1     
PRISON DEVELOPMENT AMENDMENTS

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brad R. Wilson

5     
Senate Sponsor: Jerry W. Stevenson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies and enacts provisions relating to the development of a new prison.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the duties and authority of the Prison Relocation Commission;
13          ▸     creates the Prison Development Commission and provides for its membership,
14     duties, and operation;
15          ▸     provides for Division of Facilities Construction and Management oversight of the
16     prison design and construction project, in consultation with the Prison Development
17     Commission;
18          ▸     enacts a local option sales and use tax for a city or town that has a new state
19     correctional facility;
20          ▸     authorizes the issuance of bonds for the prison project;
21          ▸     creates a restricted account and capital projects fund for the prison project;
22          ▸     provides a process for the choice of a new prison site; and
23          ▸     modifies a repeal provision relating to the Prison Relocation Commission and
24     enacts a repeal provision relating to the Prison Development Commission.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:
28          None
29     Utah Code Sections Affected:

30     AMENDS:
31          59-12-102, as last amended by Laws of Utah 2014, Chapters 380 and 414
32          59-12-403, as last amended by Laws of Utah 2012, Chapter 254
33          63C-15-102, as enacted by Laws of Utah 2014, Chapter 211
34          63C-15-201, as enacted by Laws of Utah 2014, Chapter 211
35          63C-15-203, as enacted by Laws of Utah 2014, Chapter 211
36          63I-1-263, as last amended by Laws of Utah 2014, Chapters 113, 189, 195, 211, 419,
37     429, and 435
38          63I-2-263, as last amended by Laws of Utah 2014, Chapters 172, 423, and 427
39     ENACTS:
40          59-12-400, Utah Code Annotated 1953
41          59-12-402.1, Utah Code Annotated 1953
42          63A-5-225, Utah Code Annotated 1953
43          63B-24-101, Utah Code Annotated 1953
44          63C-16-101, Utah Code Annotated 1953
45          63C-16-102, Utah Code Annotated 1953
46          63C-16-201, Utah Code Annotated 1953
47          63C-16-202, Utah Code Annotated 1953
48          63C-16-203, Utah Code Annotated 1953
49          63C-16-204, Utah Code Annotated 1953
50     

51     Be it enacted by the Legislature of the state of Utah:
52          Section 1. Section 59-12-102 is amended to read:
53          59-12-102. Definitions.
54          As used in this chapter:
55          (1) "800 service" means a telecommunications service that:
56          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
57          (b) is typically marketed:

58          (i) under the name 800 toll-free calling;
59          (ii) under the name 855 toll-free calling;
60          (iii) under the name 866 toll-free calling;
61          (iv) under the name 877 toll-free calling;
62          (v) under the name 888 toll-free calling; or
63          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
64     Federal Communications Commission.
65          (2) (a) "900 service" means an inbound toll telecommunications service that:
66          (i) a subscriber purchases;
67          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
68     the subscriber's:
69          (A) prerecorded announcement; or
70          (B) live service; and
71          (iii) is typically marketed:
72          (A) under the name 900 service; or
73          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
74     Communications Commission.
75          (b) "900 service" does not include a charge for:
76          (i) a collection service a seller of a telecommunications service provides to a
77     subscriber; or
78          (ii) the following a subscriber sells to the subscriber's customer:
79          (A) a product; or
80          (B) a service.
81          (3) (a) "Admission or user fees" includes season passes.
82          (b) "Admission or user fees" does not include annual membership dues to private
83     organizations.
84          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
85     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax

86     Agreement after November 12, 2002.
87          (5) "Agreement combined tax rate" means the sum of the tax rates:
88          (a) listed under Subsection (6); and
89          (b) that are imposed within a local taxing jurisdiction.
90          (6) "Agreement sales and use tax" means a tax imposed under:
91          (a) Subsection 59-12-103(2)(a)(i)(A);
92          (b) Subsection 59-12-103(2)(b)(i);
93          (c) Subsection 59-12-103(2)(c)(i);
94          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
95          (e) Section 59-12-204;
96          (f) Section 59-12-401;
97          (g) Section 59-12-402;
98          (h) Section 59-12-402.1;
99          [(h)] (i) Section 59-12-703;
100          [(i)] (j) Section 59-12-802;
101          [(j)] (k) Section 59-12-804;
102          [(k)] (l) Section 59-12-1102;
103          [(l)] (m) Section 59-12-1302;
104          [(m)] (n) Section 59-12-1402;
105          [(n)] (o) Section 59-12-1802;
106          [(o)] (p) Section 59-12-2003;
107          [(p)] (q) Section 59-12-2103;
108          [(q)] (r) Section 59-12-2213;
109          [(r)] (s) Section 59-12-2214;
110          [(s)] (t) Section 59-12-2215;
111          [(t)] (u) Section 59-12-2216;
112          [(u)] (v) Section 59-12-2217; or
113          [(v)] (w) Section 59-12-2218.

114          (7) "Aircraft" is as defined in Section 72-10-102.
115          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
116          (a) except for:
117          (i) an airline as defined in Section 59-2-102; or
118          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
119     includes a corporation that is qualified to do business but is not otherwise doing business in the
120     state, of an airline; and
121          (b) that has the workers, expertise, and facilities to perform the following, regardless of
122     whether the business entity performs the following in this state:
123          (i) check, diagnose, overhaul, and repair:
124          (A) an onboard system of a fixed wing turbine powered aircraft; and
125          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
126          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
127     engine;
128          (iii) perform at least the following maintenance on a fixed wing turbine powered
129     aircraft:
130          (A) an inspection;
131          (B) a repair, including a structural repair or modification;
132          (C) changing landing gear; and
133          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
134          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
135     completely apply new paint to the fixed wing turbine powered aircraft; and
136          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
137     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
138     authority that certifies the fixed wing turbine powered aircraft.
139          (9) "Alcoholic beverage" means a beverage that:
140          (a) is suitable for human consumption; and
141          (b) contains .5% or more alcohol by volume.

142          (10) "Alternative energy" means:
143          (a) biomass energy;
144          (b) geothermal energy;
145          (c) hydroelectric energy;
146          (d) solar energy;
147          (e) wind energy; or
148          (f) energy that is derived from:
149          (i) coal-to-liquids;
150          (ii) nuclear fuel;
151          (iii) oil-impregnated diatomaceous earth;
152          (iv) oil sands;
153          (v) oil shale;
154          (vi) petroleum coke; or
155          (vii) waste heat from:
156          (A) an industrial facility; or
157          (B) a power station in which an electric generator is driven through a process in which
158     water is heated, turns into steam, and spins a steam turbine.
159          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
160     facility" means a facility that:
161          (i) uses alternative energy to produce electricity; and
162          (ii) has a production capacity of two megawatts or greater.
163          (b) A facility is an alternative energy electricity production facility regardless of
164     whether the facility is:
165          (i) connected to an electric grid; or
166          (ii) located on the premises of an electricity consumer.
167          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
168     provision of telecommunications service.
169          (b) "Ancillary service" includes:

170          (i) a conference bridging service;
171          (ii) a detailed communications billing service;
172          (iii) directory assistance;
173          (iv) a vertical service; or
174          (v) a voice mail service.
175          (13) "Area agency on aging" is as defined in Section 62A-3-101.
176          (14) "Assisted amusement device" means an amusement device, skill device, or ride
177     device that is started and stopped by an individual:
178          (a) who is not the purchaser or renter of the right to use or operate the amusement
179     device, skill device, or ride device; and
180          (b) at the direction of the seller of the right to use the amusement device, skill device,
181     or ride device.
182          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
183     washing of tangible personal property if the cleaning or washing labor is primarily performed
184     by an individual:
185          (a) who is not the purchaser of the cleaning or washing of the tangible personal
186     property; and
187          (b) at the direction of the seller of the cleaning or washing of the tangible personal
188     property.
189          (16) "Authorized carrier" means:
190          (a) in the case of vehicles operated over public highways, the holder of credentials
191     indicating that the vehicle is or will be operated pursuant to both the International Registration
192     Plan and the International Fuel Tax Agreement;
193          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
194     certificate or air carrier's operating certificate; or
195          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
196     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
197     stock in more than one state.

198          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
199     following that is used as the primary source of energy to produce fuel or electricity:
200          (i) material from a plant or tree; or
201          (ii) other organic matter that is available on a renewable basis, including:
202          (A) slash and brush from forests and woodlands;
203          (B) animal waste;
204          (C) waste vegetable oil;
205          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
206     wastewater residuals, or through the conversion of a waste material through a nonincineration,
207     thermal conversion process;
208          (E) aquatic plants; and
209          (F) agricultural products.
210          (b) "Biomass energy" does not include:
211          (i) black liquor; or
212          (ii) treated woods.
213          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
214     property, products, or services if the tangible personal property, products, or services are:
215          (i) distinct and identifiable; and
216          (ii) sold for one nonitemized price.
217          (b) "Bundled transaction" does not include:
218          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
219     the basis of the selection by the purchaser of the items of tangible personal property included in
220     the transaction;
221          (ii) the sale of real property;
222          (iii) the sale of services to real property;
223          (iv) the retail sale of tangible personal property and a service if:
224          (A) the tangible personal property:
225          (I) is essential to the use of the service; and

226          (II) is provided exclusively in connection with the service; and
227          (B) the service is the true object of the transaction;
228          (v) the retail sale of two services if:
229          (A) one service is provided that is essential to the use or receipt of a second service;
230          (B) the first service is provided exclusively in connection with the second service; and
231          (C) the second service is the true object of the transaction;
232          (vi) a transaction that includes tangible personal property or a product subject to
233     taxation under this chapter and tangible personal property or a product that is not subject to
234     taxation under this chapter if the:
235          (A) seller's purchase price of the tangible personal property or product subject to
236     taxation under this chapter is de minimis; or
237          (B) seller's sales price of the tangible personal property or product subject to taxation
238     under this chapter is de minimis; and
239          (vii) the retail sale of tangible personal property that is not subject to taxation under
240     this chapter and tangible personal property that is subject to taxation under this chapter if:
241          (A) that retail sale includes:
242          (I) food and food ingredients;
243          (II) a drug;
244          (III) durable medical equipment;
245          (IV) mobility enhancing equipment;
246          (V) an over-the-counter drug;
247          (VI) a prosthetic device; or
248          (VII) a medical supply; and
249          (B) subject to Subsection (18)(f):
250          (I) the seller's purchase price of the tangible personal property subject to taxation under
251     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
252          (II) the seller's sales price of the tangible personal property subject to taxation under
253     this chapter is 50% or less of the seller's total sales price of that retail sale.

254          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
255     service that is distinct and identifiable does not include:
256          (A) packaging that:
257          (I) accompanies the sale of the tangible personal property, product, or service; and
258          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
259     service;
260          (B) tangible personal property, a product, or a service provided free of charge with the
261     purchase of another item of tangible personal property, a product, or a service; or
262          (C) an item of tangible personal property, a product, or a service included in the
263     definition of "purchase price."
264          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
265     product, or a service is provided free of charge with the purchase of another item of tangible
266     personal property, a product, or a service if the sales price of the purchased item of tangible
267     personal property, product, or service does not vary depending on the inclusion of the tangible
268     personal property, product, or service provided free of charge.
269          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
270     does not include a price that is separately identified by tangible personal property, product, or
271     service on the following, regardless of whether the following is in paper format or electronic
272     format:
273          (A) a binding sales document; or
274          (B) another supporting sales-related document that is available to a purchaser.
275          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
276     supporting sales-related document that is available to a purchaser includes:
277          (A) a bill of sale;
278          (B) a contract;
279          (C) an invoice;
280          (D) a lease agreement;
281          (E) a periodic notice of rates and services;

282          (F) a price list;
283          (G) a rate card;
284          (H) a receipt; or
285          (I) a service agreement.
286          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
287     property or a product subject to taxation under this chapter is de minimis if:
288          (A) the seller's purchase price of the tangible personal property or product is 10% or
289     less of the seller's total purchase price of the bundled transaction; or
290          (B) the seller's sales price of the tangible personal property or product is 10% or less of
291     the seller's total sales price of the bundled transaction.
292          (ii) For purposes of Subsection (18)(b)(vi), a seller:
293          (A) shall use the seller's purchase price or the seller's sales price to determine if the
294     purchase price or sales price of the tangible personal property or product subject to taxation
295     under this chapter is de minimis; and
296          (B) may not use a combination of the seller's purchase price and the seller's sales price
297     to determine if the purchase price or sales price of the tangible personal property or product
298     subject to taxation under this chapter is de minimis.
299          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
300     contract to determine if the sales price of tangible personal property or a product is de minimis.
301          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
302     the seller's purchase price and the seller's sales price to determine if tangible personal property
303     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
304     price of that retail sale.
305          (19) "Certified automated system" means software certified by the governing board of
306     the agreement that:
307          (a) calculates the agreement sales and use tax imposed within a local taxing
308     jurisdiction:
309          (i) on a transaction; and

310          (ii) in the states that are members of the agreement;
311          (b) determines the amount of agreement sales and use tax to remit to a state that is a
312     member of the agreement; and
313          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
314          (20) "Certified service provider" means an agent certified:
315          (a) by the governing board of the agreement; and
316          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
317     use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
318     own purchases.
319          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
320     suitable for general use.
321          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
322     commission shall make rules:
323          (i) listing the items that constitute "clothing"; and
324          (ii) that are consistent with the list of items that constitute "clothing" under the
325     agreement.
326          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
327          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
328     fuels that does not constitute industrial use under Subsection (55) or residential use under
329     Subsection (105).
330          (24) (a) "Common carrier" means a person engaged in or transacting the business of
331     transporting passengers, freight, merchandise, or other property for hire within this state.
332          (b) (i) "Common carrier" does not include a person who, at the time the person is
333     traveling to or from that person's place of employment, transports a passenger to or from the
334     passenger's place of employment.
335          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
336     Utah Administrative Rulemaking Act, the commission may make rules defining what
337     constitutes a person's place of employment.

