board shall expend money received in accordance with Subsection (2).
             206          (c) (i) The department shall distribute or expend money received by the state under
             207      Subsections 4-20-2 (1)(b)(ii) [through (iv)] and (iii) for the purposes outlined in Subsection (2).
             208          (ii) The department may require entities seeking funding from sources outlined in
             209      Subsections 4-20-2 (1)(b)(ii) [through (iv)] and (iii) to provide matching funds.
             210          (2) The department shall ensure that restricted account distributions or expenditures
             211      under Subsections (1)(b) and (c) are used for:
             212          (a) range improvement and maintenance;
             213          (b) the control of predatory and depredating animals;


             214          (c) the control, management, or extermination of invading species, range damaging
             215      organisms, and poisonous or noxious weeds;
             216          (d) the purchase or lease of lands or a conservation easement for the benefit of a
             217      grazing district;
             218          (e) watershed protection, development, distribution, and improvement;
             219          (f) the general welfare of livestock grazing within a grazing district; and
             220          (g) subject to Subsection (3), costs to monitor rangeland improvement projects.
             221          (3) Annual account distributions or expenditures for the monitoring costs described in
             222      Subsection (2)(g) may not exceed 10% of the annual receipts of the fund.
             223          Section 3. Section 4-32-11 is amended to read:
             224           4-32-11. Preparation and slaughter of livestock, poultry, or livestock and poultry
             225      products -- Adulterated or misbranded products -- Violation of rule or order.
             226          (1) An animal or meat or poultry product that may be used for human consumption
             227      shall not be:
             228          (a) slaughtered or prepared unless it is done in compliance with this chapter's
             229      requirements;
             230          (b) sold, transported, offered for sale or transportation, or received for transportation, if
             231      it is adulterated or misbranded, unless it has been inspected and approved; or
             232          (c) subjected to any act while being transported or held for sale after transportation
             233      resulting in one of the products becoming adulterated or being misbranded.
             234          (2) A person may not violate any rule or order of the commissioner under Subsection
             235      4-32-7 (3) or (6), or Subsection 4-32-8 (3), (5), or (7)[, or (14)].
             236          Section 4. Section 4-37-202 is amended to read:
             237           4-37-202. Acquisition of aquatic animals for use in aquaculture facilities.
             238          (1) Live aquatic animals intended for use in aquaculture facilities may be purchased or
             239      acquired only from:
             240          (a) aquaculture facilities within the state that have a certificate of registration and
             241      health approval number;
             242          (b) public aquaculture facilities within the state that have a health approval number; or
             243          (c) sources outside the state that are health approved as provided in Part 5, Health
             244      Approval.


             245          (2) A person holding a certificate of registration for an aquaculture facility shall submit
             246      annually to the department a record of each purchase of live aquatic animals and transfer of live
             247      aquatic animals into the facility. This record shall include the following information:
             248          (a) name, address, and health approval number of the source;
             249          (b) date of transaction; and
             250          (c) number and weight by species.
             251          (3) The records required by Subsection (2) shall be submitted to the department before
             252      a certificate of registration is renewed or a subsequent certificate of registration is issued.
             253          Section 5. Section 4-37-302 is amended to read:
             254           4-37-302. Acquisition of aquatic animals for use in fee fishing facilities.
             255          (1) Live aquatic animals intended for use in fee fishing facilities may be purchased or
             256      acquired only from:
             257          (a) aquaculture facilities within the state that have a certificate of registration and
             258      health approval number;
             259          (b) public aquaculture facilities within the state that have a health approval number; or
             260          (c) sources outside the state that are health approved pursuant to Part 5, Health
             261      Approval.
             262          (2) (a) A person holding a certificate of registration for a fee fishing facility shall
             263      submit to the department an annual report of all live fish purchased or acquired.
             264          (b) The report shall contain the following information:
             265          (i) name, address, and certificate of registration number of the seller or supplier;
             266          (ii) number and weight by species;
             267          (iii) date of purchase or transfer; and
             268          (iv) name, address, and certificate of registration number of the receiver.
             269          (c) The report shall be submitted to the department before a certificate of registration is
             270      renewed or subsequent certificate of registration is issued.
             271          Section 6. Section 4-39-401 is amended to read:
             272           4-39-401. Escape of domesticated elk -- Liability.
             273          (1) It is the owner's responsibility to try to capture any domesticated elk that may have
             274      escaped.
             275          (2) The escape of a domesticated elk shall be reported immediately to the state


             276      veterinarian or a brand inspector of the Department of Agriculture who shall notify the
             277      Division of Wildlife Resources.
             278          (3) If the domesticated elk is not recovered within 72 hours of the escape, the
             279      Department of Agriculture, in conjunction with the Division of Wildlife Resources, shall take
             280      whatever action is necessary to resolve the problem.
             281          (4) The owner shall reimburse the state or a state agency for any reasonable recapture
             282      costs that may be incurred in the recapture or destruction of the animal.
             283          (5) Any escaped domesticated elk taken by a licensed hunter in a manner which
             284      complies with the provisions of Title 23, Wildlife Resources Code of Utah, and the rules of the
             285      Wildlife Board shall be considered to be a legal taking and neither the licensed hunter, the
             286      state, nor a state agency shall be liable to the owner for the killing.
             287          (6) The owner shall be responsible to contain the domesticated elk to ensure that there
             288      is no spread of disease from domesticated elk to wild elk and that the genetic purity of wild elk
             289      is protected.
             290          Section 7. Section 7-1-103 is amended to read:
             291           7-1-103. Definitions.
             292          As used in this title:
             293          (1) (a) "Bank" means a person authorized under the laws of this state, another state, or
             294      the United States to accept deposits from the public.
             295          (b) "Bank" does not include:
             296          (i) a federal savings and loan association or federal savings bank;
             297          (ii) an industrial bank subject to Chapter 8, Industrial Banks;
             298          (iii) a federally chartered credit union; or
             299          (iv) a credit union subject to Chapter 9, Utah Credit Union Act.
             300          (2) "Banking business" means the offering of deposit accounts to the public and the
             301      conduct of such other business activities as may be authorized by this title.
             302          (3) (a) "Branch" means a place of business of a financial institution, other than its main
             303      office, at which deposits are received and paid.
             304          (b) "Branch" does not include:
             305          (i) an automated teller machine, as defined in Section 7-16a-102 ;
             306          (ii) a point-of-sale terminal, as defined in Section 7-16a-102 ; or


             307          (iii) a loan production office under Section 7-1-715 .
             308          (4) "Commissioner" means the Commissioner of Financial Institutions.
             309          (5) "Control" means the power, directly or indirectly, to:
             310          (a) direct or exercise a controlling influence over:
             311          (i) the management or policies of a financial institution; or
             312          (ii) the election of a majority of the directors or trustees of an institution;
             313          (b) vote 20% or more of any class of voting securities of a financial institution by an
             314      individual; or
             315          (c) vote more than 10% of any class of voting securities of a financial institution by a
             316      person other than an individual.
             317          (6) "Credit union" means a cooperative, nonprofit association incorporated under:
             318          (a) Chapter 9, Utah Credit Union Act; or
             319          (b) 12 U.S.C. Sec. 1751 et seq., Federal Credit Union Act, as amended.
             320          (7) "Department" means the Department of Financial Institutions.
             321          (8) "Depository institution" means a bank, savings and loan association, savings bank,
             322      industrial bank, credit union, or other institution that:
             323          (a) holds or receives deposits, savings, or share accounts;
             324          (b) issues certificates of deposit; or
             325          (c) provides to its customers other depository accounts that are subject to withdrawal
             326      by checks, drafts, or other instruments or by electronic means to effect third party payments.
             327          (9) (a) "Depository institution holding company" means:
             328          (i) a person other than an individual that:
             329          (A) has control over any depository institution; or
             330          (B) becomes a holding company of a depository institution under Section 7-1-703 ; or
             331          (ii) a person other than an individual that the commissioner finds, after considering the
             332      specific circumstances, is exercising or is capable of exercising a controlling influence over a
             333      depository institution by means other than those specifically described in this section.
             334          (b) Except as provided in Section 7-1-703 , a person is not a depository institution
             335      holding company solely because it owns or controls shares acquired in securing or collecting a
             336      debt previously contracted in good faith.
             337          (10) "Financial institution" means any institution subject to the jurisdiction of the


             338      department because of this title.
             339          (11) (a) "Financial institution holding company" means a person, other than an
             340      individual that has control over any financial institution or any person that becomes a financial
             341      institution holding company under this chapter, including an out-of-state or foreign depository
             342      institution holding company.
             343          (b) Ownership of a service corporation or service organization by a depository
             344      institution does not make that institution a financial institution holding company.
             345          (c) A person holding 10% or less of the voting securities of a financial institution is
             346      rebuttably presumed not to have control of the institution.
             347          (d) A trust company is not a holding company solely because it owns or holds 20% or
             348      more of the voting securities of a financial institution in a fiduciary capacity, unless the trust
             349      company exercises a controlling influence over the management or policies of the financial
             350      institution.
             351          (12) "Foreign depository institution" means a depository institution chartered or
             352      authorized to transact business by a foreign government.
             353          (13) "Foreign depository institution holding company" means the holding company of a
             354      foreign depository institution.
             355          (14) "Home state" means:
             356          (a) for a state chartered depository institution, the state that charters the institution;
             357          (b) for a federally chartered depository institution, the state where the institution's main
             358      office is located; and
             359          (c) for a depository institution holding company, the state in which the total deposits of
             360      all depository institution subsidiaries are the largest.
             361          (15) "Host state" means:
             362          (a) for a depository institution, a state, other than the institution's home state, where the
             363      institution maintains or seeks to establish a branch; and
             364          (b) for a depository institution holding company, a state, other than the depository
             365      institution holding company's home state, where the depository institution holding company
             366      controls or seeks to control a depository institution subsidiary.
             367          (16) "Industrial bank" means a corporation or limited liability company conducting the
             368      business of an industrial bank under Chapter 8, Industrial Banks.


             369          (17) "Industrial loan company" is as defined in Section 7-8-21 .
             370          (18) "Insolvent" means the status of a financial institution that is unable to meet its
             371      obligations as they mature.
             372          (19) "Institution" means:
             373          (a) a corporation;
             374          (b) a limited liability company;
             375          (c) a partnership;
             376          (d) a trust;
             377          (e) an association;
             378          (f) a joint venture;
             379          (g) a pool;
             380          (h) a syndicate;
             381          (i) an unincorporated organization; or
             382          (j) any form of business entity.
             383          (20) "Institution subject to the jurisdiction of the department" means an institution or
             384      other person described in Section 7-1-501 .
             385          (21) "Liquidation" means the act or process of winding up the affairs of an institution
             386      subject to the jurisdiction of the department by realizing upon assets, paying liabilities, and
             387      appropriating profit or loss, as provided in [Chapters 2 and 19] Chapter 2, Possession of
             388      Depository Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository
             389      Institutions or Holding Companies.
             390          (22) "Liquidator" means a person, agency, or instrumentality of this state or the United
             391      States appointed to conduct a liquidation.
             392          (23) (a) "Money services business" includes:
             393          (i) a check casher;
             394          (ii) a deferred deposit lender;
             395          (iii) an issuer or seller of traveler's checks or money orders; and
             396          (iv) a money transmitter.
             397          (b) "Money services business" does not include:
             398          (i) a bank;
             399          (ii) a person registered with, and functionally regulated or examined by the Securities


             400      Exchange Commission or the Commodity Futures Trading Commission, or a foreign financial
             401      agency that engages in financial activities that, if conducted in the United States, would require
             402      the foreign financial agency to be registered with the Securities Exchange Commission or the
             403      Commodity Futures Trading Commission; or
             404          (iii) an individual who engages in an activity described in Subsection (23)(a) on an
             405      infrequent basis and not for gain or profit.
             406          (24) "Negotiable order of withdrawal" means a draft drawn on a NOW account.
             407          (25) (a) "NOW account" means a savings account from which the owner may make
             408      withdrawals by negotiable or transferable instruments for the purpose of making transfers to
             409      third parties.
             410          (b) A "NOW account" is not a demand deposit.
             411          (c) Neither the owner of a NOW account nor any third party holder of an instrument
             412      requesting withdrawal from the account has a legal right to make withdrawal on demand.
             413          (26) "Out-of-state" means, in reference to a depository institution or depository
             414      institution holding company, an institution or company whose home state is not Utah.
             415          (27) "Person" means:
             416          (a) an individual;
             417          (b) a corporation;
             418          (c) a limited liability company;
             419          (d) a partnership;
             420          (e) a trust;
             421          (f) an association;
             422          (g) a joint venture;
             423          (h) a pool;
             424          (i) a syndicate;
             425          (j) a sole proprietorship;
             426          (k) an unincorporated organization; or
             427          (l) any form of business entity.
             428          (28) "Receiver" means a person, agency, or instrumentality of this state or the United
             429      States appointed to administer and manage an institution subject to the jurisdiction of the
             430      department in receivership, as provided in [Chapters 2 and 19] Chapter 2, Possession of


             431      Depository Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository
             432      Institutions or Holding Companies.
             433          (29) "Receivership" means the administration and management of the affairs of an
             434      institution subject to the jurisdiction of the department to conserve, preserve, and properly
             435      dispose of the assets, liabilities, and revenues of an institution in possession, as provided in
             436      [Chapters 2 and 19] Chapter 2, Possession of Depository Institution by Commissioner, and
             437      Chapter 19, Acquisition of Failing Depository Institutions or Holding Companies.
             438          (30) "Savings account" means any deposit or other account at a depository institution
             439      that is not a transaction account.
             440          (31) "Savings and loan association" means:
             441          (a) a federal savings and loan association; and
             442          (b) an out-of-state savings and loan association.
             443          (32) "Service corporation" or "service organization" means a corporation or other
             444      business entity owned or controlled by one or more financial institutions that is engaged or
             445      proposes to engage in business activities related to the business of financial institutions.
             446          (33) "State" means, unless the context demands otherwise:
             447          (a) a state;
             448          (b) the District of Columbia; or
             449          (c) the territories of the United States.
             450          (34) "Subsidiary" means a business entity under the control of an institution.
             451          (35) (a) "Transaction account" means a deposit, account, or other contractual
             452      arrangement in which a depositor, account holder, or other customer is permitted, directly or
             453      indirectly, to make withdrawals by:
             454          (i) check or other negotiable or transferable instrument;
             455          (ii) payment order of withdrawal;
             456          (iii) telephone transfer;
             457          (iv) other electronic means; or
             458          (v) any other means or device for the purpose of making payments or transfers to third
             459      persons.
             460          (b) "Transaction account" includes:
             461          (i) demand deposits;


             462          (ii) NOW accounts;
             463          (iii) savings deposits subject to automatic transfers; and
             464          (iv) share draft accounts.
             465          (36) "Trust company" means a person authorized to conduct a trust business, as
             466      provided in Chapter 5, Trust Business.
             467          (37) "Utah depository institution" means a depository institution whose home state is
             468      Utah.
             469          (38) "Utah depository institution holding company" means a depository institution
             470      holding company whose home state is Utah.
             471          Section 8. Section 7-1-403 is amended to read:
             472           7-1-403. Funds and balances paid to treasurer -- Separate account -- Use of
             473      funds.
             474          Unexpended balances and all funds accruing to the department shall be deposited by the
             475      commissioner with the state treasurer monthly and constitute a separate account within the
             476      General Fund. No part of the account may revert to the General Fund except an amount as
             477      required by law to be transferred for general government and administrative costs. With the
             478      approval of the director of the Division of Finance, the commissioner may withdraw sums from
             479      the account to pay costs and expenses of administration incurred in proceedings under Title 7,
             480      [Chapters 1, 2, and 19] Chapter 1, General Provisions, Chapter 2, Possession of Depository
             481      Institution by Commissioner, and Chapter 19, Acquisition of Failing Depository Institutions or
             482      Holding Companies, or to use in connection with the rehabilitation, reorganization, or
             483      liquidation of an institution under the jurisdiction of the department.
             484          Section 9. Section 7-1-616 is amended to read:
             485           7-1-616. Authority to accept transaction accounts -- Payment of instruments.
             486          (1) A financial institution may accept or advertise that it accepts transaction accounts
             487      only if authorized to do so under federal or state law. An institution may submit a written
             488      request for this authority to the commissioner, except that an institution authorized to accept
             489      transaction accounts as of June 1, 1994, does not, in the first instance, need to request or be
             490      granted any additional authority. The commissioner shall grant the authority if the
             491      commissioner finds that:
             492          (a) the institution has adequate capital and reserves in relation to the character and


             493      condition of its assets and its deposit and other liabilities;
             494          (b) the deposits and other accounts held by the institution are insured or guaranteed by
             495      an agency of the federal government; and
             496          (c) the management of the institution is qualified to handle transaction accounts.
             497          (2) The commissioner may revoke, limit, or condition an institution's authority to
             498      accept and handle transaction accounts upon a finding that:
             499          (a) the institution no longer meets the criteria set forth in Subsection (1); or
             500          (b) it would be contrary to the public interest and the soundness of the financial system
             501      of this state to allow the institution to continue to accept or handle transaction accounts without
             502      limitation or condition.
             503          (3) One or more depository institutions may, by written agreement, vary the terms of
             504      Title 70A, [Chapters 3 and 4] Chapter 3, Uniform Commercial Code - Negotiable Instruments,
             505      and Chapter 4, Uniform Commercial Code - Bank Deposits and Collections, for the purposes
             506      of facilitating the transfer, exchange, and prompt payment of instruments drawn on transaction
             507      accounts.    
             508          Section 10. Section 7-1-703 is amended to read:
             509           7-1-703. Restrictions on acquisition of institutions and holding companies --
             510      Enforcement.
             511          (1) Unless the commissioner gives prior written approval under Section 7-1-705 , no
             512      person may:
             513          (a) acquire, directly or indirectly, control of a depository institution or depository
             514      institution holding company subject to the jurisdiction of the department;
             515          (b) vote the stock of any depository institution or depository institution holding
             516      company subject to the jurisdiction of the department acquired in violation of Section 7-1-705 ;
             517          (c) acquire all or any portion of the assets of a depository institution or a depository
             518      institution holding company subject to the jurisdiction of the department;
             519          (d) assume all or any portion of the deposit liabilities of a depository institution subject
             520      to the jurisdiction of the department;
             521          (e) take any action that causes a depository institution to become a subsidiary of a
             522      depository institution holding company subject to the jurisdiction of the department;
             523          (f) take any action that causes a person other than an individual to become a depository


             524      institution holding company subject to the jurisdiction of the department;
             525          (g) acquire, directly or indirectly, the voting or nonvoting securities of a depository
             526      institution or a depository institution holding company subject to the jurisdiction of the
             527      department if the acquisition would result in the person obtaining more than 20% of the
             528      authorized voting securities of the institution if the nonvoting securities were converted into
             529      voting securities; or
             530          (h) merge or consolidate with a depository institution or depository institution holding
             531      company subject to the jurisdiction of the department.
             532          (2) Any person who willfully violates any provision of this section or any rule or order
             533      issued by the department under this section is subject to a civil penalty of not more than $1,000
             534      per day during which the violation continues. The commissioner may assess the civil penalty
             535      after giving notice and opportunity for hearing. The commissioner shall collect the civil
             536      penalty by bringing an action in the district court of the county in which the office of the
             537      commissioner is located. Any applicant for approval of an acquisition is considered to have
             538      consented to the jurisdiction and venue of the court by filing an application for approval.
             539          (3) The commissioner may secure injunctive relief to prevent any change in control or
             540      impending violation of this section.
             541          (4) The commissioner may lengthen or shorten any time period specified in Section
             542      7-1-705 if the commissioner finds it necessary to protect the public interest.
             543          (5) The commissioner may exempt any class of financial institutions from this section
             544      by rule if the commissioner finds the exception to be in the public interest.
             545          (6) The prior approval of the commissioner under Section 7-1-705 is not required for
             546      the acquisition by a person other than an individual of voting securities or assets of a depository
             547      institution or a depository institution holding company that are acquired by foreclosure or
             548      otherwise in the ordinary course of collecting a debt previously contracted in good faith if these
             549      voting securities or assets are divested within two years of acquisition. The commissioner may,
             550      upon application, extend the two-year period of divestiture for up to three additional one-year
             551      periods if, in the commissioner's judgment, the extension would not be detrimental to the
             552      public interest. The commissioner may adopt rules to implement the intent of this Subsection
             553      (6).
             554          (7) (a) An out-of-state depository institution without a branch in Utah, or an


             555      out-of-state depository institution holding company without a depository institution in Utah,
             556      may acquire:
             557          (i) a Utah depository institution only if it has been in existence for at least five years; or
             558          (ii) a Utah branch of a depository institution only if the branch has been in existence
             559      for at least five years.
             560          (b) For purposes of Subsection (7)(a), a depository institution chartered solely for the
             561      purpose of acquiring another depository institution is considered to have been in existence for
             562      the same period as the depository institution to be acquired, so long as it does not open for
             563      business at any time before the acquisition.
             564          (c) The commissioner may waive the restriction in Subsection (7)(a) in the case of a
             565      depository institution that is subject to, or is in danger of becoming subject to, supervisory
             566      action under Chapter 2, Possession of Depository Institution by Commissioner, or Chapter 19,
             567      Acquisitions of Failing Repository Institutions or Holding Companies, or, if applicable, the
             568      equivalent provisions of federal law or the law of the institution's home state.
             569          (d) The restriction in Subsection (7)(a) does not apply to an acquisition of, or merger
             570      transaction between, affiliate depository institutions.
             571          Section 11. Section 7-1-710 is amended to read:
             572           7-1-710. "Agency" defined -- Purposes and establishment of agency.
             573          (1) As used in this section, "agency" means a place, person, or facility, stationary or
             574      mobile, other than the home office or a branch office[,]:
             575          (a) where functions of the financial institution not involving the receiving or paying of
             576      deposits, making of loans or the handling of cash may be performed[,];
             577          (b) established for individual transactions and for special temporary purposes[,];
             578          (c) established for the purposes set forth in Sections 7-1-608 and 7-1-609 [,]; or
             579          (d) established to perform the functions of a financial institution service corporation.
             580          (2) A financial institution may establish one or more agencies without the prior written
             581      approval of the commissioner. Within 30 days of the establishment of an agency, the financial
             582      institution shall inform the commissioner in writing of the address of the agency and the
             583      specific functions for which it was established.
             584          (3) No agency may be converted to a branch without compliance with Section 7-1-708 .
             585          Section 12. Section 7-1-802 is amended to read:


