2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions related to transportation network services.
10 Highlighted Provisions:
11 This bill:
12 ▸ requires a transportation network company to register with the Division of
13 Consumer Protection;
14 ▸ exempts a vehicle used to provide transportation network services from certain
15 requirements;
16 ▸ provides operation and eligibility requirements for a transportation network
17 company and a transportation network driver;
18 ▸ provides insurance requirements for a transportation network company and a
19 transportation network driver; and
20 ▸ provides that a local highway authority may not enact a rule, regulation, or
21 ordinance that requires a ground transportation vehicle to maintain liability
22 insurance coverage in an amount that is greater than the minimum amount a
23 transportation network company or transportation network driver is required to
24 maintain.
25 Money Appropriated in this Bill:
26 This bill appropriates in fiscal year 2016:
27 ▸ to Department of Commerce - Commerce General Regulation - Consumer
28 Protection, as an ongoing appropriation:
29 • from the General Fund Restricted - Commerce Service Account, $20,000.
30 Other Special Clauses:
31 None
32 Utah Code Sections Affected:
33 AMENDS:
34 13-2-1, as last amended by Laws of Utah 2014, Chapter 360
35 41-6a-208, as last amended by Laws of Utah 2013, Chapters 157 and 360
36 53-3-102, as last amended by Laws of Utah 2014, Chapter 252
37 59-12-102, as last amended by Laws of Utah 2014, Chapters 380 and 414
38 ENACTS:
39 13-51-101, Utah Code Annotated 1953
40 13-51-102, Utah Code Annotated 1953
41 13-51-103, Utah Code Annotated 1953
42 13-51-104, Utah Code Annotated 1953
43 13-51-105, Utah Code Annotated 1953
44 13-51-106, Utah Code Annotated 1953
45 13-51-107, Utah Code Annotated 1953
46 13-51-108, Utah Code Annotated 1953
47 13-51-109, Utah Code Annotated 1953
48
49 Be it enacted by the Legislature of the state of Utah:
50 Section 1. Section 13-2-1 is amended to read:
51 13-2-1. Consumer protection division established -- Functions.
52 (1) There is established within the Department of Commerce the Division of Consumer
53 Protection.
54 (2) The division shall administer and enforce the following:
55 (a) Chapter 5, Unfair Practices Act;
56 (b) Chapter 10a, Music Licensing Practices Act;
57 (c) Chapter 11, Utah Consumer Sales Practices Act;
58 (d) Chapter 15, Business Opportunity Disclosure Act;
59 (e) Chapter 20, New Motor Vehicle Warranties Act;
60 (f) Chapter 21, Credit Services Organizations Act;
61 (g) Chapter 22, Charitable Solicitations Act;
62 (h) Chapter 23, Health Spa Services Protection Act;
63 (i) Chapter 25a, Telephone and Facsimile Solicitation Act;
64 (j) Chapter 26, Telephone Fraud Prevention Act;
65 (k) Chapter 28, Prize Notices Regulation Act;
66 (l) Chapter 32a, Pawnshop and Secondhand Merchandise Transaction Information Act;
67 (m) Chapter 34, Utah Postsecondary Proprietary School Act;
68 (n) Chapter 34a, Utah Postsecondary School State Authorization Act;
69 (o) Chapter 41, Price Controls During Emergencies Act;
70 (p) Chapter 42, Uniform Debt-Management Services Act; [
71 (q) Chapter 49, Immigration Consultants Registration Act[
72 (r) Chapter 51, Transportation Network Company Registration Act.
73 Section 2. Section 13-51-101 is enacted to read:
74
75 13-51-101. Title.
76 This chapter is known as "Transportation Network Company Registration Act."
77 Section 3. Section 13-51-102 is enacted to read:
78 13-51-102. Definitions.
79 (1) "Division" means the Division of Consumer Protection within the Department of
80 Commerce.
81 (2) "Prearranged ride" means a period of time that:
82 (a) begins when the transportation network driver has accepted a passenger's request
83 for a ride through the transportation network company's software application; and
84 (b) ends when the passenger exits the transportation network driver's vehicle.
85 (3) "Software application" means an Internet-connected software platform, including a
86 mobile application, that a transportation network company uses to:
87 (a) connect a transportation network driver to a passenger; and
88 (b) process passenger requests.
89 (4) "Transportation network company" means an entity that:
90 (a) uses a software application to connect a passenger to a transportation network
91 driver providing transportation network services;
92 (b) is not:
93 (i) a taxicab, as defined in Section 53-3-102; or
94 (ii) a motor carrier, as defined in Section 72-9-102; and
95 (c) does not own, control, operate, or manage the vehicle used to provide the
96 transportation network services.
97 (5) "Transportation network driver" means an individual who:
98 (a) pays a fee to a transportation network company, and, in exchange, receives a
99 connection to a potential passenger from the transportation network company;
100 (b) operates a motor vehicle that:
101 (i) the individual owns, leases, or is authorized to use; and
102 (ii) the individual uses to provide transportation network services; and
103 (c) receives, in exchange for providing a passenger a ride, compensation that exceeds
104 the individual's cost to provide the ride.
105 (6) "Transportation network services" means, for a transportation network driver
106 providing services through a transportation network company:
107 (a) providing a prearranged ride; or
108 (b) being engaged in a waiting period.
109 (7) "Waiting period" means a period of time when:
110 (a) a transportation network driver is logged into a transportation network company's
111 software application; and
112 (b) the transportation network driver is not engaged in a prearranged ride.
113 Section 4. Section 13-51-103 is enacted to read:
114 13-51-103. Exemptions -- Transportation network company and transportation
115 network driver.
116 A transportation network company or a transportation network driver is not subject to
117 the requirements applicable to:
118 (1) a motor carrier, under Title 72, Chapter 9, Motor Carrier Safety Act;
119 (2) a common carrier, under Title 59, Chapter 12, Sales and Use Tax Act; or
120 (3) a taxicab, under Title 53, Chapter 3, Uniform Driver License Act.
121 Section 5. Section 13-51-104 is enacted to read:
122 13-51-104. Licensure -- Division audits -- Fines.
123 (1) A person may not operate a transportation network company without registering
124 with the division under Subsection (2).
125 (2) The division shall register a person to operate a transportation network company if:
126 (a) the person:
127 (i) demonstrates to the division that the person meets the definition of a transportation
128 network company under Section 13-51-102; and
129 (ii) pays a registration fee in an amount determined by the division in accordance with
130 Section 63J-1-504; and
131 (b) the division determines that the person complies with the operating requirements
132 for a transportation network company described in this chapter.
133 (3) A transportation network company's registration under Subsection (2) is:
134 (a) valid until one year after the day on which the transportation network company
135 registers with the division; and
136 (b) renewable if the transportation network company meets the requirements of
137 Subsection (2).
138 (4) The division may audit the records of a transportation network company, including
139 a random sample of the transportation network company's records related to transportation
140 network drivers:
141 (a) no more than twice per year;
142 (b) at a location agreed to by the division and the transportation network company; and
143 (c) notwithstanding Subsection (4)(a), at any time to investigate a complaint.
144 (5) The division may fine a transportation network company up to $500 for each
145 violation of this chapter.
146 Section 6. Section 13-51-105 is enacted to read:
147 13-51-105. Operating requirements.
148 (1) A transportation network company shall maintain an agent for service of process in
149 the state and shall notify the division of the name and address of the agent.
150 (2) A transportation network company may collect, on behalf of a transportation
151 network driver, a fare for a prearranged ride if the transportation network company:
152 (a) posts the method for calculating the fare on the transportation network company's
153 software application;
154 (b) provides a passenger the rate used to calculate the fare for a prearranged ride; and
155 (c) allows a passenger the option to obtain an estimated fare for a prearranged ride
156 before the passenger enters a transportation network driver's vehicle.
157 (3) For each prearranged ride, a transportation network company shall:
158 (a) before a passenger enters a transportation network driver's vehicle, display on the
159 transportation network company's software application a picture of the transportation network
160 driver; and
161 (b) shortly after the prearranged ride is complete, transmit an electronic receipt to the
162 passenger that lists:
163 (i) the prearranged ride's origin and destination;
164 (ii) the prearranged ride's total time and distance; and
165 (iii) an itemization of the total fare the passenger paid, if any.
166 (4) A transportation network driver may not, while providing transportation network
167 services:
168 (a) provide a ride to an individual who requests the ride by a means other than a
169 transportation network company's software application;
170 (b) solicit or accept cash payments from a passenger; or
171 (c) accept any means of payment other than payment through a transportation network
172 company's software application.
173 (5) A transportation network company shall maintain a record of:
174 (a) all trips, for a minimum of five years after the day on which the trip occurred; and
175 (b) all information in a transportation network company's possession regarding a
176 transportation network driver, for a minimum of five years after the day on which the
177 transportation network driver last provided transportation network services using the
178 transportation network company's software application.
179 (6) A transportation network company shall adopt a policy that prohibits unlawful
180 discrimination with respect to a passenger and shall:
181 (a) provide a copy of the policy to each transportation network driver; or
182 (b) post the policy on the transportation network company's website.
183 (7) (a) A transportation network driver shall accommodate:
184 (i) a service animal; or
185 (ii) an individual with a physical disability.
186 (b) A transportation network driver or transportation network company may not impose
187 an additional charge to provide the accommodations described in Subsections (7)(a) and (8).
188 (8) A transportation network company shall:
189 (a) allow a passenger to request a prearranged ride in a wheelchair-accessible vehicle;
190 and
191 (b) if a wheelchair-accessible vehicle is not available to a passenger who requests a
192 wheelchair-accessible vehicle under Subsection (8)(a), direct the passenger to a transportation
193 service that provides wheelchair-accessible service, if available.
194 (9) A transportation network company shall disclose to a transportation network driver:
195 (a) a description of the insurance coverage the transportation network company
196 provides the transportation network driver while the transportation network driver is providing
197 transportation network services, including the insurance coverage's liability limit;
198 (b) that the transportation network company's personal automobile insurance policy
199 may not provide coverage to the transportation network driver during a waiting period or a
200 prearranged ride;
201 (c) that if the vehicle the transportation network driver uses to provide transportation
202 network services has a lien against the vehicle, the transportation network driver is required to
203 notify the lienholder that the transportation network driver is using the vehicle to provide
204 transportation network services; and
205 (d) that using a vehicle with a lien against the vehicle to provide transportation network
206 services may violate the transportation network driver's contract with the lienholder.