338          (25) "Component part" includes:
339          (a) poultry, dairy, and other livestock feed, and their components;
340          (b) baling ties and twine used in the baling of hay and straw;
341          (c) fuel used for providing temperature control of orchards and commercial
342     greenhouses doing a majority of their business in wholesale sales, and for providing power for
343     off-highway type farm machinery; and
344          (d) feed, seeds, and seedlings.
345          (26) "Computer" means an electronic device that accepts information:
346          (a) (i) in digital form; or
347          (ii) in a form similar to digital form; and
348          (b) manipulates that information for a result based on a sequence of instructions.
349          (27) "Computer software" means a set of coded instructions designed to cause:
350          (a) a computer to perform a task; or
351          (b) automatic data processing equipment to perform a task.
352          (28) "Computer software maintenance contract" means a contract that obligates a seller
353     of computer software to provide a customer with:
354          (a) future updates or upgrades to computer software;
355          (b) support services with respect to computer software; or
356          (c) a combination of Subsections (28)(a) and (b).
357          (29) (a) "Conference bridging service" means an ancillary service that links two or
358     more participants of an audio conference call or video conference call.
359          (b) "Conference bridging service" may include providing a telephone number as part of
360     the ancillary service described in Subsection (29)(a).
361          (c) "Conference bridging service" does not include a telecommunications service used
362     to reach the ancillary service described in Subsection (29)(a).
363          (30) "Construction materials" means any tangible personal property that will be
364     converted into real property.
365          (31) "Delivered electronically" means delivered to a purchaser by means other than

366     tangible storage media.
367          (32) (a) "Delivery charge" means a charge:
368          (i) by a seller of:
369          (A) tangible personal property;
370          (B) a product transferred electronically; or
371          (C) services; and
372          (ii) for preparation and delivery of the tangible personal property, product transferred
373     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
374     purchaser.
375          (b) "Delivery charge" includes a charge for the following:
376          (i) transportation;
377          (ii) shipping;
378          (iii) postage;
379          (iv) handling;
380          (v) crating; or
381          (vi) packing.
382          (33) "Detailed telecommunications billing service" means an ancillary service of
383     separately stating information pertaining to individual calls on a customer's billing statement.
384          (34) "Dietary supplement" means a product, other than tobacco, that:
385          (a) is intended to supplement the diet;
386          (b) contains one or more of the following dietary ingredients:
387          (i) a vitamin;
388          (ii) a mineral;
389          (iii) an herb or other botanical;
390          (iv) an amino acid;
391          (v) a dietary substance for use by humans to supplement the diet by increasing the total
392     dietary intake; or
393          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient

394     described in Subsections (34)(b)(i) through (v);
395          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
396          (A) tablet form;
397          (B) capsule form;
398          (C) powder form;
399          (D) softgel form;
400          (E) gelcap form; or
401          (F) liquid form; or
402          (ii) if the product is not intended for ingestion in a form described in Subsections
403     (34)(c)(i)(A) through (F), is not represented:
404          (A) as conventional food; and
405          (B) for use as a sole item of:
406          (I) a meal; or
407          (II) the diet; and
408          (d) is required to be labeled as a dietary supplement:
409          (i) identifiable by the "Supplemental Facts" box found on the label; and
410          (ii) as required by 21 C.F.R. Sec. 101.36.
411          [(36)] (35) "Digital audio-visual work" means a series of related images which, when
412     shown in succession, imparts an impression of motion, together with accompanying sounds, if
413     any.
414          [(35)] (36) (a) "Digital audio work" means a work that results from the fixation of a
415     series of musical, spoken, or other sounds.
416          (b) "Digital audio work" includes a ringtone.
417          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
418     sense as a book.
419          (38) (a) "Direct mail" means printed material delivered or distributed by United States
420     mail or other delivery service:
421          (i) to:

422          (A) a mass audience; or
423          (B) addressees on a mailing list provided:
424          (I) by a purchaser of the mailing list; or
425          (II) at the discretion of the purchaser of the mailing list; and
426          (ii) if the cost of the printed material is not billed directly to the recipients.
427          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
428     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
429          (c) "Direct mail" does not include multiple items of printed material delivered to a
430     single address.
431          (39) "Directory assistance" means an ancillary service of providing:
432          (a) address information; or
433          (b) telephone number information.
434          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
435     or supplies that:
436          (i) cannot withstand repeated use; and
437          (ii) are purchased by, for, or on behalf of a person other than:
438          (A) a health care facility as defined in Section 26-21-2;
439          (B) a health care provider as defined in Section 78B-3-403;
440          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
441          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
442          (b) "Disposable home medical equipment or supplies" does not include:
443          (i) a drug;
444          (ii) durable medical equipment;
445          (iii) a hearing aid;
446          (iv) a hearing aid accessory;
447          (v) mobility enhancing equipment; or
448          (vi) tangible personal property used to correct impaired vision, including:
449          (A) eyeglasses; or

450          (B) contact lenses.
451          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
452     commission may by rule define what constitutes medical equipment or supplies.
453          (41) (a) "Drug" means a compound, substance, or preparation, or a component of a
454     compound, substance, or preparation that is:
455          (i) recognized in:
456          (A) the official United States Pharmacopoeia;
457          (B) the official Homeopathic Pharmacopoeia of the United States;
458          (C) the official National Formulary; or
459          (D) a supplement to a publication listed in Subsections (41)(a)(i)(A) through (C);
460          (ii) intended for use in the:
461          (A) diagnosis of disease;
462          (B) cure of disease;
463          (C) mitigation of disease;
464          (D) treatment of disease; or
465          (E) prevention of disease; or
466          (iii) intended to affect:
467          (A) the structure of the body; or
468          (B) any function of the body.
469          (b) "Drug" does not include:
470          (i) food and food ingredients;
471          (ii) a dietary supplement;
472          (iii) an alcoholic beverage; or
473          (iv) a prosthetic device.
474          (42) (a) Except as provided in Subsection (42)(c), "durable medical equipment" means
475     equipment that:
476          (i) can withstand repeated use;
477          (ii) is primarily and customarily used to serve a medical purpose;

478          (iii) generally is not useful to a person in the absence of illness or injury; and
479          (iv) is not worn in or on the body.
480          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
481     equipment described in Subsection (42)(a).
482          (c) "Durable medical equipment" does not include mobility enhancing equipment.
483          (43) "Electronic" means:
484          (a) relating to technology; and
485          (b) having:
486          (i) electrical capabilities;
487          (ii) digital capabilities;
488          (iii) magnetic capabilities;
489          (iv) wireless capabilities;
490          (v) optical capabilities;
491          (vi) electromagnetic capabilities; or
492          (vii) capabilities similar to Subsections (43)(b)(i) through (vi).
493          (44) "Electronic financial payment service" means an establishment:
494          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
495     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
496     federal Executive Office of the President, Office of Management and Budget; and
497          (b) that performs electronic financial payment services.
498          (45) "Employee" is as defined in Section 59-10-401.
499          (46) "Fixed guideway" means a public transit facility that uses and occupies:
500          (a) rail for the use of public transit; or
501          (b) a separate right-of-way for the use of public transit.
502          (47) "Fixed wing turbine powered aircraft" means an aircraft that:
503          (a) is powered by turbine engines;
504          (b) operates on jet fuel; and
505          (c) has wings that are permanently attached to the fuselage of the aircraft.

506          (48) "Fixed wireless service" means a telecommunications service that provides radio
507     communication between fixed points.
508          (49) (a) "Food and food ingredients" means substances:
509          (i) regardless of whether the substances are in:
510          (A) liquid form;
511          (B) concentrated form;
512          (C) solid form;
513          (D) frozen form;
514          (E) dried form; or
515          (F) dehydrated form; and
516          (ii) that are:
517          (A) sold for:
518          (I) ingestion by humans; or
519          (II) chewing by humans; and
520          (B) consumed for the substance's:
521          (I) taste; or
522          (II) nutritional value.
523          (b) "Food and food ingredients" includes an item described in Subsection (90)(b)(iii).
524          (c) "Food and food ingredients" does not include:
525          (i) an alcoholic beverage;
526          (ii) tobacco; or
527          (iii) prepared food.
528          (50) (a) "Fundraising sales" means sales:
529          (i) (A) made by a school; or
530          (B) made by a school student;
531          (ii) that are for the purpose of raising funds for the school to purchase equipment,
532     materials, or provide transportation; and
533          (iii) that are part of an officially sanctioned school activity.

534          (b) For purposes of Subsection (50)(a)(iii), "officially sanctioned school activity"
535     means a school activity:
536          (i) that is conducted in accordance with a formal policy adopted by the school or school
537     district governing the authorization and supervision of fundraising activities;
538          (ii) that does not directly or indirectly compensate an individual teacher or other
539     educational personnel by direct payment, commissions, or payment in kind; and
540          (iii) the net or gross revenues from which are deposited in a dedicated account
541     controlled by the school or school district.
542          (51) "Geothermal energy" means energy contained in heat that continuously flows
543     outward from the earth that is used as the sole source of energy to produce electricity.
544          (52) "Governing board of the agreement" means the governing board of the agreement
545     that is:
546          (a) authorized to administer the agreement; and
547          (b) established in accordance with the agreement.
548          (53) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
549          (i) the executive branch of the state, including all departments, institutions, boards,
550     divisions, bureaus, offices, commissions, and committees;
551          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
552     Office of the Court Administrator, and similar administrative units in the judicial branch;
553          (iii) the legislative branch of the state, including the House of Representatives, the
554     Senate, the Legislative Printing Office, the Office of Legislative Research and General
555     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
556     Analyst;
557          (iv) the National Guard;
558          (v) an independent entity as defined in Section 63E-1-102; or
559          (vi) a political subdivision as defined in Section 17B-1-102.
560          (b) "Governmental entity" does not include the state systems of public and higher
561     education, including:

562          (i) a college campus of the Utah College of Applied Technology;
563          (ii) a school;
564          (iii) the State Board of Education;
565          (iv) the State Board of Regents; or
566          (v) an institution of higher education.
567          (54) "Hydroelectric energy" means water used as the sole source of energy to produce
568     electricity.
569          (55) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
570     other fuels:
571          (a) in mining or extraction of minerals;
572          (b) in agricultural operations to produce an agricultural product up to the time of
573     harvest or placing the agricultural product into a storage facility, including:
574          (i) commercial greenhouses;
575          (ii) irrigation pumps;
576          (iii) farm machinery;
577          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
578     under Title 41, Chapter 1a, Part 2, Registration; and
579          (v) other farming activities;
580          (c) in manufacturing tangible personal property at an establishment described in SIC
581     Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
582     Executive Office of the President, Office of Management and Budget;
583          (d) by a scrap recycler if:
584          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
585     one or more of the following items into prepared grades of processed materials for use in new
586     products:
587          (A) iron;
588          (B) steel;
589          (C) nonferrous metal;