             586           7-1-802. Confidentiality of information received by department -- Availability of
             587      information.
             588          (1) The commissioner shall receive and place on file in the department's office all
             589      reports required by law and shall certify all reports required to be published.
             590          (2) Except as provided in this section, the following are confidential, not public
             591      records, and not open to public inspection:
             592          (a) all reports received or prepared by the department;
             593          (b) all information obtained from an institution or person under the jurisdiction of the
             594      department; and
             595          (c) all orders and related records of the department.
             596          (3) The following records and information are public and are open to public inspection:
             597          (a) reports of condition required by Section 7-1-318 ;
             598          (b) information that is otherwise generally available to the public; and
             599          (c) information contained in, and final decisions on, an application filed under Sections
             600      7-1-702 , 7-1-703 , 7-1-704 , 7-1-705 , 7-1-706 , 7-1-708 , 7-1-709 , 7-1-712 , 7-1-713 , or Chapter
             601      19, Acquisitions of Failing Repository Institutions or Holding Companies, excluding:
             602          (i) proprietary information, business plans, and personal financial information; and
             603          (ii) information for which:
             604          (A) the applicant requests confidentiality; and
             605          (B) the commissioner grants the request for confidentiality.
             606          (4) The department may disclose records and information that are not public to the
             607      following:
             608          (a) to an agency or authority:
             609          (i) that regulates:
             610          (A) the subject of the record; or
             611          (B) an affiliate of the subject of the record, as defined by the commissioner by rule; and
             612          (ii) is of:
             613          (A) the federal government;
             614          (B) the state; or
             615          (C) another state;
             616          (b) to a federal deposit insurance agency;


             617          (c) to an official legally authorized to investigate criminal charges in connection with
             618      the affairs of the subject of the record, and to any tribunal conducting legal proceedings
             619      resulting from such an investigation;
             620          (d) to a person preparing a proposal for merging or acquiring an institution under
             621      [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or Chapter
             622      19, Acquisition of Failing Repository Institutions or Holding Companies, but only after the
             623      department provides notice of the disclosure to the institution;
             624          (e) to any other person, if the commissioner determines, after notice to the institution
             625      or person that is the subject of the record and opportunity for hearing, that the interests favoring
             626      disclosure of the information outweigh the interests favoring confidentiality of the information;
             627      and
             628          (f) to any court in a proceeding under:
             629          (i) Sections 7-1-304 , 7-1-320 , 7-1-322 ; or
             630          (ii) a supervisory action under [Chapter 2 or 19] Chapter 2, Possession of Depository
             631      Institution by Commissioner, or Chapter 19, Acquisition of Failing Repository Institutions or
             632      Holding Companies.
             633          (5) The commissioner may limit the use and further disclosure of any information
             634      disclosed under Subsection (4):
             635          (a) to protect the business confidentiality interest of the subject of the record; and
             636          (b) to protect the public interest, such as to avoid:
             637          (i) a liquidity crisis in a depository institution; or
             638          (ii) undue speculation in securities or currency markets.
             639          (6) The department shall disclose information in the manner and to the extent directed
             640      by a court order signed by a judge from a court of competent jurisdiction if:
             641          (a) the disclosure does not violate applicable federal or state law;
             642          (b) the information to be disclosed deals with a matter in controversy over which the
             643      court has jurisdiction;
             644          (c) the person requesting the order has provided reasonable prior written notice to the
             645      commissioner;
             646          (d) the court has considered the merits of the request for disclosure and has determined
             647      that the interests favoring disclosure of the information outweigh the interests favoring


             648      confidentiality of the information; and
             649          (e) the court has appropriately limited the use and further disclosure of the information:
             650          (i) to protect the business confidentiality interest of the subject of the record; and
             651          (ii) to protect the public interest, such as to avoid:
             652          (A) a liquidity crisis in a depository institution; or
             653          (B) undue speculation in securities or currency markets.
             654          Section 13. Section 7-2-1 is amended to read:
             655           7-2-1. Supervisory actions by commissioner -- Grounds -- Mergers or acquisitions
             656      authorized by commissioner -- Possession of business and property taken by
             657      commissioner.
             658          (1) An institution under the jurisdiction of the department is subject to supervisory
             659      actions by the commissioner under this chapter or Chapter 19, Acquisition of Failing
             660      Repository Institutions or Holding Companies, if the commissioner, with or without an
             661      administrative hearing, finds that:
             662          (a) the institution is not in a safe and sound condition to transact its business;
             663          (b) an officer of the institution or other person has refused to be examined or has made
             664      false statements under oath regarding its affairs;
             665          (c) the institution or other person has violated its articles of incorporation or any law,
             666      rule, or regulation governing the institution or other person;
             667          (d) the institution or other person is conducting its business in an unauthorized or
             668      unsafe manner, or is practicing deception upon its depositors, members, or the public, or is
             669      engaging in conduct injurious to its depositors, members, or the public;
             670          (e) the institution or other person has been notified by its primary account insurer of the
             671      insurer's intention to initiate proceedings to terminate insurance;
             672          (f) the institution or other person has failed to maintain a minimum amount of capital
             673      as required by the department, any state, or the relevant federal regulatory agency;
             674          (g) the institution or other person is a depository institution that has failed or refused to
             675      pay its depositors in accordance with the terms under which the deposits were received, or has
             676      or is about to become insolvent;
             677          (h) the institution or other person or its officers or directors have failed or refused to
             678      comply with the terms of a legally authorized order issued by the commissioner or by any


             679      federal authority or authority of another state having jurisdiction over the institution or other
             680      person;
             681          (i) the institution or other person or its officers or directors have failed or refused, upon
             682      proper demand, to submit its records, books, papers, and affairs for inspection to the
             683      commissioner or to a supervisor or an examiner of the department;
             684          (j) the institution or other person or its officers or directors, after 30 days written
             685      notice, have failed to comply with or have continued to violate this title or any rule or
             686      regulation of the department issued under it;
             687          (k) any person who controls the institution or other person subject to the jurisdiction of
             688      the department has used the control to cause the institution or other person to be or about to be
             689      in an unsafe or unsound condition, to conduct its business in an unauthorized or unsafe manner,
             690      or to violate this title or any rule or regulation of the department issued under it; or
             691          (l) the remedies provided in Section 7-1-307 , 7-1-308 , or 7-1-313 are ineffective or
             692      impracticable to protect the interest of depositors, creditors, or members of the institution or
             693      other person, or to protect the interests of the public.
             694          (2) The commissioner may take any action described in Subsection (3) if:
             695          (a) he finds that:
             696          (i) any of the conditions set forth in Subsection (1) exist with respect to an institution
             697      under the jurisdiction of the department; and
             698          (ii) an order issued pursuant to Section 7-1-307 , 7-1-308 , or 7-1-313 would not
             699      adequately protect the interests of the institution's depositors, creditors, members, or other
             700      interested persons from all dangers presented by the conditions found to exist; or
             701          (b) two-thirds of the voting shares of an institution under the jurisdiction of the
             702      department that are eligible to be voted at any regular or special meeting of the shareholders of
             703      the institution are voted at the meeting in favor of a resolution consenting to the commissioner
             704      taking or causing to be taken any of the actions described below.
             705          (3) After making the requisite findings or receiving the consenting vote of shareholders
             706      under Subsection (2), the commissioner may:
             707          (a) without taking possession of the institution, authorize, or by order require or give
             708      effect to the acquisition of control of, the merger with, the acquisition of all or a portion of the
             709      assets of, or the assumption of all or a portion of the liabilities of the institution or other person


             710      by any other institution or entity approved or designated by the commissioner in accordance
             711      with Chapter 19, Acquisition of Failing Repository Institutions or Holding Companies; or
             712          (b) take possession of the institution or other person subject to the jurisdiction of the
             713      department with or without a court order if an acquisition of control of, a merger with, an
             714      acquisition of all or a portion of the assets of, or an assumption of all or a portion of the
             715      liabilities of the institution or other person without taking possession does not appear to the
             716      commissioner to be practicable.
             717          (4) Upon taking possession of an institution or the person, the commissioner is vested
             718      by operation of law with the title to and the right to possession of all assets, the business, and
             719      property of the institution or other person subject to court order made under Section 7-2-3 .
             720      While in possession of an institution or other person, the commissioner or any receiver or
             721      liquidator appointed by him may exercise any or all of the rights, powers, and authorities
             722      granted to the commissioner under this chapter, or may give effect to the acquisition of control
             723      of, the merger with, the acquisition of all or a portion of the assets of, or the assumption of all
             724      or a portion of the liabilities of an institution or other person subject to the jurisdiction of the
             725      department, under the provisions of Chapter 19, Acquisition of Failing Repository Institutions
             726      or Holding Companies.
             727          (5) An action of the commissioner under this section may only be enjoined or set aside
             728      upon a finding, after notice and hearing, that the action is arbitrary, capricious, an abuse of
             729      discretion, or otherwise contrary to law.
             730          Section 14. Section 7-2-2 is amended to read:
             731           7-2-2. Jurisdiction of district court -- Supervision of actions of commissioner in
             732      possession -- Authority of commissioner and court.
             733          (1) The district court for the county in which the principal office of the institution or
             734      other person is situated has jurisdiction in the liquidation or reorganization of the institution or
             735      other person of which the commissioner has taken possession under this chapter or Chapter 19,
             736      Acquisition of Failing Repository Institutions or Holding Companies. As used in this chapter,
             737      "court" means the court given jurisdiction by this provision.
             738          (2) Before taking possession of an institution or other person under his jurisdiction, or
             739      within a reasonable time after taking possession of an institution or other person without court
             740      order, as provided in this chapter, the commissioner shall cause to be commenced in the


             741      appropriate district court, an action to provide the court supervisory jurisdiction to review the
             742      actions of the commissioner.
             743          (3) The actions of the commissioner are subject to review of the court. The court has
             744      jurisdiction to hear all objections to the actions of the commissioner and may rule upon all
             745      motions and actions coming before it. Standing to seek review of any action of the
             746      commissioner or any receiver or liquidator appointed by him is limited to persons whose rights,
             747      claims, or interests in the institution would be adversely affected by the action.
             748          (4) The authority of the commissioner under this chapter is of an administrative and
             749      not judicial receivership. The court may not overrule a determination or decision of the
             750      commissioner if it is not arbitrary, capricious, fraudulent, or contrary to law. If the court
             751      overrules an action of the commissioner, the matter shall be remanded to the commissioner for
             752      a new determination by him, and the new determination shall be subject to court review.
             753          Section 15. Section 7-2-12 is amended to read:
             754           7-2-12. Powers of commissioner in possession -- Sale of assets -- Postpossession
             755      financing -- New deposit instruments -- Executory contracts -- Transfer of property --
             756      Avoidance of transfers -- Avoidable preferences -- Setoff.
             757          (1) Upon taking possession of the institution, the commissioner may do all things
             758      necessary to preserve its assets and business, and shall rehabilitate, reorganize, or liquidate the
             759      affairs of the institution in a manner he determines to be in the best interests of the institution's
             760      depositors and creditors. Any such determination by the commissioner may not be overruled
             761      by a reviewing court unless it is found to be arbitrary, capricious, fraudulent, or contrary to law.
             762      In the event of a liquidation, he shall collect all debts due and claims belonging to it, and may
             763      compromise all bad or doubtful debts. He may sell, upon terms he may determine, any or all of
             764      the property of the institution for cash or other consideration. The commissioner shall give
             765      such notice as the court may direct to the institution of the time and place of hearing upon an
             766      application to the court for approval of the sale. The commissioner shall execute and deliver to
             767      the purchaser of any property of the institution sold by him those deeds or instruments
             768      necessary to evidence the passing of title.
             769          (2) With approval of the court and upon terms and with priority determined by the
             770      court, the commissioner may borrow money and issue evidence of indebtedness. To secure
             771      repayment of the indebtedness, he may mortgage, pledge, transfer in trust, or hypothecate any


             772      or all of the property of the institution superior to any charge on the property for expenses of
             773      the proceeding as provided in Section 7-2-14 . These loans may be obtained for the purpose of
             774      facilitating liquidation, protecting or preserving the assets in the charge of the commissioner,
             775      expediting the making of distributions to depositors and other claimants, aiding in the
             776      reopening or reorganization of the institution or its merger or consolidation with another
             777      institution, or the sale of all of its assets. Neither the commissioner nor any special deputy or
             778      other person lawfully in charge of the affairs of the institution is under any personal obligation
             779      to repay those loans. The commissioner may take any action necessary or proper to
             780      consummate the loan and to provide for its repayment and to give bond when required for the
             781      faithful performance of all undertakings in connection with it. The commissioner or special
             782      deputy shall make application to the court for approval of any loan proposed under this section.
             783      Notice of hearing upon the application shall be given as the court directs. At the hearing upon
             784      the application any stockholder or shareholder of the institution or any depositor or other
             785      creditor of the institution may appear and be heard on the application. Prior to the obtaining of
             786      a court order, the commissioner or special deputy in charge of the affairs of the institution may
             787      make application or negotiate for the loan or loans subject to the obtaining of the court order.
             788          (3) With the approval of the court pursuant to a plan of reorganization or liquidation
             789      under Section 7-2-18 , the commissioner may provide for depositors to receive new deposit
             790      instruments from a depository institution that purchases or receives some or all of the assets of
             791      the institution in the possession of the commissioner. All new deposit instruments issued by
             792      the acquiring depository institution may, in accordance with the terms of the plan of
             793      reorganization or liquidation, be subject to different amounts, terms, and interest rates than the
             794      original deposit instruments of the institution in the possession of the commissioner. All
             795      deposit instruments issued by the acquiring institution shall be considered new deposit
             796      obligations of the acquiring institution. The original deposit instruments issued by the
             797      institution in the possession of the commissioner are not liabilities of the acquiring institution,
             798      unless assumed by the acquiring institution. Unpaid claims of depositors against the institution
             799      in the possession of the commissioner continue, and may be provided for in the plan of
             800      reorganization or liquidation.
             801          (4) The commissioner, after taking possession of any institution or other person subject
             802      to the jurisdiction of the department, may terminate any executory contract, including standby


             803      letters of credit, unexpired leases and unexpired employment contracts, to which the institution
             804      or other person is a party. If the termination of an executory contract or unexpired lease
             805      constitutes a breach of the contract or lease, the date of the breach is the date on which the
             806      commissioner took possession of the institution. Claims for damages for breach of an
             807      executory contract shall be filed within 30 days of receipt of notice of the termination, and if
             808      allowed, shall be paid in the same manner as all other allowable claims of the same priority out
             809      of the assets of the institution available to pay claims.
             810          (5) With approval of the court and upon a showing by the commissioner that it is in the
             811      best interests of the depositors and creditors, the commissioner may transfer property on
             812      account of an indebtedness incurred by the institution prior to the date of the taking.
             813          (6) (a) The commissioner may avoid any transfer of any interest of the institution in
             814      property or any obligation incurred by the institution that is void or voidable by a creditor under
             815      Title 25, Chapter 6, Uniform Fraudulent Transfer Act.
             816          (b) The commissioner may avoid any transfer of any interest in real property of the
             817      institution that is void as against or voidable by a subsequent purchaser in good faith and for a
             818      valuable consideration of the same real property or any portion thereof who has duly recorded
             819      his conveyance at the time possession of the institution is taken, whether or not such a
             820      purchaser exists.
             821          (c) The commissioner may avoid any transfer of any interest in property of the
             822      institution or any obligation incurred by the institution that is invalid or void as against, or is
             823      voidable by a creditor that extends credit to the institution at the time possession of the
             824      institution is taken by the commissioner, and that obtains, at such time and with respect to such
             825      credit, a judgment lien or a lien by attachment, levy, execution, garnishment, or other judicial
             826      lien on the property involved, whether or not such a creditor exists.
             827          (d) The right of the commissioner under Subsections (6)(b) and (c) to avoid any
             828      transfer of any interest in property of the institution shall be unaffected by and without regard
             829      to any knowledge of the commissioner or of any creditor of the institution.
             830          (e) "Transfer" means every mode, direct or indirect, absolute or conditional, voluntary
             831      or involuntary, or disposing of or parting with property or with an interest in property,
             832      including retention of title as a security interest.
             833          (f) The commissioner may avoid and recover any payment or other transfer of any


             834      interest in property of the institution to or for the benefit of a creditor, for or on account of an
             835      antecedent debt owed by the institution before the transfer was made if the creditor at the time
             836      of such transfer had reasonable cause to believe that the institution was insolvent, and if the
             837      payment or other transfer will allow the creditor to obtain a greater percentage of his debt than
             838      he would be entitled to under the provisions of Section 7-2-15 . For the purposes of this
             839      subsection:
             840          (i) antecedent debt does not include earned wages and salaries and other operating
             841      expenses incurred and paid in the normal course of business;
             842          (ii) a transfer of any interest in real property is deemed to have been made or suffered
             843      when it became so far perfected that a subsequent good faith purchaser of the property from the
             844      institution for a valuable consideration could not acquire an interest superior to the transferee;
             845      and
             846          (iii) a transfer of property other than real property is deemed to have been made or
             847      suffered when it became so far perfected that a creditor on a simple contract could not acquire a
             848      lien by attachment, levy, execution, garnishment, or other judicial lien superior to the interest
             849      of the transferee.
             850          (g) For purposes of this section, "date of possession" means the earlier of the date the
             851      commissioner takes possession of a financial institution under Title 7, Chapter 2, Possession of
             852      Depository Institution by Commissioner, or the date when the commissioner enters an order
             853      suspending payments to depositors and other creditors under Section 7-2-19 .
             854          (7) (a) With or without the prior approval of the court, the commissioner or any federal
             855      deposit insurance agency appointed by him as receiver or liquidator of a depository institution
             856      closed by the commissioner under the provisions of this chapter may setoff against the deposits
             857      or other liabilities of the institution any debts or other obligations of the depositor or claimant
             858      due and owing to the institution. The amount of any setoff against the liabilities of the
             859      institution shall be no greater than the amount the depositor or claimant would receive pursuant
             860      to Section 7-2-15 after final liquidation of the institution. When the liquidation value of a
             861      depositor's or claimant's claim against the institution will or may be less than the full amount of
             862      the claim, setoff may be made prior to final liquidation if the commissioner or any receiver or
             863      liquidator appointed by him can reasonably estimate the liquidation value of the claim, and the
             864      court, after notice and opportunity for hearing, approves the estimate for purposes of making


             865      the setoff. If the right of setoff is exercised, the commissioner or any receiver or liquidator
             866      appointed by him shall give written notice to the depositor or claimant of the amount setoff.
             867          (b) The existence and amount of a debtor or creditor relationship or both, between the
             868      institution and its depositor or claimant and the right to the proceeds in a deposit account shall
             869      be determined solely by the books and records of the institution.
             870          (c) Any contract purporting to affect the right of setoff shall be in writing and signed by
             871      the depositor-debtor and an authorized officer of the institution and be maintained as a part of
             872      the records of the institution.
             873          (d) Any claim that a deposit account is a special account not subject to setoff because it
             874      was maintained for a specific purpose or to satisfy a particular obligation other than satisfaction
             875      of or as security for an indebtedness to the institution or that the right to the deposit actually
             876      belongs to a third party does not affect the right to setoff of the commissioner or any receiver or
             877      liquidator appointed by him unless the special nature of the account is clearly shown in the
             878      books and records of the institution.
             879          (e) In the absence of any other instrument in writing, the terms and provisions of the
             880      signature card applicable to a particular account in effect at the time the commissioner takes
             881      possession of the institution shall be determinative of the right of setoff by the commissioner or
             882      any receiver or liquidator appointed by him.
             883          (f) Knowledge of the institution or of any director, officer, or employee of the
             884      institution that the nature of the account is other than as shown in the books and records of the
             885      institution does not affect the right of setoff by the commissioner or any receiver or liquidator
             886      appointed by him.
             887          (g) The liability of the commissioner or any receiver or liquidator appointed by him for
             888      exercising a right of setoff other than as authorized by this section shall be only to a person
             889      who establishes by the procedure set forth in Section 7-2-6 that his interest in the account is
             890      superior to that of the person whose debt to the institution was setoff against the account. The
             891      amount of any such liability shall be no greater than the amount of the setoff and neither the
             892      commissioner or any receiver or liquidator appointed by him shall be liable for any action taken
             893      under this section unless the action taken is determined by the court to be arbitrary or
             894      capricious.
             895          Section 16. Section 7-3-1 is amended to read:


             896           7-3-1. Application of chapter.
             897          This chapter applies to all banks organized under the laws of this state, to all other
             898      banks doing business in this state as permitted by the laws and Constitution of the United
             899      States, and to all persons conducting banking business in this state except as provided in
             900      Chapter 1, General Provisions.
             901          Section 17. Section 7-5-2 is amended to read:
             902           7-5-2. Permit required to engage in trust business -- Exceptions.
             903          (1) No trust company shall accept any appointment to act in any agency or fiduciary
             904      capacity, including that of personal representative, executor, administrator, conservator,
             905      guardian, assignee, receiver, depositary, or trustee under order or judgment of any court or by
             906      authority of any law of this state or as trustee for any purpose permitted by law or otherwise
             907      engage in the trust business in this state, unless and until it has obtained from the commissioner
             908      a permit to act under this chapter. This provision does not apply to any bank or other
             909      corporation authorized to engage and lawfully engaged in the trust business in this state before
             910      July 1, 1981.
             911          (2) Nothing in this chapter prohibits:
             912          (a) any corporation organized under Title 16, Chapter 6a [or 10a], Utah Revised
             913      Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from
             914      acting as trustee of any employee benefit trust established for the employees of the corporation
             915      or the employees of one or more other corporations affiliated with the corporation;
             916          (b) any corporation organized under Title 16, Chapter 6a, Utah Revised Nonprofit
             917      Corporation Act, and owned or controlled by a charitable, benevolent, eleemosynary, or
             918      religious organization from acting as a trustee for that organization or members of that
             919      organization but not offering trust services to the general public;
             920          (c) any corporation organized under Title 16, Chapter 6a [or 10a], Utah Revised
             921      Nonprofit Corporation Act, or Chapter 10a, Utah Revised Business Corporation Act, from
             922      holding in a fiduciary capacity the controlling shares of another corporation but not offering
             923      trust services to the general public; or
             924          (d) any depository institution from holding in an agency or fiduciary capacity
             925      individual retirement accounts or Keogh plan accounts established under Section 401(a) or
             926      408(a) of Title 26 of the United States Code.