207 (10) A transportation network company and the transportation network company's
208 insurer shall, for an incident that occurs while a transportation network driver is providing
209 transportation network services:
210 (a) cooperate with a liability insurer that insures the vehicle the transportation network
211 driver uses to provide the transportation network services;
212 (b) provide, to the liability insurer, the precise date and time that an incident occurred,
213 including the precise time when a driver logged in or out of the transportation network
214 company's software application; and
215 (c) provide the information described in Subsection (10)(b) to a liability insurer no
216 later than 10 business days after the day on which the liability insurer requests the information
217 from the transportation network company.
218 (11) If a transportation network company's insurer insures a vehicle with a lien against
219 the vehicle, and the transportation network company's insurer covers a claim regarding the
220 vehicle under comprehensive or collision coverage, the transportation network company shall
221 direct the transportation network company's insurer to issue the payment for the claim:
222 (a) directly to the person that is repairing the vehicle; or
223 (b) jointly to the owner of the vehicle and the primary lienholder.
224 Section 7. Section 13-51-106 is enacted to read:
225 13-51-106. Transportation network driver drug or alcohol use policy.
226 (1) A transportation network company shall implement a policy that:
227 (a) provides that a transportation network driver may not use a drug or alcohol or be
228 under the influence of a drug or alcohol while providing transportation network services;
229 (b) is posted on the transportation network company's website or software application;
230 and
231 (c) provides procedures for a passenger to report to the transportation network
232 company a transportation network driver who the passenger suspects violated the policy.
233 (2) If a transportation network company receives a complaint about a transportation
234 network driver under Subsection (1)(c), the transportation network company shall:
235 (a) suspend the transportation network company driver; and
236 (b) conduct an investigation into the transportation network company driver and the
237 conduct alleged in the complaint.
238 (3) A transportation network company shall maintain records related to a complaint or
239 investigation under this section for a minimum of two years after the day on which the
240 transportation network company receives the complaint.
241 Section 8. Section 13-51-107 is enacted to read:
242 13-51-107. Driver requirements.
243 (1) Before a transportation network company allows an individual to use the
244 transportation network company's software application as a transportation network driver, the
245 transportation network company shall:
246 (a) require the individual to submit to the transportation network company:
247 (i) the individual's name, address, and age;
248 (ii) a copy of the individual's driver license, including the driver license number; and
249 (iii) proof that the vehicle that the individual will use to provide transportation network
250 services is registered with the Division of Motor Vehicles;
251 (b) require the individual to consent to a criminal background check of the individual
252 by the transportation network company or the transportation network company's designee; and
253 (c) obtain and review a report that lists the individual's driving history.
254 (2) A transportation company may not allow an individual to provide transportation
255 network services as a transportation network driver if the individual:
256 (a) has committed more than three moving violations in the three years before the day
257 on which the individual applies to become a transportation network driver;
258 (b) has been convicted, in the seven years before the day on which the individual
259 applies to become a transportation network driver, of:
260 (i) driving under the influence of alcohol or drugs;
261 (ii) fraud;
262 (iii) a sexual offense;
263 (iv) a felony involving a motor vehicle;
264 (v) a crime involving property damage;
265 (vi) a crime involving theft;
266 (vii) a crime of violence; or
267 (viii) an act of terror;
268 (c) is required to register as a sex offender in accordance with Title 77, Chapter 41, Sex
269 and Kidnap Offender Registry;
270 (d) does not have a valid Utah driver license; or
271 (e) is not at least 19 years of age.
272 (3) A transportation network company shall prohibit a transportation network driver
273 from accepting a request for a prearranged ride if the motor vehicle that the transportation
274 network driver uses to provide transportation network services fails to comply with:
275 (a) safety and inspection requirements described in Section 53-8-205;
276 (b) equipment standards described in Section 41-6a-1601; and
277 (c) emission requirements adopted by a county under Section 41-6a-1642.
278 (4) A transportation network driver, while providing transportation network services,
279 shall carry proof, in physical or electronic form, that the transportation network driver is
280 covered by insurance that satisfies the requirements of Section 13-51-108.
281 Section 9. Section 13-51-108 is enacted to read:
282 13-51-108. Insurance.
283 (1) A transportation network company or a transportation network driver shall maintain
284 insurance that covers, on a primary basis, a transportation network driver's use of a vehicle
285 during a prearranged ride and that includes:
286 (a) an acknowledgment that the transportation network driver is using the vehicle in
287 connection with a transportation network company during a prearranged ride or that the
288 transportation network driver is otherwise using the vehicle for a commercial purpose;
289 (b) liability coverage for a minimum amount of $1,000,000 per occurrence;
290 (c) personal injury protection to the extent required under Sections 31A-22-306
291 through 31A-22-309;
292 (d) uninsured motorist coverage where required by Section 31A-22-305; and
293 (e) underinsured motorist coverage where required by Section 31A-22-305.3.
294 (2) A transportation network company or a transportation network driver shall maintain
295 insurance that covers, on a primary basis, a transportation network driver's use of a vehicle
296 during a waiting period and that includes:
297 (a) an acknowledgment that the transportation network driver is using the vehicle in
298 connection with a transportation network company during a waiting period or that the
299 transportation network driver is otherwise using the vehicle for a commercial purpose;
300 (b) liability coverage in a minimum amount, per occurrence, of:
301 (i) $50,000 to any one individual;
302 (ii) $100,000 to all individuals; and
303 (iii) $30,000 for property damage;
304 (c) personal injury protection to the extent required under Sections 31A-22-306
305 through 31A-22-309;
306 (d) uninsured motorist coverage where required by Section 31A-22-305; and
307 (e) underinsured motorist coverage where required by Section 31A-22-305.3.
308 (3) A transportation network company and a transportation network driver may satisfy
309 the requirements of Subsections (1) and (2) by:
310 (a) the transportation network driver purchasing coverage that complies with
311 Subsections (1) and (2);
312 (b) the transportation network company purchasing, on the transportation network
313 driver's behalf, coverage that complies with Subsections (1) and (2); or
314 (c) a combination of Subsections (3)(a) and (b).
315 (4) An insurer may offer to a transportation network driver a personal automobile
316 liability insurance policy, or an amendment or endorsement to a personal automobile liability
317 policy, that:
318 (a) covers a private passenger motor vehicle while used to provide transportation
319 network services; and
320 (b) satisfies the coverage requirements described in Subsection (1) or (2).
321 (5) Nothing in this section requires a personal automobile insurance policy to provide
322 coverage while a driver is providing transportation network services.
323 (6) If a transportation network company does not purchase a policy that complies with
324 Subsections (1) and (2) on behalf of a transportation network driver, the transportation network
325 company shall verify that the driver has purchased a policy that complies with Subsections (1)
326 and (2).
327 (7) An insurance policy that a transportation network company or a transportation
328 network driver maintains under Subsection (1) or (2):
329 (a) satisfies the security requirements of Section 41-12a-301; and
330 (b) may be placed with:
331 (i) an insurer that is certified under Section 31A-4-103; or
332 (ii) a surplus lines insurer licensed under Section 31A-23a-104.
333 (8) An insurer that provides coverage for a transportation network driver explicitly for
334 the transportation network driver's transportation network services under Subsection (1) or (2)
335 shall have the duty to defend a liability claim arising from an occurrence while the
336 transportation network driver is providing transportation network services.
337 (9) If insurance a transportation network driver maintains under Subsection (1) or (2)
338 lapses or ceases to exist, a transportation network company shall provide coverage complying
339 with Subsection (1) or (2) beginning with the first dollar of a claim.
340 (10) (a) An insurance policy that a transportation network company or transportation
341 network driver maintains under Subsection (1) or (2) may not provide that coverage is
342 dependent on a transportation network driver's personal automobile insurance policy first
343 denying a claim.
344 (b) Subsection (10)(a) does not apply to coverage a transportation network company
345 provides under Subsection (9) in the event a transportation network driver's coverage under
346 Subsection (1) or (2) lapses or ceases to exist.
347 (11) A personal automobile insurer:
348 (a) notwithstanding Section 31A-22-302, may offer a personal automobile liability
349 policy that excludes coverage for a loss that arises from the use of the insured vehicle to
350 provide transportation network services; and
351 (b) does not have the duty to defend or indemnify a loss if an exclusion described in
352 Subsection (11)(a) excludes coverage according to the policy's terms.
353 Section 10. Section 13-51-109 is enacted to read:
354 13-51-109. Preemption clause.
355 (1) Except as provided in Subsection (2), this chapter supersedes any regulation of a
356 municipality, county, or local government regarding a transportation network company, a
357 transportation network driver, or transportation network services.
358 (2) This chapter does not supersede a municipal, county, or local government
359 regulation regarding a transportation network driver providing transportation network services
360 at an airport.
361 Section 11. Section 41-6a-208 is amended to read:
362 41-6a-208. Regulatory powers of local highway authorities -- Traffic-control
363 device affecting state highway -- Necessity of erecting traffic-control devices.
364 (1) As used in this section:
365 (a) (i) "Ground transportation vehicle" means a motor vehicle used for the
366 transportation of persons, used in ride or shared ride, on demand, or for hire transportation of
367 passengers or baggage over public highways.
368 (ii) "Ground transportation vehicle" includes a:
369 (A) shared ride vehicle;
370 (B) bus;
371 (C) courtesy vehicle;
372 (D) hotel vehicle;
373 (E) limousine;
374 (F) minibus;
375 (G) special transportation vehicle;
376 (H) specialty vehicle;
377 (I) taxicab;
378 (J) van; or
379 (K) trailer being towed by a ground transportation vehicle.
380 (b) "Idle" means the operation of a vehicle engine while the vehicle is stationary or not
381 in the act of performing work or its normal function.