590          (D) paper;
591          (E) glass;
592          (F) plastic;
593          (G) textile; or
594          (H) rubber; and
595          (ii) the new products under Subsection (55)(d)(i) would otherwise be made with
596     nonrecycled materials; or
597          (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
598     cogeneration facility as defined in Section 54-2-1.
599          (56) (a) Except as provided in Subsection (56)(b), "installation charge" means a charge
600     for installing:
601          (i) tangible personal property; or
602          (ii) a product transferred electronically.
603          (b) "Installation charge" does not include a charge for:
604          (i) repairs or renovations of:
605          (A) tangible personal property; or
606          (B) a product transferred electronically; or
607          (ii) attaching tangible personal property or a product transferred electronically:
608          (A) to other tangible personal property; and
609          (B) as part of a manufacturing or fabrication process.
610          (57) "Institution of higher education" means an institution of higher education listed in
611     Section 53B-2-101.
612          (58) (a) "Lease" or "rental" means a transfer of possession or control of tangible
613     personal property or a product transferred electronically for:
614          (i) (A) a fixed term; or
615          (B) an indeterminate term; and
616          (ii) consideration.
617          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the

618     amount of consideration may be increased or decreased by reference to the amount realized
619     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
620     Code.
621          (c) "Lease" or "rental" does not include:
622          (i) a transfer of possession or control of property under a security agreement or
623     deferred payment plan that requires the transfer of title upon completion of the required
624     payments;
625          (ii) a transfer of possession or control of property under an agreement that requires the
626     transfer of title:
627          (A) upon completion of required payments; and
628          (B) if the payment of an option price does not exceed the greater of:
629          (I) $100; or
630          (II) 1% of the total required payments; or
631          (iii) providing tangible personal property along with an operator for a fixed period of
632     time or an indeterminate period of time if the operator is necessary for equipment to perform as
633     designed.
634          (d) For purposes of Subsection (58)(c)(iii), an operator is necessary for equipment to
635     perform as designed if the operator's duties exceed the:
636          (i) set-up of tangible personal property;
637          (ii) maintenance of tangible personal property; or
638          (iii) inspection of tangible personal property.
639          (59) "Life science establishment" means an establishment in this state that is classified
640     under the following NAICS codes of the 2007 North American Industry Classification System
641     of the federal Executive Office of the President, Office of Management and Budget:
642          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
643          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
644     Manufacturing; or
645          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.

646          (60) "Life science research and development facility" means a facility owned, leased,
647     or rented by a life science establishment if research and development is performed in 51% or
648     more of the total area of the facility.
649          (61) "Load and leave" means delivery to a purchaser by use of a tangible storage media
650     if the tangible storage media is not physically transferred to the purchaser.
651          (62) "Local taxing jurisdiction" means a:
652          (a) county that is authorized to impose an agreement sales and use tax;
653          (b) city that is authorized to impose an agreement sales and use tax; or
654          (c) town that is authorized to impose an agreement sales and use tax.
655          (63) "Manufactured home" is as defined in Section 15A-1-302.
656          (64) "Manufacturing facility" means:
657          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
658     Industrial Classification Manual of the federal Executive Office of the President, Office of
659     Management and Budget;
660          (b) a scrap recycler if:
661          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
662     one or more of the following items into prepared grades of processed materials for use in new
663     products:
664          (A) iron;
665          (B) steel;
666          (C) nonferrous metal;
667          (D) paper;
668          (E) glass;
669          (F) plastic;
670          (G) textile; or
671          (H) rubber; and
672          (ii) the new products under Subsection (64)(b)(i) would otherwise be made with
673     nonrecycled materials; or

674          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
675     placed in service on or after May 1, 2006.
676          (65) "Member of the immediate family of the producer" means a person who is related
677     to a producer described in Subsection 59-12-104(20)(a) as a:
678          (a) child or stepchild, regardless of whether the child or stepchild is:
679          (i) an adopted child or adopted stepchild; or
680          (ii) a foster child or foster stepchild;
681          (b) grandchild or stepgrandchild;
682          (c) grandparent or stepgrandparent;
683          (d) nephew or stepnephew;
684          (e) niece or stepniece;
685          (f) parent or stepparent;
686          (g) sibling or stepsibling;
687          (h) spouse;
688          (i) person who is the spouse of a person described in Subsections (65)(a) through (g);
689     or
690          (j) person similar to a person described in Subsections (65)(a) through (i) as
691     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
692     Administrative Rulemaking Act.
693          (66) "Mobile home" is as defined in Section 15A-1-302.
694          (67) "Mobile telecommunications service" is as defined in the Mobile
695     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
696          (68) (a) "Mobile wireless service" means a telecommunications service, regardless of
697     the technology used, if:
698          (i) the origination point of the conveyance, routing, or transmission is not fixed;
699          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
700          (iii) the origination point described in Subsection (68)(a)(i) and the termination point
701     described in Subsection (68)(a)(ii) are not fixed.

702          (b) "Mobile wireless service" includes a telecommunications service that is provided
703     by a commercial mobile radio service provider.
704          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
705     commission may by rule define "commercial mobile radio service provider."
706          (69) (a) Except as provided in Subsection (69)(c), "mobility enhancing equipment"
707     means equipment that is:
708          (i) primarily and customarily used to provide or increase the ability to move from one
709     place to another;
710          (ii) appropriate for use in a:
711          (A) home; or
712          (B) motor vehicle; and
713          (iii) not generally used by persons with normal mobility.
714          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
715     the equipment described in Subsection (69)(a).
716          (c) "Mobility enhancing equipment" does not include:
717          (i) a motor vehicle;
718          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
719     vehicle manufacturer;
720          (iii) durable medical equipment; or
721          (iv) a prosthetic device.
722          (70) "Model 1 seller" means a seller registered under the agreement that has selected a
723     certified service provider as the seller's agent to perform all of the seller's sales and use tax
724     functions for agreement sales and use taxes other than the seller's obligation under Section
725     59-12-124 to remit a tax on the seller's own purchases.
726          (71) "Model 2 seller" means a seller registered under the agreement that:
727          (a) except as provided in Subsection (71)(b), has selected a certified automated system
728     to perform the seller's sales tax functions for agreement sales and use taxes; and
729          (b) retains responsibility for remitting all of the sales tax:

730          (i) collected by the seller; and
731          (ii) to the appropriate local taxing jurisdiction.
732          (72) (a) Subject to Subsection (72)(b), "model 3 seller" means a seller registered under
733     the agreement that has:
734          (i) sales in at least five states that are members of the agreement;
735          (ii) total annual sales revenues of at least $500,000,000;
736          (iii) a proprietary system that calculates the amount of tax:
737          (A) for an agreement sales and use tax; and
738          (B) due to each local taxing jurisdiction; and
739          (iv) entered into a performance agreement with the governing board of the agreement.
740          (b) For purposes of Subsection (72)(a), "model 3 seller" includes an affiliated group of
741     sellers using the same proprietary system.
742          (73) "Model 4 seller" means a seller that is registered under the agreement and is not a
743     model 1 seller, model 2 seller, or model 3 seller.
744          (74) "Modular home" means a modular unit as defined in Section 15A-1-302.
745          (75) "Motor vehicle" is as defined in Section 41-1a-102.
746          (76) "Oil sands" means impregnated bituminous sands that:
747          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
748     other hydrocarbons, or otherwise treated;
749          (b) yield mixtures of liquid hydrocarbon; and
750          (c) require further processing other than mechanical blending before becoming finished
751     petroleum products.
752          (77) "Oil shale" means a group of fine black to dark brown shales containing kerogen
753     material that yields petroleum upon heating and distillation.
754          (78) "Optional computer software maintenance contract" means a computer software
755     maintenance contract that a customer is not obligated to purchase as a condition to the retail
756     sale of computer software.
757          (79) (a) "Other fuels" means products that burn independently to produce heat or

758     energy.
759          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
760     personal property.
761          (80) (a) "Paging service" means a telecommunications service that provides
762     transmission of a coded radio signal for the purpose of activating a specific pager.
763          (b) For purposes of Subsection (80)(a), the transmission of a coded radio signal
764     includes a transmission by message or sound.
765          (81) "Pawnbroker" is as defined in Section 13-32a-102.
766          (82) "Pawn transaction" is as defined in Section 13-32a-102.
767          (83) (a) "Permanently attached to real property" means that for tangible personal
768     property attached to real property:
769          (i) the attachment of the tangible personal property to the real property:
770          (A) is essential to the use of the tangible personal property; and
771          (B) suggests that the tangible personal property will remain attached to the real
772     property in the same place over the useful life of the tangible personal property; or
773          (ii) if the tangible personal property is detached from the real property, the detachment
774     would:
775          (A) cause substantial damage to the tangible personal property; or
776          (B) require substantial alteration or repair of the real property to which the tangible
777     personal property is attached.
778          (b) "Permanently attached to real property" includes:
779          (i) the attachment of an accessory to the tangible personal property if the accessory is:
780          (A) essential to the operation of the tangible personal property; and
781          (B) attached only to facilitate the operation of the tangible personal property;
782          (ii) a temporary detachment of tangible personal property from real property for a
783     repair or renovation if the repair or renovation is performed where the tangible personal
784     property and real property are located; or
785          (iii) property attached to oil, gas, or water pipelines, except for the property listed in

786     Subsection (83)(c)(iii) or (iv).
787          (c) "Permanently attached to real property" does not include:
788          (i) the attachment of portable or movable tangible personal property to real property if
789     that portable or movable tangible personal property is attached to real property only for:
790          (A) convenience;
791          (B) stability; or
792          (C) for an obvious temporary purpose;
793          (ii) the detachment of tangible personal property from real property except for the
794     detachment described in Subsection (83)(b)(ii);
795          (iii) an attachment of the following tangible personal property to real property if the
796     attachment to real property is only through a line that supplies water, electricity, gas,
797     telecommunications, cable, or supplies a similar item as determined by the commission by rule
798     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
799          (A) a computer;
800          (B) a telephone;
801          (C) a television; or
802          (D) tangible personal property similar to Subsections (83)(c)(iii)(A) through (C) as
803     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
804     Administrative Rulemaking Act; or
805          (iv) an item listed in Subsection (123)(c).
806          (84) "Person" includes any individual, firm, partnership, joint venture, association,
807     corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
808     municipality, district, or other local governmental entity of the state, or any group or
809     combination acting as a unit.
810          (85) "Place of primary use":
811          (a) for telecommunications service other than mobile telecommunications service,
812     means the street address representative of where the customer's use of the telecommunications
813     service primarily occurs, which shall be:

814          (i) the residential street address of the customer; or
815          (ii) the primary business street address of the customer; or
816          (b) for mobile telecommunications service, is as defined in the Mobile
817     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
818          (86) (a) "Postpaid calling service" means a telecommunications service a person
819     obtains by making a payment on a call-by-call basis:
820          (i) through the use of a:
821          (A) bank card;
822          (B) credit card;
823          (C) debit card; or
824          (D) travel card; or
825          (ii) by a charge made to a telephone number that is not associated with the origination
826     or termination of the telecommunications service.
827          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
828     service, that would be a prepaid wireless calling service if the service were exclusively a
829     telecommunications service.
830          (87) "Postproduction" means an activity related to the finishing or duplication of a
831     medium described in Subsection 59-12-104(54)(a).
832          (88) "Prepaid calling service" means a telecommunications service:
833          (a) that allows a purchaser access to telecommunications service that is exclusively
834     telecommunications service;
835          (b) that:
836          (i) is paid for in advance; and
837          (ii) enables the origination of a call using an:
838          (A) access number; or
839          (B) authorization code;
840          (c) that is dialed:
841          (i) manually; or

842          (ii) electronically; and
843          (d) sold in predetermined units or dollars that decline:
844          (i) by a known amount; and
845          (ii) with use.
846          (89) "Prepaid wireless calling service" means a telecommunications service:
847          (a) that provides the right to utilize:
848          (i) mobile wireless service; and
849          (ii) other service that is not a telecommunications service, including:
850          (A) the download of a product transferred electronically;
851          (B) a content service; or
852          (C) an ancillary service;
853          (b) that:
854          (i) is paid for in advance; and
855          (ii) enables the origination of a call using an:
856          (A) access number; or
857          (B) authorization code;
858          (c) that is dialed:
859          (i) manually; or
860          (ii) electronically; and
861          (d) sold in predetermined units or dollars that decline:
862          (i) by a known amount; and
863          (ii) with use.
864          (90) (a) "Prepared food" means:
865          (i) food:
866          (A) sold in a heated state; or
867          (B) heated by a seller;
868          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
869     item; or