             927          Section 18. Section 7-5-6 is amended to read:
             928           7-5-6. Confidentiality of communications and writings concerning trust -- Actions
             929      to protect property or authorized under probate laws not precluded.
             930          Any trust company exercising the powers and performing the duties described in this
             931      chapter shall keep inviolate all communications and writings made to or by that trust company
             932      relating to the existence, condition, management or administration of any agency or fiduciary
             933      account confided to it and no creditor or stockholder of any such trust company shall be
             934      entitled to disclosure or knowledge of any such communication or writing, except that the
             935      directors, president, vice president, manager, treasurer, and trust officers, and any employees
             936      assigned to work on the trust business, and the attorney or auditor employed by it shall be
             937      entitled to knowledge of any such communication or writing and except that in any suit or
             938      proceeding relating to the existence, condition, management or administration of the account,
             939      the court in which the suit is pending may require disclosure of any such communication or
             940      writing. A trust company is not, however, precluded from filing an action in court to protect
             941      trust account property or as authorized under Title 75, Utah Uniform Probate Code.
             942          Section 19. Section 7-5-7 is amended to read:
             943           7-5-7. Management and investment of trust funds.
             944          (1) Funds received or held by any trust company as agent or fiduciary, whether for
             945      investment or distribution, shall be invested or distributed as soon as practicable as authorized
             946      under the instrument creating the account and may not be held uninvested any longer than is
             947      reasonably necessary.
             948          (2) If the instrument creating an agency or fiduciary account contains provisions
             949      authorizing the trust company, its officers, or its directors to exercise their discretion in the
             950      matter of investments, funds held in the trust account under that instrument may be invested
             951      only in those classes of securities which are approved by the directors of the trust company or a
             952      committee of directors appointed for that purpose. If a trust company acts in any agency or
             953      fiduciary capacity under appointment by a court of competent jurisdiction, it shall make and
             954      account for all investments according to the provisions of Title 75, Utah Uniform Probate
             955      Code, unless the underlying instrument provides otherwise.
             956          (3) (a) Funds received or held as agent or fiduciary by any trust company which is also
             957      a depository institution, whether for investment or distribution, may be deposited in the


             958      commercial department or savings department of that trust company to the credit of its trust
             959      department. Whenever the funds so deposited in a fiduciary or managing agency account
             960      exceed the amount of federal deposit insurance applicable to that account, the trust company
             961      shall deliver to the trust department or put under its control collateral security as outlined in
             962      Regulation 9.10 of the Comptroller of the Currency or in Regulation 550.8 of the Office of
             963      Thrift Supervision, as amended. However, if the instrument creating such a fiduciary or
             964      managing agency account expressly provides that funds may be deposited to the commercial or
             965      savings department of the trust company, then the funds may be so deposited without setting
             966      aside collateral securities as required under this section and the deposits in the event of
             967      insolvency of any such trust company shall be treated as other general deposits are treated. A
             968      trust company which deposits trust funds in its commercial or savings department shall be
             969      liable for interest on the deposits only at the rates, if any, paid by the trust company on deposits
             970      of like kind not made to the credit of its trust department.
             971          (b) Funds received or held as agent or fiduciary by a trust company, whether for
             972      investment or distribution, may be deposited in an affiliated depository institution. Whenever
             973      the funds so deposited in a fiduciary or managing agency account exceed the amount of federal
             974      deposit insurance applicable to that account, the depository institution shall deliver to the trust
             975      company or put under its control collateral security as outlined in Regulation 9.10 of the
             976      Comptroller of the Currency or in Regulation 550.8 of the Office of Thrift Supervision as
             977      amended. However, if the instrument creating the fiduciary or managing agency account
             978      expressly permits funds to be deposited in the affiliated depository institution, the funds may be
             979      so deposited without setting aside collateral securities as required under this section and
             980      deposits in the event of insolvency of the depository institution shall be treated as other general
             981      deposits are treated. A trust company which deposits trust funds in an affiliated depository
             982      institution is liable for interest on the deposits only at the rates, if any, paid by the depository
             983      institution on deposits of like kind.
             984          (4) In carrying out all aspects of its trust business, a trust company shall have all the
             985      powers, privileges, and duties as set forth in Sections 75-7-813 and 75-7-814 with respect to
             986      trustees, whether or not the trust company is acting as a trustee as defined in Title 75, Utah
             987      Uniform Probate Code.
             988          (5) Nothing in this section may alter, amend, or limit the powers of a trust company


             989      acting in a fiduciary capacity as specified in the particular instrument or order creating the
             990      fiduciary relationship.
             991          Section 20. Section 7-5-8 is amended to read:
             992           7-5-8. Segregation of trust assets -- Books and records required -- Examination --
             993      Trust property not subject to claims or debts against trust company.
             994          A trust company exercising the powers to act as an agent or fiduciary under this chapter
             995      shall segregate all assets held in any agency or fiduciary capacity from the general assets of the
             996      company and shall keep a separate set of books and records showing in proper detail all
             997      transactions engaged in under authority of this chapter. These books and records shall be open
             998      to inspection by the commissioner and shall be examined by him or by examiners appointed by
             999      him as provided in Chapter 1, General Provisions, or examined by other appropriate regulating
             1000      agencies or both. Property held in an agency or fiduciary capacity by a trust company is not
             1001      subject to claims or debts against the trust company.
             1002          Section 21. Section 7-5-11 is amended to read:
             1003           7-5-11. Self-dealing with trust property -- Own stock as trust property -- Policies
             1004      for dealing with trust securities.
             1005          (1) Except as provided in Section 7-5-7 , in Title 75, Utah Uniform Probate Code, or as
             1006      authorized under the instrument creating the relationship, a trust company may not invest funds
             1007      held as an agent or fiduciary in stock or obligations of, or with such funds acquire property
             1008      from, the trust company or any of its directors, officers or employees, nor shall a trust company
             1009      sell property held as an agent or fiduciary to the company or to any of its directors, officers, or
             1010      employees.
             1011          (2) A trust company may retain and vote stock of the trust company or of any of its
             1012      affiliates received by it as assets of any trust account or in any other fiduciary relationship of
             1013      which it is appointed agent or fiduciary, unless the instrument creating the relationship
             1014      otherwise provides.
             1015          (3) Every trust company shall adopt written policies and procedures regarding
             1016      decisions or recommendations to purchase or sell any security to facilitate compliance with
             1017      federal and state securities laws. These policies and procedures, in particular, shall prohibit the
             1018      trust company from using material inside information in connection with any decision or
             1019      recommendation to purchase or sell any security.


             1020          Section 22. Section 7-5-15 is amended to read:
             1021           7-5-15. Assets of trust company in possession of the commissioner.
             1022          With respect to a trust company in the possession of the commissioner under Chapter 2,
             1023      Possession of Depository Institution by Commissioner, notwithstanding any law to the
             1024      contrary, the assets held by the trust company in a fiduciary capacity as a part of its trust
             1025      business, as defined in Section 7-5-1 , are not subject to the claims of any secured or unsecured
             1026      creditor of the trust company.
             1027          Section 23. Section 7-9-25 is amended to read:
             1028           7-9-25. Shares -- Number unlimited -- Subscription and payment -- Par value --
             1029      Ownership required for membership -- Dormant accounts.
             1030          (1) The capital of the credit union shall be unlimited in amount.
             1031          (2) Shares of the credit union may be subscribed and paid for in cash or its equivalent
             1032      in a manner prescribed in the bylaws.
             1033          (3) The par value of each share of a credit union shall be determined by the board of
             1034      directors in multiples of $5 as prescribed in the bylaws.
             1035          (4) Each member of the credit union shall subscribe to at least one share and pay the
             1036      initial installment thereon. The par value of the share shall be paid for within six months.
             1037          (5) The board of directors may close a member's account when the share par value is
             1038      not paid within the required period or the par value is not maintained. Notice in writing shall be
             1039      mailed to the member at the last known address and shall contain a statement that the member
             1040      may increase payment or voluntarily close the account within 60 days of receipt of the notice.
             1041          (6) When a member's account becomes dormant or is reasonably presumed to be
             1042      dormant and abandoned, as provided in Chapter 1, General Provisions, the credit union by
             1043      resolution of the board of directors may close the account and transfer the credits of the account
             1044      to an account for unclaimed shares. Thereafter the credit union may not pay dividends or
             1045      interest on the account, as provided in the bylaws, until the funds in the account escheat to the
             1046      state of Utah. Prior to transferring the member's dormant and abandoned account to the credit
             1047      union unclaimed shares account, the credit union shall mail a written notice to the member at
             1048      the member's last known address stating that this action will be taken within 30 days of the date
             1049      of the notice.
             1050          Section 24. Section 7-9-39.5 is amended to read:


             1051           7-9-39.5. Supervisory merger.
             1052          If a credit union is merged with another credit union as a result of a supervisory action
             1053      under [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or
             1054      Chapter 19, Acquisition of Failing Repository Institutions or Holding Companies, the
             1055      commissioner may permit the surviving credit union to have a field of membership that is
             1056      larger than a field of membership permitted under Section 7-9-51 .
             1057          Section 25. Section 7-9-42 is amended to read:
             1058           7-9-42. Record requirements.
             1059          (1) A credit union shall maintain all books, records, accounting systems, and procedures
             1060      in accordance with rules the commissioner may prescribe or in accordance with Chapter 1,
             1061      General Provisions.
             1062          (2) In prescribing these rules, the commissioner shall consider the size of a credit union
             1063      and its ability to comply.
             1064          (3) A credit union is not liable for destroying records after the expiration of the record
             1065      retention time prescribed by the rules.
             1066          (4) A photostatic or photographic reproduction of any credit union records shall be
             1067      admissible as evidence of transactions with the credit union.
             1068          Section 26. Section 7-9-45 is amended to read:
             1069           7-9-45. Insurance of shares and deposits -- Security on shares and deposits.
             1070          (1) Except as provided in Subsection (2), a credit union subject to the jurisdiction of the
             1071      department shall obtain and maintain insurance on shares and deposits from the National Credit
             1072      Union Administration or successor federal deposit insurance agency.
             1073          (2) Notwithstanding Subsection 7-1-704 (7)(a)(v) and Subsection (1), a credit union
             1074      may not be required to obtain federal insurance on shares and deposits if:
             1075          (a) the commissioner approves the credit union's election not to obtain federal
             1076      insurance on shares and deposits;
             1077          (b) as security for the shares and deposits, the credit union maintains securities:
             1078          (i) that are issued by or directly and unconditionally guaranteed by:
             1079          (A) the United States; or
             1080          (B) an agency of the United States;
             1081          (ii) that are held in an account with a primary reporting dealer that is:


             1082          (A) recognized by the Federal Reserve Bank of New York; and
             1083          (B) independent of the credit union;
             1084          (iii) that are held in accordance with Title 70A, Chapter 8, Uniform Commercial Code
             1085      - Investment Securities; and
             1086          (iv) in which the department has an express and exclusive security interest; and
             1087          (c) the aggregate value of the securities described in Subsection (2)(b) is at all times
             1088      equal to or greater than 1.15 times the aggregate amount of the shares and deposits of the credit
             1089      union.
             1090          (3) The commissioner may appoint the administrator of the National Credit Union
             1091      Administration as liquidating agent of an insured credit union.
             1092          (4) Failure to comply with this section constitutes grounds for supervisory action under
             1093      [Chapter 2 or 19] Chapter 2, Possession of Depository Institution by Commissioner, or Chapter
             1094      19, Acquisition of Failing Repository Institutions or Holding Companies.
             1095          Section 27. Section 7-9-55 is amended to read:
             1096           7-9-55. Nonexempt credit unions.
             1097          (1) (a) A credit union organized under this chapter is a nonexempt credit union under
             1098      this section on the day on which:
             1099          (i) on or after May 5, 2003 the credit union has a field of membership as evidenced by
             1100      the bylaws of the credit union that includes all residents of two or more counties; and
             1101          (ii) at least two of the counties described in Subsection (1)(a)(i) are counties of the first
             1102      or second class as classified by Section 17-50-501 .
             1103          (b) For purposes of Subsection (1)(a) only:
             1104          (i) residents of a county that are added to the field of membership of a credit union as a
             1105      result of a supervisory action under [Chapter 2 or 19] Chapter 2, Possession of Depository
             1106      Institution by Commissioner, or Chapter 19, Acquisition of Failing Repository Institutions or
             1107      Holding Companies, are not considered to be within the field of membership of that credit
             1108      union; and
             1109          (ii) residents of a city of the third, fourth, or fifth class or a town that are added to the
             1110      field of membership of a credit union in accordance with Section 7-9-52 are not considered to
             1111      be within the field of membership of that credit union unless all residents of the county in
             1112      which that city or town are located are included in the field of membership of the credit union.


             1113          (2) If a credit union becomes a nonexempt credit union under this section, the
             1114      nonexempt credit union is a nonexempt credit union:
             1115          (a) for as long as the nonexempt credit union is organized under this chapter; and
             1116          (b) notwithstanding whether after the day on which the nonexempt credit union
             1117      becomes a nonexempt credit union the nonexempt credit union meets the requirements of
             1118      Subsection (1)(a).
             1119          (3) Regardless of whether or not a credit union has located branches in two or more
             1120      counties in this state, a credit union organized under this chapter does not become a nonexempt
             1121      credit union if the field of membership of the credit union as evidenced by the bylaws of the
             1122      credit union does not meet the requirements of Subsection (1).
             1123          Section 28. Section 7-9-58 is amended to read:
             1124           7-9-58. Limitations on credit extended by nonexempt credit unions.
             1125          (1) (a) Notwithstanding the other provisions of this chapter, beginning on May 5, 2003,
             1126      a nonexempt credit union may not:
             1127          (i) (A) extend a member-business loan;
             1128          (B) renew a member-business loan that is extended before May 5, 2003; or
             1129          (C) extend the maturity date or increase the amount of a member-business loan that is
             1130      extended before May 5, 2003;
             1131          (ii) originate, participate in, or obtain any interest in a co-lending arrangement,
             1132      including a loan participation arrangement; or
             1133          (iii) subject to Subsection (2), extend credit that is not a member-business loan if as a
             1134      result of the extension of credit the total credit that is not a member-business loan that the
             1135      nonexempt credit union has issued to that member exceeds at any one time $250,000 adjusted
             1136      as provided in Subsection (1)(b).
             1137          (b) The adjustment described in Subsection (1)(a)(iii) shall be calculated by the
             1138      commissioner as follows:
             1139          (i) beginning July 1, 2008 and for a calendar year beginning on or after January 1,
             1140      2009, the commissioner shall increase or decrease the dollar amount in Subsection (1)(a)(iii) by
             1141      a percentage equal to the percentage difference between the consumer price index for the
             1142      preceding calendar year and the consumer price index for calendar year 2007;
             1143          (ii) after the commissioner increases the dollar amount listed in Subsection [(1)(c)]


             1144      (1)(a)(iii), the commissioner shall round the dollar amount to the nearest whole dollar;
             1145          (iii) if the percentage difference under Subsection (1)(b)(i) is zero or a negative
             1146      percentage, the consumer price index increase for the year is zero; and
             1147          (iv) for purposes of this Subsection (1)(b), the commissioner shall calculate the
             1148      consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             1149          (2) Notwithstanding Subsection (1)(a)(iii), a nonexempt credit union may extend credit
             1150      in an amount that exceeds the limits provided in Subsection (1)(a)(iii) to a member if:
             1151          (a) the excess portion of the credit described in Subsection (1)(a)(iii) is fully secured by
             1152      the member's share or deposit savings in the nonexempt credit union; or
             1153          (b) the credit is extended to a member of the nonexempt credit union:
             1154          (i) for the purpose of:
             1155          (A) paying amounts owed by the member to purchase a one- to four-family dwelling
             1156      that is the primary residence of that member; or
             1157          (B) refinancing the balance of amounts owed by the member for the purchase of a one-
             1158      to four-family dwelling that is the primary residence of that member; and
             1159          (ii) the credit extended under this Subsection (2)(b) is less than or equals $1,000,000.
             1160          (3) In accordance with Subsection 7-9-20 (7)(d), a credit union service organization
             1161      may not extend credit to a member of a nonexempt credit union holding an ownership interest
             1162      in the credit union service organization if it would be a violation of this section for the
             1163      nonexempt credit union to extend the credit to the member.
             1164          (4) This section may not prevent a nonexempt credit union from servicing a loan
             1165      extended before May 5, 2003.
             1166          Section 29. Section 7-14-1 is amended to read:
             1167           7-14-1. Definitions.
             1168          As used in this chapter:
             1169          [(2)] (1) "Credit reporting agency" includes any co-operative credit reporting agency
             1170      maintained by an association of financial institutions or one or more associations of merchants.
             1171          [(1)] (2) "Depository institution" means any institution authorized by state or federal
             1172      law to accept and hold demand deposits or other accounts which may be used to effect third
             1173      party payment transactions. The definition of "depository institution" in Chapter 1, General
             1174      Provisions, does not apply to Chapter 14, Credit Information Exchange.


             1175          Section 30. Section 7-19-1 is amended to read:
             1176           7-19-1. Definitions.
             1177          As used in this chapter:
             1178          (1) "Failing or failed depository institution" means a depository institution under the
             1179      jurisdiction of the department:
             1180          (a) regarding which the commissioner makes a finding that any of the conditions set
             1181      forth in Subsections 7-2-1 (1)(a) through (k) exist;
             1182          (b) that meets the requirements of Subsection 7-2-1 (1)(l);
             1183          (c) whose shareholders have consented to a supervisory action by the commissioner
             1184      pursuant to Subsection 7-2-1 (2); or
             1185          (d) which is in the possession of the commissioner, or any receiver or liquidator
             1186      appointed by the commissioner, pursuant to Chapter 2, Possession of Depository Institution by
             1187      Commissioner.
             1188          (2) "Failing or failed depository institution holding company" means a depository
             1189      institution holding company under the jurisdiction of the department:
             1190          (a) regarding which the commissioner makes a finding that any of the conditions set
             1191      forth in Subsections 7-2-1 (1)(a) through (k) exist;
             1192          (b) that meets the requirements of Subsection 7-2-1 (1)(l);
             1193          (c) whose shareholders have consented to a supervisory action by the commissioner
             1194      pursuant to Subsection 7-2-1 (2);
             1195          (d) which is in the possession of the commissioner, or any receiver or liquidator
             1196      appointed by the commissioner, pursuant to Chapter 2, Possession of Depository Institution by
             1197      Commissioner; or
             1198          (e) whose subsidiary depository institution is a failing or failed depository institution.
             1199          (3) "Supervisory acquisition" means the acquisition of control, the acquisition of all or
             1200      a portion of the assets, or the assumption of all or a portion of the liabilities, pursuant to
             1201      Section 7-2-1 , 7-2-12 , or 7-2-18 , of a failing or failed depository institution or a failing or
             1202      failed depository institution holding company, whether or not in the possession of the
             1203      commissioner, by:
             1204          (a) a Utah depository institution;
             1205          (b) an out-of-state depository institution;


             1206          (c) a Utah depository institution holding company; or
             1207          (d) an out-of-state depository institution holding company.
             1208          (4) "Supervisory merger" means the merger or consolidation, pursuant to Section
             1209      7-2-1 , 7-2-12 , or 7-2-18 of a failing or failed depository institution or a failing or failed
             1210      depository institution holding company, whether or not in the possession of the commissioner,
             1211      with:
             1212          (a) a Utah depository institution;
             1213          (b) an out-of-state depository institution;
             1214          (c) a Utah depository institution holding company; or
             1215          (d) an out-of-state depository institution holding company.
             1216          Section 31. Section 9-1-801 is amended to read:
             1217     
Part 8. Utah Commission on Service and Volunteerism Act

             1218           9-1-801. Title.
             1219          This part is known as the "[Commission on National and Community Service Act] Utah
             1220      Commission on Service and Volunteerism Act."
             1221          Section 32. Section 9-6-205 is amended to read:
             1222           9-6-205. Board powers and duties.
             1223          (1) The board may:
             1224          (a) make, amend, or repeal rules for the conduct of its business in governing the
             1225      council in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act;
             1226          (b) receive gifts, bequests, and property; and
             1227          (c) issue certificates and offer and confer prizes, certificates, and awards for works of
             1228      art and achievement in the arts.
             1229          (2) The board shall make policy for the council.
             1230          (3) (a) By September 30 of each year, the board shall prepare and submit a request to
             1231      the governor and the Legislature for prioritized capital facilities grants to be awarded to eligible
             1232      individuals and organizations under this part [and Parts 3 through 5], Part 3, Utah Arts Council,
             1233      Part 4, Utah Percentage-for-Art Act, and Part 5, State Arts Endowment.
             1234          (b) The board shall prepare a list of the requested capital facilities grants in a
             1235      prioritized order and include a written explanation of:
             1236          (i) the total grant amount requested in the list; and