382 (2) The provisions of this chapter do not prevent a local highway authority for a
383 highway under its jurisdiction and within the reasonable exercise of police power, from:
384 (a) regulating or prohibiting stopping, standing, or parking;
385 (b) regulating traffic by means of a peace officer or a traffic-control device;
386 (c) regulating or prohibiting processions or assemblages on a highway;
387 (d) designating particular highways or roadways for use by traffic moving in one
388 direction under Section 41-6a-709;
389 (e) establishing speed limits for vehicles in public parks, which supersede Section
390 41-6a-603 regarding speed limits;
391 (f) designating any highway as a through highway or designating any intersection or
392 junction of roadways as a stop or yield intersection or junction;
393 (g) restricting the use of a highway under Section 72-7-408;
394 (h) requiring the registration and inspection of bicycles, including requiring a
395 registration fee;
396 (i) regulating or prohibiting:
397 (i) certain turn movements of a vehicle; or
398 (ii) specified types of vehicles;
399 (j) altering or establishing speed limits under Section 41-6a-603;
400 (k) requiring written accident reports under Section 41-6a-403;
401 (l) designating no-passing zones under Section 41-6a-708;
402 (m) prohibiting or regulating the use of controlled-access highways by any class or
403 kind of traffic under Section 41-6a-715;
404 (n) prohibiting or regulating the use of heavily traveled streets by any class or kind of
405 traffic found to be incompatible with the normal and safe movement of traffic;
406 (o) establishing minimum speed limits under Subsection 41-6a-605(3);
407 (p) prohibiting pedestrians from crossing a highway in a business district or any
408 designated highway except in a crosswalk under Section 41-6a-1001;
409 (q) restricting pedestrian crossings at unmarked crosswalks under Section 41-6a-1010;
410 (r) regulating persons upon skates, coasters, sleds, skateboards, and other toy vehicles;
411 (s) adopting and enforcing temporary or experimental ordinances as necessary to cover
412 emergencies or special conditions;
413 (t) prohibiting drivers of ambulances from exceeding maximum speed limits;
414 (u) adopting other traffic ordinances as specifically authorized by this chapter; or
415 (v) adopting an ordinance that requires a ground transportation vehicle to conform to
416 state safety standards and reasonable annual appearance requirements, in consultation with a
417 transportation advisory board of the local highway authority.
418 (3) A local highway authority may not:
419 (a) in accordance with Title 72, Chapter 3, Part 1, Highways in General, erect or
420 maintain any official traffic-control device at any location which regulates the traffic on a
421 highway not under the local highway authority's jurisdiction, unless written approval is
422 obtained from the highway authority having jurisdiction over the highway;
423 (b) prohibit or restrict the use of a cellular phone by the operator or passenger of a
424 motor vehicle;
425 (c) enact an ordinance that prohibits or restricts an owner or operator of a vehicle from
426 causing or permitting the vehicle's engine to idle unless the ordinance:
427 (i) is primarily educational;
428 (ii) provides that a person must be issued at least three warning citations before
429 imposing a fine;
430 (iii) has the same fine structure as a parking violation;
431 (iv) provides for the safety of law enforcement personnel who enforce the ordinance;
432 and
433 (v) provides that the ordinance may be enforced on:
434 (A) public property; or
435 (B) private property that is open to the general public unless the private property
436 owner:
437 (I) has a private business that has a drive-through service as a component of the private
438 property owner's business operations and posts a sign provided by or acceptable to the local
439 highway authority informing its customers and the public of the local highway authority's time
440 limit for idling vehicle engines; or
441 (II) adopts an idle reduction education policy approved by the local highway authority;
442 (d) enact an ordinance that prohibits a vehicle from being licensed as a ground
443 transportation vehicle:
444 (i) if the vehicle to be licensed otherwise passes all state safety inspection requirements
445 established by the Utah Highway Patrol Division in accordance with Section 53-8-204; and
446 (ii) (A) based on the manufacture date of the vehicle; or
447 (B) based on the number of miles the vehicle has accumulated;
448 (e) enact an ordinance, regulation, rule, fee, or criminal or civil fine pertaining to a
449 registration violation under Section 41-1a-201 or a registration decal issued under Section
450 41-1a-402 that conflicts with or is more stringent than the registration requirements under Title
451 41, Motor Vehicles; [
452 (f) enact an ordinance that:
453 (i) is inconsistent with the provisions of this chapter; or
454 (ii) prohibits the use of a bicycle on any public street or highway, except as allowed by
455 Section 41-6a-714, unless the local highway authority has:
456 (A) documented that the local highway authority has reviewed the safety history of the
457 highway and considered other reasonable alternatives, including signage and routes; and
458 (B) clearly marked a safe alternative route for the prohibited section of highway[
459 (g) enact an ordinance, regulation, or rule that requires the owner or driver of a ground
460 transportation vehicle to maintain liability insurance coverage in an amount that is greater than
461 the minimum amount of liability coverage a transportation network company or transportation
462 network driver is required to maintain under Subsection 13-51-108(1)(b).
463 (4) An ordinance enacted under Subsection (2)(d), (e), (f), (g), (i), (j), (l), (m), (n), or
464 (q) is not effective until official traffic-control devices giving notice of the local traffic
465 ordinances are erected upon or at the entrances to the highway or part of it affected as is
466 appropriate.
467 (5) An ordinance enacted by a local highway authority that violates Subsection (3) is
468 not effective.
469 Section 12. Section 53-3-102 is amended to read:
470 53-3-102. Definitions.
471 As used in this chapter:
472 (1) "Cancellation" means the termination by the division of a license issued through
473 error or fraud or for which consent under Section 53-3-211 has been withdrawn.
474 (2) "Class D license" means the class of license issued to drive motor vehicles not
475 defined as commercial motor vehicles or motorcycles under this chapter.
476 (3) "Commercial driver license" or "CDL" means a license:
477 (a) issued substantially in accordance with the requirements of Title XII, Pub. L.
478 99-570, the Commercial Motor Vehicle Safety Act of 1986, and in accordance with Part 4,
479 Uniform Commercial Driver License Act, which authorizes the holder to drive a class of
480 commercial motor vehicle; and
481 (b) that was obtained by providing evidence of lawful presence in the United States
482 with one of the document requirements described in Subsection 53-3-410(1)(i)(i).
483 (4) (a) "Commercial motor vehicle" means a motor vehicle or combination of motor
484 vehicles designed or used to transport passengers or property if the motor vehicle:
485 (i) has a gross vehicle weight rating of 26,001 or more pounds or a lesser rating as
486 determined by federal regulation;
487 (ii) is designed to transport 16 or more passengers, including the driver; or
488 (iii) is transporting hazardous materials and is required to be placarded in accordance
489 with 49 C.F.R. Part 172, Subpart F.
490 (b) The following vehicles are not considered a commercial motor vehicle for purposes
491 of Part 4, Uniform Commercial Driver License Act:
492 (i) equipment owned and operated by the United States Department of Defense when
493 driven by any active duty military personnel and members of the reserves and national guard on
494 active duty including personnel on full-time national guard duty, personnel on part-time
495 training, and national guard military technicians and civilians who are required to wear military
496 uniforms and are subject to the code of military justice;
497 (ii) vehicles controlled and driven by a farmer to transport agricultural products, farm
498 machinery, or farm supplies to or from a farm within 150 miles of his farm but not in operation
499 as a motor carrier for hire;
500 (iii) firefighting and emergency vehicles; [
501 (iv) recreational vehicles that are not used in commerce and are driven solely as family
502 or personal conveyances for recreational purposes[
503 (v) vehicles used to provide transportation network services, as defined in Section
504 13-51-102.
505 (5) "Conviction" means any of the following:
506 (a) an unvacated adjudication of guilt or a determination that a person has violated or
507 failed to comply with the law in a court of original jurisdiction or an administrative proceeding;
508 (b) an unvacated forfeiture of bail or collateral deposited to secure a person's
509 appearance in court;
510 (c) a plea of guilty or nolo contendere accepted by the court;
511 (d) the payment of a fine or court costs; or
512 (e) violation of a condition of release without bail, regardless of whether the penalty is
513 rebated, suspended, or probated.
514 (6) "Denial" or "denied" means the withdrawal of a driving privilege by the division to
515 which the provisions of Title 41, Chapter 12a, Part 4, Proof of Owner's or Operator's Security,
516 do not apply.
517 (7) "Director" means the division director appointed under Section 53-3-103.
518 (8) "Disqualification" means either:
519 (a) the suspension, revocation, cancellation, denial, or any other withdrawal by a state
520 of a person's privileges to drive a commercial motor vehicle;
521 (b) a determination by the Federal Highway Administration, under 49 C.F.R. Part 386,
522 that a person is no longer qualified to drive a commercial motor vehicle under 49 C.F.R. Part
523 391; or
524 (c) the loss of qualification that automatically follows conviction of an offense listed in
525 49 C.F.R. Part 383.51.
526 (9) "Division" means the Driver License Division of the department created in Section
527 53-3-103.
528 (10) "Downgrade" means to obtain a lower license class than what was originally
529 issued during an existing license cycle.
530 (11) "Drive" means:
531 (a) to operate or be in physical control of a motor vehicle upon a highway; and
532 (b) in Subsections 53-3-414(1) through (3), Subsection 53-3-414(5), and Sections
533 53-3-417 and 53-3-418, the operation or physical control of a motor vehicle at any place within
534 the state.
535 (12) (a) "Driver" means any person who drives, or is in actual physical control of a
536 motor vehicle in any location open to the general public for purposes of vehicular traffic.
537 (b) In Part 4, Uniform Commercial Driver License Act, "driver" includes any person
538 who is required to hold a CDL under Part 4 or federal law.
539 (13) "Driving privilege card" means the evidence of the privilege granted and issued
540 under this chapter to drive a motor vehicle to a person whose privilege was obtained without
541 providing evidence of lawful presence in the United States.
542 (14) "Extension" means a renewal completed in a manner specified by the division.
543 (15) "Farm tractor" means every motor vehicle designed and used primarily as a farm
544 implement for drawing plows, mowing machines, and other implements of husbandry.
545 (16) "Highway" means the entire width between property lines of every way or place of
546 any nature when any part of it is open to the use of the public, as a matter of right, for traffic.
547 (17) "Identification card" means a card issued under Part 8, Identification Card Act, to
548 a person for identification purposes.
549 (18) "Indigent" means that a person's income falls below the federal poverty guideline
550 issued annually by the U.S. Department of Health and Human Services in the Federal Register.
551 (19) "License" means the privilege to drive a motor vehicle.
552 (20) (a) "License certificate" means the evidence of the privilege issued under this
553 chapter to drive a motor vehicle.
554 (b) "License certificate" evidence includes a:
555 (i) regular license certificate;
556 (ii) limited-term license certificate;
557 (iii) driving privilege card;
558 (iv) CDL license certificate;
559 (v) limited-term CDL license certificate;
560 (vi) temporary regular license certificate; and
561 (vii) temporary limited-term license certificate.
562 (21) "Limited-term commercial driver license" or "limited-term CDL" means a license:
563 (a) issued substantially in accordance with the requirements of Title XII, Pub. L.
564 99-570, the Commercial Motor Vehicle Safety Act of 1986, and in accordance with Part 4,
565 Uniform Commercial Driver License Act, which authorizes the holder to drive a class of
566 commercial motor vehicle; and
567 (b) that was obtained by providing evidence of lawful presence in the United States
568 with one of the document requirements described in Subsection 53-3-410(1)(i)(ii).
569 (22) "Limited-term identification card" means an identification card issued under this
570 chapter to a person whose card was obtained by providing evidence of lawful presence in the
571 United States with one of the document requirements described in Subsection
572 53-3-804(2)(i)(ii).