870          (iii) except as provided in Subsection (90)(c), food sold with an eating utensil provided
871     by the seller, including a:
872          (A) plate;
873          (B) knife;
874          (C) fork;
875          (D) spoon;
876          (E) glass;
877          (F) cup;
878          (G) napkin; or
879          (H) straw.
880          (b) "Prepared food" does not include:
881          (i) food that a seller only:
882          (A) cuts;
883          (B) repackages; or
884          (C) pasteurizes; or
885          (ii) (A) the following:
886          (I) raw egg;
887          (II) raw fish;
888          (III) raw meat;
889          (IV) raw poultry; or
890          (V) a food containing an item described in Subsections (90)(b)(ii)(A)(I) through (IV);
891     and
892          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
893     Food and Drug Administration's Food Code that a consumer cook the items described in
894     Subsection (90)(b)(ii)(A) to prevent food borne illness; or
895          (iii) the following if sold without eating utensils provided by the seller:
896          (A) food and food ingredients sold by a seller if the seller's proper primary
897     classification under the 2002 North American Industry Classification System of the federal

898     Executive Office of the President, Office of Management and Budget, is manufacturing in
899     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
900     Manufacturing;
901          (B) food and food ingredients sold in an unheated state:
902          (I) by weight or volume; and
903          (II) as a single item; or
904          (C) a bakery item, including:
905          (I) a bagel;
906          (II) a bar;
907          (III) a biscuit;
908          (IV) bread;
909          (V) a bun;
910          (VI) a cake;
911          (VII) a cookie;
912          (VIII) a croissant;
913          (IX) a danish;
914          (X) a donut;
915          (XI) a muffin;
916          (XII) a pastry;
917          (XIII) a pie;
918          (XIV) a roll;
919          (XV) a tart;
920          (XVI) a torte; or
921          (XVII) a tortilla.
922          (c) An eating utensil provided by the seller does not include the following used to
923     transport the food:
924          (i) a container; or
925          (ii) packaging.

926          (91) "Prescription" means an order, formula, or recipe that is issued:
927          (a) (i) orally;
928          (ii) in writing;
929          (iii) electronically; or
930          (iv) by any other manner of transmission; and
931          (b) by a licensed practitioner authorized by the laws of a state.
932          (92) (a) Except as provided in Subsection (92)(b)(ii) or (iii), "prewritten computer
933     software" means computer software that is not designed and developed:
934          (i) by the author or other creator of the computer software; and
935          (ii) to the specifications of a specific purchaser.
936          (b) "Prewritten computer software" includes:
937          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
938     software is not designed and developed:
939          (A) by the author or other creator of the computer software; and
940          (B) to the specifications of a specific purchaser;
941          (ii) computer software designed and developed by the author or other creator of the
942     computer software to the specifications of a specific purchaser if the computer software is sold
943     to a person other than the purchaser; or
944          (iii) except as provided in Subsection (92)(c), prewritten computer software or a
945     prewritten portion of prewritten computer software:
946          (A) that is modified or enhanced to any degree; and
947          (B) if the modification or enhancement described in Subsection (92)(b)(iii)(A) is
948     designed and developed to the specifications of a specific purchaser.
949          (c) "Prewritten computer software" does not include a modification or enhancement
950     described in Subsection (92)(b)(iii) if the charges for the modification or enhancement are:
951          (i) reasonable; and
952          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
953     invoice or other statement of price provided to the purchaser at the time of sale or later, as

954     demonstrated by:
955          (A) the books and records the seller keeps at the time of the transaction in the regular
956     course of business, including books and records the seller keeps at the time of the transaction in
957     the regular course of business for nontax purposes;
958          (B) a preponderance of the facts and circumstances at the time of the transaction; and
959          (C) the understanding of all of the parties to the transaction.
960          (93) (a) "Private communication service" means a telecommunications service:
961          (i) that entitles a customer to exclusive or priority use of one or more communications
962     channels between or among termination points; and
963          (ii) regardless of the manner in which the one or more communications channels are
964     connected.
965          (b) "Private communications service" includes the following provided in connection
966     with the use of one or more communications channels:
967          (i) an extension line;
968          (ii) a station;
969          (iii) switching capacity; or
970          (iv) another associated service that is provided in connection with the use of one or
971     more communications channels as defined in Section 59-12-215.
972          (94) (a) Except as provided in Subsection (94)(b), "product transferred electronically"
973     means a product transferred electronically that would be subject to a tax under this chapter if
974     that product was transferred in a manner other than electronically.
975          (b) "Product transferred electronically" does not include:
976          (i) an ancillary service;
977          (ii) computer software; or
978          (iii) a telecommunications service.
979          (95) (a) "Prosthetic device" means a device that is worn on or in the body to:
980          (i) artificially replace a missing portion of the body;
981          (ii) prevent or correct a physical deformity or physical malfunction; or

982          (iii) support a weak or deformed portion of the body.
983          (b) "Prosthetic device" includes:
984          (i) parts used in the repairs or renovation of a prosthetic device;
985          (ii) replacement parts for a prosthetic device;
986          (iii) a dental prosthesis; or
987          (iv) a hearing aid.
988          (c) "Prosthetic device" does not include:
989          (i) corrective eyeglasses; or
990          (ii) contact lenses.
991          (96) (a) "Protective equipment" means an item:
992          (i) for human wear; and
993          (ii) that is:
994          (A) designed as protection:
995          (I) to the wearer against injury or disease; or
996          (II) against damage or injury of other persons or property; and
997          (B) not suitable for general use.
998          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
999     commission shall make rules:
1000          (i) listing the items that constitute "protective equipment"; and
1001          (ii) that are consistent with the list of items that constitute "protective equipment"
1002     under the agreement.
1003          (97) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1004     printed matter, other than a photocopy:
1005          (i) regardless of:
1006          (A) characteristics;
1007          (B) copyright;
1008          (C) form;
1009          (D) format;

1010          (E) method of reproduction; or
1011          (F) source; and
1012          (ii) made available in printed or electronic format.
1013          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1014     commission may by rule define the term "photocopy."
1015          (98) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1016          (i) valued in money; and
1017          (ii) for which tangible personal property, a product transferred electronically, or
1018     services are:
1019          (A) sold;
1020          (B) leased; or
1021          (C) rented.
1022          (b) "Purchase price" and "sales price" include:
1023          (i) the seller's cost of the tangible personal property, a product transferred
1024     electronically, or services sold;
1025          (ii) expenses of the seller, including:
1026          (A) the cost of materials used;
1027          (B) a labor cost;
1028          (C) a service cost;
1029          (D) interest;
1030          (E) a loss;
1031          (F) the cost of transportation to the seller; or
1032          (G) a tax imposed on the seller;
1033          (iii) a charge by the seller for any service necessary to complete the sale; or
1034          (iv) consideration a seller receives from a person other than the purchaser if:
1035          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1036     and
1037          (II) the consideration described in Subsection (98)(b)(iv)(A)(I) is directly related to a

1038     price reduction or discount on the sale;
1039          (B) the seller has an obligation to pass the price reduction or discount through to the
1040     purchaser;
1041          (C) the amount of the consideration attributable to the sale is fixed and determinable by
1042     the seller at the time of the sale to the purchaser; and
1043          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1044     seller to claim a price reduction or discount; and
1045          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1046     coupon, or other documentation with the understanding that the person other than the seller
1047     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1048          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1049     organization allowed a price reduction or discount, except that a preferred customer card that is
1050     available to any patron of a seller does not constitute membership in a group or organization
1051     allowed a price reduction or discount; or
1052          (III) the price reduction or discount is identified as a third party price reduction or
1053     discount on the:
1054          (Aa) invoice the purchaser receives; or
1055          (Bb) certificate, coupon, or other documentation the purchaser presents.
1056          (c) "Purchase price" and "sales price" do not include:
1057          (i) a discount:
1058          (A) in a form including:
1059          (I) cash;
1060          (II) term; or
1061          (III) coupon;
1062          (B) that is allowed by a seller;
1063          (C) taken by a purchaser on a sale; and
1064          (D) that is not reimbursed by a third party; or
1065          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately

1066     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1067     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1068     transaction in the regular course of business, including books and records the seller keeps at the
1069     time of the transaction in the regular course of business for nontax purposes, by a
1070     preponderance of the facts and circumstances at the time of the transaction, and by the
1071     understanding of all of the parties to the transaction:
1072          (A) the following from credit extended on the sale of tangible personal property or
1073     services:
1074          (I) a carrying charge;
1075          (II) a financing charge; or
1076          (III) an interest charge;
1077          (B) a delivery charge;
1078          (C) an installation charge;
1079          (D) a manufacturer rebate on a motor vehicle; or
1080          (E) a tax or fee legally imposed directly on the consumer.
1081          (99) "Purchaser" means a person to whom:
1082          (a) a sale of tangible personal property is made;
1083          (b) a product is transferred electronically; or
1084          (c) a service is furnished.
1085          (100) "Regularly rented" means:
1086          (a) rented to a guest for value three or more times during a calendar year; or
1087          (b) advertised or held out to the public as a place that is regularly rented to guests for
1088     value.
1089          (101) "Rental" is as defined in Subsection (58).
1090          (102) (a) Except as provided in Subsection (102)(b), "repairs or renovations of tangible
1091     personal property" means:
1092          (i) a repair or renovation of tangible personal property that is not permanently attached
1093     to real property; or

1094          (ii) attaching tangible personal property or a product transferred electronically to other
1095     tangible personal property or detaching tangible personal property or a product transferred
1096     electronically from other tangible personal property if:
1097          (A) the other tangible personal property to which the tangible personal property or
1098     product transferred electronically is attached or from which the tangible personal property or
1099     product transferred electronically is detached is not permanently attached to real property; and
1100          (B) the attachment of tangible personal property or a product transferred electronically
1101     to other tangible personal property or detachment of tangible personal property or a product
1102     transferred electronically from other tangible personal property is made in conjunction with a
1103     repair or replacement of tangible personal property or a product transferred electronically.
1104          (b) "Repairs or renovations of tangible personal property" does not include:
1105          (i) attaching prewritten computer software to other tangible personal property if the
1106     other tangible personal property to which the prewritten computer software is attached is not
1107     permanently attached to real property; or
1108          (ii) detaching prewritten computer software from other tangible personal property if the
1109     other tangible personal property from which the prewritten computer software is detached is
1110     not permanently attached to real property.
1111          (103) "Research and development" means the process of inquiry or experimentation
1112     aimed at the discovery of facts, devices, technologies, or applications and the process of
1113     preparing those devices, technologies, or applications for marketing.
1114          (104) (a) "Residential telecommunications services" means a telecommunications
1115     service or an ancillary service that is provided to an individual for personal use:
1116          (i) at a residential address; or
1117          (ii) at an institution, including a nursing home or a school, if the telecommunications
1118     service or ancillary service is provided to and paid for by the individual residing at the
1119     institution rather than the institution.
1120          (b) For purposes of Subsection (104)(a)(i), a residential address includes an:
1121          (i) apartment; or

1122          (ii) other individual dwelling unit.
1123          (105) "Residential use" means the use in or around a home, apartment building,
1124     sleeping quarters, and similar facilities or accommodations.
1125          (106) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1126     than:
1127          (a) resale;
1128          (b) sublease; or
1129          (c) subrent.
1130          (107) (a) "Retailer" means any person engaged in a regularly organized business in
1131     tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
1132     who is selling to the user or consumer and not for resale.
1133          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1134     engaged in the business of selling to users or consumers within the state.
1135          (108) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1136     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1137     Subsection 59-12-103(1), for consideration.
1138          (b) "Sale" includes:
1139          (i) installment and credit sales;
1140          (ii) any closed transaction constituting a sale;
1141          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1142     chapter;
1143          (iv) any transaction if the possession of property is transferred but the seller retains the
1144     title as security for the payment of the price; and
1145          (v) any transaction under which right to possession, operation, or use of any article of
1146     tangible personal property is granted under a lease or contract and the transfer of possession
1147     would be taxable if an outright sale were made.
1148          (109) "Sale at retail" is as defined in Subsection (106).
1149          (110) "Sale-leaseback transaction" means a transaction by which title to tangible