             1237          (ii) the basis of its prioritization of requested grants on the list.
             1238          (c) The board shall accept applications for capital facilities grants through June 1 of
             1239      each year, prior to compiling and submitting its yearly request to the governor and the
             1240      Legislature under Subsection (3)(a).
             1241          Section 33. Section 9-7-501 is amended to read:
             1242           9-7-501. Tax for establishment and maintenance of public library -- Library
             1243      fund.
             1244          (1) A county legislative body may establish and maintain a public library.
             1245          (2) For this purpose, counties may levy annually a tax not to exceed .001 of taxable
             1246      value of taxable property in the county, outside of cities which maintain their own city libraries
             1247      as authorized by Part 4, City Libraries. The tax is in addition to all taxes levied by counties and
             1248      is not limited by the levy limitation imposed on counties by law. However, if bonds are issued
             1249      for purchasing a site, or constructing or furnishing a building, then taxes sufficient for the
             1250      payment of the bonds and any interest may be levied.
             1251          (3) The taxes shall be levied and collected in the same manner as other general taxes of
             1252      the county and shall constitute a fund to be known as the county library fund.
             1253          Section 34. Section 9-8-301 is amended to read:
             1254           9-8-301. Purpose.
             1255          (1) The Legislature declares that the general public and the beneficiaries of the school
             1256      and institutional land grants have an interest in the preservation and protection of the state's
             1257      archaeological and anthropological resources and a right to the knowledge derived and gained
             1258      from scientific study of those resources.
             1259          (2) (a) The Legislature finds that policies and procedures for the survey and excavation
             1260      of archaeological resources from school and institutional trust lands are consistent with the
             1261      school and institutional land grants, if these policies and procedures insure that primary
             1262      consideration is given, on a site or project specific basis, to the purpose of support for the
             1263      beneficiaries of the school and institutional land grants.
             1264          (b) The Legislature finds that the preservation, placement in a repository, curation, and
             1265      exhibition of specimens found on school or institutional trust lands for scientific and
             1266      educational purposes is consistent with the school and institutional land grants.
             1267          (c) The Legislature finds that the preservation and development of sites found on


             1268      school or institutional trust lands for scientific or educational purposes, or the disposition of
             1269      sites found on school or institutional trust lands, after consultation between the division and the
             1270      School and Institutional Trust Lands Administration to determine the appropriate level of data
             1271      recovery or implementation of other appropriate preservation measures, for preservation,
             1272      development, or economic purposes, is consistent with the school and institutional land grants.
             1273          (d) The Legislature declares that specimens found on lands owned or controlled by the
             1274      state or its subdivisions may not be sold.
             1275          (3) The Legislature declares that the historical preservation purposes of this chapter
             1276      must be kept in balance with the other uses of land and natural resources which benefit the
             1277      health and welfare of the state's citizens.
             1278          (4) It is the purpose of this part and Part 4, Historic Sites, to provide that the survey,
             1279      excavation, curation, study, and exhibition of the state's archaeological and anthropological
             1280      resources be undertaken in a coordinated, professional, and organized manner for the general
             1281      welfare of the public and beneficiaries alike.
             1282          Section 35. Section 9-8-307 is amended to read:
             1283           9-8-307. Report of discovery on state or private lands.
             1284          (1) Any person who discovers any archaeological resources on lands owned or
             1285      controlled by the state or its subdivisions shall promptly report the discovery to the division.
             1286          (2) Any person who discovers any archaeological resources on privately owned lands
             1287      shall promptly report the discovery to the division.
             1288          (3) Field investigations shall be discouraged except in accordance with this part and
             1289      Part 4, Historic Sites.
             1290          (4) Nothing in this section may be construed to authorize any person to survey or
             1291      excavate for archaeological resources.
             1292          Section 36. Section 9-8-405 is amended to read:
             1293           9-8-405. Federal funds -- Agreements on standards and procedures.
             1294          By following the procedures and requirements of Title 63J, Chapter 5, Federal Funds
             1295      Procedures Act, the division may accept and administer federal funds provided under the
             1296      provisions of the National Historic Preservation Act of 1966, the Land and Water Conservation
             1297      Act as amended, and subsequent legislation directed toward the encouragement of historic
             1298      preservation, and to enter into those agreements on professional standards and procedures


             1299      required by participation in the National Historic Preservation Act of 1966 and the National
             1300      Register Office.
             1301          Section 37. Section 10-1-114 is amended to read:
             1302           10-1-114. Repealer.
             1303          Title 10, [Chapters 1, 2, 3, 5, and 6] Chapter 1, General Provisions; Chapter 2,
             1304      Incorporation, Classification, Boundaries, Consolidation, and Dissolution of Municipalities;
             1305      Chapter 3, Municipal Government; Chapter 5, Uniform Fiscal Procedures Act for Utah Towns;
             1306      and Chapter 6, Uniform Fiscal Procedures Act for Utah Cities, are repealed, except as provided
             1307      in Section 10-1-115 .
             1308          Section 38. Section 10-1-119 is amended to read:
             1309           10-1-119. Inventory of competitive activities.
             1310          (1) As used in this section:
             1311          (a) "Applicable city" means:
             1312          (i) on and after July 1, 2009, a city of the first class; and
             1313          (ii) on and after July 1, 2010, a city of the first or second class.
             1314          (b) "Competitive activity" means an activity engaged in by a city or an entity created by
             1315      the city by which the city or an entity created by the city provides a good or service that is
             1316      substantially similar to a good or service that is provided by a person:
             1317          (i) who is not an entity of the federal government, state government, or a political
             1318      subdivision of the state; and
             1319          (ii) within the boundary of the county in which the city is located.
             1320          (c) (i) Subject to Subsection (1)(c)(ii), "entity created by the city" includes:
             1321          (A) an entity created by an interlocal agreement under Title 11, Chapter 13, Interlocal
             1322      Cooperation Act, in which the city participates; and
             1323          (B) a special service district created under Title 17D, Chapter 1, Special Service
             1324      District Act.
             1325          (ii) "Entity created by the city" does not include a local district created by a city under
             1326      Title 17B, Limited Purpose Local Government Entities - Local Districts.
             1327          (2) (a) The governing body of an applicable city shall create an inventory of activities
             1328      of the city or an entity created by the city to:
             1329          (i) classify whether an activity is a competitive activity; and


             1330          (ii) identify efforts that have been made to privatize aspects of the activity.
             1331          (b) An applicable city shall comply with this section by no later than:
             1332          (i) June 30, 2010, if the applicable city is a city of the first class; and
             1333          (ii) June 30, 2011, if the applicable city is a city of the second class.
             1334          (3) The governing body of an applicable city shall update the inventory created under
             1335      this section at least every two years.
             1336          (4) An applicable city shall:
             1337          (a) provide a copy of the inventory and an update to the inventory to the Free Market
             1338      Protection and Privatization Board created in Title 63I, Chapter 4a[, Free Market Protection
             1339      and Privatization Board Act]; and
             1340          (b) make the inventory available to the public through electronic means.
             1341          Section 39. Section 10-1-203 is amended to read:
             1342           10-1-203. License fees and taxes -- Application information to be transmitted to
             1343      the county assessor.
             1344          (1) As used in this section:
             1345          (a) "Business" means any enterprise carried on for the purpose of gain or economic
             1346      profit, except that the acts of employees rendering services to employers are not included in
             1347      this definition.
             1348          (b) "Telecommunications provider" is as defined in Section 10-1-402 .
             1349          (c) "Telecommunications tax or fee" is as defined in Section 10-1-402 .
             1350          (2) Except as provided in Subsections (3) through (5), the legislative body of a
             1351      municipality may license for the purpose of regulation and revenue any business within the
             1352      limits of the municipality and may regulate that business by ordinance.
             1353          (3) (a) The legislative body of a municipality may raise revenue by levying and
             1354      collecting a municipal energy sales or use tax as provided in Part 3, Municipal Energy Sales
             1355      and Use Tax Act, except a municipality may not levy or collect a franchise tax or fee on an
             1356      energy supplier other than the municipal energy sales and use tax provided in Part 3, Municipal
             1357      Energy Sales and Use Tax Act.
             1358          (b) (i) Subsection (3)(a) does not affect the validity of a franchise agreement as defined
             1359      in Subsection 10-1-303 (6), that is in effect on July 1, 1997, or a future franchise.
             1360          (ii) A franchise agreement as defined in Subsection 10-1-303 (6) in effect on January 1,


             1361      1997, or a future franchise shall remain in full force and effect.
             1362          (c) A municipality that collects a contractual franchise fee pursuant to a franchise
             1363      agreement as defined in Subsection 10-1-303 (6) with an energy supplier that is in effect on July
             1364      1, 1997, may continue to collect that fee as provided in Subsection 10-1-310 (2).
             1365          (d) (i) Subject to the requirements of Subsection (3)(d)(ii), a franchise agreement as
             1366      defined in Subsection 10-1-303 (6) between a municipality and an energy supplier may contain
             1367      a provision that:
             1368          (A) requires the energy supplier by agreement to pay a contractual franchise fee that is
             1369      otherwise prohibited under Part 3, Municipal Energy Sales and Use Tax Act; and
             1370          (B) imposes the contractual franchise fee on or after the day on which Part 3,
             1371      Municipal Energy Sales and Use Tax Act is:
             1372          (I) repealed, invalidated, or the maximum allowable rate provided in Section 10-1-305
             1373      is reduced; and
             1374          (II) is not superseded by a law imposing a substantially equivalent tax.
             1375          (ii) A municipality may not charge a contractual franchise fee under the provisions
             1376      permitted by Subsection (3)(b)(i) unless the municipality charges an equal contractual franchise
             1377      fee or a tax on all energy suppliers.
             1378          (4) (a) Subject to Subsection (4)(b), beginning July 1, 2004, the legislative body of a
             1379      municipality may raise revenue by levying and providing for the collection of a municipal
             1380      telecommunications license tax as provided in Part 4, Municipal Telecommunications License
             1381      Tax Act.
             1382          (b) A municipality may not levy or collect a telecommunications tax or fee on a
             1383      telecommunications provider except as provided in Part 4, Municipal Telecommunications
             1384      License Tax Act.
             1385          (5) (a) (i) The legislative body of a municipality may by ordinance raise revenue by
             1386      levying and collecting a license fee or tax on:
             1387          (A) a parking service business in an amount that is less than or equal to:
             1388          (I) $1 per vehicle that parks at the parking service business; or
             1389          (II) 2% of the gross receipts of the parking service business;
             1390          (B) a public assembly or other related facility in an amount that is less than or equal to
             1391      $5 per ticket purchased from the public assembly or other related facility; and


             1392          (C) subject to the limitations of Subsections (5)(c) and (d):
             1393          (I) a business that causes disproportionate costs of municipal services; or
             1394          (II) a purchaser from a business for which the municipality provides an enhanced level
             1395      of municipal services.
             1396          (ii) Nothing in this Subsection (5)(a) may be construed to authorize a municipality to
             1397      levy or collect a license fee or tax on a public assembly or other related facility owned and
             1398      operated by another political subdivision other than a community development and renewal
             1399      agency without the written consent of the other political subdivision.
             1400          (b) As used in this Subsection (5):
             1401          (i) "Municipal services" includes:
             1402          (A) public utilities; and
             1403          (B) services for:
             1404          (I) police;
             1405          (II) fire;
             1406          (III) storm water runoff;
             1407          (IV) traffic control;
             1408          (V) parking;
             1409          (VI) transportation;
             1410          (VII) beautification; or
             1411          (VIII) snow removal.
             1412          (ii) "Parking service business" means a business:
             1413          (A) that primarily provides off-street parking services for a public facility that is
             1414      wholly or partially funded by public money;
             1415          (B) that provides parking for one or more vehicles; and
             1416          (C) that charges a fee for parking.
             1417          (iii) "Public assembly or other related facility" means an assembly facility that:
             1418          (A) is wholly or partially funded by public money;
             1419          (B) is operated by a business; and
             1420          (C) requires a person attending an event at the assembly facility to purchase a ticket.
             1421          (c) (i) Before the legislative body of a municipality imposes a license fee on a business
             1422      that causes disproportionate costs of municipal services under Subsection (5)(a)(i)(C)(I), the


             1423      legislative body of the municipality shall adopt an ordinance defining for purposes of the tax
             1424      under Subsection (5)(a)(i)(C)(I):
             1425          (A) the costs that constitute disproportionate costs; and
             1426          (B) the amounts that are reasonably related to the costs of the municipal services
             1427      provided by the municipality.
             1428          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(I) shall be reasonably related to
             1429      the costs of the municipal services provided by the municipality.
             1430          (d) (i) Before the legislative body of a municipality imposes a license fee on a
             1431      purchaser from a business for which it provides an enhanced level of municipal services under
             1432      Subsection (5)(a)(i)(C)(II), the legislative body of the municipality shall adopt an ordinance
             1433      defining for purposes of the fee under Subsection (5)(a)(i)(C)(II):
             1434          (A) the level of municipal services that constitutes the basic level of municipal services
             1435      in the municipality; and
             1436          (B) the amounts that are reasonably related to the costs of providing an enhanced level
             1437      of municipal services in the municipality.
             1438          (ii) The amount of a fee under Subsection (5)(a)(i)(C)(II) shall be reasonably related to
             1439      the costs of providing an enhanced level of the municipal services.
             1440          (6) All license fees and taxes shall be uniform in respect to the class upon which they
             1441      are imposed.
             1442          (7) The municipality shall transmit the information from each approved business
             1443      license application to the county assessor within 60 days following the approval of the
             1444      application.
             1445          (8) If challenged in court, an ordinance enacted by a municipality before January 1,
             1446      1994, imposing a business license fee on rental dwellings under this section shall be upheld
             1447      unless the business license fee is found to impose an unreasonable burden on the fee payer.
             1448          Section 40. Section 10-2-125 is amended to read:
             1449           10-2-125. Incorporation of a town -- Petition.
             1450          (1) As used in this section:
             1451          (a) "Assessed value," with respect to agricultural land, means the value at which the
             1452      land would be assessed without regard to a valuation for agricultural use under Section
             1453      59-2-503 .


             1454          (b) "Financial feasibility study" means a study described in Subsection [(8)] (7).
             1455          (c) "Feasibility consultant" means a person or firm:
             1456          (i) with expertise in the processes and economics of local government; and
             1457          (ii) who is independent of and not affiliated with a county or sponsor of a petition to
             1458      incorporate.
             1459          (d) "Municipal service" means a publicly provided service that is not provided on a
             1460      countywide basis.
             1461          (e) "Nonurban" means having a residential density of less than one unit per acre.
             1462          (2) (a) (i) A contiguous area of a county not within a municipality, with a population of
             1463      at least 100 but less than 1,000, may incorporate as a town as provided in this section.
             1464          (ii) An area within a county of the first class is not contiguous for purposes of
             1465      Subsection (2)(a)(i) if:
             1466          (A) the area includes a strip of land that connects geographically separate areas; and
             1467          (B) the distance between the geographically separate areas is greater than the average
             1468      width of the strip of land connecting the geographically separate areas.
             1469          (b) The population figure under Subsection (2)(a) shall be determined:
             1470          (i) as of the date the incorporation petition is filed; and
             1471          (ii) by the Utah Population Estimates Committee within 20 days after the county clerk's
             1472      certification under Subsection (6) of a petition filed under Subsection (4).
             1473          (3) (a) The process to incorporate an area as a town is initiated by filing a petition to
             1474      incorporate the area as a town with the clerk of the county in which the area is located.
             1475          (b) A petition under Subsection (3)(a) shall:
             1476          (i) be signed by:
             1477          (A) the owners of private real property that:
             1478          (I) is located within the area proposed to be incorporated; and
             1479          (II) is equal in assessed value to more than 1/5 of the assessed value of all private real
             1480      property within the area; and
             1481          (B) 1/5 of all registered voters within the area proposed to be incorporated as a town,
             1482      according to the official voter registration list maintained by the county on the date the petition
             1483      is filed;
             1484          (ii) designate as sponsors at least five of the property owners who have signed the


             1485      petition, one of whom shall be designated as the contact sponsor, with the mailing address of
             1486      each owner signing as a sponsor;
             1487          (iii) be accompanied by and circulated with an accurate map or plat, prepared by a
             1488      licensed surveyor, showing a legal description of the boundary of the proposed town; and
             1489          (iv) substantially comply with and be circulated in the following form:
             1490          PETITION FOR INCORPORATION OF (insert the proposed name of the proposed
             1491      town)
             1492          To the Honorable County Legislative Body of (insert the name of the county in which
             1493      the proposed town is located) County, Utah:
             1494          We, the undersigned owners of real property and registered voters within the area
             1495      described in this petition, respectfully petition the county legislative body to submit to the
             1496      registered voters residing within the area described in this petition, at the next regular general
             1497      election, the question of whether the area should incorporate as a town. Each of the
             1498      undersigned affirms that each has personally signed this petition and is an owner of real
             1499      property or a registered voter residing within the described area, and that the current residence
             1500      address of each is correctly written after the signer's name. The area proposed to be
             1501      incorporated as a town is described as follows: (insert an accurate description of the area
             1502      proposed to be incorporated).
             1503          (c) A petition under this Subsection (3) may not describe an area that includes some or
             1504      all of an area proposed for annexation in an annexation petition under Section 10-2-403 that:
             1505          (i) was filed before the filing of the petition; and
             1506          (ii) is still pending on the date the petition is filed.
             1507          (d) A petition may not be filed under this section if the private real property owned by
             1508      the petition sponsors, designated under Subsection (3)(b)(ii), cumulatively exceeds 40% of the
             1509      total private land area within the area proposed to be incorporated as a town.
             1510          (e) A signer of a petition under this Subsection (3) may withdraw or, after withdrawn,
             1511      reinstate the signer's signature on the petition:
             1512          (i) at any time until the county clerk certifies the petition under Subsection (5); and
             1513          (ii) by filing a signed, written withdrawal or reinstatement with the county clerk.
             1514          (4) (a) If a petition is filed under Subsection (3)(a) proposing to incorporate as a town
             1515      an area located within a county of the first class, the county clerk shall deliver written notice of


             1516      the proposed incorporation:
             1517          (i) to each owner of private real property owning more than 1% of the assessed value
             1518      of all private real property within the area proposed to be incorporated as a town; and
             1519          (ii) within seven calendar days after the date on which the petition is filed.
             1520          (b) A private real property owner described in Subsection (4)(a)(i) may exclude all or
             1521      part of the owner's property from the area proposed to be incorporated as a town by filing a
             1522      notice of exclusion:
             1523          (i) with the county clerk; and
             1524          (ii) within 10 calendar days after receiving the clerk's notice under Subsection (4)(a).
             1525          (c) The county legislative body shall exclude from the area proposed to be incorporated
             1526      as a town the property identified in the notice of exclusion under Subsection (4)(b) if:
             1527          (i) the property:
             1528          (A) is nonurban; and
             1529          (B) does not and will not require a municipal service; and
             1530          (ii) exclusion will not leave an unincorporated island within the proposed town.
             1531          (d) If the county legislative body excludes property from the area proposed to be
             1532      incorporated as a town, the county legislative body shall send written notice of the exclusion to
             1533      the contact sponsor within five days after the exclusion.
             1534          (5) No later than 20 days after the filing of a petition under Subsection (3), the county
             1535      clerk shall:
             1536          (a) with the assistance of other county officers from whom the clerk requests
             1537      assistance, determine whether the petition complies with the requirements of Subsection (3);
             1538      and
             1539          (b) (i) if the clerk determines that the petition complies with those requirements:
             1540          (A) certify the petition and deliver the certified petition to the county legislative body;
             1541      and
             1542          (B) mail or deliver written notification of the certification to:
             1543          (I) the contact sponsor;
             1544          (II) if applicable, the chair of the planning commission of each township in which any
             1545      part of the area proposed for incorporation is located; and
             1546          (III) the Utah Population Estimates Committee; or


             1547          (ii) if the clerk determines that the petition fails to comply with any of those
             1548      requirements, reject the petition and notify the contact sponsor in writing of the rejection and
             1549      the reasons for the rejection.
             1550          (6) (a) (i) A petition that is rejected under Subsection (5)(b)(ii) may be amended to
             1551      correct a deficiency for which it was rejected and then refiled with the county clerk.
             1552          (ii) A valid signature on a petition filed under Subsection (3)(a) may be used toward
             1553      fulfilling the signature requirement of Subsection (3)(b) for the same petition that is amended
             1554      under Subsection (6)(a)(i) and then refiled with the county clerk.
             1555          (b) If a petition is amended and refiled under Subsection (6)(a)(i) after having been
             1556      rejected by the county clerk under Subsection (5)(b)(ii):
             1557          (i) the amended petition shall be considered as a newly filed petition; and
             1558          (ii) the amended petition's processing priority is determined by the date on which it is
             1559      refiled.
             1560          (7) (a) (i) The legislative body of a county with which a petition is filed under
             1561      Subsection (4) and certified under Subsection (6) shall commission and pay for a financial
             1562      feasibility study.
             1563          (ii) The feasibility consultant shall be chosen:
             1564          (A) (I) by the contact sponsor of the incorporation petition, as described in Subsection
             1565      (3)(b)(ii), with the consent of the county; or
             1566          (II) by the county if the contact sponsor states, in writing, that the sponsor defers
             1567      selection of the feasibility consultant to the county; and
             1568          (B) in accordance with applicable county procurement procedure.
             1569          (iii) The county legislative body shall require the feasibility consultant to complete the
             1570      financial feasibility study and submit written results of the study to the county legislative body
             1571      no later than 30 days after the feasibility consultant is engaged to conduct the financial
             1572      feasibility study.
             1573          (b) The financial feasibility study shall consider the:
             1574          (i) population and population density within the area proposed for incorporation and
             1575      the surrounding area;
             1576          (ii) current and five-year projections of demographics and economic base in the
             1577      proposed town and surrounding area, including household size and income, commercial and


             1578      industrial development, and public facilities;
             1579          (iii) projected growth in the proposed town and in adjacent areas during the next five
             1580      years;
             1581          (iv) subject to Subsection (7)(c), the present and five-year projections of the cost,
             1582      including overhead, of governmental services in the proposed town, including:
             1583          (A) culinary water;
             1584          (B) secondary water;
             1585          (C) sewer;
             1586          (D) law enforcement;
             1587          (E) fire protection;
             1588          (F) roads and public works;
             1589          (G) garbage;
             1590          (H) weeds; and
             1591          (I) government offices;
             1592          (v) assuming the same tax categories and tax rates as currently imposed by the county
             1593      and all other current service providers, the present and five-year projected revenue for the
             1594      proposed town; and
             1595          (vi) a projection of any new taxes per household that may be levied within the
             1596      incorporated area within five years of incorporation.
             1597          (c) (i) For purposes of Subsection (7)(b)(iv), the feasibility consultant shall assume a
             1598      level and quality of governmental services to be provided to the proposed town in the future
             1599      that fairly and reasonably approximate the level and quality of governmental services being
             1600      provided to the proposed town at the time of the feasibility study.
             1601          (ii) In determining the present cost of a governmental service, the feasibility consultant
             1602      shall consider:
             1603          (A) the amount it would cost the proposed town to provide governmental service for
             1604      the first five years after incorporation; and
             1605          (B) the county's present and five-year projected cost of providing governmental
             1606      service.
             1607          (iii) The costs calculated under Subsection (7)(b)(iv), shall take into account inflation
             1608      and anticipated growth.