573 (23) "Limited-term license certificate" means the evidence of the privilege granted and
574 issued under this chapter to drive a motor vehicle to a person whose privilege was obtained
575 providing evidence of lawful presence in the United States with one of the document
576 requirements described in Subsection 53-3-205(8)(a)(ii)(B).
577 (24) "Motorboat" has the same meaning as provided under Section 73-18-2.
578 (25) "Motorcycle" means every motor vehicle, other than a tractor, having a seat or
579 saddle for the use of the rider and designed to travel with not more than three wheels in contact
580 with the ground.
581 (26) "Office of Recovery Services" means the Office of Recovery Services, created in
582 Section 62A-11-102.
583 (27) (a) "Owner" means a person other than a lien holder having an interest in the
584 property or title to a vehicle.
585 (b) "Owner" includes a person entitled to the use and possession of a vehicle subject to
586 a security interest in another person but excludes a lessee under a lease not intended as security.
587 (28) "Regular identification card" means an identification card issued under this
588 chapter to a person whose card was obtained by providing evidence of lawful presence in the
589 United States with one of the document requirements described in Subsection 53-3-804(2)(i)(i).
590 (29) "Regular license certificate" means the evidence of the privilege issued under this
591 chapter to drive a motor vehicle whose privilege was obtained by providing evidence of lawful
592 presence in the United States with one of the document requirements described in Subsection
593 53-3-205(8)(a)(ii)(A).
594 (30) "Renewal" means to validate a license certificate so that it expires at a later date.
595 (31) "Reportable violation" means an offense required to be reported to the division as
596 determined by the division and includes those offenses against which points are assessed under
597 Section 53-3-221.
598 (32) (a) "Resident" means an individual who:
599 (i) has established a domicile in this state, as defined in Section 41-1a-202, or
600 regardless of domicile, remains in this state for an aggregate period of six months or more
601 during any calendar year;
602 (ii) engages in a trade, profession, or occupation in this state, or who accepts
603 employment in other than seasonal work in this state, and who does not commute into the state;
604 (iii) declares himself to be a resident of this state by obtaining a valid Utah driver
605 license certificate or motor vehicle registration; or
606 (iv) declares himself a resident of this state to obtain privileges not ordinarily extended
607 to nonresidents, including going to school, or placing children in school without paying
608 nonresident tuition or fees.
609 (b) "Resident" does not include any of the following:
610 (i) a member of the military, temporarily stationed in this state;
611 (ii) an out-of-state student, as classified by an institution of higher education,
612 regardless of whether the student engages in any type of employment in this state;
613 (iii) a person domiciled in another state or country, who is temporarily assigned in this
614 state, assigned by or representing an employer, religious or private organization, or a
615 governmental entity; or
616 (iv) an immediate family member who resides with or a household member of a person
617 listed in Subsections (32)(b)(i) through (iii).
618 (33) "Revocation" means the termination by action of the division of a licensee's
619 privilege to drive a motor vehicle.
620 (34) (a) "School bus" means a commercial motor vehicle used to transport pre-primary,
621 primary, or secondary school students to and from home and school, or to and from school
622 sponsored events.
623 (b) "School bus" does not include a bus used as a common carrier as defined in Section
624 59-12-102.
625 (35) "Suspension" means the temporary withdrawal by action of the division of a
626 licensee's privilege to drive a motor vehicle.
627 (36) "Taxicab" means any class D motor vehicle transporting any number of
628 passengers for hire and that is subject to state or federal regulation as a taxi.
629 Section 13. Section 59-12-102 is amended to read:
630 59-12-102. Definitions.
631 As used in this chapter:
632 (1) "800 service" means a telecommunications service that:
633 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
634 (b) is typically marketed:
635 (i) under the name 800 toll-free calling;
636 (ii) under the name 855 toll-free calling;
637 (iii) under the name 866 toll-free calling;
638 (iv) under the name 877 toll-free calling;
639 (v) under the name 888 toll-free calling; or
640 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
641 Federal Communications Commission.
642 (2) (a) "900 service" means an inbound toll telecommunications service that:
643 (i) a subscriber purchases;
644 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
645 the subscriber's:
646 (A) prerecorded announcement; or
647 (B) live service; and
648 (iii) is typically marketed:
649 (A) under the name 900 service; or
650 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
651 Communications Commission.
652 (b) "900 service" does not include a charge for:
653 (i) a collection service a seller of a telecommunications service provides to a
654 subscriber; or
655 (ii) the following a subscriber sells to the subscriber's customer:
656 (A) a product; or
657 (B) a service.
658 (3) (a) "Admission or user fees" includes season passes.
659 (b) "Admission or user fees" does not include annual membership dues to private
660 organizations.
661 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
662 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
663 Agreement after November 12, 2002.
664 (5) "Agreement combined tax rate" means the sum of the tax rates:
665 (a) listed under Subsection (6); and
666 (b) that are imposed within a local taxing jurisdiction.
667 (6) "Agreement sales and use tax" means a tax imposed under:
668 (a) Subsection 59-12-103(2)(a)(i)(A);
669 (b) Subsection 59-12-103(2)(b)(i);
670 (c) Subsection 59-12-103(2)(c)(i);
671 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
672 (e) Section 59-12-204;
673 (f) Section 59-12-401;
674 (g) Section 59-12-402;
675 (h) Section 59-12-703;
676 (i) Section 59-12-802;
677 (j) Section 59-12-804;
678 (k) Section 59-12-1102;
679 (l) Section 59-12-1302;
680 (m) Section 59-12-1402;
681 (n) Section 59-12-1802;
682 (o) Section 59-12-2003;
683 (p) Section 59-12-2103;
684 (q) Section 59-12-2213;
685 (r) Section 59-12-2214;
686 (s) Section 59-12-2215;
687 (t) Section 59-12-2216;
688 (u) Section 59-12-2217; or
689 (v) Section 59-12-2218.
690 (7) "Aircraft" is as defined in Section 72-10-102.
691 (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
692 (a) except for:
693 (i) an airline as defined in Section 59-2-102; or
694 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
695 includes a corporation that is qualified to do business but is not otherwise doing business in the
696 state, of an airline; and
697 (b) that has the workers, expertise, and facilities to perform the following, regardless of
698 whether the business entity performs the following in this state:
699 (i) check, diagnose, overhaul, and repair:
700 (A) an onboard system of a fixed wing turbine powered aircraft; and
701 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
702 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
703 engine;
704 (iii) perform at least the following maintenance on a fixed wing turbine powered
705 aircraft:
706 (A) an inspection;
707 (B) a repair, including a structural repair or modification;
708 (C) changing landing gear; and
709 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
710 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
711 completely apply new paint to the fixed wing turbine powered aircraft; and
712 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
713 results in a change in the fixed wing turbine powered aircraft's certification requirements by the
714 authority that certifies the fixed wing turbine powered aircraft.
715 (9) "Alcoholic beverage" means a beverage that:
716 (a) is suitable for human consumption; and
717 (b) contains .5% or more alcohol by volume.
718 (10) "Alternative energy" means:
719 (a) biomass energy;
720 (b) geothermal energy;
721 (c) hydroelectric energy;
722 (d) solar energy;
723 (e) wind energy; or
724 (f) energy that is derived from:
725 (i) coal-to-liquids;
726 (ii) nuclear fuel;
727 (iii) oil-impregnated diatomaceous earth;
728 (iv) oil sands;
729 (v) oil shale;
730 (vi) petroleum coke; or
731 (vii) waste heat from:
732 (A) an industrial facility; or
733 (B) a power station in which an electric generator is driven through a process in which
734 water is heated, turns into steam, and spins a steam turbine.
735 (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
736 facility" means a facility that:
737 (i) uses alternative energy to produce electricity; and
738 (ii) has a production capacity of two megawatts or greater.
739 (b) A facility is an alternative energy electricity production facility regardless of
740 whether the facility is:
741 (i) connected to an electric grid; or
742 (ii) located on the premises of an electricity consumer.
743 (12) (a) "Ancillary service" means a service associated with, or incidental to, the
744 provision of telecommunications service.
745 (b) "Ancillary service" includes:
746 (i) a conference bridging service;
747 (ii) a detailed communications billing service;
748 (iii) directory assistance;
749 (iv) a vertical service; or
750 (v) a voice mail service.
751 (13) "Area agency on aging" is as defined in Section 62A-3-101.
752 (14) "Assisted amusement device" means an amusement device, skill device, or ride
753 device that is started and stopped by an individual:
754 (a) who is not the purchaser or renter of the right to use or operate the amusement
755 device, skill device, or ride device; and
756 (b) at the direction of the seller of the right to use the amusement device, skill device,
757 or ride device.
758 (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
759 washing of tangible personal property if the cleaning or washing labor is primarily performed
760 by an individual:
761 (a) who is not the purchaser of the cleaning or washing of the tangible personal
762 property; and
763 (b) at the direction of the seller of the cleaning or washing of the tangible personal
764 property.
765 (16) "Authorized carrier" means:
766 (a) in the case of vehicles operated over public highways, the holder of credentials
767 indicating that the vehicle is or will be operated pursuant to both the International Registration
768 Plan and the International Fuel Tax Agreement;
769 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
770 certificate or air carrier's operating certificate; or
771 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
772 stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
773 stock in more than one state.
774 (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
775 following that is used as the primary source of energy to produce fuel or electricity:
776 (i) material from a plant or tree; or
777 (ii) other organic matter that is available on a renewable basis, including:
778 (A) slash and brush from forests and woodlands;
779 (B) animal waste;
780 (C) waste vegetable oil;
781 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
782 wastewater residuals, or through the conversion of a waste material through a nonincineration,
783 thermal conversion process;
784 (E) aquatic plants; and
785 (F) agricultural products.
786 (b) "Biomass energy" does not include:
787 (i) black liquor; or
788 (ii) treated woods.
789 (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
790 property, products, or services if the tangible personal property, products, or services are:
791 (i) distinct and identifiable; and
792 (ii) sold for one nonitemized price.