1150     personal property or a product transferred electronically that is subject to a tax under this
1151     chapter is transferred:
1152          (a) by a purchaser-lessee;
1153          (b) to a lessor;
1154          (c) for consideration; and
1155          (d) if:
1156          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1157     of the tangible personal property or product transferred electronically;
1158          (ii) the sale of the tangible personal property or product transferred electronically to the
1159     lessor is intended as a form of financing:
1160          (A) for the tangible personal property or product transferred electronically; and
1161          (B) to the purchaser-lessee; and
1162          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1163     is required to:
1164          (A) capitalize the tangible personal property or product transferred electronically for
1165     financial reporting purposes; and
1166          (B) account for the lease payments as payments made under a financing arrangement.
1167          (111) "Sales price" is as defined in Subsection (98).
1168          (112) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1169     amounts charged by a school:
1170          (i) sales that are directly related to the school's educational functions or activities
1171     including:
1172          (A) the sale of:
1173          (I) textbooks;
1174          (II) textbook fees;
1175          (III) laboratory fees;
1176          (IV) laboratory supplies; or
1177          (V) safety equipment;

1178          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1179     that:
1180          (I) a student is specifically required to wear as a condition of participation in a
1181     school-related event or school-related activity; and
1182          (II) is not readily adaptable to general or continued usage to the extent that it takes the
1183     place of ordinary clothing;
1184          (C) sales of the following if the net or gross revenues generated by the sales are
1185     deposited into a school district fund or school fund dedicated to school meals:
1186          (I) food and food ingredients; or
1187          (II) prepared food; or
1188          (D) transportation charges for official school activities; or
1189          (ii) amounts paid to or amounts charged by a school for admission to a school-related
1190     event or school-related activity.
1191          (b) "Sales relating to schools" does not include:
1192          (i) bookstore sales of items that are not educational materials or supplies;
1193          (ii) except as provided in Subsection (112)(a)(i)(B):
1194          (A) clothing;
1195          (B) clothing accessories or equipment;
1196          (C) protective equipment; or
1197          (D) sports or recreational equipment; or
1198          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1199     event or school-related activity if the amounts paid or charged are passed through to a person:
1200          (A) other than a:
1201          (I) school;
1202          (II) nonprofit organization authorized by a school board or a governing body of a
1203     private school to organize and direct a competitive secondary school activity; or
1204          (III) nonprofit association authorized by a school board or a governing body of a
1205     private school to organize and direct a competitive secondary school activity; and

1206          (B) that is required to collect sales and use taxes under this chapter.
1207          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1208     commission may make rules defining the term "passed through."
1209          (113) For purposes of this section and Section 59-12-104, "school":
1210          (a) means:
1211          (i) an elementary school or a secondary school that:
1212          (A) is a:
1213          (I) public school; or
1214          (II) private school; and
1215          (B) provides instruction for one or more grades kindergarten through 12; or
1216          (ii) a public school district; and
1217          (b) includes the Electronic High School as defined in Section 53A-15-1002.
1218          (114) "Seller" means a person that makes a sale, lease, or rental of:
1219          (a) tangible personal property;
1220          (b) a product transferred electronically; or
1221          (c) a service.
1222          (115) (a) "Semiconductor fabricating, processing, research, or development materials"
1223     means tangible personal property or a product transferred electronically if the tangible personal
1224     property or product transferred electronically is:
1225          (i) used primarily in the process of:
1226          (A) (I) manufacturing a semiconductor;
1227          (II) fabricating a semiconductor; or
1228          (III) research or development of a:
1229          (Aa) semiconductor; or
1230          (Bb) semiconductor manufacturing process; or
1231          (B) maintaining an environment suitable for a semiconductor; or
1232          (ii) consumed primarily in the process of:
1233          (A) (I) manufacturing a semiconductor;

1234          (II) fabricating a semiconductor; or
1235          (III) research or development of a:
1236          (Aa) semiconductor; or
1237          (Bb) semiconductor manufacturing process; or
1238          (B) maintaining an environment suitable for a semiconductor.
1239          (b) "Semiconductor fabricating, processing, research, or development materials"
1240     includes:
1241          (i) parts used in the repairs or renovations of tangible personal property or a product
1242     transferred electronically described in Subsection (115)(a); or
1243          (ii) a chemical, catalyst, or other material used to:
1244          (A) produce or induce in a semiconductor a:
1245          (I) chemical change; or
1246          (II) physical change;
1247          (B) remove impurities from a semiconductor; or
1248          (C) improve the marketable condition of a semiconductor.
1249          (116) "Senior citizen center" means a facility having the primary purpose of providing
1250     services to the aged as defined in Section 62A-3-101.
1251          (117) (a) Subject to Subsections (117)(b) and (c), "short-term lodging consumable"
1252     means tangible personal property that:
1253          (i) a business that provides accommodations and services described in Subsection
1254     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1255     to a purchaser;
1256          (ii) is intended to be consumed by the purchaser; and
1257          (iii) is:
1258          (A) included in the purchase price of the accommodations and services; and
1259          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1260     to the purchaser.
1261          (b) "Short-term lodging consumable" includes:

1262          (i) a beverage;
1263          (ii) a brush or comb;
1264          (iii) a cosmetic;
1265          (iv) a hair care product;
1266          (v) lotion;
1267          (vi) a magazine;
1268          (vii) makeup;
1269          (viii) a meal;
1270          (ix) mouthwash;
1271          (x) nail polish remover;
1272          (xi) a newspaper;
1273          (xii) a notepad;
1274          (xiii) a pen;
1275          (xiv) a pencil;
1276          (xv) a razor;
1277          (xvi) saline solution;
1278          (xvii) a sewing kit;
1279          (xviii) shaving cream;
1280          (xix) a shoe shine kit;
1281          (xx) a shower cap;
1282          (xxi) a snack item;
1283          (xxii) soap;
1284          (xxiii) toilet paper;
1285          (xxiv) a toothbrush;
1286          (xxv) toothpaste; or
1287          (xxvi) an item similar to Subsections (117)(b)(i) through (xxv) as the commission may
1288     provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1289     Rulemaking Act.

1290          (c) "Short-term lodging consumable" does not include:
1291          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1292     property to be reused; or
1293          (ii) a product transferred electronically.
1294          (118) "Simplified electronic return" means the electronic return:
1295          (a) described in Section 318(C) of the agreement; and
1296          (b) approved by the governing board of the agreement.
1297          (119) "Solar energy" means the sun used as the sole source of energy for producing
1298     electricity.
1299          (120) (a) "Sports or recreational equipment" means an item:
1300          (i) designed for human use; and
1301          (ii) that is:
1302          (A) worn in conjunction with:
1303          (I) an athletic activity; or
1304          (II) a recreational activity; and
1305          (B) not suitable for general use.
1306          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1307     commission shall make rules:
1308          (i) listing the items that constitute "sports or recreational equipment"; and
1309          (ii) that are consistent with the list of items that constitute "sports or recreational
1310     equipment" under the agreement.
1311          (121) "State" means the state of Utah, its departments, and agencies.
1312          (122) "Storage" means any keeping or retention of tangible personal property or any
1313     other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1314     sale in the regular course of business.
1315          (123) (a) Except as provided in Subsection (123)(d) or (e), "tangible personal property"
1316     means personal property that:
1317          (i) may be:

1318          (A) seen;
1319          (B) weighed;
1320          (C) measured;
1321          (D) felt; or
1322          (E) touched; or
1323          (ii) is in any manner perceptible to the senses.
1324          (b) "Tangible personal property" includes:
1325          (i) electricity;
1326          (ii) water;
1327          (iii) gas;
1328          (iv) steam; or
1329          (v) prewritten computer software, regardless of the manner in which the prewritten
1330     computer software is transferred.
1331          (c) "Tangible personal property" includes the following regardless of whether the item
1332     is attached to real property:
1333          (i) a dishwasher;
1334          (ii) a dryer;
1335          (iii) a freezer;
1336          (iv) a microwave;
1337          (v) a refrigerator;
1338          (vi) a stove;
1339          (vii) a washer; or
1340          (viii) an item similar to Subsections (123)(c)(i) through (vii) as determined by the
1341     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1342     Rulemaking Act.
1343          (d) "Tangible personal property" does not include a product that is transferred
1344     electronically.
1345          (e) "Tangible personal property" does not include the following if attached to real

1346     property, regardless of whether the attachment to real property is only through a line that
1347     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1348     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1349     Rulemaking Act:
1350          (i) a hot water heater;
1351          (ii) a water filtration system; or
1352          (iii) a water softener system.
1353          (124) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1354     software" means an item listed in Subsection (124)(b) if that item is purchased or leased
1355     primarily to enable or facilitate one or more of the following to function:
1356          (i) telecommunications switching or routing equipment, machinery, or software; or
1357          (ii) telecommunications transmission equipment, machinery, or software.
1358          (b) The following apply to Subsection (124)(a):
1359          (i) a pole;
1360          (ii) software;
1361          (iii) a supplementary power supply;
1362          (iv) temperature or environmental equipment or machinery;
1363          (v) test equipment;
1364          (vi) a tower; or
1365          (vii) equipment, machinery, or software that functions similarly to an item listed in
1366     Subsections (124)(b)(i) through (vi) as determined by the commission by rule made in
1367     accordance with Subsection (124)(c).
1368          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1369     commission may by rule define what constitutes equipment, machinery, or software that
1370     functions similarly to an item listed in Subsections (124)(b)(i) through (vi).
1371          (125) "Telecommunications equipment, machinery, or software required for 911
1372     service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1373     Sec. 20.18.

1374          (126) "Telecommunications maintenance or repair equipment, machinery, or software"
1375     means equipment, machinery, or software purchased or leased primarily to maintain or repair
1376     one or more of the following, regardless of whether the equipment, machinery, or software is
1377     purchased or leased as a spare part or as an upgrade or modification to one or more of the
1378     following:
1379          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1380          (b) telecommunications switching or routing equipment, machinery, or software; or
1381          (c) telecommunications transmission equipment, machinery, or software.
1382          (127) (a) "Telecommunications service" means the electronic conveyance, routing, or
1383     transmission of audio, data, video, voice, or any other information or signal to a point, or
1384     among or between points.
1385          (b) "Telecommunications service" includes:
1386          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1387     processing application is used to act:
1388          (A) on the code, form, or protocol of the content;
1389          (B) for the purpose of electronic conveyance, routing, or transmission; and
1390          (C) regardless of whether the service:
1391          (I) is referred to as voice over Internet protocol service; or
1392          (II) is classified by the Federal Communications Commission as enhanced or value
1393     added;
1394          (ii) an 800 service;
1395          (iii) a 900 service;
1396          (iv) a fixed wireless service;
1397          (v) a mobile wireless service;
1398          (vi) a postpaid calling service;
1399          (vii) a prepaid calling service;
1400          (viii) a prepaid wireless calling service; or
1401          (ix) a private communications service.