             1609          (d) If the five year projected revenues under Subsection (7)(b)(v) exceed the five-year
             1610      projected costs under Subsection (7)(b)(iv) by more than 10%, the feasibility consultant shall
             1611      project and report the expected annual revenue surplus to the contact sponsor and the lieutenant
             1612      governor.
             1613          (e) The county legislative body shall approve a certified petition proposing the
             1614      incorporation of a town and hold a public hearing as provided in Section 10-2-126 .
             1615          Section 41. Section 10-2-126 is amended to read:
             1616           10-2-126. Incorporation of town -- Public hearing on feasibility.
             1617          (1) If, in accordance with Section 10-2-125 , the county clerk certifies a petition for
             1618      incorporation or an amended petition for incorporation, the county legislative body shall, at its
             1619      next regular meeting after completion of the feasibility study, schedule a public hearing to:
             1620          (a) be held no later than 60 days after the day on which the feasibility study is
             1621      completed; and
             1622          (b) consider, in accordance with Subsection (3)(b), the feasibility of incorporation for
             1623      the proposed town.
             1624          (2) The county legislative body shall give notice of the public hearing on the proposed
             1625      incorporation by:
             1626          (a) posting notice of the public hearing on the county's Internet website, if the county
             1627      has an Internet website;
             1628          (b) (i) publishing notice of the public hearing at least once a week for two consecutive
             1629      weeks in a newspaper of general circulation within the proposed town; or
             1630          (ii) if there is no newspaper of general circulation within the proposed town, posting
             1631      notice of the public hearing in at least five conspicuous public places within the proposed
             1632      town; and
             1633          (c) publishing notice of the public hearing on the Utah Public Notice Website created
             1634      in Section 63F-1-701 .
             1635          (3) At the public hearing scheduled in accordance with Subsection (1), the county
             1636      legislative body shall:
             1637          (a) (i) provide a copy of the feasibility study; and
             1638          (ii) present the results of the feasibility study to the public; and
             1639          (b) allow the public to:


             1640          (i) review the map or plat of the boundary of the proposed town;
             1641          (ii) ask questions and become informed about the proposed incorporation; and
             1642          (iii) express its views about the proposed incorporation, including their views about the
             1643      boundary of the area proposed to be incorporated.
             1644          (4) A county may not hold an election on the incorporation of a town in accordance
             1645      with Section 10-2-127 if the results of the feasibility study show that the five-year projected
             1646      revenues under Subsection 10-2-125 (7)(b)(v) exceed the five-year projected costs under
             1647      Subsection 10-2-125 (7)(b)(iv) by more than 10%.
             1648          Section 42. Section 10-8-62 is amended to read:
             1649           10-8-62. Cemeteries -- Purchase and operation.
             1650          The city legislative body may:
             1651          (1) purchase, hold, and pay for lands within or without the corporate limits for the
             1652      burial of the dead, and all necessary grounds for hospitals;
             1653          (2) have and exercise police jurisdiction over those lands, and over any cemetery used
             1654      by the inhabitants of the city;
             1655          (3) survey, plat, map, fence, ornament, and otherwise improve, manage, and operate
             1656      public burial and cemetery grounds;
             1657          (4) convey cemetery lots owned by the city, and pass ordinances for the protection and
             1658      governing of these grounds consistent with Title 8, Chapter 5, [Municipal Cemeteries] Rights
             1659      and Title to Cemetery Lots;
             1660          (5) contract for the care and improvement of cemeteries and cemetery lots, and for any
             1661      compensation for the care and improvement;
             1662          (6) receive deposits for the care of lots and invest the deposits by following the
             1663      procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
             1664          (7) pay the cost of the care from any proceeds from the investment.
             1665          Section 43. Section 10-8-63 is amended to read:
             1666           10-8-63. Burial of dead -- Vital statistics.
             1667          They may regulate the burial of the dead, consistent with Title 8, Chapter 5, [Municipal
             1668      Cemeteries] Rights and Title to Cemetery Lots, the registration of births and deaths, direct the
             1669      returning and keeping of bills of mortality, and impose penalties on physicians, sextons, and
             1670      others for any default therein.


             1671          Section 44. Section 10-18-104 is amended to read:
             1672           10-18-104. Application to existing contracts.
             1673          (1) (a) If before the sooner of March 1 or the effective date of the chapter, the
             1674      legislative body of a municipality authorized the municipality to offer or provide cable
             1675      television services or public telecommunications services, each authorized service:
             1676          (i) is exempt from Part 2, Conditions for Providing Services; and
             1677          (ii) is subject to Part 3, Operational Requirements and Limitations.
             1678          (b) The exemption described in Subsection (1)(a)(i) may not apply to any cable
             1679      television service or public telecommunications service authorized by the legislative body of a
             1680      municipality on or after the sooner of March 1 or the effective date of this chapter.
             1681          (2) This chapter does not:
             1682          (a) invalidate any contract entered into by a municipality before the sooner of March 1
             1683      or the effective date of this chapter:
             1684          (i) for the design, construction, equipping, operation, or maintenance of facilities used
             1685      or to be used by the municipality, or by a private provider under a contract with the
             1686      municipality for the purpose of providing:
             1687          (A) cable television services; or
             1688          (B) public telecommunications services;
             1689          (ii) with a private provider for the use of the facilities described in Subsection (2)(a)(i)
             1690      in connection with the private provider offering:
             1691          (A) cable television services; or
             1692          (B) public telecommunications services;
             1693          (iii) with a subscriber for providing:
             1694          (A) a cable television service; or
             1695          (B) a public telecommunications service; or
             1696          (iv) to obtain or secure financing for the acquisition or operation of the municipality's
             1697      facilities or equipment used in connection with providing:
             1698          (A) a cable television service; or
             1699          (B) a public telecommunications service; or
             1700          (b) impair any security interest granted by a municipality as collateral for the
             1701      municipality's obligations under a contract described in Subsection (2)(a).


             1702          (3) (a) A municipality meeting the one or more of the following conditions is exempt
             1703      from this chapter as provided in Subsection (3)(b):
             1704          (i) a municipality that adopts or enacts a bond resolution on or before January 1, 2001,
             1705      to fund facilities or equipment that the municipality uses to provide:
             1706          (A) cable television services; or
             1707          (B) public telecommunications services; or
             1708          (ii) a municipality that has operated for at least three years consecutively before the
             1709      sooner of March 1 or the effective date of this chapter:
             1710          (A) a cable television service; or
             1711          (B) a public telecommunications service.
             1712          (b) A municipality described in Subsection (3)(a) is exempt from this chapter except
             1713      for:
             1714          (i) Subsection 10-18-303 (4);
             1715          (ii) Subsection 10-18-303 (7);
             1716          (iii) Subsection 10-18-303 (9);
             1717          (iv) Section 10-18-304 ; and
             1718          (v) Section 10-18-305 .
             1719          (4) For the time period beginning on the effective date of this chapter and ending on
             1720      December 31, 2001, a municipality that operated a cable television service as of January 1,
             1721      2001, is exempt from Subsection 10-18-301 (1)(d).
             1722          Section 45. Section 11-13-303 is amended to read:
             1723           11-13-303. Source of project entity's payment of sales and use tax -- Gross
             1724      receipts taxes for facilities providing additional project capacity.
             1725          (1) A project entity is not exempt from sales and use taxes under Title 59, Chapter 12,
             1726      Sales and Use Tax Act, to the extent provided in Subsection 59-12-104 (2).
             1727          (2) A project entity may make payments or prepayments of sales and use taxes, as
             1728      provided in Title 63M, Chapter 5, Resource Development Act, from the proceeds of revenue
             1729      bonds issued under Section 11-13-218 or other revenues of the project entity.
             1730          (3) (a) This Subsection (3) applies with respect to facilities providing additional project
             1731      capacity.
             1732          (b) (i) The in lieu excise tax imposed under Title 59, Chapter 8, Gross Receipts Tax on


             1733      Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, shall be
             1734      imposed collectively on all gross receipts derived with respect to the ownership interests of all
             1735      project entities and other public agencies in facilities providing additional project capacity as
             1736      though all such ownership interests were held by a single project entity.
             1737          (ii) The in lieu excise tax shall be calculated as though the gross receipts derived with
             1738      respect to all such ownership interests were received by a single taxpayer that has no other
             1739      gross receipts.
             1740          (iii) The gross receipts attributable to such ownership interests shall consist solely of
             1741      gross receipts that are expended by each project entity and other public agency holding an
             1742      ownership interest in the facilities for the operation or maintenance of or ordinary repairs or
             1743      replacements to the facilities.
             1744          (iv) For purposes of calculating the in lieu excise tax, the determination of whether
             1745      there is a tax rate and, if so, what the tax rate is shall be governed by Section 59-8-104 , except
             1746      that the $10,000,000 figures in Section 59-8-104 indicating the amount of gross receipts that
             1747      determine the applicable tax rate shall be replaced with $5,000,000.
             1748          (c) Each project entity and public agency owning an interest in the facilities providing
             1749      additional project capacity shall be liable only for the portion of the gross receipts tax referred
             1750      to in Subsection (3)(b) that is proportionate to its percentage ownership interest in the facilities
             1751      and may not be liable for any other gross receipts taxes with respect to its percentage
             1752      ownership interest in the facilities.
             1753          (d) No project entity or other public agency that holds an ownership interest in the
             1754      facilities may be subject to the taxes imposed under Title 59, Chapter 7, Corporate Franchise
             1755      and Income Taxes, with respect to those facilities.
             1756          (4) For purposes of calculating the gross receipts tax imposed on a project entity or
             1757      other public agency under Title 59, Chapter 8, Gross Receipts Tax on Certain Corporations Not
             1758      Required to Pay Corporate Franchise or Income Tax Act, or Subsection (3), gross receipts
             1759      include only gross receipts from the first sale of capacity, services, or other benefits and do not
             1760      include gross receipts from any subsequent sale, resale, or layoff of the capacity, services, or
             1761      other benefits.
             1762          Section 46. Section 11-13-315 is amended to read:
             1763           11-13-315. Taxed interlocal entity.


             1764          (1) As used in this section:
             1765          (a) "Asset" means funds, money, an account, real or personal property, or personnel.
             1766          (b) "Public asset" means:
             1767          (i) an asset used by a public entity;
             1768          (ii) tax revenue;
             1769          (iii) state funds; or
             1770          (iv) public funds.
             1771          (c) (i) "Taxed interlocal entity" means a project entity that:
             1772          (A) is not exempt from a tax or fee in lieu of taxes imposed in accordance with Part 3,
             1773      Project Entity Provisions;
             1774          (B) does not receive a payment of funds from a federal agency or office, state agency or
             1775      office, political subdivision, or other public agency or office other than a payment that does not
             1776      materially exceed the greater of the fair market value and the cost of a service provided or
             1777      property conveyed by the project entity; and
             1778          (C) does not receive, expend, or have the authority to compel payment from tax
             1779      revenue.
             1780          (ii) Before and on May 1, 2014, "taxed interlocal entity" includes an interlocal entity
             1781      that:
             1782          (A) (I) was created before 1981 for the purpose of providing power supply at wholesale
             1783      to its members; or
             1784          (II) is described in Subsection 11-13-204 (7);
             1785          (B) does not receive a payment of funds from a federal agency or office, state agency or
             1786      office, political subdivision, or other public agency or office other than a payment that does not
             1787      materially exceed the greater of the fair market value and the cost of a service provided or
             1788      property conveyed by the interlocal entity; and
             1789          (C) does not receive, expend, or have the authority to compel payment from tax
             1790      revenue.
             1791          (d) (i) "Use" means to use, own, manage, hold, keep safe, maintain, invest, deposit,
             1792      administer, receive, expend, appropriate, disburse, or have custody.
             1793          (ii) "Use" includes, when constituting a noun, the corresponding nominal form of each
             1794      term in Subsection (1)(d)(i), individually.


             1795          (2) Notwithstanding any other provision of law, the use of an asset by a taxed interlocal
             1796      entity does not constitute the use of a public asset.
             1797          (3) Notwithstanding any other provision of law, a taxed interlocal entity's use of an
             1798      asset that was a public asset prior to the taxed interlocal entity's use of the asset does not
             1799      constitute a taxed interlocal entity's use of a public asset.
             1800          (4) Notwithstanding any other provision of law, an official of a project entity is not a
             1801      public treasurer.
             1802          (5) Notwithstanding any other provision of law, a taxed interlocal entity's governing
             1803      body, as described in Section 11-13-206 , shall determine and direct the use of an asset by the
             1804      taxed interlocal entity.
             1805          (6) (a) A taxed interlocal entity is not subject to the provisions of Title 63G, Chapter
             1806      6a, Utah Procurement Code.
             1807          (b) An agent of a taxed interlocal entity is not an external procurement unit as defined
             1808      in Section 63G-6a-104 .
             1809          (7) (a) A taxed interlocal entity is not a participating local entity as defined in Section
             1810      63A-3-401 .
             1811          (b) For each fiscal year of a taxed interlocal entity, the taxed interlocal entity shall
             1812      provide:
             1813          (i) the taxed interlocal entity's financial statements for and as of the end of the fiscal
             1814      year and the prior fiscal year, including the taxed interlocal entity's balance sheet as of the end
             1815      of the fiscal year and the prior fiscal year, and the related statements of revenues and expenses
             1816      and of cash flows for the fiscal year; and
             1817          (ii) the accompanying auditor's report and management's discussion and analysis with
             1818      respect to the taxed interlocal entity's financial statements for and as of the end of the fiscal
             1819      year.
             1820          (c) The taxed interlocal entity shall provide the information described in Subsections
             1821      (7)(b)(i) and [(b)] (ii):
             1822          (i) in a manner described in Subsection 63A-3-405 (3); and
             1823          (ii) within a reasonable time after the taxed interlocal entity's independent auditor
             1824      delivers to the taxed interlocal entity's governing body the auditor's report with respect to the
             1825      financial statements for and as of the end of the fiscal year.


             1826          (d) Notwithstanding Subsections (7)(b) and (c) or a taxed interlocal entity's compliance
             1827      with one or more of the requirements of Title 63A, Chapter 3, Division of Finance:
             1828          (i) the taxed interlocal entity is not subject to Title 63A, Chapter 3, Division of
             1829      Finance; and
             1830          (ii) the information described in Subsection (7)(b)(i) or (ii) does not constitute public
             1831      financial information as defined in Section 63A-3-401 .
             1832          (8) (a) A taxed interlocal entity's governing body is not a governing board as defined in
             1833      Section 51-2a-102 .
             1834          (b) A taxed interlocal entity is not subject to the provisions of Title 51, Chapter 2a,
             1835      Accounting Reports from Political Subdivisions, Interlocal Organizations, and Other Local
             1836      Entities Act.
             1837          Section 47. Section 11-14-301 is amended to read:
             1838           11-14-301. Issuance of bonds by governing body -- Computation of indebtedness
             1839      under constitutional and statutory limitations.
             1840          (1) If the governing body has declared the bond proposition to have carried and no
             1841      contest has been filed, or if a contest has been filed and favorably terminated, the governing
             1842      body may proceed to issue the bonds voted at the election.
             1843          (2) (a) It is not necessary that all of the bonds be issued at one time, but, except as
             1844      otherwise provided in this Subsection (2), bonds approved by the voters may not be issued
             1845      more than 10 years after the day on which the election is held.
             1846          (b) The 10-year period described in Subsection (2)(a) is tolled if, at any time during the
             1847      10-year period:
             1848          (i) an application for a referendum petition is filed with a local clerk, in accordance
             1849      with Section 20A-7-602 and Subsection 20A-7-601 [(4)](3)(a), with respect to the local
             1850      obligation law relating to the bonds; or
             1851          (ii) the bonds are challenged in a court of law or an administrative proceeding in
             1852      relation to:
             1853          (A) the legality or validity of the bonds, or the election or proceedings authorizing the
             1854      bonds;
             1855          (B) the authority of the local political subdivision to issue the bonds;
             1856          (C) the provisions made for the security or payment of the bonds; or


             1857          (D) any other issue that materially and adversely affects the marketability of the bonds,
             1858      as determined by the individual or body that holds the executive powers of the local political
             1859      subdivision.
             1860          (c) A tolling period described in Subsection (2)(b)(i) ends on the later of the day on
             1861      which:
             1862          (i) the local clerk determines that the petition is insufficient, in accordance with
             1863      Subsection 20A-7-607 (2)(c), unless an application, described in Subsection 20A-7-607 (4)(a), is
             1864      made to the Supreme Court;
             1865          (ii) the Supreme Court determines, under Subsection 20A-7-607 (4)(c), that the petition
             1866      for the referendum is not legally sufficient; or
             1867          (iii) for a referendum petition that is sufficient, the governing body declares, as
             1868      provided by law, the results of the referendum election on the local obligation law.
             1869          (d) A tolling period described in Subsection (2)(b)(ii) ends after:
             1870          (i) there is a final settlement, a final adjudication, or another type of final resolution of
             1871      all challenges described in Subsection (2)(b)(ii); and
             1872          (ii) the individual or body that holds the executive powers of the local political
             1873      subdivision issues a document indicating that all challenges described in Subsection (2)(b)(ii)
             1874      are resolved and final.
             1875          (e) If the 10-year period described in Subsection (2)(a) is tolled under this Subsection
             1876      (2) and, when the tolling ends and after giving effect to the tolling, the period of time
             1877      remaining to issue the bonds is less than one year, the period of time remaining to issue the
             1878      bonds shall be extended to one year.
             1879          (f) The tolling provisions described in this Subsection (2) apply to all bonds described
             1880      in this section that were approved by voters on or after May 8, 2002.
             1881          (3) (a) Bonds approved by the voters may not be issued to an amount that will cause
             1882      the indebtedness of the local political subdivision to exceed that permitted by the Utah
             1883      Constitution or statutes.
             1884          (b) In computing the amount of indebtedness that may be incurred pursuant to
             1885      constitutional and statutory limitations, the constitutionally or statutorily permitted percentage,
             1886      as the case may be, shall be applied to the fair market value, as defined under Section 59-2-102 ,
             1887      of the taxable property in the local political subdivision, as computed from the last applicable


             1888      equalized assessment roll before the incurring of the additional indebtedness.
             1889          (c) In determining the fair market value of the taxable property in the local political
             1890      subdivision as provided in this section, the value of all tax equivalent property, as defined in
             1891      Section 59-3-102 , shall be included as a part of the total fair market value of taxable property
             1892      in the local political subdivision, as provided in Title 59, Chapter 3, Tax Equivalent Property
             1893      Act.
             1894          (4) Bonds of improvement districts issued in a manner that they are payable solely
             1895      from the revenues to be derived from the operation of the facilities of the district may not be
             1896      included as bonded indebtedness for the purposes of the computation.
             1897          (5) Where bonds are issued by a city, town, or county payable solely from revenues
             1898      derived from the operation of revenue-producing facilities of the city, town, or county, or
             1899      payable solely from a special fund into which are deposited excise taxes levied and collected by
             1900      the city, town, or county, or excise taxes levied by the state and rebated pursuant to law to the
             1901      city, town, or county, or any combination of those excise taxes, the bonds shall be included as
             1902      bonded indebtedness of the city, town, or county only to the extent required by the Utah
             1903      Constitution, and any bonds not so required to be included as bonded indebtedness of the city,
             1904      town, or county need not be authorized at an election, except as otherwise provided by the Utah
             1905      Constitution, the bonds being hereby expressly excluded from the election requirement of
             1906      Section 11-14-201 .
             1907          (6) A bond election is not void when the amount of bonds authorized at the election
             1908      exceeded the limitation applicable to the local political subdivision at the time of holding the
             1909      election, but the bonds may be issued from time to time in an amount within the applicable
             1910      limitation at the time the bonds are issued.
             1911          Section 48. Section 11-17-14 is amended to read:
             1912           11-17-14. Uniform Commercial Code not applicable.
             1913          Bonds issued under this act are exempt from the provisions of [the] Title 70A, Uniform
             1914      Commercial Code[, Title 70A].
             1915          Section 49. Section 11-32-4 is amended to read:
             1916           11-32-4. Assignment of rights to receive delinquent tax receivables to financing
             1917      authority -- Documentation -- Agreement.
             1918          (1) At any time following the date of delinquency for property in Title 59, Chapter 2,