793 (b) "Bundled transaction" does not include:
794 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
795 the basis of the selection by the purchaser of the items of tangible personal property included in
796 the transaction;
797 (ii) the sale of real property;
798 (iii) the sale of services to real property;
799 (iv) the retail sale of tangible personal property and a service if:
800 (A) the tangible personal property:
801 (I) is essential to the use of the service; and
802 (II) is provided exclusively in connection with the service; and
803 (B) the service is the true object of the transaction;
804 (v) the retail sale of two services if:
805 (A) one service is provided that is essential to the use or receipt of a second service;
806 (B) the first service is provided exclusively in connection with the second service; and
807 (C) the second service is the true object of the transaction;
808 (vi) a transaction that includes tangible personal property or a product subject to
809 taxation under this chapter and tangible personal property or a product that is not subject to
810 taxation under this chapter if the:
811 (A) seller's purchase price of the tangible personal property or product subject to
812 taxation under this chapter is de minimis; or
813 (B) seller's sales price of the tangible personal property or product subject to taxation
814 under this chapter is de minimis; and
815 (vii) the retail sale of tangible personal property that is not subject to taxation under
816 this chapter and tangible personal property that is subject to taxation under this chapter if:
817 (A) that retail sale includes:
818 (I) food and food ingredients;
819 (II) a drug;
820 (III) durable medical equipment;
821 (IV) mobility enhancing equipment;
822 (V) an over-the-counter drug;
823 (VI) a prosthetic device; or
824 (VII) a medical supply; and
825 (B) subject to Subsection (18)(f):
826 (I) the seller's purchase price of the tangible personal property subject to taxation under
827 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
828 (II) the seller's sales price of the tangible personal property subject to taxation under
829 this chapter is 50% or less of the seller's total sales price of that retail sale.
830 (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
831 service that is distinct and identifiable does not include:
832 (A) packaging that:
833 (I) accompanies the sale of the tangible personal property, product, or service; and
834 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
835 service;
836 (B) tangible personal property, a product, or a service provided free of charge with the
837 purchase of another item of tangible personal property, a product, or a service; or
838 (C) an item of tangible personal property, a product, or a service included in the
839 definition of "purchase price."
840 (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
841 product, or a service is provided free of charge with the purchase of another item of tangible
842 personal property, a product, or a service if the sales price of the purchased item of tangible
843 personal property, product, or service does not vary depending on the inclusion of the tangible
844 personal property, product, or service provided free of charge.
845 (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
846 does not include a price that is separately identified by tangible personal property, product, or
847 service on the following, regardless of whether the following is in paper format or electronic
848 format:
849 (A) a binding sales document; or
850 (B) another supporting sales-related document that is available to a purchaser.
851 (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
852 supporting sales-related document that is available to a purchaser includes:
853 (A) a bill of sale;
854 (B) a contract;
855 (C) an invoice;
856 (D) a lease agreement;
857 (E) a periodic notice of rates and services;
858 (F) a price list;
859 (G) a rate card;
860 (H) a receipt; or
861 (I) a service agreement.
862 (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
863 property or a product subject to taxation under this chapter is de minimis if:
864 (A) the seller's purchase price of the tangible personal property or product is 10% or
865 less of the seller's total purchase price of the bundled transaction; or
866 (B) the seller's sales price of the tangible personal property or product is 10% or less of
867 the seller's total sales price of the bundled transaction.
868 (ii) For purposes of Subsection (18)(b)(vi), a seller:
869 (A) shall use the seller's purchase price or the seller's sales price to determine if the
870 purchase price or sales price of the tangible personal property or product subject to taxation
871 under this chapter is de minimis; and
872 (B) may not use a combination of the seller's purchase price and the seller's sales price
873 to determine if the purchase price or sales price of the tangible personal property or product
874 subject to taxation under this chapter is de minimis.
875 (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
876 contract to determine if the sales price of tangible personal property or a product is de minimis.
877 (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
878 the seller's purchase price and the seller's sales price to determine if tangible personal property
879 subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
880 price of that retail sale.
881 (19) "Certified automated system" means software certified by the governing board of
882 the agreement that:
883 (a) calculates the agreement sales and use tax imposed within a local taxing
884 jurisdiction:
885 (i) on a transaction; and
886 (ii) in the states that are members of the agreement;
887 (b) determines the amount of agreement sales and use tax to remit to a state that is a
888 member of the agreement; and
889 (c) maintains a record of the transaction described in Subsection (19)(a)(i).
890 (20) "Certified service provider" means an agent certified:
891 (a) by the governing board of the agreement; and
892 (b) to perform all of a seller's sales and use tax functions for an agreement sales and
893 use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
894 own purchases.
895 (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
896 suitable for general use.
897 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
898 commission shall make rules:
899 (i) listing the items that constitute "clothing"; and
900 (ii) that are consistent with the list of items that constitute "clothing" under the
901 agreement.
902 (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
903 (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
904 fuels that does not constitute industrial use under Subsection (55) or residential use under
905 Subsection (105).
906 (24) (a) "Common carrier" means a person engaged in or transacting the business of
907 transporting passengers, freight, merchandise, or other property for hire within this state.
908 (b) (i) "Common carrier" does not include a person who, at the time the person is
909 traveling to or from that person's place of employment, transports a passenger to or from the
910 passenger's place of employment.
911 (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
912 Utah Administrative Rulemaking Act, the commission may make rules defining what
913 constitutes a person's place of employment.
914 (c) "Common carrier" does not include a person that provides transportation network
915 services, as defined in Section 13-51-102.
916 (25) "Component part" includes:
917 (a) poultry, dairy, and other livestock feed, and their components;
918 (b) baling ties and twine used in the baling of hay and straw;
919 (c) fuel used for providing temperature control of orchards and commercial
920 greenhouses doing a majority of their business in wholesale sales, and for providing power for
921 off-highway type farm machinery; and
922 (d) feed, seeds, and seedlings.
923 (26) "Computer" means an electronic device that accepts information:
924 (a) (i) in digital form; or
925 (ii) in a form similar to digital form; and
926 (b) manipulates that information for a result based on a sequence of instructions.
927 (27) "Computer software" means a set of coded instructions designed to cause:
928 (a) a computer to perform a task; or
929 (b) automatic data processing equipment to perform a task.
930 (28) "Computer software maintenance contract" means a contract that obligates a seller
931 of computer software to provide a customer with:
932 (a) future updates or upgrades to computer software;
933 (b) support services with respect to computer software; or
934 (c) a combination of Subsections (28)(a) and (b).
935 (29) (a) "Conference bridging service" means an ancillary service that links two or
936 more participants of an audio conference call or video conference call.
937 (b) "Conference bridging service" may include providing a telephone number as part of
938 the ancillary service described in Subsection (29)(a).
939 (c) "Conference bridging service" does not include a telecommunications service used
940 to reach the ancillary service described in Subsection (29)(a).
941 (30) "Construction materials" means any tangible personal property that will be
942 converted into real property.
943 (31) "Delivered electronically" means delivered to a purchaser by means other than
944 tangible storage media.
945 (32) (a) "Delivery charge" means a charge:
946 (i) by a seller of:
947 (A) tangible personal property;
948 (B) a product transferred electronically; or
949 (C) services; and
950 (ii) for preparation and delivery of the tangible personal property, product transferred
951 electronically, or services described in Subsection (32)(a)(i) to a location designated by the
952 purchaser.
953 (b) "Delivery charge" includes a charge for the following:
954 (i) transportation;
955 (ii) shipping;
956 (iii) postage;
957 (iv) handling;
958 (v) crating; or
959 (vi) packing.
960 (33) "Detailed telecommunications billing service" means an ancillary service of
961 separately stating information pertaining to individual calls on a customer's billing statement.
962 (34) "Dietary supplement" means a product, other than tobacco, that:
963 (a) is intended to supplement the diet;
964 (b) contains one or more of the following dietary ingredients:
965 (i) a vitamin;
966 (ii) a mineral;
967 (iii) an herb or other botanical;
968 (iv) an amino acid;
969 (v) a dietary substance for use by humans to supplement the diet by increasing the total
970 dietary intake; or
971 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
972 described in Subsections (34)(b)(i) through (v);
973 (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
974 (A) tablet form;
975 (B) capsule form;
976 (C) powder form;
977 (D) softgel form;
978 (E) gelcap form; or
979 (F) liquid form; or
980 (ii) if the product is not intended for ingestion in a form described in Subsections
981 (34)(c)(i)(A) through (F), is not represented:
982 (A) as conventional food; and
983 (B) for use as a sole item of:
984 (I) a meal; or
985 (II) the diet; and
986 (d) is required to be labeled as a dietary supplement:
987 (i) identifiable by the "Supplemental Facts" box found on the label; and
988 (ii) as required by 21 C.F.R. Sec. 101.36.
989 [
990 shown in succession, imparts an impression of motion, together with accompanying sounds, if
991 any.
992 [
993 series of musical, spoken, or other sounds.
994 (b) "Digital audio work" includes a ringtone.
995 (37) "Digital book" means a work that is generally recognized in the ordinary and usual
996 sense as a book.
997 (38) (a) "Direct mail" means printed material delivered or distributed by United States
998 mail or other delivery service:
999 (i) to:
1000 (A) a mass audience; or
1001 (B) addressees on a mailing list provided:
1002 (I) by a purchaser of the mailing list; or
1003 (II) at the discretion of the purchaser of the mailing list; and
1004 (ii) if the cost of the printed material is not billed directly to the recipients.
1005 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1006 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1007 (c) "Direct mail" does not include multiple items of printed material delivered to a
1008 single address.
1009 (39) "Directory assistance" means an ancillary service of providing:
1010 (a) address information; or
1011 (b) telephone number information.
1012 (40) (a) "Disposable home medical equipment or supplies" means medical equipment
1013 or supplies that:
1014 (i) cannot withstand repeated use; and
1015 (ii) are purchased by, for, or on behalf of a person other than:
1016 (A) a health care facility as defined in Section 26-21-2;
1017 (B) a health care provider as defined in Section 78B-3-403;
1018 (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
1019 (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
1020 (b) "Disposable home medical equipment or supplies" does not include:
1021 (i) a drug;
1022 (ii) durable medical equipment;
1023 (iii) a hearing aid;
1024 (iv) a hearing aid accessory;
1025 (v) mobility enhancing equipment; or
1026 (vi) tangible personal property used to correct impaired vision, including:
1027 (A) eyeglasses; or
1028 (B) contact lenses.
1029 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1030 commission may by rule define what constitutes medical equipment or supplies.
1031 (41) (a) "Drug" means a compound, substance, or preparation, or a component of a
1032 compound, substance, or preparation that is:
1033 (i) recognized in:
1034 (A) the official United States Pharmacopoeia;
1035 (B) the official Homeopathic Pharmacopoeia of the United States;
1036 (C) the official National Formulary; or
1037 (D) a supplement to a publication listed in Subsections (41)(a)(i)(A) through (C);
1038 (ii) intended for use in the:
1039 (A) diagnosis of disease;
1040 (B) cure of disease;
1041 (C) mitigation of disease;
1042 (D) treatment of disease; or
1043 (E) prevention of disease; or
1044 (iii) intended to affect:
1045 (A) the structure of the body; or
1046 (B) any function of the body.