1402          (c) "Telecommunications service" does not include:
1403          (i) advertising, including directory advertising;
1404          (ii) an ancillary service;
1405          (iii) a billing and collection service provided to a third party;
1406          (iv) a data processing and information service if:
1407          (A) the data processing and information service allows data to be:
1408          (I) (Aa) acquired;
1409          (Bb) generated;
1410          (Cc) processed;
1411          (Dd) retrieved; or
1412          (Ee) stored; and
1413          (II) delivered by an electronic transmission to a purchaser; and
1414          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1415     or information;
1416          (v) installation or maintenance of the following on a customer's premises:
1417          (A) equipment; or
1418          (B) wiring;
1419          (vi) Internet access service;
1420          (vii) a paging service;
1421          (viii) a product transferred electronically, including:
1422          (A) music;
1423          (B) reading material;
1424          (C) a ring tone;
1425          (D) software; or
1426          (E) video;
1427          (ix) a radio and television audio and video programming service:
1428          (A) regardless of the medium; and
1429          (B) including:

1430          (I) furnishing conveyance, routing, or transmission of a television audio and video
1431     programming service by a programming service provider;
1432          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1433          (III) audio and video programming services delivered by a commercial mobile radio
1434     service provider as defined in 47 C.F.R. Sec. 20.3;
1435          (x) a value-added nonvoice data service; or
1436          (xi) tangible personal property.
1437          (128) (a) "Telecommunications service provider" means a person that:
1438          (i) owns, controls, operates, or manages a telecommunications service; and
1439          (ii) engages in an activity described in Subsection (128)(a)(i) for the shared use with or
1440     resale to any person of the telecommunications service.
1441          (b) A person described in Subsection (128)(a) is a telecommunications service provider
1442     whether or not the Public Service Commission of Utah regulates:
1443          (i) that person; or
1444          (ii) the telecommunications service that the person owns, controls, operates, or
1445     manages.
1446          (129) (a) "Telecommunications switching or routing equipment, machinery, or
1447     software" means an item listed in Subsection (129)(b) if that item is purchased or leased
1448     primarily for switching or routing:
1449          (i) an ancillary service;
1450          (ii) data communications;
1451          (iii) voice communications; or
1452          (iv) telecommunications service.
1453          (b) The following apply to Subsection (129)(a):
1454          (i) a bridge;
1455          (ii) a computer;
1456          (iii) a cross connect;
1457          (iv) a modem;

1458          (v) a multiplexer;
1459          (vi) plug in circuitry;
1460          (vii) a router;
1461          (viii) software;
1462          (ix) a switch; or
1463          (x) equipment, machinery, or software that functions similarly to an item listed in
1464     Subsections (129)(b)(i) through (ix) as determined by the commission by rule made in
1465     accordance with Subsection (129)(c).
1466          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1467     commission may by rule define what constitutes equipment, machinery, or software that
1468     functions similarly to an item listed in Subsections (129)(b)(i) through (ix).
1469          (130) (a) "Telecommunications transmission equipment, machinery, or software"
1470     means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
1471     sending, receiving, or transporting:
1472          (i) an ancillary service;
1473          (ii) data communications;
1474          (iii) voice communications; or
1475          (iv) telecommunications service.
1476          (b) The following apply to Subsection (130)(a):
1477          (i) an amplifier;
1478          (ii) a cable;
1479          (iii) a closure;
1480          (iv) a conduit;
1481          (v) a controller;
1482          (vi) a duplexer;
1483          (vii) a filter;
1484          (viii) an input device;
1485          (ix) an input/output device;

1486          (x) an insulator;
1487          (xi) microwave machinery or equipment;
1488          (xii) an oscillator;
1489          (xiii) an output device;
1490          (xiv) a pedestal;
1491          (xv) a power converter;
1492          (xvi) a power supply;
1493          (xvii) a radio channel;
1494          (xviii) a radio receiver;
1495          (xix) a radio transmitter;
1496          (xx) a repeater;
1497          (xxi) software;
1498          (xxii) a terminal;
1499          (xxiii) a timing unit;
1500          (xxiv) a transformer;
1501          (xxv) a wire; or
1502          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1503     Subsections (130)(b)(i) through (xxv) as determined by the commission by rule made in
1504     accordance with Subsection (130)(c).
1505          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1506     commission may by rule define what constitutes equipment, machinery, or software that
1507     functions similarly to an item listed in Subsections (130)(b)(i) through (xxv).
1508          (131) (a) "Textbook for a higher education course" means a textbook or other printed
1509     material that is required for a course:
1510          (i) offered by an institution of higher education; and
1511          (ii) that the purchaser of the textbook or other printed material attends or will attend.
1512          (b) "Textbook for a higher education course" includes a textbook in electronic format.
1513          (132) "Tobacco" means:

1514          (a) a cigarette;
1515          (b) a cigar;
1516          (c) chewing tobacco;
1517          (d) pipe tobacco; or
1518          (e) any other item that contains tobacco.
1519          (133) "Unassisted amusement device" means an amusement device, skill device, or
1520     ride device that is started and stopped by the purchaser or renter of the right to use or operate
1521     the amusement device, skill device, or ride device.
1522          (134) (a) "Use" means the exercise of any right or power over tangible personal
1523     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1524     incident to the ownership or the leasing of that tangible personal property, product transferred
1525     electronically, or service.
1526          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1527     property, a product transferred electronically, or a service in the regular course of business and
1528     held for resale.
1529          (135) "Value-added nonvoice data service" means a service:
1530          (a) that otherwise meets the definition of a telecommunications service except that a
1531     computer processing application is used to act primarily for a purpose other than conveyance,
1532     routing, or transmission; and
1533          (b) with respect to which a computer processing application is used to act on data or
1534     information:
1535          (i) code;
1536          (ii) content;
1537          (iii) form; or
1538          (iv) protocol.
1539          (136) (a) Subject to Subsection (136)(b), "vehicle" means the following that are
1540     required to be titled, registered, or titled and registered:
1541          (i) an aircraft as defined in Section 72-10-102;

1542          (ii) a vehicle as defined in Section 41-1a-102;
1543          (iii) an off-highway vehicle as defined in Section 41-22-2; or
1544          (iv) a vessel as defined in Section 41-1a-102.
1545          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1546          (i) a vehicle described in Subsection (136)(a); or
1547          (ii) (A) a locomotive;
1548          (B) a freight car;
1549          (C) railroad work equipment; or
1550          (D) other railroad rolling stock.
1551          (137) "Vehicle dealer" means a person engaged in the business of buying, selling, or
1552     exchanging a vehicle as defined in Subsection (136).
1553          (138) (a) "Vertical service" means an ancillary service that:
1554          (i) is offered in connection with one or more telecommunications services; and
1555          (ii) offers an advanced calling feature that allows a customer to:
1556          (A) identify a caller; and
1557          (B) manage multiple calls and call connections.
1558          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1559     conference bridging service.
1560          (139) (a) "Voice mail service" means an ancillary service that enables a customer to
1561     receive, send, or store a recorded message.
1562          (b) "Voice mail service" does not include a vertical service that a customer is required
1563     to have in order to utilize a voice mail service.
1564          (140) (a) Except as provided in Subsection (140)(b), "waste energy facility" means a
1565     facility that generates electricity:
1566          (i) using as the primary source of energy waste materials that would be placed in a
1567     landfill or refuse pit if it were not used to generate electricity, including:
1568          (A) tires;
1569          (B) waste coal;

1570          (C) oil shale; or
1571          (D) municipal solid waste; and
1572          (ii) in amounts greater than actually required for the operation of the facility.
1573          (b) "Waste energy facility" does not include a facility that incinerates:
1574          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1575          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1576          (141) "Watercraft" means a vessel as defined in Section 73-18-2.
1577          (142) "Wind energy" means wind used as the sole source of energy to produce
1578     electricity.
1579          (143) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1580     location by the United States Postal Service.
1581          Section 2. Section 59-12-400 is enacted to read:
1582     
Part 4. Impacted Communities Taxes Act

1583          59-12-400. Title.
1584          This part is known as the "Impacted Communities Taxes Act."
1585          Section 3. Section 59-12-402.1 is enacted to read:
1586          59-12-402.1. State correctional facility sales and use tax -- Base -- Rate --
1587     Collection fees -- Imposition -- Prohibition of military installation development authority
1588     imposition of tax.
1589          (1) As used in this section, "new state correctional facility" means a new prison in the
1590     state:
1591          (a) that is operated by the Department of Corrections;
1592          (b) the construction of which begins on or after May 12, 2015; and
1593          (c) that provides a capacity of 2,500 or more inmate beds.
1594          (2) Subject to the other provisions of this part, a city or town legislative body may
1595     impose a tax under this section if the construction of a new state correctional facility has begun
1596     within the boundaries of the city or town.
1597          (3) For purposes of this section, the tax rate may not exceed .5%.

1598          (4) Except as provided in Subsection (5), a tax under this section shall be imposed on
1599     the transactions described in Subsection 59-12-103(1) within the city or town.
1600          (5) A city or town may not impose a tax under this section on:
1601          (a) the sale of:
1602          (i) a motor vehicle;
1603          (ii) an aircraft;
1604          (iii) a watercraft;
1605          (iv) a modular home;
1606          (v) a manufactured home; or
1607          (vi) a mobile home;
1608          (b) the sales and uses described in Section 59-12-104 to the extent the sales and uses
1609     are exempt under Section 59-12-104; and
1610          (c) except as provided in Subsection (7), amounts paid or charged for food and food
1611     ingredients.
1612          (6) For purposes of this section, the location of a transaction shall be determined in
1613     accordance with Sections 59-12-211 through 59-12-215.
1614          (7) A city or town that imposes a tax under this section shall impose the tax on
1615     amounts paid or charged for food and food ingredients if the food and food ingredients are sold
1616     as part of a bundled transaction attributable to food and food ingredients and tangible personal
1617     property other than food and food ingredients.
1618          (8) A city or town may impose a tax under this section by majority vote of the
1619     members of the city or town legislative body.
1620          (9) A city or town that imposes a tax under this section is not subject to Section
1621     59-12-405.
1622          (10) A military installation development authority may not impose a tax under this
1623     section.
1624          Section 4. Section 59-12-403 is amended to read:
1625          59-12-403. Enactment or repeal of tax -- Tax rate change -- Effective date --

1626     Notice requirements -- Administration, collection, and enforcement of tax --
1627     Administrative charge.
1628          (1) For purposes of this section:
1629          (a) "Annexation" means an annexation to a city or town under Title 10, Chapter 2, Part
1630     4, Annexation.
1631          (b) "Annexing area" means an area that is annexed into a city or town.
1632          (2) (a) Except as provided in Subsection (2)(c) or (d), if, on or after April 1, 2008, a
1633     city or town enacts or repeals a tax or changes the rate of a tax under this part, the enactment,
1634     repeal, or change shall take effect:
1635          (i) on the first day of a calendar quarter; and
1636          (ii) after a 90-day period beginning on the date the commission receives notice meeting
1637     the requirements of Subsection (2)(b) from the city or town.
1638          (b) The notice described in Subsection (2)(a)(ii) shall state:
1639          (i) that the city or town will enact or repeal a tax or change the rate of a tax under this
1640     part;
1641          (ii) the statutory authority for the tax described in Subsection (2)(b)(i);
1642          (iii) the effective date of the tax described in Subsection (2)(b)(i); and
1643          (iv) if the city or town enacts the tax or changes the rate of the tax described in
1644     Subsection (2)(b)(i), the rate of the tax.
1645          (c) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the
1646     first billing period:
1647          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
1648     increase; and
1649          (B) if the billing period for the transaction begins before the effective date of the
1650     enactment of the tax or the tax rate increase imposed under[:] Section 59-12-401, 59-12-402, or
1651     59-12-402.1.
1652          [(I) Section 59-12-401; or]
1653          [(II) Section 59-12-402.]