             1919      Part 13, Collection of Taxes, the governing body of any county desiring to implement the
             1920      provisions of this chapter by assigning the delinquent tax receivables of the participant
             1921      members to its authority shall ascertain the amount of delinquent taxes owed to the participant
             1922      members within the county. After ascertaining the amount of delinquent tax receivables owed,
             1923      the governing body of the county may, as agent for the other participant members, assign the
             1924      rights of the participant members to receive the delinquent tax receivables, in whole or in part,
             1925      as designated by the governing body of the county, to the financing authority. The assignment
             1926      of rights described above shall take the form of an assignment of an account receivables. The
             1927      purchase price paid by the authority may be equal to, greater than, or less than the amount of
             1928      the delinquent tax receivables sold to the authority. The documentation by which the transfer
             1929      of the delinquent tax receivables are made shall contain the following:
             1930          (a) the tax year or years for which the delinquent taxes owing were levied;
             1931          (b) the amount of taxes, interest, and penalties due to the participant members with
             1932      respect to the tax years as of the date the accounts are assigned;
             1933          (c) the tax identification numbers or other descriptions of the specific properties with
             1934      respect to which the delinquent tax receivables are being assigned;
             1935          (d) the interest rate at which the delinquent taxes subject to the assignment bear interest
             1936      pursuant to Section 59-2-1331 ;
             1937          (e) the discount or premium, if any, at which the account is assigned;
             1938          (f) a certificate representing the transfer of the rights of the county and the other
             1939      participant members to receive the amounts due and owing the county and the other participant
             1940      members with respect to the delinquent tax receivables transferred; and
             1941          (g) certification by the governing body of the county that all amounts received by the
             1942      county with respect to the delinquent taxes, interest, and penalties assigned to the authority and
             1943      owed to the county and the other participant members, for the tax years specified, upon the
             1944      specified property, and the additional interest and penalties to accrue on the delinquent
             1945      amounts, shall be deposited upon receipt into a special fund of the county created for this
             1946      purpose and shall be used solely to pay the amounts falling due to the financing authority as
             1947      specified in the assignment agreement.
             1948          (2) The assignment agreement shall contain a statement to the effect that any amounts
             1949      falling due under it are payable solely from a special fund into which the county shall pay the


             1950      amounts collected with respect to the delinquent tax receivables pledged and shall state that
             1951      under no circumstances may the county or any of the other participant members be required to
             1952      use any other funds, property, or money of the county or the other participant members or to
             1953      levy any tax to satisfy amounts due under the agreement.
             1954          Section 50. Section 11-42-604 is amended to read:
             1955           11-42-604. Notice regarding resolution or ordinance authorizing interim
             1956      warrants or bond anticipation notes -- Complaint contesting warrants or notes --
             1957      Prohibition against contesting warrants and notes.
             1958          (1) A local entity may publish notice, as provided in Subsection (2), of a resolution or
             1959      ordinance that the governing body has adopted authorizing the issuance of interim warrants or
             1960      bond anticipation notes.
             1961          (2) (a) If a local entity chooses to publish notice under Subsection (1)[(a)], the notice
             1962      shall:
             1963          (i) be published:
             1964          (A) in a newspaper of general circulation within the local entity; and
             1965          (B) as required in Section 45-1-101 ; and
             1966          (ii) contain:
             1967          (A) the name of the issuer of the interim warrants or bond anticipation notes;
             1968          (B) the purpose of the issue;
             1969          (C) the maximum principal amount that may be issued;
             1970          (D) the maximum length of time over which the interim warrants or bond anticipation
             1971      notes may mature;
             1972          (E) the maximum interest rate, if there is a maximum rate; and
             1973          (F) the times and place where a copy of the resolution or ordinance may be examined,
             1974      as required under Subsection (2)(b).
             1975          (b) The local entity shall allow examination of the resolution or ordinance authorizing
             1976      the issuance of the interim warrants or bond anticipation notes at its office during regular
             1977      business hours.
             1978          (3) Any person may, within 30 days after publication of a notice under Subsection (1),
             1979      file a verified, written complaint in the district court of the county in which the person resides,
             1980      contesting the regularity, formality, or legality of the interim warrants or bond anticipation


             1981      notes issued by the local entity or the proceedings relating to the issuance of the interim
             1982      warrants or bond anticipation notes.
             1983          (4) After the 30-day period under Subsection (3), no person may contest the regularity,
             1984      formality, or legality of the interim warrants or bond anticipation notes issued by a local entity
             1985      under the resolution or ordinance that was the subject of the notice under Subsection (1), or the
             1986      proceedings relating to the issuance of the interim warrants or bond anticipation notes.
             1987          Section 51. Section 13-1a-5 is amended to read:
             1988           13-1a-5. Authority of director.
             1989          The director has authority:
             1990          (1) to make rules in accordance with Title 63G, Chapter 3, Utah Administrative
             1991      Rulemaking Act, to administer the responsibilities of the division;
             1992          (2) to investigate, upon complaint, the corporation and commercial code filings and
             1993      compliance governed by the laws administered and enforced by the division; and
             1994          (3) under the provisions of Title 63G, Chapter 4, [Utah] Administrative Procedures
             1995      Act, to take administrative action against persons in violation of the division rules and the laws
             1996      administered by it, including the issuance of cease and desist orders.
             1997          Section 52. Section 13-22-8 is amended to read:
             1998           13-22-8. Exemptions.
             1999          (1) Section 13-22-5 does not apply to:
             2000          (a) a solicitation that an organization conducts among its own established and bona fide
             2001      membership exclusively through the voluntarily donated efforts of other members or officers of
             2002      the organization;
             2003          (b) a bona fide religious, ecclesiastical, or denominational organization if:
             2004          (i) the solicitation is made for a church, missionary, religious, or humanitarian purpose;
             2005      and
             2006          (ii) the organization is either:
             2007          (A) a lawfully organized corporation, institution, society, church, or established
             2008      physical place of worship, at which nonprofit religious services and activities are regularly
             2009      conducted and carried on;
             2010          (B) a bona fide religious group:
             2011          (I) that does not maintain specific places of worship;


             2012          (II) that is not subject to federal income tax; and
             2013          (III) not required to file an IRS Form 990 under any circumstance; or
             2014          (C) a separate group or corporation that is an integral part of an institution that is an
             2015      income tax exempt organization under 26 U.S.C. Sec. 501(c)(3) and is not primarily supported
             2016      by funds solicited outside its own membership or congregation;
             2017          (c) a solicitation by a broadcast media owned or operated by an educational institution
             2018      or governmental entity, or any entity organized solely for the support of that broadcast media;
             2019          (d) except as provided in Subsection 13-22-21 (1), a solicitation for the relief of any
             2020      person sustaining a life-threatening illness or injury specified by name at the time of
             2021      solicitation if the entire amount collected without any deduction is turned over to the named
             2022      person;
             2023          (e) a political party authorized to transact its affairs within this state and any candidate
             2024      and campaign worker of the party if the content and manner of any solicitation make clear that
             2025      the solicitation is for the benefit of the political party or candidate;
             2026          (f) a political action committee or group soliciting funds relating to issues or candidates
             2027      on the ballot if the committee or group is required to file financial information with a federal or
             2028      state election commission;
             2029          (g) any school accredited by the state, any accredited institution of higher learning, or
             2030      club or parent, teacher, or student organization within and authorized by the school in support
             2031      of the operations or extracurricular activities of the school;
             2032          (h) a public or higher education foundation established under Title 53A [or 53B], State
             2033      System of Public Education, or Title 53B, State System Of Higher Education;
             2034          (i) a television station, radio station, or newspaper of general circulation that donates
             2035      air time or print space for no consideration as part of a cooperative solicitation effort on behalf
             2036      of a charitable organization, whether or not that organization is required to register under this
             2037      chapter;
             2038          (j) a volunteer fire department, rescue squad, or local civil defense organization whose
             2039      financial oversight is under the control of a local governmental entity;
             2040          (k) any governmental unit of any state or the United States; and
             2041          (l) any corporation:
             2042          (i) established by an act of the United States Congress; and


             2043          (ii) that is required by federal law to submit an annual report:
             2044          (A) on the activities of the corporation, including an itemized report of all receipts and
             2045      expenditures of the corporation; and
             2046          (B) to the United States Secretary of Defense to be:
             2047          (I) audited; and
             2048          (II) submitted to the United States Congress.
             2049          (2) Any organization claiming an exemption under this section bears the burden of
             2050      proving its eligibility for, or the applicability of, the exemption claimed.
             2051          (3) Each organization exempt from registration pursuant to this section that makes a
             2052      material change in its legal status, officers, address, or similar changes shall file a report
             2053      informing the division of its current legal status, business address, business phone, officers, and
             2054      primary contact person within 30 days of the change.
             2055          (4) The division may by rule:
             2056          (a) require organizations exempt from registration pursuant to this section to file a
             2057      notice of claim of exemption;
             2058          (b) prescribe the contents of the notice of claim; and
             2059          (c) require a filing fee for the notice, as determined under Section 63J-1-504 .
             2060          Section 53. Section 13-23-5 is amended to read:
             2061           13-23-5. Registration -- Bond, letter of credit, or certificate of deposit required --
             2062      Penalties.
             2063          (1) (a) (i) It is unlawful for any health spa facility to operate in this state unless the
             2064      facility is registered with the division.
             2065          (ii) Registration is effective for one year. If the health spa facility renews its
             2066      registration, the registration shall be renewed at least 30 days prior to its expiration.
             2067          (iii) The division shall provide by rule for the form, content, application process, and
             2068      renewal process of the registration.
             2069          (b) Each health spa registering in this state shall designate a registered agent for
             2070      receiving service of process. The registered agent shall be reasonably available from 8 a.m.
             2071      until 5 p.m. during normal working days.
             2072          (c) The division shall charge and collect a fee for registration under guidelines
             2073      provided in Section 63J-1-504 .


             2074          (d) If an applicant fails to file a registration application or renewal by the due date, or
             2075      files an incomplete registration application or renewal, the applicant shall pay a fee of $25 for
             2076      each month or part of a month after the date on which the registration application or renewal
             2077      were due to be filed, in addition to the registration fee described in Subsection (1)(c).
             2078          (e) A health spa registering or renewing a registration shall provide the division a copy
             2079      of the liability insurance policy that:
             2080          (i) covers the health spa; and
             2081          (ii) is in effect at the time of the registration or renewal.
             2082          (2) (a) Each health spa shall obtain and maintain:
             2083          (i) a performance bond issued by a surety authorized to transact surety business in this
             2084      state;
             2085          (ii) an irrevocable letter of credit issued by a financial institution authorized to do
             2086      business in this state; or
             2087          (iii) a certificate of deposit.
             2088          (b) The bond, letter of credit, or certificate of deposit shall be payable to the division
             2089      for the benefit of any consumer who incurs damages as the result of:
             2090          (i) the health spa's violation of this chapter; or
             2091          (ii) the health spa's going out of business or relocating and failing to offer an alternate
             2092      location within five miles.
             2093          (c) (i) The division may recover from the bond, letter of credit, or certificate of deposit
             2094      the costs of collecting and distributing funds under this section, up to 10% of the face value of
             2095      the bond, letter of credit, or certificate of deposit but only if the consumers have fully recovered
             2096      their damages first.
             2097          (ii) The total liability of the issuer of the bond, letter of credit, or certificate of deposit
             2098      may not exceed the amount of the bond, letter of credit, or certificate of deposit.
             2099          (iii) The health spa shall maintain a bond, letter of credit, or certificate of deposit in
             2100      force for one year after it notifies the division in writing that it has ceased all activities
             2101      regulated by this chapter.
             2102          (d) A health spa providing services at more than one location shall comply with the
             2103      requirements of Subsection (2)(a) for each separate location.
             2104          (e) The division may impose a fine against a health spa that fails to comply with the


             2105      requirements of Subsection (2)(a) of up to $100 per day that the health spa remains out of
             2106      compliance. All penalties received shall be deposited into the Consumer Protection Education
             2107      and Training Fund created in Section 13-2-8 .
             2108          (3) (a) The minimum principal amount of the bond, letter of credit, or certificate of
             2109      credit required under Subsection (2) shall be based on the number of unexpired contracts for
             2110      health spa services to which the health spa is a party, in accordance with the following
             2111      schedule:
             2112      Principal Amount of
Bond, Letter of Credit,
or Certificate of Deposit
Number of Contracts
             2113      $15,000 500 or fewer
             2114      35,000 501 to 1,500
             2115      50,000 [1,500] 1,501 to 3,000
             2116      75,000 3,001 or more
             2117          (b) A health spa that is not exempt under Section 13-23-6 shall comply with
             2118      Subsection (3)(a) with respect to all of the health spa's unexpired contracts for health spa
             2119      services, regardless of whether a portion of those contracts satisfies the criteria in Section
             2120      13-23-6 .
             2121          (4) Each health spa shall obtain the bond, letter of credit, or certificate of deposit and
             2122      furnish a certified copy of the bond, letter of credit, or certificate of deposit to the division prior
             2123      to selling, offering or attempting to sell, soliciting the sale of, or becoming a party to any
             2124      contract to provide health spa services. A health spa is considered to be in compliance with
             2125      this section only if the proof provided to the division shows that the bond, letter of credit, or
             2126      certificate of credit is current.
             2127          (5) Each health spa shall:
             2128          (a) maintain accurate records of the bond, letter of credit, or certificate of credit and of
             2129      any payments made, due, or to become due to the issuer; and
             2130          (b) open the records to inspection by the division at any time during normal business
             2131      hours.
             2132          (6) If a health spa changes ownership, ceases operation, discontinues facilities, or


             2133      relocates and fails to offer an alternate location within five miles within 30 days after its
             2134      closing, the health spa is subject to the requirements of this section as if it were a new health
             2135      spa coming into being at the time the health spa changed ownership. The former owner may
             2136      not release, cancel, or terminate the owner's liability under any bond, letter of credit, or
             2137      certificate of deposit previously filed with the division, unless:
             2138          (a) the new owner has filed a new bond, letter of credit, or certificate of deposit for the
             2139      benefit of consumers covered under the previous owner's bond, letter of credit, or certificate of
             2140      deposit; or
             2141          (b) the former owner has refunded all unearned payments to consumers.
             2142          (7) If a health spa ceases operation or relocates and fails to offer an alternative location
             2143      within five miles, the health spa shall provide the division with 45 days prior notice.
             2144          Section 54. Section 13-26-4 is amended to read:
             2145           13-26-4. Exemptions from registration.
             2146          (1) In any enforcement action initiated by the division, the person claiming an
             2147      exemption has the burden of proving that the person is entitled to the exemption.
             2148          (2) The following are exempt from the requirements of this chapter except for the
             2149      requirements of Sections 13-26-8 and 13-26-11 :
             2150          (a) a broker, agent, dealer, or sales professional licensed under the licensure laws of
             2151      this state, when soliciting sales within the scope of his license;
             2152          (b) the solicitation of sales by:
             2153          (i) a public utility that is regulated under Title 54, Public Utilities, or by an affiliate of
             2154      the utility;
             2155          (ii) a newspaper of general circulation;
             2156          (iii) a solicitation of sales made by a broadcaster licensed by any state or federal
             2157      authority;
             2158          (iv) a nonprofit organization if no part of the net earnings from the sale inures to the
             2159      benefit of any member, officer, trustee, or serving board member of the organization, or
             2160      individual, or family member of an individual, holding a position of authority or trust in the
             2161      organization; and
             2162          (v) a person who periodically publishes and delivers a catalog of the solicitor's
             2163      merchandise to prospective purchasers, if the catalog:


             2164          (A) contains the price and a written description or illustration of each item offered for
             2165      sale;
             2166          (B) includes the business address of the solicitor;
             2167          (C) includes at least 24 pages of written material and illustrations;
             2168          (D) is distributed in more than one state; and
             2169          (E) has an annual circulation by mailing of not less than 250,000;
             2170          (c) any publicly-traded corporation registered with the Securities and Exchange
             2171      Commission, or any subsidiary of the corporation;
             2172          (d) the solicitation of any depository institution as defined in Section 7-1-103 , a
             2173      subsidiary of a depository institution, personal property broker, securities broker, investment
             2174      adviser, consumer finance lender, or insurer subject to regulation by an official agency of this
             2175      state or the United States;
             2176          (e) the solicitation by a person soliciting only the sale of telephone services to be
             2177      provided by the person or the person's employer;
             2178          (f) the solicitation of a person relating to a transaction regulated by the Commodities
             2179      Futures Trading Commission, if:
             2180          (i) the person is registered with or temporarily licensed by the commission to conduct
             2181      that activity under the Commodity Exchange Act; and
             2182          (ii) the registration or license has not expired or been suspended or revoked;
             2183          (g) the solicitation of a contract for the maintenance or repair of goods previously
             2184      purchased from the person:
             2185          (i) who is making the solicitation; or
             2186          (ii) on whose behalf the solicitation is made;
             2187          (h) the solicitation of previous customers of the business on whose behalf the call is
             2188      made if the person making the call:
             2189          (i) does not offer any premium in conjunction with a sale or offer;
             2190          (ii) is not selling an investment or an opportunity for an investment that is not
             2191      registered with any state or federal authority; and
             2192          (iii) is not regularly engaged in telephone sales;
             2193          (i) the solicitation of a sale that is an isolated transaction and not done in the course of
             2194      a pattern of repeated transactions of a like nature;


             2195          (j) the solicitation of a person by a retail business establishment that has been in
             2196      operation for at least five years in Utah under the same name as that used in connection with
             2197      telemarketing if both of the following occur on a continuing basis:
             2198          (i) products are displayed and offered for sale at the place of business, or services are
             2199      offered for sale and provided at the place of business; and
             2200          (ii) a majority of the seller's business involves the buyer obtaining the products or
             2201      services at the seller's place of business;
             2202          (k) a person primarily soliciting the sale of a magazine or periodical sold by the
             2203      publisher or the publisher's agent through a written agreement, or printed or recorded material
             2204      through a contractual plan, such as a book or record club, continuity plan, subscription,
             2205      standing order arrangement, or supplement or series arrangement if:
             2206          (i) the seller provides the consumer with a form that the consumer may use to instruct
             2207      the seller not to ship the offered merchandise, and the arrangement is regulated by the Federal
             2208      Trade Commission trade regulation concerning use of negative option plans by sellers in
             2209      commerce; or
             2210          (ii) (A) the seller periodically ships merchandise to a consumer who has consented in
             2211      advance to receive the merchandise on a periodic basis; and
             2212          (B) the consumer retains the right to cancel at any time and receive a full refund for the
             2213      unused portion; or
             2214          (l) a telephone marketing service company that provides telemarketing sales services
             2215      under contract to sellers if:
             2216          (i) it has been doing business regularly with customers in Utah for at least five years
             2217      under the same business name and with its principal office in the same location;
             2218          (ii) at least 75% of its contracts are performed on behalf of persons exempted from
             2219      registration under this chapter; and
             2220          (iii) neither the company nor its principals have been enjoined from doing business or
             2221      subjected to criminal actions for their business activities in this or any other state.
             2222          Section 55. Section 13-32a-104 is amended to read:
             2223           13-32a-104. Register required to be maintained -- Contents -- Identification of
             2224      items -- Prohibition against pawning or selling certain property.
             2225          (1) Every pawnbroker or secondhand merchandise dealer shall keep a register of each


             2226      article of property a person pawns or sells to the pawnbroker or secondhand merchandise
             2227      dealer, except as provided in Subsection 13-32a-102 (23)(b). Every pawn and secondhand
             2228      business owner or operator, or his employee, shall enter the following information regarding
             2229      every article pawned or sold to the owner or employee:
             2230          (a) the date and time of the transaction;
             2231          (b) the pawn transaction ticket number, if the article is pawned;
             2232          (c) the date by which the article must be redeemed;
             2233          (d) the following information regarding the person who pawns or sells the article:
             2234          (i) the person's name, residence address, and date of birth;
             2235          (ii) the number of the driver license or other form of positive identification presented
             2236      by the person, and notations of discrepancies if the person's physical description, including
             2237      gender, height, weight, race, age, hair color, and eye color, does not correspond with
             2238      identification provided by the person;
             2239          (iii) the person's signature; and
             2240          (iv) a legible fingerprint of the person's right index finger, or if the right index finger
             2241      cannot be fingerprinted, a legible fingerprint of the person with a written notation identifying
             2242      the fingerprint and the reason why the index finger's print was unavailable;
             2243          (e) the amount loaned on or paid for the article, or the article for which it was traded;
             2244          (f) the identification of the pawn or secondhand business owner or the employee,
             2245      whoever is making the register entry; and
             2246          (g) an accurate description of the article of property, including available identifying
             2247      marks such as:
             2248          (i) names, brand names, numbers, serial numbers, model numbers, color,
             2249      manufacturers' names, and size;
             2250          (ii) metallic composition, and any jewels, stones, or glass;
             2251          (iii) any other marks of identification or indicia of ownership on the article;
             2252          (iv) the weight of the article, if the payment is based on weight;
             2253          (v) any other unique identifying feature;
             2254          (vi) gold content, if indicated; and
             2255          (vii) if multiple articles of a similar nature are delivered together in one transaction and
             2256      the articles do not bear serial or model numbers and do not include precious metals or