1047 (b) "Drug" does not include:
1048 (i) food and food ingredients;
1049 (ii) a dietary supplement;
1050 (iii) an alcoholic beverage; or
1051 (iv) a prosthetic device.
1052 (42) (a) Except as provided in Subsection (42)(c), "durable medical equipment" means
1053 equipment that:
1054 (i) can withstand repeated use;
1055 (ii) is primarily and customarily used to serve a medical purpose;
1056 (iii) generally is not useful to a person in the absence of illness or injury; and
1057 (iv) is not worn in or on the body.
1058 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1059 equipment described in Subsection (42)(a).
1060 (c) "Durable medical equipment" does not include mobility enhancing equipment.
1061 (43) "Electronic" means:
1062 (a) relating to technology; and
1063 (b) having:
1064 (i) electrical capabilities;
1065 (ii) digital capabilities;
1066 (iii) magnetic capabilities;
1067 (iv) wireless capabilities;
1068 (v) optical capabilities;
1069 (vi) electromagnetic capabilities; or
1070 (vii) capabilities similar to Subsections (43)(b)(i) through (vi).
1071 (44) "Electronic financial payment service" means an establishment:
1072 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1073 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
1074 federal Executive Office of the President, Office of Management and Budget; and
1075 (b) that performs electronic financial payment services.
1076 (45) "Employee" is as defined in Section 59-10-401.
1077 (46) "Fixed guideway" means a public transit facility that uses and occupies:
1078 (a) rail for the use of public transit; or
1079 (b) a separate right-of-way for the use of public transit.
1080 (47) "Fixed wing turbine powered aircraft" means an aircraft that:
1081 (a) is powered by turbine engines;
1082 (b) operates on jet fuel; and
1083 (c) has wings that are permanently attached to the fuselage of the aircraft.
1084 (48) "Fixed wireless service" means a telecommunications service that provides radio
1085 communication between fixed points.
1086 (49) (a) "Food and food ingredients" means substances:
1087 (i) regardless of whether the substances are in:
1088 (A) liquid form;
1089 (B) concentrated form;
1090 (C) solid form;
1091 (D) frozen form;
1092 (E) dried form; or
1093 (F) dehydrated form; and
1094 (ii) that are:
1095 (A) sold for:
1096 (I) ingestion by humans; or
1097 (II) chewing by humans; and
1098 (B) consumed for the substance's:
1099 (I) taste; or
1100 (II) nutritional value.
1101 (b) "Food and food ingredients" includes an item described in Subsection (90)(b)(iii).
1102 (c) "Food and food ingredients" does not include:
1103 (i) an alcoholic beverage;
1104 (ii) tobacco; or
1105 (iii) prepared food.
1106 (50) (a) "Fundraising sales" means sales:
1107 (i) (A) made by a school; or
1108 (B) made by a school student;
1109 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1110 materials, or provide transportation; and
1111 (iii) that are part of an officially sanctioned school activity.
1112 (b) For purposes of Subsection (50)(a)(iii), "officially sanctioned school activity"
1113 means a school activity:
1114 (i) that is conducted in accordance with a formal policy adopted by the school or school
1115 district governing the authorization and supervision of fundraising activities;
1116 (ii) that does not directly or indirectly compensate an individual teacher or other
1117 educational personnel by direct payment, commissions, or payment in kind; and
1118 (iii) the net or gross revenues from which are deposited in a dedicated account
1119 controlled by the school or school district.
1120 (51) "Geothermal energy" means energy contained in heat that continuously flows
1121 outward from the earth that is used as the sole source of energy to produce electricity.
1122 (52) "Governing board of the agreement" means the governing board of the agreement
1123 that is:
1124 (a) authorized to administer the agreement; and
1125 (b) established in accordance with the agreement.
1126 (53) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1127 (i) the executive branch of the state, including all departments, institutions, boards,
1128 divisions, bureaus, offices, commissions, and committees;
1129 (ii) the judicial branch of the state, including the courts, the Judicial Council, the
1130 Office of the Court Administrator, and similar administrative units in the judicial branch;
1131 (iii) the legislative branch of the state, including the House of Representatives, the
1132 Senate, the Legislative Printing Office, the Office of Legislative Research and General
1133 Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
1134 Analyst;
1135 (iv) the National Guard;
1136 (v) an independent entity as defined in Section 63E-1-102; or
1137 (vi) a political subdivision as defined in Section 17B-1-102.
1138 (b) "Governmental entity" does not include the state systems of public and higher
1139 education, including:
1140 (i) a college campus of the Utah College of Applied Technology;
1141 (ii) a school;
1142 (iii) the State Board of Education;
1143 (iv) the State Board of Regents; or
1144 (v) an institution of higher education.
1145 (54) "Hydroelectric energy" means water used as the sole source of energy to produce
1146 electricity.
1147 (55) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
1148 other fuels:
1149 (a) in mining or extraction of minerals;
1150 (b) in agricultural operations to produce an agricultural product up to the time of
1151 harvest or placing the agricultural product into a storage facility, including:
1152 (i) commercial greenhouses;
1153 (ii) irrigation pumps;
1154 (iii) farm machinery;
1155 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
1156 under Title 41, Chapter 1a, Part 2, Registration; and
1157 (v) other farming activities;
1158 (c) in manufacturing tangible personal property at an establishment described in SIC
1159 Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
1160 Executive Office of the President, Office of Management and Budget;
1161 (d) by a scrap recycler if:
1162 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1163 one or more of the following items into prepared grades of processed materials for use in new
1164 products:
1165 (A) iron;
1166 (B) steel;
1167 (C) nonferrous metal;
1168 (D) paper;
1169 (E) glass;
1170 (F) plastic;
1171 (G) textile; or
1172 (H) rubber; and
1173 (ii) the new products under Subsection (55)(d)(i) would otherwise be made with
1174 nonrecycled materials; or
1175 (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
1176 cogeneration facility as defined in Section 54-2-1.
1177 (56) (a) Except as provided in Subsection (56)(b), "installation charge" means a charge
1178 for installing:
1179 (i) tangible personal property; or
1180 (ii) a product transferred electronically.
1181 (b) "Installation charge" does not include a charge for:
1182 (i) repairs or renovations of:
1183 (A) tangible personal property; or
1184 (B) a product transferred electronically; or
1185 (ii) attaching tangible personal property or a product transferred electronically:
1186 (A) to other tangible personal property; and
1187 (B) as part of a manufacturing or fabrication process.
1188 (57) "Institution of higher education" means an institution of higher education listed in
1189 Section 53B-2-101.
1190 (58) (a) "Lease" or "rental" means a transfer of possession or control of tangible
1191 personal property or a product transferred electronically for:
1192 (i) (A) a fixed term; or
1193 (B) an indeterminate term; and
1194 (ii) consideration.
1195 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
1196 amount of consideration may be increased or decreased by reference to the amount realized
1197 upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
1198 Code.
1199 (c) "Lease" or "rental" does not include:
1200 (i) a transfer of possession or control of property under a security agreement or
1201 deferred payment plan that requires the transfer of title upon completion of the required
1202 payments;
1203 (ii) a transfer of possession or control of property under an agreement that requires the
1204 transfer of title:
1205 (A) upon completion of required payments; and
1206 (B) if the payment of an option price does not exceed the greater of:
1207 (I) $100; or
1208 (II) 1% of the total required payments; or
1209 (iii) providing tangible personal property along with an operator for a fixed period of
1210 time or an indeterminate period of time if the operator is necessary for equipment to perform as
1211 designed.
1212 (d) For purposes of Subsection (58)(c)(iii), an operator is necessary for equipment to
1213 perform as designed if the operator's duties exceed the:
1214 (i) set-up of tangible personal property;
1215 (ii) maintenance of tangible personal property; or
1216 (iii) inspection of tangible personal property.
1217 (59) "Life science establishment" means an establishment in this state that is classified
1218 under the following NAICS codes of the 2007 North American Industry Classification System
1219 of the federal Executive Office of the President, Office of Management and Budget:
1220 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
1221 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
1222 Manufacturing; or
1223 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
1224 (60) "Life science research and development facility" means a facility owned, leased,
1225 or rented by a life science establishment if research and development is performed in 51% or
1226 more of the total area of the facility.
1227 (61) "Load and leave" means delivery to a purchaser by use of a tangible storage media
1228 if the tangible storage media is not physically transferred to the purchaser.
1229 (62) "Local taxing jurisdiction" means a:
1230 (a) county that is authorized to impose an agreement sales and use tax;
1231 (b) city that is authorized to impose an agreement sales and use tax; or
1232 (c) town that is authorized to impose an agreement sales and use tax.
1233 (63) "Manufactured home" is as defined in Section 15A-1-302.
1234 (64) "Manufacturing facility" means:
1235 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1236 Industrial Classification Manual of the federal Executive Office of the President, Office of
1237 Management and Budget;
1238 (b) a scrap recycler if:
1239 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1240 one or more of the following items into prepared grades of processed materials for use in new
1241 products:
1242 (A) iron;
1243 (B) steel;
1244 (C) nonferrous metal;
1245 (D) paper;
1246 (E) glass;
1247 (F) plastic;
1248 (G) textile; or
1249 (H) rubber; and
1250 (ii) the new products under Subsection (64)(b)(i) would otherwise be made with
1251 nonrecycled materials; or
1252 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1253 placed in service on or after May 1, 2006.
1254 (65) "Member of the immediate family of the producer" means a person who is related
1255 to a producer described in Subsection 59-12-104(20)(a) as a:
1256 (a) child or stepchild, regardless of whether the child or stepchild is:
1257 (i) an adopted child or adopted stepchild; or
1258 (ii) a foster child or foster stepchild;
1259 (b) grandchild or stepgrandchild;
1260 (c) grandparent or stepgrandparent;
1261 (d) nephew or stepnephew;
1262 (e) niece or stepniece;
1263 (f) parent or stepparent;
1264 (g) sibling or stepsibling;
1265 (h) spouse;
1266 (i) person who is the spouse of a person described in Subsections (65)(a) through (g);
1267 or
1268 (j) person similar to a person described in Subsections (65)(a) through (i) as
1269 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1270 Administrative Rulemaking Act.
1271 (66) "Mobile home" is as defined in Section 15A-1-302.
1272 (67) "Mobile telecommunications service" is as defined in the Mobile
1273 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1274 (68) (a) "Mobile wireless service" means a telecommunications service, regardless of
1275 the technology used, if:
1276 (i) the origination point of the conveyance, routing, or transmission is not fixed;
1277 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1278 (iii) the origination point described in Subsection (68)(a)(i) and the termination point
1279 described in Subsection (68)(a)(ii) are not fixed.