1654          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1655     statement for the billing period is rendered on or after the effective date of the repeal of the tax
1656     or the tax rate decrease imposed under[:] Section 59-12-401, 59-12-402, or 59-12-402.1.
1657          [(A) Section 59-12-401; or]
1658          [(B) Section 59-12-402.]
1659          (d) (i) If a tax due under this chapter on a catalogue sale is computed on the basis of
1660     sales and use tax rates published in the catalogue, an enactment, repeal, or change in the rate of
1661     a tax described in Subsection (2)(a) takes effect:
1662          (A) on the first day of a calendar quarter; and
1663          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1664     rate of the tax under Subsection (2)(a).
1665          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1666     commission may by rule define the term "catalogue sale."
1667          (3) (a) Except as provided in Subsection (3)(c) or (d), if, for an annexation that occurs
1668     on or after July 1, 2004, the annexation will result in the enactment, repeal, or change in the
1669     rate of a tax under this part for an annexing area, the enactment, repeal, or change shall take
1670     effect:
1671          (i) on the first day of a calendar quarter; and
1672          (ii) after a 90-day period beginning on the date the commission receives notice meeting
1673     the requirements of Subsection (3)(b) from the city or town that annexes the annexing area.
1674          (b) The notice described in Subsection (3)(a)(ii) shall state:
1675          (i) that the annexation described in Subsection (3)(a) will result in an enactment,
1676     repeal, or change in the rate of a tax under this part for the annexing area;
1677          (ii) the statutory authority for the tax described in Subsection (3)(b)(i);
1678          (iii) the effective date of the tax described in Subsection (3)(b)(i); and
1679          (iv) if the city or town enacts the tax or changes the rate of the tax described in
1680     Subsection (3)(b)(i), the rate of the tax.
1681          (c) (i) The enactment of a tax or a tax rate increase takes effect on the first day of the

1682     first billing period:
1683          (A) that begins on or after the effective date of the enactment of the tax or the tax rate
1684     increase; and
1685          (B) if the billing period for the transaction begins before the effective date of the
1686     enactment of the tax or the tax rate increase imposed under[:] Section 59-12-401, 59-12-402, or
1687     59-12-402.1.
1688          [(I) Section 59-12-401; or]
1689          [(II) Section 59-12-402.]
1690          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
1691     statement for the billing period is rendered on or after the effective date of the repeal of the tax
1692     or the tax rate decrease imposed under[:] Section 59-12-401, 59-12-402, or 59-12-402.1.
1693          [(A) Section 59-12-401; or]
1694          [(B) Section 59-12-402.]
1695          (d) (i) Notwithstanding Subsection (3)(a), if a tax due under this chapter on a catalogue
1696     sale is computed on the basis of sales and use tax rates published in the catalogue, an
1697     enactment, repeal, or change in the rate of a tax described in Subsection (3)(a) takes effect:
1698          (A) on the first day of a calendar quarter; and
1699          (B) beginning 60 days after the effective date of the enactment, repeal, or change in the
1700     rate of the tax under Subsection (3)(a).
1701          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1702     commission may by rule define the term "catalogue sale."
1703          (4) (a) Except as provided in Subsection (4)(b), a tax authorized under this part shall be
1704     administered, collected, and enforced in accordance with:
1705          (i) the same procedures used to administer, collect, and enforce the tax under:
1706          (A) Part 1, Tax Collection; or
1707          (B) Part 2, Local Sales and Use Tax Act; and
1708          (ii) Chapter 1, General Taxation Policies.
1709          (b) Notwithstanding Subsection (4)(a), a tax under this part is not subject to

1710     Subsections 59-12-205(2) through (6).
1711          (5) The commission shall retain and deposit an administrative charge in accordance
1712     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
1713          Section 5. Section 63A-5-225 is enacted to read:
1714          63A-5-225. Development of new correctional facilities.
1715          (1) As used in this section:
1716          (a) "Commission" means the Prison Development Commission, created in Section
1717     63C-16-201.
1718          (b) "New correctional facilities" means a new prison and related facilities to be
1719     constructed to replace the state prison located in Draper.
1720          (c) "Prison project" means all aspects of a project for the design and construction of
1721     new correctional facilities on the selected site, including:
1722          (i) the acquisition of land, interests in land, easements, or rights-of-way;
1723          (ii) site improvement; and
1724          (iii) the acquisition, construction, equipping, or furnishing of facilities, structures,
1725     infrastructure, roads, parking facilities, utilities, and improvements, whether on or off the
1726     selected site, that are necessary, incidental, or convenient to the development of new
1727     correctional facilities on the selected site.
1728          (d) "Selected site" means the same as that term is defined in Section 63C-16-102.
1729          (2) In consultation with the commission, the division shall oversee the prison project,
1730     as provided in this section.
1731          (3) (a) In accordance with Title 63G, Chapter 6a, Utah Procurement Code, and this
1732     section, the division shall:
1733          (i) enter into contracts with persons providing professional and construction services
1734     for the prison project;
1735          (ii) in determining contract types for the prison project, consult with and consider
1736     recommendations from the commission or the commission's designee;
1737          (iii) provide reports to the commission regarding the prison project, as requested by the

1738     commission; and
1739          (iv) consider input from the commission on the prison project, subject to Subsection
1740     (3)(b).
1741          (b) The division may not consult with or receive input from the commission regarding:
1742          (i) the evaluation of proposals from persons seeking to provide professional and
1743     construction services for the prison project; or
1744          (ii) the selection of persons to provide professional and construction services for the
1745     prison project.
1746          (c) A contract with a project manager or person with a comparable position on the
1747     prison project shall include a provision that requires the project manager or other person to
1748     provide reports to the commission regarding the prison project, as requested by the
1749     commission.
1750          (4) All contracts associated with the design or construction of new correctional
1751     facilities shall be awarded and managed by the division in accordance with Title 63G, Chapter
1752     6a, Utah Procurement Code, and this section.
1753          (5) The division shall coordinate with the Department of Corrections, created in
1754     Section 64-13-2, and the State Commission on Criminal and Juvenile Justice, created in
1755     Section 63M-7-201, during the prison project to help ensure that the design and construction of
1756     new correctional facilities are conducive to and consistent with, and help to implement any
1757     reforms of or changes to, the state's corrections system and corrections programs.
1758          (6) (a) There is created within the General Fund a restricted account known as the
1759     "Prison Development Restricted Account."
1760          (b) The account created in Subsection (6)(a) is funded by legislative appropriations.
1761          (c) (i) The account shall earn interest or other earnings.
1762          (ii) The Division of Finance shall deposit interest or other earnings derived from the
1763     investment of account funds into the account.
1764          (d) Upon appropriation from the Legislature, money from the account shall be used to
1765     fund the Prison Project Fund created in Subsection (7).

1766          (7) (a) There is created a capital projects fund known as the "Prison Project Fund."
1767          (b) The fund consists of:
1768          (i) money appropriated to the fund by the Legislature; and
1769          (ii) proceeds from the issuance of bonds authorized in Section 63B-24-101 to provide
1770     funding for the prison project.
1771          (c) (i) The fund shall earn interest or other earnings.
1772          (ii) The Division of Finance shall deposit interest or other earnings derived from the
1773     investment of fund money into the fund.
1774          (d) Money in the fund shall be used by the division to fund the prison project.
1775          Section 6. Section 63B-24-101 is enacted to read:
1776          63B-24-101. General obligation bonds for prison project -- Maximum amount --
1777     Use of proceeds.
1778          (1) As used in this section:
1779          (a) "Prison project" means the same as that term is defined in Section 63C-16-102.
1780          (b) "Prison project fund" means the capital projects fund created in Subsection
1781     63A-5-225(7).
1782          (2) The commission may issue general obligation bonds as provided in this section.
1783          (3) (a) The total amount of bonds to be issued under this section may not exceed
1784     $470,000,000, plus additional amounts necessary to pay costs of issuance, to pay capitalized
1785     interest, and to fund any debt service reserve requirements, with the total amount of the bonds
1786     not to exceed $474,700,000.
1787          (b) The maturity of bonds issued under this section shall be seven years.
1788          (4) The commission shall ensure that proceeds from the issuance of bonds under this
1789     section are deposited into the Prison Project Fund for use by the division to pay all or part of
1790     the cost of the prison project, including:
1791          (a) interest estimated to accrue on the bonds authorized in this section until the
1792     completion of construction of the prison project, plus a period of 12 months after the end of
1793     construction; and

1794          (b) all related engineering, architectural, and legal fees.
1795          (5) (a) The division may enter into agreements related to the prison project before the
1796     receipt of proceeds of bonds issued under this section.
1797          (b) The division shall make those expenditures from unexpended and unencumbered
1798     building funds already appropriated to the Prison Project Fund.
1799          (c) The division shall reimburse the Prison Project Fund upon receipt of the proceeds
1800     of bonds issued under this chapter.
1801          (d) The state intends to use proceeds of tax-exempt bonds to reimburse itself for
1802     expenditures for costs of the prison project.
1803          (6) Before issuing bonds authorized under this section, the commission shall request
1804     and consider a recommendation from the Prison Development Commission, created in Section
1805     63C-16-201, regarding the timing and amount of the issuance.
1806          Section 7. Section 63C-15-102 is amended to read:
1807          63C-15-102. Definitions.
1808          As used in this chapter:
1809          (1) "Commission" means the Prison Relocation Commission, created in Section
1810     63C-15-201.
1811          (2) "Department" means the Department of Corrections, created in Section 64-13-2.
1812          (3) "Division" means the Division of Facilities Construction and Management, created
1813     in Section 63A-5-201.
1814          (4) "Justice commission" means the State Commission on Criminal and Juvenile
1815     Justice, created in Section 63M-7-201.
1816          (5) "New prison facilities" means correctional facilities to be constructed to replace the
1817     state prison.
1818          [(5)] (6) "State prison" means the prison that the state operates in [Salt Lake County]
1819     Draper.
1820          Section 8. Section 63C-15-201 is amended to read:
1821          63C-15-201. Commission created -- Membership -- Cochairs -- Removal --

1822     Vacancy.
1823          (1) There is created [an advisory] a commission known as the Prison Relocation
1824     Commission, composed of:
1825          (a) three members of the Senate, appointed by the president of the Senate, no more
1826     than two of whom may be from the same political party;
1827          (b) four members of the House of Representatives, appointed by the speaker of the
1828     House of Representatives, no more than three of whom may be from the same political party;
1829          (c) the executive director of the justice commission, appointed under Section
1830     63M-7-203; and
1831          (d) the executive director of the department, appointed under Section 64-13-3, or the
1832     executive director's designee.
1833          (2) The commission members from the Senate and House of Representatives are voting
1834     members of the commission, and the members appointed under Subsections (1)(c) and (d) are
1835     nonvoting members of the commission.
1836          (3) The president of the Senate shall appoint one of the commission members from the
1837     Senate as cochair of the commission, and the speaker of the House of Representatives shall
1838     appoint one of the commission members from the House of Representatives as cochair of the
1839     commission.
1840          (4) The president of the Senate may remove a member appointed under Subsection
1841     (1)(a), and the speaker of the House of Representatives may remove a member appointed under
1842     Subsection (1)(b).
1843          (5) A vacancy of a member appointed under Subsection (1)(a) or (b) shall be filled in
1844     the same manner as an appointment of the member whose departure from the commission
1845     creates the vacancy.
1846          (6) A commission member shall serve until a successor is duly appointed and qualified.
1847          Section 9. Section 63C-15-203 is amended to read:
1848          63C-15-203. Commission duties and responsibilities.
1849          (1) The commission shall:

1850          (a) carefully and deliberately consider, study, and evaluate how and where to move the
1851     state prison, and in that process:
1852          (i) consider whether to locate new prison facilities on land already owned by the state
1853     or on land that is currently in other public or private ownership but that the state may acquire or
1854     lease, whether to locate new prison facilities at one location or multiple locations, and to what
1855     extent future corrections needs may be met by existing state and county facilities; and
1856          (ii) take into account relevant objectives, including:
1857          (A) coordinating the commission's efforts with the efforts of the justice commission
1858     and the department to evaluate criminal justice policies to increase public safety, reduce
1859     recidivism, and reduce prison population growth;
1860          (B) ensuring that new prison facilities are conducive to future inmate programming that
1861     encourages a reduction in recidivism;
1862          (C) locating new prison facilities to help facilitate an adequate level of volunteer and
1863     staff support that will allow for a correctional program that is commensurate with the high
1864     standards that should be maintained in the state;
1865          (D) locating new prison facilities within a reasonable distance of comprehensive
1866     medical facilities;
1867          (E) locating new prison facilities to be compatible with surrounding land uses for the
1868     foreseeable future;
1869          (F) locating new prison facilities with careful consideration given to the concerns of
1870     access to courts, visiting and public access, expansion capabilities, emergency response factors,
1871     and the availability of infrastructure;
1872          (G) supporting new prison facilities by one or more appropriations from the
1873     Legislature;
1874          (H) developing performance specifications for new prison facilities that facilitate a
1875     high quality correctional program;
1876          (I) phasing in construction over a period of time; and
1877          (J) making every reasonable effort to maximize efficiencies and cost savings that result

1878     from building and operating newer, more efficient prison facilities;
1879          (b) invite the participation in commission meetings of interested parties, the public,
1880     experts in the area of prison facilities, and any others the commission considers to have
1881     information or ideas that would be useful to the commission;
1882          (c) formulate recommendations concerning:
1883          (i) the location or locations to which the new prison facilities should be moved;
1884          (ii) the type of facilities that should be constructed to accommodate the prison
1885     population and to facilitate implementation of any new corrections programs; and
1886          (iii) the extent to which future corrections needs can be met by existing state or county
1887     facilities; and
1888          [(d) before the start of the 2015 General Session of the Legislature, report the
1889     commission's recommendations in writing to the Legislature and governor.]
1890          (d) sponsor one or more public information and feedback events in communities within
1891     which or adjacent to which a site under final consideration for new prison facilities is located,
1892     as the commission or its chairs consider appropriate.
1893          (2) (a) On or before August 1, 2015, the commission shall:
1894          (i) choose the site for the construction of new prison facilities from among the sites that
1895     the commission recommended as potential sites in the commission's report to the governor and
1896     the Legislature, adopted on and dated February 27, 2015; and
1897          (ii) report the commission's choice to the president of the Senate, the speaker of the
1898     House of Representatives, and the governor.
1899          (b) The site chosen by the commission under Subsection (2)(a) shall be the site for the
1900     construction of new prison facilities if the site is approved by the Legislature at:
1901          (i) a special session of the Legislature that the governor convenes for that purpose; or
1902          (ii) an annual general session of the Legislature.
1903          [(2)] (3) The commission may:
1904          (a) meet as many times as the commission considers necessary or advisable in order to
1905     fulfill its responsibilities under this part;