             2257      gemstones, such as musical or video recordings, books, or hand tools, the description of the
             2258      articles is adequate if it includes the quantity of the articles and a description of the type of
             2259      articles delivered.
             2260          (2) A pawn or secondhand business may not accept any personal property if, upon
             2261      inspection, it is apparent that serial numbers, model names, or identifying characteristics have
             2262      been intentionally defaced on that article of property.
             2263          (3) (a) A person may not pawn or sell any property to a business regulated under this
             2264      chapter if the property is subject to being turned over to a law enforcement agency in
             2265      accordance with Title 77, Chapter [24, Unclaimed] 24a, Lost or Mislaid Personal Property.
             2266          (b) If an individual attempts to sell or pawn property to a business regulated under this
             2267      chapter and the employee or owner of the business knows or has reason to know that the
             2268      property is subject to Title 77, Chapter [24, Unclaimed] 24a, Lost or Mislaid Personal Property,
             2269      the employee or owner shall advise the individual of the requirements of Title 77, Chapter [24,
             2270      Unclaimed] 24a, Lost or Mislaid Personal Property, and may not receive the property in pawn
             2271      or sale.
             2272          (4) A violation of this section is a class B misdemeanor and is also subject to civil
             2273      penalties under Section 13-32a-110 .
             2274          Section 56. Section 13-32a-115 is amended to read:
             2275           13-32a-115. Investigation phase and victim's responsibilities.
             2276          (1) If the property pawned or sold to a pawn or secondhand business is the subject of a
             2277      criminal investigation and a hold has been placed on the property under Section 13-32a-109 ,
             2278      the original victim shall do the following to establish a claim:
             2279          (a) positively identify to law enforcement the item stolen or lost;
             2280          (b) if a police report has not already been filed for the original theft or loss of property,
             2281      file a police report, and provide for the law enforcement agency information surrounding the
             2282      original theft or loss of property; and
             2283          (c) give a sworn statement under penalty of law that:
             2284          (i) claims ownership of the property;
             2285          (ii) references the original theft or loss; and
             2286          (iii) identifies the perpetrator if known.
             2287          (2) The pawn or secondhand business shall retain possession of any property subject to


             2288      a hold until a criminal prosecution is commenced relating to the property for which the hold
             2289      was placed unless:
             2290          (a) during the course of a criminal investigation the actual physical possession by law
             2291      enforcement of an article purchased or pawned is essential for the purpose of fingerprinting the
             2292      property, chemical testing of the property, or if the property contains unique or sensitive
             2293      personal identifying information; or
             2294          (b) an agreement between the original victim and the pawn or secondhand business to
             2295      return the property is reached.
             2296          (3) (a) Upon the commencement of a criminal prosecution, any article subject to a hold
             2297      for investigation under this chapter may be seized by the law enforcement agency which
             2298      requested the hold.
             2299          (b) Subsequent disposition of the property shall be consistent with Section [ 77-24-2 ]
             2300      24-3-103 regarding property not needed as evidence and this chapter.
             2301          (c) If a conflict exists between the provisions of Section [ 77-24-2 ] 24-3-103 regarding
             2302      property not needed as evidence and this chapter, this chapter takes precedence regarding
             2303      property held by pawn or secondhand businesses.
             2304          (4) At all times during the course of a criminal investigation and subsequent
             2305      prosecution, the article subject to a law enforcement hold shall be kept secure by the pawn or
             2306      secondhand business subject to the hold unless a pawned or sold article has been seized by the
             2307      law enforcement agency pursuant to Section 13-32a-109.5 .
             2308          Section 57. Section 13-32a-117 is amended to read:
             2309           13-32a-117. Property disposition if no criminal charges filed -- Administrative
             2310      hearing.
             2311          (1) The original victim or the pawn or secondhand business may request an
             2312      administrative property disposition hearing with the Division of Consumer Protection if:
             2313          (a) more than 30 days have passed since:
             2314          (i) the law enforcement agency placed a hold on the property; or
             2315          (ii) the property was seized by the law enforcement agency; and
             2316          (b) an agreement pursuant to Subsection 13-32a-115 (2)(b) has not been reached.
             2317          (2) The original victim or the pawn or secondhand business shall provide to the
             2318      Division of Consumer Protection at the time of the request for a property disposition hearing:


             2319          (a) a copy of the sworn statement of the original victim taken pursuant to Section
             2320      13-32a-115 and the case number assigned by the law enforcement agency; and
             2321          (b) a written notice from the prosecuting agency with jurisdiction over the case
             2322      involving the property that the prosecuting agency has made an initial determination under
             2323      Section [ 77-24-2 ] 13-32a-109 or 13-32a-109.5 and this chapter that the property is no longer
             2324      needed as evidence.
             2325          (3) (a) Within 30 days after receiving the request for a property disposition hearing
             2326      from the original victim or the pawn or secondhand business, the Division of Consumer
             2327      Protection shall schedule an adjudicative hearing in accordance with Title 63G, Chapter 4,
             2328      Administrative Procedures Act, to determine ownership of the claimed property. The division
             2329      shall provide written notice of the hearing to the pawn or secondhand business and the original
             2330      victim.
             2331          (b) The division shall conduct the hearing to determine disposition of the claimed
             2332      seized property, taking into consideration:
             2333          (i) the proof of ownership of the property and compliance with Subsection
             2334      13-32a-115 (1) by the original victim;
             2335          (ii) the claim of ownership by the pawn or secondhand business and the potential
             2336      financial loss to the business; and
             2337          (iii) compliance by the pawn or secondhand business with the requirements of this
             2338      chapter.
             2339          (c) If the division determines that the property should be released to the pawn or
             2340      secondhand business, the original victim retains a right of first refusal over the property for 15
             2341      days and may purchase the property at the amount financed or paid by the pawn or secondhand
             2342      business.
             2343          (d) The party to whom the division determines the property is to be released shall
             2344      maintain possession of the property for the duration of any time period regarding any
             2345      applicable right of appeal.
             2346          Section 58. Section 13-47-102 (Contingently Repealed) is amended to read:
             2347           13-47-102 (Contingently Repealed). Definitions.
             2348          As used in this chapter:
             2349          (1) "Department" means the Department of Commerce.


             2350          (2) "Employee" means an individual:
             2351          (a) who is hired to perform services in Utah; and
             2352          (b) to whom a private employer provides a federal form required for federal taxation
             2353      purposes to report income paid to the individual for the services performed.
             2354          (3) (a) Except as provided in Subsection (3)(b), "private employer" means a person
             2355      who for federal taxation purposes is required to provide a federal form:
             2356          (i) to an individual who performs services for the person in Utah; and
             2357          (ii) to report income paid to the individual who performs the services.
             2358          (b) "Private employer" does not mean a public employer as defined in Section
             2359      [ 63G-11-103 ] 63G-12-102 .
             2360          (4) (a) "Status verification system" means an electronic system operated by the federal
             2361      government, through which an employer may inquire to verify the federal legal working status
             2362      of an individual who is a newly hired employee.
             2363          (b) "Status verification system" includes:
             2364          (i) the electronic verification of the work authorization program of the Illegal
             2365      Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. Sec. 1324a;
             2366          (ii) a federal program equivalent to the program described in Subsection (4)(b)(i) that
             2367      is designated by the United States Department of Homeland Security or other federal agency
             2368      authorized to verify the employment eligibility status of a newly hired employee pursuant to the
             2369      Immigration Reform and Control Act of 1986;
             2370          (iii) the Social Security Number Verification Service or similar online verification
             2371      process implemented by the United States Social Security Administration; or
             2372          (iv) an independent third-party system with an equal or higher degree of reliability as
             2373      the programs, systems, or processes described in Subsection (4)(b)(i), (ii), or (iii).
             2374          Section 59. Section 13-47-201 (Contingently Repealed) is amended to read:
             2375           13-47-201 (Contingently Repealed). Verification required for new hires.
             2376          (1) A private employer who employs 15 or more employees [as of] on or after July 1,
             2377      2010, may not hire a new employee on or after July 1, 2010, unless the private employer:
             2378          (a) is registered with a status verification system to verify the federal legal working
             2379      status of any new employee; and
             2380          (b) uses the status verification system to verify the federal legal working status of the


             2381      new employee in accordance with the requirements of the status verification system.
             2382          (2) This section does not apply to a private employer of a foreign national if the foreign
             2383      national holds a visa issued in response to a petition by the private employer that is classified as
             2384      H-2A or H-2B.
             2385          Section 60. Section 15-8-4 is amended to read:
             2386           15-8-4. Inapplicability of other laws -- Exempted transactions.
             2387          (1) Rental purchase agreements that comply with this chapter are not governed by the
             2388      laws relating to:
             2389          (a) a security interest as defined in Subsection 70A-1a-201 (2)(ii); or
             2390          (b) Title 70C, Utah Consumer Credit Code, except that Sections 70C-7-102 through
             2391      70C-7-104 and 70C-2-205 shall apply to lessors as defined in this chapter to the same extent as
             2392      they apply to creditors under Title 70C, Utah Consumer Credit Code.
             2393          (2) The chapter does not apply to the following:
             2394          (a) rental purchase agreements primarily for business, commercial, or agricultural
             2395      purposes, or those made with governmental agencies or instrumentalities or with organizations;
             2396          (b) a lease of a safe deposit box;
             2397          (c) a lease or bailment of personal property which is incidental to the lease of real
             2398      property and which provides that the consumer has no option to purchase the leased property;
             2399      or
             2400          (d) a lease of a motor vehicle, as defined in Section 41-1a-102 .
             2401          Section 61. Section 15-9-103 is amended to read:
             2402           15-9-103. Administration -- Rulemaking -- Service of process.
             2403          (1) (a) This chapter shall be administered by the division and is subject to the
             2404      requirements of Title 58, Chapter 1, Division of Occupational and Professional Licensing Act,
             2405      so long as the requirements of Title 58, Chapter 1, Division of Occupational and Professional
             2406      Licensing Act, are not inconsistent with the requirements of this chapter.
             2407          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             2408      division may make rules necessary to implement this chapter.
             2409          (2) By acting as an athlete agent in this state, a nonresident individual appoints the
             2410      director of the division as the individual's agent for service of process in any civil action in this
             2411      state related to the individual's acting as an athlete agent in this state.


             2412          Section 62. Section 15-10-201 is amended to read:
             2413           15-10-201. Notice requirement.
             2414          (1) Except as provided in Subsection [(1)] (2)(b), a service contract may not contain an
             2415      automatic renewal provision unless the seller provides the consumer written notice complying
             2416      with Subsection (2) that informs the consumer of the automatic renewal provision.
             2417          (2) (a) For a service contract executed on or after July 1, 2011, that exceeds 12 months
             2418      for a renewal period, a seller shall provide written notice of an automatic renewal provision
             2419      prominently displayed on the first page of the service contract.
             2420          (b) In addition to complying with Subsection (2)(a), a seller shall provide written
             2421      notice required under Subsection (1) to the consumer:
             2422          (i) personally;
             2423          (ii) by certified mail; or
             2424          (iii) prominently displayed on the first page of a monthly statement.
             2425          (c) (i) A seller shall provide written notice under Subsection (2)(b):
             2426          (A) no later than 30 calendar days before the last day on which the consumer may give
             2427      notice of the consumer's intention to terminate the service contract; and
             2428          (B) no sooner than 90 calendar days before the last day on which the consumer may
             2429      give notice of the consumer's intention to terminate the service contract.
             2430          (ii) A seller may not provide written notice required under Subsection (1) except:
             2431          (A) as provided in Subsection (2)(a); or
             2432          (B) during the time period described in Subsection (2)(c)(i).
             2433          (d) Written notice required under Subsection (1) shall be:
             2434          (i) written in clear and understandable language; and
             2435          (ii) printed in an easy-to-read type size and style.
             2436          Section 63. Section 15A-1-204 is amended to read:
             2437           15A-1-204. Adoption of State Construction Code -- Amendments by commission--
             2438      Approved codes -- Exemptions.
             2439          (1) (a) The State Construction Code is the construction codes adopted with any
             2440      modifications in accordance with this section that the state and each political subdivision of the
             2441      state shall follow.
             2442          (b) A person shall comply with the applicable provisions of the State Construction


             2443      Code when:
             2444          (i) new construction is involved; and
             2445          (ii) the owner of an existing building, or the owner's agent, is voluntarily engaged in:
             2446          (A) the repair, renovation, remodeling, alteration, enlargement, rehabilitation,
             2447      conservation, or reconstruction of the building; or
             2448          (B) changing the character or use of the building in a manner that increases the
             2449      occupancy loads, other demands, or safety risks of the building.
             2450          (c) On and after July 1, 2010, the State Construction Code is the State Construction
             2451      Code in effect on July 1, 2010, until in accordance with this section:
             2452          (i) a new State Construction Code is adopted; or
             2453          (ii) one or more provisions of the State Construction Code are amended or repealed in
             2454      accordance with this section.
             2455          (d) A provision of the State Construction Code may be applicable:
             2456          (i) to the entire state; or
             2457          (ii) within a county, city, or town.
             2458          (2) (a) The Legislature shall adopt a State Construction Code by enacting legislation
             2459      that adopts a construction code with any modifications.
             2460          (b) Legislation enacted under this Subsection (2) shall state that it takes effect on the
             2461      July 1 after the day on which the legislation is enacted, unless otherwise stated in the
             2462      legislation.
             2463          (c) Subject to Subsection (5), a State Construction Code adopted by the Legislature is
             2464      the State Construction Code until, in accordance with this section, the Legislature adopts a new
             2465      State Construction Code by:
             2466          (i) adopting a new State Construction Code in its entirety; or
             2467          (ii) amending or repealing one or more provisions of the State Construction Code.
             2468          (3) (a) The commission shall by no later than November 30 of each year recommend to
             2469      the Business and Labor Interim Committee whether the Legislature should:
             2470          (i) amend or repeal one or more provisions of a State Construction Code; or
             2471          (ii) in a year of a regularly scheduled update of a nationally recognized code, adopt a
             2472      construction code with any modifications.
             2473          (b) The commission may recommend legislative action related to the State


             2474      Construction Code:
             2475          (i) on its own initiative;
             2476          (ii) upon the recommendation of the division; or
             2477          (iii) upon the receipt of a request by one of the following that the commission
             2478      recommend legislative action related to the State Construction Code:
             2479          (A) a local regulator;
             2480          (B) a state regulator;
             2481          (C) a state agency involved with the construction and design of a building;
             2482          (D) the Construction Services Commission;
             2483          (E) the Electrician Licensing Board;
             2484          (F) the Plumbers Licensing Board; or
             2485          (G) a recognized construction-related association.
             2486          (4) If the Business and Labor Interim Committee decides to recommend legislative
             2487      action to the Legislature, the Business and Labor Interim Committee shall prepare legislation
             2488      for consideration by the Legislature in the next general session that, if passed by the
             2489      Legislature, would:
             2490          (a) adopt a new State Construction Code in its entirety; or
             2491          (b) amend or repeal one or more provisions of the State Construction Code.
             2492          (5) (a) Notwithstanding Subsection (3), the commission may, in accordance with Title
             2493      63G, Chapter 3, Utah Administrative Rulemaking Act, amend the State Construction Code if
             2494      the commission determines that waiting for legislative action in the next general legislative
             2495      session would:
             2496          (i) cause an imminent peril to the public health, safety, or welfare; or
             2497          (ii) place a person in violation of federal or other state law.
             2498          (b) If the commission amends the State Construction Code in accordance with this
             2499      Subsection (5), the commission shall file with the division:
             2500          (i) the text of the amendment to the State Construction Code; and
             2501          (ii) an analysis that includes the specific reasons and justifications for the commission's
             2502      findings.
             2503          (c) If the State Construction Code is amended under this Subsection (5), the division
             2504      shall:


             2505          (i) publish the amendment to the State Construction Code in accordance with Section
             2506      15A-1-205 ; and
             2507          (ii) notify the Business and Labor Interim Committee of the amendment to the State
             2508      Construction Code, including a copy of the commission's analysis described in Subsection
             2509      (5)(b).
             2510          (d) If not formally adopted by the Legislature at its next annual general session, an
             2511      amendment to the State Construction Code under this Subsection (5) is repealed on the July 1
             2512      immediately following the next annual general session that follows the adoption of the
             2513      amendment.
             2514          (6) (a) The division, in consultation with the commission, may approve, without
             2515      adopting, one or more approved codes, including a specific edition of a construction code, for
             2516      use by a compliance agency.
             2517          (b) If the code adopted by a compliance agency is an approved code described in
             2518      Subsection (6)(a), the compliance agency may:
             2519          (i) adopt an ordinance requiring removal, demolition, or repair of a building;
             2520          (ii) adopt, by ordinance or rule, a dangerous building code; or
             2521          (iii) adopt, by ordinance or rule, a building rehabilitation code.
             2522          (7) (a) Except as provided in Subsection (7)(b), a structure used solely in conjunction
             2523      with agriculture use, and not for human occupancy, is exempt from the permit requirements of
             2524      the State Construction Code.
             2525          (b) (i) Unless exempted by a provision other than Subsection (7)(a), a plumbing,
             2526      electrical, and mechanical permit may be required when that work is included in a structure
             2527      described in Subsection (7)(a).
             2528          (ii) Unless located in whole or in part in an agricultural protection area created under
             2529      Title 17, Chapter 41, Agriculture and Industrial Protection [Area] Areas, a structure described
             2530      in Subsection (7)(a) is not exempt from a permit requirement if the structure is located on land
             2531      that is:
             2532          (A) within the boundaries of a city or town, and less than five contiguous acres; or
             2533          (B) within a subdivision for which the county has approved a subdivision plat under
             2534      Title 17, Chapter 27a, Part 6, Subdivisions, and less than two contiguous acres.
             2535          Section 64. Section 15A-2-102 is amended to read:


             2536           15A-2-102. Definitions.
             2537          As used in this chapter and [Chapters 3 and 4] Chapter 3, Statewide Amendments
             2538      Incorporated as Part of State Construction Code, and Chapter 4, Local Amendments
             2539      Incorporated as Part of State Construction Code:
             2540          (1) "HUD Code" means the Federal Manufactured Housing Construction and Safety
             2541      Standards Act, as issued by the Department of Housing and Urban Development and published
             2542      in 24 C.F.R. Parts 3280 and 3282 (as revised April 1, 1990).
             2543          (2) "IBC" means the edition of the International Building Code adopted under Section
             2544      15A-2-103 .
             2545          (3) "IECC" means the edition of the International Energy Conservation Code adopted
             2546      under Section 15A-2-103 .
             2547          (4) "IFGC" means the edition of the International Fuel Gas Code adopted under
             2548      Section 15A-2-103 .
             2549          (5) "IMC" means the edition of the International Mechanical Code adopted under
             2550      Section 15A-2-103 .
             2551          (6) "IPC" means the edition of the International Plumbing Code adopted under Section
             2552      15A-2-103 .
             2553          (7) "IRC" means the edition of the International Residential Code adopted under
             2554      Section 15A-2-103 .
             2555          (8) "NEC" means the edition of the National Electrical Code adopted under Section
             2556      15A-2-103 .
             2557          (9) "UWUI" means the edition of the Utah Wildland Urban Interface Code adopted
             2558      under Section 15A-2-103 .
             2559          Section 65. Section 15A-2-104 is amended to read:
             2560           15A-2-104. Installation standards for manufactured housing.
             2561          (1) The following are the installation standards for manufactured housing for new
             2562      installations or for existing manufactured or mobile homes that are subject to relocation,
             2563      building alteration, remodeling, or rehabilitation in the state:
             2564          (a) The manufacturer's installation instruction for the model being installed is the
             2565      primary standard.
             2566          (b) If the manufacturer's installation instruction for the model being installed is not


             2567      available or is incomplete, the following standards apply:
             2568          (i) Appendix E of the 2012 edition of the IRC, as issued by the International Code
             2569      Council for installations defined in Section AE101 of Appendix E; or
             2570          (ii) if an installation is beyond the scope of the 2012 edition of the IRC as defined in
             2571      Section AE101 of Appendix E, the 2005 edition of the NFPA 225 Model Manufactured Home
             2572      Installation Standard, issued by the National Fire Protection Association.
             2573          (c) A manufacturer, dealer, or homeowner is permitted to design for unusual
             2574      installation of a manufactured home not provided for in the manufacturer's standard installation
             2575      instruction, Appendix E of the 2012 edition of the IRC, or the 2005 edition of the NFPA 225, if
             2576      the design is approved in writing by a professional engineer or architect licensed in Utah.
             2577          (d) For a mobile home built before June 15, 1976, the mobile home shall also comply
             2578      with the additional installation and safety requirements specified in Chapter 3, Part 8,
             2579      Installation and Safety Requirements for Mobile Homes Built Before June 15, 1976.
             2580          (2) Pursuant to the HUD Code Section 604(d), a manufactured home may be installed
             2581      in the state that does not meet the local snow load requirements as specified in Chapter 3, Part
             2582      2, Statewide Amendments to [IRC] International Residential Code, except that the
             2583      manufactured home shall have a protective structure built over the home that meets the IRC
             2584      and the snow load requirements under Chapter 3, Part 2, Statewide Amendments to [IRC]
             2585      International Residential Code.
             2586          Section 66. Section 15A-3-201 is amended to read:
             2587           15A-3-201. General provision.
             2588          (1) The amendments in this part are adopted as amendments to the IRC to be
             2589      applicable statewide.
             2590          (2) The statewide amendments to the following which may be applied to detached one-
             2591      and two-family dwellings and multiple single-family dwellings shall be applicable to the
             2592      corresponding provisions of the IRC:
             2593          (a) IBC under Part 1, Statewide Amendments to [IBC] International Building Code;
             2594          (b) IPC under Part 3, Statewide Amendments to [IPC] International Plumbing Code;
             2595          (c) IMC under Part 4, Statewide Amendments to [IMC] International Mechanical
             2596      Code;
             2597          (d) IFGC under Part 5, Statewide Amendments to [IFGC] International Fuel Gas Code;