1280 (b) "Mobile wireless service" includes a telecommunications service that is provided
1281 by a commercial mobile radio service provider.
1282 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1283 commission may by rule define "commercial mobile radio service provider."
1284 (69) (a) Except as provided in Subsection (69)(c), "mobility enhancing equipment"
1285 means equipment that is:
1286 (i) primarily and customarily used to provide or increase the ability to move from one
1287 place to another;
1288 (ii) appropriate for use in a:
1289 (A) home; or
1290 (B) motor vehicle; and
1291 (iii) not generally used by persons with normal mobility.
1292 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1293 the equipment described in Subsection (69)(a).
1294 (c) "Mobility enhancing equipment" does not include:
1295 (i) a motor vehicle;
1296 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1297 vehicle manufacturer;
1298 (iii) durable medical equipment; or
1299 (iv) a prosthetic device.
1300 (70) "Model 1 seller" means a seller registered under the agreement that has selected a
1301 certified service provider as the seller's agent to perform all of the seller's sales and use tax
1302 functions for agreement sales and use taxes other than the seller's obligation under Section
1303 59-12-124 to remit a tax on the seller's own purchases.
1304 (71) "Model 2 seller" means a seller registered under the agreement that:
1305 (a) except as provided in Subsection (71)(b), has selected a certified automated system
1306 to perform the seller's sales tax functions for agreement sales and use taxes; and
1307 (b) retains responsibility for remitting all of the sales tax:
1308 (i) collected by the seller; and
1309 (ii) to the appropriate local taxing jurisdiction.
1310 (72) (a) Subject to Subsection (72)(b), "model 3 seller" means a seller registered under
1311 the agreement that has:
1312 (i) sales in at least five states that are members of the agreement;
1313 (ii) total annual sales revenues of at least $500,000,000;
1314 (iii) a proprietary system that calculates the amount of tax:
1315 (A) for an agreement sales and use tax; and
1316 (B) due to each local taxing jurisdiction; and
1317 (iv) entered into a performance agreement with the governing board of the agreement.
1318 (b) For purposes of Subsection (72)(a), "model 3 seller" includes an affiliated group of
1319 sellers using the same proprietary system.
1320 (73) "Model 4 seller" means a seller that is registered under the agreement and is not a
1321 model 1 seller, model 2 seller, or model 3 seller.
1322 (74) "Modular home" means a modular unit as defined in Section 15A-1-302.
1323 (75) "Motor vehicle" is as defined in Section 41-1a-102.
1324 (76) "Oil sands" means impregnated bituminous sands that:
1325 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1326 other hydrocarbons, or otherwise treated;
1327 (b) yield mixtures of liquid hydrocarbon; and
1328 (c) require further processing other than mechanical blending before becoming finished
1329 petroleum products.
1330 (77) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1331 material that yields petroleum upon heating and distillation.
1332 (78) "Optional computer software maintenance contract" means a computer software
1333 maintenance contract that a customer is not obligated to purchase as a condition to the retail
1334 sale of computer software.
1335 (79) (a) "Other fuels" means products that burn independently to produce heat or
1336 energy.
1337 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1338 personal property.
1339 (80) (a) "Paging service" means a telecommunications service that provides
1340 transmission of a coded radio signal for the purpose of activating a specific pager.
1341 (b) For purposes of Subsection (80)(a), the transmission of a coded radio signal
1342 includes a transmission by message or sound.
1343 (81) "Pawnbroker" is as defined in Section 13-32a-102.
1344 (82) "Pawn transaction" is as defined in Section 13-32a-102.
1345 (83) (a) "Permanently attached to real property" means that for tangible personal
1346 property attached to real property:
1347 (i) the attachment of the tangible personal property to the real property:
1348 (A) is essential to the use of the tangible personal property; and
1349 (B) suggests that the tangible personal property will remain attached to the real
1350 property in the same place over the useful life of the tangible personal property; or
1351 (ii) if the tangible personal property is detached from the real property, the detachment
1352 would:
1353 (A) cause substantial damage to the tangible personal property; or
1354 (B) require substantial alteration or repair of the real property to which the tangible
1355 personal property is attached.
1356 (b) "Permanently attached to real property" includes:
1357 (i) the attachment of an accessory to the tangible personal property if the accessory is:
1358 (A) essential to the operation of the tangible personal property; and
1359 (B) attached only to facilitate the operation of the tangible personal property;
1360 (ii) a temporary detachment of tangible personal property from real property for a
1361 repair or renovation if the repair or renovation is performed where the tangible personal
1362 property and real property are located; or
1363 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1364 Subsection (83)(c)(iii) or (iv).
1365 (c) "Permanently attached to real property" does not include:
1366 (i) the attachment of portable or movable tangible personal property to real property if
1367 that portable or movable tangible personal property is attached to real property only for:
1368 (A) convenience;
1369 (B) stability; or
1370 (C) for an obvious temporary purpose;
1371 (ii) the detachment of tangible personal property from real property except for the
1372 detachment described in Subsection (83)(b)(ii);
1373 (iii) an attachment of the following tangible personal property to real property if the
1374 attachment to real property is only through a line that supplies water, electricity, gas,
1375 telecommunications, cable, or supplies a similar item as determined by the commission by rule
1376 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1377 (A) a computer;
1378 (B) a telephone;
1379 (C) a television; or
1380 (D) tangible personal property similar to Subsections (83)(c)(iii)(A) through (C) as
1381 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1382 Administrative Rulemaking Act; or
1383 (iv) an item listed in Subsection (123)(c).
1384 (84) "Person" includes any individual, firm, partnership, joint venture, association,
1385 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1386 municipality, district, or other local governmental entity of the state, or any group or
1387 combination acting as a unit.
1388 (85) "Place of primary use":
1389 (a) for telecommunications service other than mobile telecommunications service,
1390 means the street address representative of where the customer's use of the telecommunications
1391 service primarily occurs, which shall be:
1392 (i) the residential street address of the customer; or
1393 (ii) the primary business street address of the customer; or
1394 (b) for mobile telecommunications service, is as defined in the Mobile
1395 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1396 (86) (a) "Postpaid calling service" means a telecommunications service a person
1397 obtains by making a payment on a call-by-call basis:
1398 (i) through the use of a:
1399 (A) bank card;
1400 (B) credit card;
1401 (C) debit card; or
1402 (D) travel card; or
1403 (ii) by a charge made to a telephone number that is not associated with the origination
1404 or termination of the telecommunications service.
1405 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1406 service, that would be a prepaid wireless calling service if the service were exclusively a
1407 telecommunications service.
1408 (87) "Postproduction" means an activity related to the finishing or duplication of a
1409 medium described in Subsection 59-12-104(54)(a).
1410 (88) "Prepaid calling service" means a telecommunications service:
1411 (a) that allows a purchaser access to telecommunications service that is exclusively
1412 telecommunications service;
1413 (b) that:
1414 (i) is paid for in advance; and
1415 (ii) enables the origination of a call using an:
1416 (A) access number; or
1417 (B) authorization code;
1418 (c) that is dialed:
1419 (i) manually; or
1420 (ii) electronically; and
1421 (d) sold in predetermined units or dollars that decline:
1422 (i) by a known amount; and
1423 (ii) with use.
1424 (89) "Prepaid wireless calling service" means a telecommunications service:
1425 (a) that provides the right to utilize:
1426 (i) mobile wireless service; and
1427 (ii) other service that is not a telecommunications service, including:
1428 (A) the download of a product transferred electronically;
1429 (B) a content service; or
1430 (C) an ancillary service;
1431 (b) that:
1432 (i) is paid for in advance; and
1433 (ii) enables the origination of a call using an:
1434 (A) access number; or
1435 (B) authorization code;
1436 (c) that is dialed:
1437 (i) manually; or
1438 (ii) electronically; and
1439 (d) sold in predetermined units or dollars that decline:
1440 (i) by a known amount; and
1441 (ii) with use.
1442 (90) (a) "Prepared food" means:
1443 (i) food:
1444 (A) sold in a heated state; or
1445 (B) heated by a seller;
1446 (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1447 item; or
1448 (iii) except as provided in Subsection (90)(c), food sold with an eating utensil provided
1449 by the seller, including a:
1450 (A) plate;
1451 (B) knife;
1452 (C) fork;
1453 (D) spoon;
1454 (E) glass;
1455 (F) cup;
1456 (G) napkin; or
1457 (H) straw.
1458 (b) "Prepared food" does not include:
1459 (i) food that a seller only:
1460 (A) cuts;
1461 (B) repackages; or
1462 (C) pasteurizes; or
1463 (ii) (A) the following:
1464 (I) raw egg;
1465 (II) raw fish;
1466 (III) raw meat;
1467 (IV) raw poultry; or
1468 (V) a food containing an item described in Subsections (90)(b)(ii)(A)(I) through (IV);
1469 and
1470 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1471 Food and Drug Administration's Food Code that a consumer cook the items described in
1472 Subsection (90)(b)(ii)(A) to prevent food borne illness; or
1473 (iii) the following if sold without eating utensils provided by the seller:
1474 (A) food and food ingredients sold by a seller if the seller's proper primary
1475 classification under the 2002 North American Industry Classification System of the federal
1476 Executive Office of the President, Office of Management and Budget, is manufacturing in
1477 Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1478 Manufacturing;
1479 (B) food and food ingredients sold in an unheated state:
1480 (I) by weight or volume; and
1481 (II) as a single item; or
1482 (C) a bakery item, including:
1483 (I) a bagel;
1484 (II) a bar;
1485 (III) a biscuit;
1486 (IV) bread;
1487 (V) a bun;
1488 (VI) a cake;
1489 (VII) a cookie;
1490 (VIII) a croissant;
1491 (IX) a danish;
1492 (X) a donut;
1493 (XI) a muffin;
1494 (XII) a pastry;
1495 (XIII) a pie;
1496 (XIV) a roll;
1497 (XV) a tart;
1498 (XVI) a torte; or
1499 (XVII) a tortilla.
1500 (c) An eating utensil provided by the seller does not include the following used to
1501 transport the food:
1502 (i) a container; or
1503 (ii) packaging.
1504 (91) "Prescription" means an order, formula, or recipe that is issued:
1505 (a) (i) orally;
1506 (ii) in writing;
1507 (iii) electronically; or
1508 (iv) by any other manner of transmission; and
1509 (b) by a licensed practitioner authorized by the laws of a state.
1510 (92) (a) Except as provided in Subsection (92)(b)(ii) or (iii), "prewritten computer
1511 software" means computer software that is not designed and developed:
1512 (i) by the author or other creator of the computer software; and
1513 (ii) to the specifications of a specific purchaser.