1906          (b) hire or direct the hiring of one or more consultants with experience or expertise in a
1907     subject under consideration by the commission, to assist the commission in fulfilling its duties
1908     under this part; and
1909          [(c) in its discretion, elect to succeed to the position of the Prison Relocation and
1910     Development Authority under a contract that the Prison Relocation and Development Authority
1911     is a party to, subject to applicable contractual provisions.]
1912          (c) extend the deadline under Subsection (2)(a) for a one-month period, as many times
1913     as the commission considers appropriate and necessary.
1914          [(3)] (4) The commission may not:
1915          (a) consider or evaluate future uses of the property on which the state prison is
1916     currently located;
1917          (b) make recommendations concerning the future use or development of the land on
1918     which the state prison is currently located;
1919          (c) make any commitments or enter into any contracts for the acquisition of land for
1920     new state prison facilities or regarding the construction of new state prison facilities; or
1921          (d) initiate or pursue the procurement of a person to design or construct new prison
1922     facilities.
1923          Section 10. Section 63C-16-101 is enacted to read:
1924     
CHAPTER 16. PRISON DEVELOPMENT COMMISSION ACT

1925          63C-16-101. Title.
1926          This chapter is known as the "Prison Development Commission Act."
1927          Section 11. Section 63C-16-102 is enacted to read:
1928          63C-16-102. Definitions.
1929          As used in this chapter:
1930          (1) "Commission" means the Prison Development Commission, created in Section
1931     63C-16-201.
1932          (2) "Department" means the Department of Corrections, created in Section 64-13-2.
1933          (3) "Division" means the Division of Facilities Construction and Management, created

1934     in Section 63A-5-201.
1935          (4) "Justice commission" means the State Commission on Criminal and Juvenile
1936     Justice, created in Section 63M-7-201.
1937          (5) "New correctional facilities" means a new prison and related facilities to be
1938     constructed to replace the state prison located in Draper.
1939          (6) "Prison project" means the same as that term is defined in Section 63A-5-225.
1940          (7) "Selected site" means the site selected under Subsection 63C-15-203(2) as the site
1941     for new correctional facilities.
1942          Section 12. Section 63C-16-201 is enacted to read:
1943          63C-16-201. Commission created -- Membership -- Cochairs -- Removal --
1944     Vacancy.
1945          (1) There is created a commission known as the Prison Development Commission,
1946     composed of:
1947          (a) three members of the Senate, appointed by the president of the Senate, no more
1948     than two of whom may be from the same political party;
1949          (b) four members of the House of Representatives, appointed by the speaker of the
1950     House of Representatives, no more than three of whom may be from the same political party;
1951          (c) the executive director of the justice commission, appointed under Section
1952     63M-7-203;
1953          (d) the executive director of the department, appointed under Section 64-13-3, or the
1954     executive director's designee; and
1955          (e) a citizen member who is a resident of the community in or near which the selected
1956     site is located, appointed by the governor.
1957          (2) The president of the Senate shall appoint one of the commission members from the
1958     Senate as cochair of the commission, and the speaker of the House of Representatives shall
1959     appoint one of the commission members from the House of Representatives as cochair of the
1960     commission.
1961          (3) The president of the Senate may remove a member appointed under Subsection

1962     (1)(a), the speaker of the House of Representatives may remove a member appointed under
1963     Subsection (1)(b), and the governor may remove a member appointed under Subsection (1)(e).
1964          (4) A vacancy of a member appointed under Subsection (1)(a), (b), or (e) shall be filled
1965     in the same manner as an appointment of the member whose departure from the commission
1966     creates the vacancy.
1967          (5) A commission member shall serve until a successor is duly appointed and qualified.
1968          Section 13. Section 63C-16-202 is enacted to read:
1969          63C-16-202. Quorum and voting requirements -- Bylaws -- Per diem and expenses
1970     -- Staff.
1971          (1) A majority of the commission members constitutes a quorum, and the action of a
1972     majority of a quorum constitutes action of the commission.
1973          (2) The commission may adopt bylaws to govern its operations and proceedings.
1974          (3) (a) Per diem and expenses of commission members who are legislators shall be
1975     paid in accordance with Section 36-2-2 and Legislative Joint Rules, Title 5, Chapter 3,
1976     Legislative Compensation.
1977          (b) A commission member who is not a legislator may not receive compensation,
1978     benefits, per diem, or expense reimbursement for the member's service on the commission.
1979          (4) The Office of Legislative Research and General Counsel shall provide staff support
1980     to the commission.
1981          Section 14. Section 63C-16-203 is enacted to read:
1982          63C-16-203. Commission duties and responsibilities.
1983          (1) The commission shall:
1984          (a) advise and consult with the division as the division oversees the prison project as
1985     provided in Section 63A-5-225;
1986          (b) consult with, make recommendations to, and receive reports from the division
1987     regarding the prison project, consistent with Section 63A-5-225;
1988          (c) fulfill other responsibilities specified in Section 63A-5-225; and
1989          (d) undertake any other action the commission considers appropriate to support or help

1990     facilitate the successful completion of the prison project, consistent with Section 63A-5-225.
1991          (2) The commission may:
1992          (a) meet as many times as the commission or its chairs consider necessary or advisable
1993     in order to fulfill the commission's responsibilities under this part; and
1994          (b) hire or direct the hiring of one or more consultants or experts to assist the
1995     commission in fulfilling the commission's responsibilities under this part.
1996          (3) The commission may not consider or evaluate future uses or development of the
1997     property in Draper on which a state prison is located.
1998          Section 15. Section 63C-16-204 is enacted to read:
1999          63C-16-204. Other agencies' cooperation and actions.
2000          All state agencies and political subdivisions of the state shall, upon the commission's
2001     request:
2002          (1) reasonably cooperate with the commission to facilitate the fulfillment of the
2003     commission's responsibilities; and
2004          (2) provide information or assistance to the commission that the commission
2005     reasonably needs to fulfill its responsibilities.
2006          Section 16. Section 63I-1-263 is amended to read:
2007          63I-1-263. Repeal dates, Titles 63A to 63M.
2008          (1) Section 63A-4-204, authorizing the Risk Management Fund to provide coverage to
2009     any public school district which chooses to participate, is repealed July 1, 2016.
2010          (2) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
2011          (3) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2016.
2012          (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
2013     1, 2018.
2014          (5) Title 63C, Chapter 14, Federal Funds Commission, is repealed July 1, 2018.
2015          [(6) Title 63C, Chapter 15, Prison Relocation Commission, is repealed July 1, 2017.]
2016          (6) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
2017     2020.

2018          (7) Subsection 63G-6a-1402(7) authorizing certain transportation agencies to award a
2019     contract for a design-build transportation project in certain circumstances, is repealed July 1,
2020     2015.
2021          (8) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
2022     2020.
2023          (9) The Resource Development Coordinating Committee, created in Section
2024     63J-4-501, is repealed July 1, 2015.
2025          (10) Title 63M, Chapter 1, Part 4, Enterprise Zone Act, is repealed July 1, 2018.
2026          (11) (a) Title 63M, Chapter 1, Part 11, Recycling Market Development Zone Act, is
2027     repealed January 1, 2021.
2028          (b) Subject to Subsection (11)(c), Sections 59-7-610 and 59-10-1007 regarding tax
2029     credits for certain persons in recycling market development zones, are repealed for taxable
2030     years beginning on or after January 1, 2021.
2031          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
2032          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
2033     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
2034          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
2035     the expenditure is made on or after January 1, 2021.
2036          (d) Notwithstanding Subsections (11)(b) and (c), a person may carry forward a tax
2037     credit in accordance with Section 59-7-610 or 59-10-1007 if:
2038          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
2039          (ii) (A) for the purchase price of machinery or equipment described in Section
2040     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
2041     2020; or
2042          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
2043     expenditure is made on or before December 31, 2020.
2044          (12) Section 63M-1-3412 is repealed on July 1, 2021.
2045          [(13) (a) Section 63M-1-2507, Health Care Compact is repealed on July 1, 2014.]

2046          [(b) (i) The Legislature shall, before reauthorizing the Health Care Compact:]
2047          [(A) direct the Health System Reform Task Force to evaluate the issues listed in
2048     Subsection (13)(b)(ii), and by January 1, 2013, develop and recommend criteria for the
2049     Legislature to use to negotiate the terms of the Health Care Compact; and]
2050          [(B) prior to July 1, 2014, seek amendments to the Health Care Compact among the
2051     member states that the Legislature determines are appropriate after considering the
2052     recommendations of the Health System Reform Task Force.]
2053          [(ii) The Health System Reform Task Force shall evaluate and develop criteria for the
2054     Legislature regarding:]
2055          [(A) the impact of the Supreme Court ruling on the Affordable Care Act;]
2056          [(B) whether Utah is likely to be required to implement any part of the Affordable Care
2057     Act prior to negotiating the compact with the federal government, such as Medicaid expansion
2058     in 2014;]
2059          [(C) whether the compact's current funding formula, based on adjusted 2010 state
2060     expenditures, is the best formula for Utah and other state compact members to use for
2061     establishing the block grants from the federal government;]
2062          [(D) whether the compact's calculation of current year inflation adjustment factor,
2063     without consideration of the regional medical inflation rate in the current year, is adequate to
2064     protect the state from increased costs associated with administering a state based Medicaid and
2065     a state based Medicare program;]
2066          [(E) whether the state has the flexibility it needs under the compact to implement and
2067     fund state based initiatives, or whether the compact requires uniformity across member states
2068     that does not benefit Utah;]
2069          [(F) whether the state has the option under the compact to refuse to take over the
2070     federal Medicare program;]
2071          [(G) whether a state based Medicare program would provide better benefits to the
2072     elderly and disabled citizens of the state than a federally run Medicare program;]
2073          [(H) whether the state has the infrastructure necessary to implement and administer a

2074     better state based Medicare program;]
2075          [(I) whether the compact appropriately delegates policy decisions between the
2076     legislative and executive branches of government regarding the development and
2077     implementation of the compact with other states and the federal government; and]
2078          [(J) the impact on public health activities, including communicable disease
2079     surveillance and epidemiology.]
2080          [(14)] (13) (a) Title 63M, Chapter 1, Part 35, Utah Small Business Jobs Act, is
2081     repealed January 1, 2021.
2082          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
2083     calendar years beginning on or after January 1, 2021.
2084          (c) Notwithstanding Subsection [(14)] (13)(b), an entity may carry forward a tax credit
2085     in accordance with Section 59-9-107 if:
2086          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
2087     31, 2020; and
2088          (ii) the qualified equity investment that is the basis of the tax credit is certified under
2089     Section 63M-1-3503 on or before December 31, 2023.
2090          [(15)] (14) The Crime Victim Reparations and Assistance Board, created in Section
2091     63M-7-504, is repealed July 1, 2017.
2092          [(16)] (15) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1,
2093     2017.
2094          Section 17. Section 63I-2-263 is amended to read:
2095          63I-2-263. Repeal dates, Title 63A to Title 63M.
2096          [(1) Section 63A-1-115 is repealed on July 1, 2014.]
2097          [(2)] (1) Section 63C-9-501.1 is repealed on July 1, 2015.
2098          (2) Title 63C, Chapter 15, Prison Relocation Commission, is repealed on January 1,
2099     2016.
2100          [(3) Subsection 63J-1-218(3) is repealed on December 1, 2013.]
2101          [(4) Subsection 63J-1-218(4) is repealed on December 1, 2013.]

2102          [(5) Section 63M-1-207 is repealed on December 1, 2014.]
2103          [(6)] (3) Subsection 63M-1-903(1)(d) is repealed on July 1, 2015.
2104          [(7) Subsection 63M-1-1406(9) is repealed on January 1, 2015.]