             2598          (e) NEC under Part 6, Statewide Amendments to [NEC] National Electrical Code; and
             2599          (f) IECC under Part 7, Statewide Amendments to [IECC] International Energy
             2600      Conservation Code.
             2601          Section 67. Section 15A-3-306 is amended to read:
             2602           15A-3-306. Amendments to Chapter 6 of IPC.
             2603          (1) IPC, Section 602.3, is deleted and replaced with the following: "602.3 Individual
             2604      water supply. Where a potable public water supply is not available, individual sources of
             2605      potable water supply shall be utilized provided that the source has been developed in
             2606      accordance with Utah Code, Sections 73-3-1 , 73-3-3 , and 73-3-25 , as administered by the
             2607      Department of Natural Resources, Division of Water Rights. In addition, the quality of the
             2608      water shall be approved by the local health department having jurisdiction. The source shall
             2609      supply sufficient quantity of water to comply with the requirements of this chapter."
             2610          (2) IPC, Sections 602.3.1, 602.3.2, 602.3.3, 602.3.4, 602.3.5, and 602.3.5.1, are
             2611      deleted.
             2612          (3) A new IPC, Section 604.4.1, is added as follows: "604.4.1 Manually operated
             2613      metering faucets. Self closing or manually operated metering faucets shall provide a flow of
             2614      water for at least 15 seconds without the need to reactivate the faucet."
             2615          (4) IPC, Section 606.5, is deleted and replaced with the following: "606.5 Water
             2616      pressure booster systems. Water pressure booster systems shall be provided as required by
             2617      Section 606.5.1 through 606.5.11."
             2618          (5) A new IPC, Section 606.5.11, is added as follows: "606.5.11 Prohibited
             2619      installation. In no case shall a booster pump be allowed that will lower the pressure in the
             2620      public main to less than the minimum water pressure specified in Utah Administrative Code
             2621      R309-105-9."
             2622          (6) In IPC, Section 608.1, the words "and pollution" are added after the word
             2623      "contamination."
             2624          (7) IPC, Table 608.1, is deleted and replaced with the following:
             2625     
"TABLE 608.1
             2626     
Application of Back Flow Preventers
             2627      DEVICE DEGREE OF
HAZARDa
APPLICATIONb APPLICABLE
STANDARDS
             2628      BACKFLOW PREVENTION ASSEMBLIES:
             2629      Double check backflow
prevention assembly
and double check fire
protection backflow
prevention assembly
Low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1015, AWWA
C510, CSA B64.5,
CSA B64.5.1
             2630      Double check detector
fire protection
backflow prevention
assemblies
Low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1048
             2631      Pressure vacuum
breaker assembly
High or low hazard Backsiphonage only
Sizes 1/2" - 2"
ASSE 1020, CSA
B64.1.2
             2632      Reduced pressure
principle backflow
prevention assembly
and reduced pressure
principle fire
protection backflow
assembly
High or low hazard Backpressure or
backsiphonage
Sizes 3/8" - 16"
ASSE 1013, AWWA
C511, CSA B64.4,
CSA B64.4.1
             2633      Reduced pressure
detector fire protection
backflow prevention
assemblies
High or low hazard Backpressure or
backsiphonage (Fire
Sprinkler Systems)
ASSE 1047
             2634      Spill-resistant vacuum
breaker assembly
High or low hazard Backsiphonage only
Sizes 1/2" - 2"
ASSE 1056
             2635      BACKFLOW PREVENTER PLUMBING DEVICES:
             2636      Antisiphon-type fill
valves for gravity water
closet flush tanks
High hazard Backsiphonage only ASSE 1002, CSA
B125.3
             2637      Backflow preventer for
carbonated beverage
machines
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 3/8"
ASSE 1022
             2638      Backflow preventer
with intermediate
atmospheric vents
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 3/8"
ASSE 1012, CSA
B64.3
             2639      Dual check valve type
backflow preventers
Low hazard Backpressure or
backsiphonage
Sizes 1/4" - 1"
ASSE 1024, CSA
B64.6
             2640      Hose connection
backflow preventer
High or low hazard Backsiphonage only
Sizes 1/2" - 1"
ASSE 1052, CSA
B64.2, B64.2.1
             2641      Hose connection
vacuum breaker
High or low hazard Backsiphonage only
Sizes 1/2", 3/4", 1"
ASSE 1011,
CAN/CSA B64.1.1
             2642      Atmospheric type
vacuum breaker
High or low hazard Backsiphonage only
Sizes 1/2" - 4"
ASSE 1001, CSA
B64.1.1
             2643      Vacuum breaker wall
hydrants, frost
resistant, automatic
draining type
High or low hazard Backsiphonage only
Sizes 3/4", 1"
ASSE 1019, CSA
B64.2.2
             2644      OTHER MEANS or METHODS:
             2645      Air gap High or low hazard Backsiphonage only ASME A112.1.2
             2646      Air gap fittings for use
with plumbing fixtures,
appliances and
appurtenances
High or low hazard Backpressure or
backsiphonage
ASME A112.1.3
             2647      For SI: 1 inch = 25.4 mm
             2648      a. Low Hazard - See Pollution (Section 202), High Hazard - See Contamination (Section
202)
             2649      b. See Backpressure (Section 202), See Backpressure, low head (Section 202), See
Backsiphonage (Section 202)
             2650      Installation Guidelines: The above specialty devices shall be installed in accordance with
their listing and the manufacturer's instructions and the specific provisions of this chapter."
             2651          (8) In IPC, Section 608.3, the word "and" after the word "contamination" is deleted and
             2652      replaced with a comma and the words "and pollution" are added after the word "contamination"
             2653      in the first sentence.
             2654          (9) In IPC, Section 608.5, the words "with the potential to create a condition of either
             2655      contamination or pollution or" are added after the word "substances".
             2656          (10) In IPC, Section 608.6, the following sentence is added at the end of the paragraph:
             2657      "Any connection between potable water piping and sewer-connected waste shall be protected
             2658      by an air gap in accordance with Section 608.13.1."
             2659          (11) IPC, Section 608.7, is deleted and replaced with the following: "608.7 Stop and
             2660      Waste Valves installed below grade. Combination stop-and-waste valves shall be permitted to
             2661      be installed underground or below grade. Freeze proof yard hydrants that drain the riser into
             2662      the ground are considered to be stop-and-waste valves and shall be permitted."
             2663          (12) In IPC, Section 608.11, the following sentence is added at the end of the
             2664      paragraph: "The coating and installation shall conform to NSF Standard 61 and application of
             2665      the coating shall comply with the manufacturer's instructions."
             2666          (13) IPC, Section 608.13.3, is deleted and replaced with the following: "608.13.3
             2667      Backflow preventer with intermediate atmospheric vent. Backflow preventers with
             2668      intermediate atmospheric vents shall conform to ASSE 1012 or CSA CAN/CSA-B64.3. These
             2669      devices shall be permitted to be installed on residential boilers only, without chemical
             2670      treatment, where subject to continuous pressure conditions. The relief opening shall discharge
             2671      by air gap and shall be prevented from being submerged."
             2672          (14) IPC, Section 608.13.4, is deleted.
             2673          (15) IPC, Section 608.13.9, is deleted and replaced with the following: "608.13.9
             2674      Chemical dispenser backflow devices. Backflow devices for chemical dispensers shall comply
             2675      with Section 608.16.7."
             2676          (16) IPC, Section 608.15.3, is deleted and replaced with the following: "608.15.3
             2677      Protection by a backflow preventer with intermediate atmospheric vent. Connections to
             2678      residential boilers only, without chemical treatment, shall be protected by a backflow preventer
             2679      with an intermediate atmospheric vent."


             2680          (17) IPC, Section 608.15.4, is deleted and replaced with the following: "608.15.4
             2681      Protection by a vacuum breaker. Openings and outlets shall be protected by atmospheric-type
             2682      or pressure-type vacuum breakers. Vacuum breakers shall not be installed under exhaust hoods
             2683      or similar locations that will contain toxic fumes or vapors. Fill valves shall be set in
             2684      accordance with Section 425.3.1. Atmospheric Vacuum Breakers - The critical level of the
             2685      atmospheric vacuum breaker shall be set a minimum of 6 inches (152 mm) above the flood
             2686      level rim of the fixture or device. Pipe-applied vacuum breakers shall be installed not less than
             2687      6 inches (152 mm) above the flood level rim of the fixture, receptor, or device served. No
             2688      valves shall be installed downstream of the atmospheric vacuum breaker. Pressure Vacuum
             2689      Breaker - The critical level of the pressure vacuum breaker shall be set a minimum of 12 inches
             2690      (304 mm) above the flood level of the fixture or device."
             2691          (18) In IPC, Section 608.15.4.2, the following is added after the first sentence:
             2692      "Add-on-backflow prevention devices shall be non-removable. In climates where freezing
             2693      temperatures occur, a listed self-draining frost proof hose bibb with an integral backflow
             2694      preventer shall be used."
             2695          (19) [In] IPC, Section 608.16.2, is deleted and replaced as follows: "608.16.2
             2696      Connections to boilers. The potable supply to a boiler shall be protected by an air gap or a
             2697      reduced pressure principle backflow preventer, complying with ASSE 1013, CSA B64.4 or
             2698      AWWA C511.
             2699      Exception: The potable supply to a residential boiler without chemical treatment may be
             2700      equipped with a backflow preventer with an intermediate atmospheric vent complying with
             2701      ASSE 1012 or CSA CAN/CSA-B64.3."
             2702          (20) IPC, Section 608.16.3, is deleted and replaced with the following: "608.16.3 Heat
             2703      exchangers. Heat exchangers shall be separated from potable water by double-wall
             2704      construction. An air gap open to the atmosphere shall be provided between the two walls.
             2705      Exceptions:
             2706      1. Single wall heat exchangers shall be permitted when all of the following conditions are met:
             2707      a. It utilizes a heat transfer medium of potable water or contains only substances which are
             2708      recognized as safe by the United States Food and Drug Administration (FDA);
             2709      b. The pressure of the heat transfer medium is maintained less than the normal minimum
             2710      operating pressure of the potable water system; and


             2711      c. The equipment is permanently labeled to indicate only additives recognized as safe by the
             2712      FDA shall be used.
             2713      2. Steam systems that comply with paragraph 1 above.
             2714      3. Approved listed electrical drinking water coolers."
             2715          (21) In IPC, Section 608.16.4.1, a new exception is added as follows: "Exception: All
             2716      class 1 and 2 systems containing chemical additives consisting of strictly glycerine (C.P. or
             2717      U.S.P. 96.5 percent grade) or propylene glycol shall be protected against backflow with a
             2718      double check valve assembly. Such systems shall include written certification of the chemical
             2719      additives at the time of original installation and service or maintenance."
             2720          (22) IPC, Section 608.16.7, is deleted and replaced with the following: "608.16.7
             2721      Chemical dispensers. Where chemical dispensers connect to the water distribution system, the
             2722      water supply system shall be protected against backflow in accordance with Section 608.13.1,
             2723      Section 608.13.2, Section 608.13.5, Section 608.13.6 or Section 608.13.8. Chemical
             2724      dispensers shall connect to a separate dedicated water supply separate from any sink faucet."
             2725          (23) IPC, Section 608.16.8, is deleted and replaced with the following: "608.16.8
             2726      Portable cleaning equipment. Where the portable cleaning equipment connects to the water
             2727      distribution system, the water supply system shall be protected against backflow in accordance
             2728      with Section 608.13.1, Section 608.13.2 or Section 608.13.8."
             2729          (24) A new IPC, Section 608.16.11, is added as follows: "608.16.11 Automatic and
             2730      coin operated car washes. The water supply to an automatic or coin operated car wash shall be
             2731      protected in accordance with Section 608.13.1 or Section 608.13.2."
             2732          (25) IPC, Section 608.17, is deleted and replaced with the following: "608.17
             2733      Protection of individual water supplies. See Section 602.3 for requirements."
             2734          Section 68. Section 15A-4-201 is amended to read:
             2735           15A-4-201. General provision.
             2736          (1) The amendments in this part are adopted as amendments to the IRC to be
             2737      applicable to specified jurisdiction.
             2738          (2) A local amendment to the following which may be applied to detached one and two
             2739      family dwellings and multiple single family dwellings shall be applicable to the corresponding
             2740      provisions of the IRC for the local jurisdiction to which the local amendment has been made:
             2741          (a) IBC under Part 1, Local Amendments to [IBC] International Building Code;


             2742          (b) IPC under Part 3, Local Amendments to [IPC] International Plumbing Code;
             2743          (c) IMC under Part 4, Local Amendments to [IMC] International Mechanical Code;
             2744          (d) IFGC under Part 5, Local Amendments to [IFGC] International Fuel Gas Code;
             2745          (e) NEC under Part 6, Local Amendments to [NEC] National Electrical Code; and
             2746          (f) IECC under Part 7, Local Amendments to [IECC] International Energy
             2747      Conservation Code.
             2748          Section 69. Section 15A-5-103 is amended to read:
             2749           15A-5-103. Nationally recognized codes incorporated by reference.
             2750          The following codes are incorporated by reference into the State Fire Code:
             2751          (1) the International Fire Code, 2012 edition, excluding appendices, as issued by the
             2752      International Code Council, Inc., except as amended by Part 2, Statewide Amendments and
             2753      Additions to [IFC] International Fire Code Incorporated as Part of State Fire Code;
             2754          (2) National Fire Protection Association, NFPA 96, Standard for Ventilation Control
             2755      and Fire Protection of Commercial Cooking Operations, 2011 edition, except as amended by
             2756      Part 3, Statewide Amendments and Additions to [NFPA] National Fire Protection Association
             2757      Incorporated as Part of State Fire Code; and
             2758          (3) National Fire Protection Association, NFPA 1403, Standard on Live Fire Training
             2759      Evolutions, 2012 edition, except as amended by Part 3, Statewide Amendments and Additions
             2760      to [NFPA] National Fire Protection Association Incorporated as Part of State Fire Code.
             2761          Section 70. Section 16-6a-1011 is amended to read:
             2762           16-6a-1011. Bylaw changing quorum or voting requirement for members.
             2763          (1) (a) If authorized by the articles of incorporation, the members may adopt, amend, or
             2764      repeal bylaws that fix a greater quorum or voting requirement for members, or voting groups of
             2765      members, than is required by this chapter.
             2766          (b) An action by the members under Subsection (1)(a) is subject to [Parts 6 and 7] Part
             2767      6, Members, and Part 7, Member Meetings and Voting.
             2768          (2) Bylaws that fix a greater quorum requirement or a greater voting requirement for
             2769      members pursuant to Section 16-6a-716 may not be amended by the board of directors.
             2770          Section 71. Section 16-6a-1202 is amended to read:
             2771           16-6a-1202. Sale of property other than in regular course of activities.
             2772          (1) (a) A nonprofit corporation may sell, lease, exchange, or otherwise dispose of all,


             2773      or substantially all, of its property, with or without its good will, other than in the usual and
             2774      regular course of business on the terms and conditions and for the consideration determined by
             2775      the board of directors, if:
             2776          (i) the board of directors proposes the transaction; and
             2777          (ii) the members entitled to vote on the transaction approve the transaction.
             2778          (b) A sale, lease, exchange, or other disposition of all, or substantially all, of the
             2779      property of a nonprofit corporation, with or without its good will, in connection with its
             2780      dissolution, other than in the usual and regular course of business, and other than pursuant to a
             2781      court order, shall be subject to this section.
             2782          (c) A sale, lease, exchange, or other disposition of all, or substantially all, of the
             2783      property of a nonprofit corporation, with or without its good will, pursuant to a court order is
             2784      not subject to this section.
             2785          (2) (a) A nonprofit corporation shall comply with Subsection (2)(b) to vote or
             2786      otherwise consent with respect to the sale, lease, exchange, or other disposition of all, or
             2787      substantially all, of the property with or without the good will of another entity that the
             2788      nonprofit corporation controls if:
             2789          (i) the nonprofit corporation is entitled to vote or otherwise consent; and
             2790          (ii) the property interests held by the nonprofit corporation in the other entity constitute
             2791      all, or substantially all, of the property of the nonprofit corporation.
             2792          (b) A nonprofit corporation may vote or otherwise consent to a transaction described in
             2793      Subsection (2)(a) only if:
             2794          (i) the board of the directors of the nonprofit corporation proposes the vote or consent;
             2795      and
             2796          (ii) the members, if any are entitled to vote on the vote or consent, approve giving the
             2797      vote or consent.
             2798          (3) For a transaction described in Subsection (1) or a consent described in Subsection
             2799      (2) to be approved by the members:
             2800          (a) (i) the board of directors shall recommend the transaction or the consent to the
             2801      members; or
             2802          (ii) the board of directors shall:
             2803          (A) determine that because of a conflict of interest or other special circumstance it


             2804      should make no recommendation; and
             2805          (B) communicate the basis for its determination to the members at a membership
             2806      meeting with the submission of the transaction or consent; and
             2807          (b) the members entitled to vote on the transaction or the consent shall approve the
             2808      transaction or the consent as provided in Subsection (6).
             2809          (4) The board of directors may condition the effectiveness of the transaction or the
             2810      consent on any basis.
             2811          (5) (a) The nonprofit corporation shall give notice, in accordance with Section
             2812      16-6a-704 to each member entitled to vote on the transaction described in Subsection (1) or the
             2813      consent described in Subsection (2), of the members' meeting at which the transaction or the
             2814      consent will be voted upon.
             2815          (b) The notice required by Subsection (1) shall:
             2816          (i) state that the purpose, or one of the purposes, of the meeting is to consider:
             2817          (A) in the case of action pursuant to Subsection (1), the sale, lease, exchange, or other
             2818      disposition of all, or substantially all, of the property of the nonprofit corporation; or
             2819          (B) in the case of action pursuant to Subsection (2), the nonprofit corporation's consent
             2820      to the sale, lease, exchange, or other disposition of all, or substantially all, of the property of
             2821      another entity, the property interests of which:
             2822          (I) are held by the nonprofit corporation; and
             2823          (II) constitute all, or substantially all, of the property of the nonprofit corporation;
             2824          (ii) contain or be accompanied by a description of:
             2825          (A) the transaction, in the case of action pursuant to Subsection (1); or
             2826          (B) the transaction underlying the consent, in the case of action pursuant to Subsection
             2827      (2); and
             2828          (iii) in the case of action pursuant to Subsection (2), identify the entity whose property
             2829      is the subject of the transaction.
             2830          (6) The transaction described in Subsection (1) or the consent described in Subsection
             2831      (2) shall be approved by the votes required by Sections 16-6a-714 and 16-6a-715 by every
             2832      voting group entitled to vote on the transaction or the consent unless a greater vote is required
             2833      by:
             2834          (a) this chapter;


             2835          (b) the articles of incorporation;
             2836          (c) bylaws adopted by the members; or
             2837          (d) the board of directors acting pursuant to Subsection (4).
             2838          (7) After a transaction described in Subsection (1) or a consent described in Subsection
             2839      (2) is authorized, the transaction may be abandoned or the consent withheld or revoked, subject
             2840      to any contractual rights or other limitations on such abandonment, withholding, or revocation,
             2841      without further action by the members.
             2842          (8) A transaction that constitutes a distribution is governed by Part 13, Distributions,
             2843      and not by this section.
             2844          Section 72. Section 16-6a-1701 is amended to read:
             2845           16-6a-1701. Application to existing domestic nonprofit corporations -- Reports of
             2846      domestic and foreign nonprofit corporation.
             2847          (1) Except as otherwise provided in Section 16-6a-1704 , this chapter applies to
             2848      domestic nonprofit corporations as follows:
             2849          (a) domestic nonprofit corporations in existence on April 30, 2001, that were
             2850      incorporated under any general statute of this state providing for incorporation of nonprofit
             2851      corporations, including all nonprofit corporations organized under any former provisions of
             2852      [Title 16, Chapter 6, Utah Nonprofit Corporation and Co-operative Association Act] this
             2853      chapter;
             2854          (b) mutual irrigation, canal, ditch, reservoir, and water companies and water users'
             2855      associations organized and existing under the laws of this state on April 30, 2001;
             2856          (c) corporations organized under the provisions of Title 16, Chapter 7, Corporations
             2857      Sole, for purposes of applying all provisions relating to merger or consolidation; and
             2858          (d) to actions taken by the directors, officers, and members of the entities described in
             2859      Subsections (1)(a), (b), and (c) after April 30, 2001.
             2860          (2) Domestic nonprofit corporations to which this chapter applies, that are organized
             2861      and existing under the laws of this state on April 30, 2001:
             2862          (a) shall continue in existence with all the rights and privileges applicable to nonprofit
             2863      corporations organized under this chapter; and
             2864          (b) from April 30, 2001 shall have all the rights and privileges and shall be subject to
             2865      all the remedies, restrictions, liabilities, and duties prescribed in this chapter except as


             2866      otherwise specifically provided in this chapter.
             2867          (3) Every existing domestic nonprofit corporation and foreign nonprofit corporation
             2868      qualified to conduct affairs in this state on April 30, 2001 shall file an annual report with the
             2869      division setting forth the information prescribed by Section 16-6a-1607 . The annual report
             2870      shall be filed at such time as would have been required had this chapter not taken effect and
             2871      shall be filed annually thereafter as required in Section 16-6a-1607 .
             2872          Section 73. Section 16-6a-1702 is amended to read:
             2873           16-6a-1702. Application to foreign nonprofit corporations.
             2874          (1) A foreign nonprofit corporation authorized to conduct affairs in this state on April
             2875      30, 2001, is subject to this chapter, but is not required to obtain a new certificate of authority to
             2876      conduct affairs under this chapter.
             2877          (2) A foreign nonprofit corporation that is qualified to do business in this state under
             2878      the provisions of [Title 16,] Chapter 8, which provisions were repealed by Laws of Utah 1961,
             2879      Chapter 28, shall be authorized to transact business in this state subject to all of the limitations,
             2880      restrictions, liabilities, and duties prescribed in this chapter.
             2881          (3) This chapter shall apply to all foreign nonprofit corporations sole qualified to do
             2882      business in this state with respect to mergers and consolidations.
             2883          Section 74. Section 16-10a-402 is amended to read:
             2884           16-10a-402. Reserved name.
             2885          (1) Any person may apply for the reservation of a name by delivering to the division
             2886      for filing an application setting forth the name and address of the applicant and the name
             2887      proposed to be reserved. If the division finds that the name applied for would be available for
             2888      use as a corporate name under Section 16-10a-401 , the division shall reserve the name for the
             2889      applicant for a 120-day period. Any person which has in effect a reservation of a name
             2890      permitted by this Subsection may renew the reservation by delivering to the division for filing
             2891      prior to expiration of the reservation a renewal application for reservation, which complies with
             2892      the requirements of this Subsection (1). When filed, the renewal application for reservation