1514 (b) "Prewritten computer software" includes:
1515 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1516 software is not designed and developed:
1517 (A) by the author or other creator of the computer software; and
1518 (B) to the specifications of a specific purchaser;
1519 (ii) computer software designed and developed by the author or other creator of the
1520 computer software to the specifications of a specific purchaser if the computer software is sold
1521 to a person other than the purchaser; or
1522 (iii) except as provided in Subsection (92)(c), prewritten computer software or a
1523 prewritten portion of prewritten computer software:
1524 (A) that is modified or enhanced to any degree; and
1525 (B) if the modification or enhancement described in Subsection (92)(b)(iii)(A) is
1526 designed and developed to the specifications of a specific purchaser.
1527 (c) "Prewritten computer software" does not include a modification or enhancement
1528 described in Subsection (92)(b)(iii) if the charges for the modification or enhancement are:
1529 (i) reasonable; and
1530 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1531 invoice or other statement of price provided to the purchaser at the time of sale or later, as
1532 demonstrated by:
1533 (A) the books and records the seller keeps at the time of the transaction in the regular
1534 course of business, including books and records the seller keeps at the time of the transaction in
1535 the regular course of business for nontax purposes;
1536 (B) a preponderance of the facts and circumstances at the time of the transaction; and
1537 (C) the understanding of all of the parties to the transaction.
1538 (93) (a) "Private [
1539 telecommunications service:
1540 (i) that entitles a customer to exclusive or priority use of one or more communications
1541 channels between or among termination points; and
1542 (ii) regardless of the manner in which the one or more communications channels are
1543 connected.
1544 (b) "Private communications service" includes the following provided in connection
1545 with the use of one or more communications channels:
1546 (i) an extension line;
1547 (ii) a station;
1548 (iii) switching capacity; or
1549 (iv) another associated service that is provided in connection with the use of one or
1550 more communications channels as defined in Section 59-12-215.
1551 (94) (a) Except as provided in Subsection (94)(b), "product transferred electronically"
1552 means a product transferred electronically that would be subject to a tax under this chapter if
1553 that product was transferred in a manner other than electronically.
1554 (b) "Product transferred electronically" does not include:
1555 (i) an ancillary service;
1556 (ii) computer software; or
1557 (iii) a telecommunications service.
1558 (95) (a) "Prosthetic device" means a device that is worn on or in the body to:
1559 (i) artificially replace a missing portion of the body;
1560 (ii) prevent or correct a physical deformity or physical malfunction; or
1561 (iii) support a weak or deformed portion of the body.
1562 (b) "Prosthetic device" includes:
1563 (i) parts used in the repairs or renovation of a prosthetic device;
1564 (ii) replacement parts for a prosthetic device;
1565 (iii) a dental prosthesis; or
1566 (iv) a hearing aid.
1567 (c) "Prosthetic device" does not include:
1568 (i) corrective eyeglasses; or
1569 (ii) contact lenses.
1570 (96) (a) "Protective equipment" means an item:
1571 (i) for human wear; and
1572 (ii) that is:
1573 (A) designed as protection:
1574 (I) to the wearer against injury or disease; or
1575 (II) against damage or injury of other persons or property; and
1576 (B) not suitable for general use.
1577 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1578 commission shall make rules:
1579 (i) listing the items that constitute "protective equipment"; and
1580 (ii) that are consistent with the list of items that constitute "protective equipment"
1581 under the agreement.
1582 (97) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1583 printed matter, other than a photocopy:
1584 (i) regardless of:
1585 (A) characteristics;
1586 (B) copyright;
1587 (C) form;
1588 (D) format;
1589 (E) method of reproduction; or
1590 (F) source; and
1591 (ii) made available in printed or electronic format.
1592 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1593 commission may by rule define the term "photocopy."
1594 (98) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1595 (i) valued in money; and
1596 (ii) for which tangible personal property, a product transferred electronically, or
1597 services are:
1598 (A) sold;
1599 (B) leased; or
1600 (C) rented.
1601 (b) "Purchase price" and "sales price" include:
1602 (i) the seller's cost of the tangible personal property, a product transferred
1603 electronically, or services sold;
1604 (ii) expenses of the seller, including:
1605 (A) the cost of materials used;
1606 (B) a labor cost;
1607 (C) a service cost;
1608 (D) interest;
1609 (E) a loss;
1610 (F) the cost of transportation to the seller; or
1611 (G) a tax imposed on the seller;
1612 (iii) a charge by the seller for any service necessary to complete the sale; or
1613 (iv) consideration a seller receives from a person other than the purchaser if:
1614 (A) (I) the seller actually receives consideration from a person other than the purchaser;
1615 and
1616 (II) the consideration described in Subsection (98)(b)(iv)(A)(I) is directly related to a
1617 price reduction or discount on the sale;
1618 (B) the seller has an obligation to pass the price reduction or discount through to the
1619 purchaser;
1620 (C) the amount of the consideration attributable to the sale is fixed and determinable by
1621 the seller at the time of the sale to the purchaser; and
1622 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1623 seller to claim a price reduction or discount; and
1624 (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1625 coupon, or other documentation with the understanding that the person other than the seller
1626 will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1627 (II) the purchaser identifies that purchaser to the seller as a member of a group or
1628 organization allowed a price reduction or discount, except that a preferred customer card that is
1629 available to any patron of a seller does not constitute membership in a group or organization
1630 allowed a price reduction or discount; or
1631 (III) the price reduction or discount is identified as a third party price reduction or
1632 discount on the:
1633 (Aa) invoice the purchaser receives; or
1634 (Bb) certificate, coupon, or other documentation the purchaser presents.
1635 (c) "Purchase price" and "sales price" do not include:
1636 (i) a discount:
1637 (A) in a form including:
1638 (I) cash;
1639 (II) term; or
1640 (III) coupon;
1641 (B) that is allowed by a seller;
1642 (C) taken by a purchaser on a sale; and
1643 (D) that is not reimbursed by a third party; or
1644 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1645 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1646 sale or later, as demonstrated by the books and records the seller keeps at the time of the
1647 transaction in the regular course of business, including books and records the seller keeps at the
1648 time of the transaction in the regular course of business for nontax purposes, by a
1649 preponderance of the facts and circumstances at the time of the transaction, and by the
1650 understanding of all of the parties to the transaction:
1651 (A) the following from credit extended on the sale of tangible personal property or
1652 services:
1653 (I) a carrying charge;
1654 (II) a financing charge; or
1655 (III) an interest charge;
1656 (B) a delivery charge;
1657 (C) an installation charge;
1658 (D) a manufacturer rebate on a motor vehicle; or
1659 (E) a tax or fee legally imposed directly on the consumer.
1660 (99) "Purchaser" means a person to whom:
1661 (a) a sale of tangible personal property is made;
1662 (b) a product is transferred electronically; or
1663 (c) a service is furnished.
1664 (100) "Regularly rented" means:
1665 (a) rented to a guest for value three or more times during a calendar year; or
1666 (b) advertised or held out to the public as a place that is regularly rented to guests for
1667 value.
1668 (101) "Rental" is as defined in Subsection (58).
1669 (102) (a) Except as provided in Subsection (102)(b), "repairs or renovations of tangible
1670 personal property" means:
1671 (i) a repair or renovation of tangible personal property that is not permanently attached
1672 to real property; or
1673 (ii) attaching tangible personal property or a product transferred electronically to other
1674 tangible personal property or detaching tangible personal property or a product transferred
1675 electronically from other tangible personal property if:
1676 (A) the other tangible personal property to which the tangible personal property or
1677 product transferred electronically is attached or from which the tangible personal property or
1678 product transferred electronically is detached is not permanently attached to real property; and
1679 (B) the attachment of tangible personal property or a product transferred electronically
1680 to other tangible personal property or detachment of tangible personal property or a product
1681 transferred electronically from other tangible personal property is made in conjunction with a
1682 repair or replacement of tangible personal property or a product transferred electronically.
1683 (b) "Repairs or renovations of tangible personal property" does not include:
1684 (i) attaching prewritten computer software to other tangible personal property if the
1685 other tangible personal property to which the prewritten computer software is attached is not
1686 permanently attached to real property; or
1687 (ii) detaching prewritten computer software from other tangible personal property if the
1688 other tangible personal property from which the prewritten computer software is detached is
1689 not permanently attached to real property.
1690 (103) "Research and development" means the process of inquiry or experimentation
1691 aimed at the discovery of facts, devices, technologies, or applications and the process of
1692 preparing those devices, technologies, or applications for marketing.
1693 (104) (a) "Residential telecommunications services" means a telecommunications
1694 service or an ancillary service that is provided to an individual for personal use:
1695 (i) at a residential address; or
1696 (ii) at an institution, including a nursing home or a school, if the telecommunications
1697 service or ancillary service is provided to and paid for by the individual residing at the
1698 institution rather than the institution.
1699 (b) For purposes of Subsection (104)(a)(i), a residential address includes an:
1700 (i) apartment; or
1701 (ii) other individual dwelling unit.
1702 (105) "Residential use" means the use in or around a home, apartment building,
1703 sleeping quarters, and similar facilities or accommodations.
1704 (106) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1705 than:
1706 (a) resale;
1707 (b) sublease; or
1708 (c) subrent.
1709 (107) (a) "Retailer" means any person engaged in a regularly organized business in
1710 tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
1711 who is selling to the user or consumer and not for resale.
1712 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1713 engaged in the business of selling to users or consumers within the state.
1714 (108) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1715 otherwise, in any manner, of tangible personal property or any other taxable transaction under
1716 Subsection 59-12-103(1), for consideration.
1717 (b) "Sale" includes:
1718 (i) installment and credit sales;
1719 (ii) any closed transaction constituting a sale;
1720 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1721 chapter;
1722 (iv) any transaction if the possession of property is transferred but the seller retains the
1723 title as security for the payment of the price; and
1724 (v) any transaction under which right to possession, operation, or use of any article of
1725 tangible personal property is granted under a lease or contract and the transfer of possession
1726 would be taxable if an outright sale were made.
1727 (109) "Sale at retail" is as defined in Subsection (106).
1728 (110) "Sale-leaseback transaction" means a transaction by which title to tangible
1729 personal property or a product transferred electronically that is subject to a tax under this
1730 chapter is transferred:
1731 (a) by a purchaser-lessee;
1732 (b) to a lessor;
1733 (c) for consideration; and
1734 (d) if:
1735 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1736 of the tangible personal property or product transferred electronically;
1737 (ii) the sale of the tangible personal property or product transferred electronically to the
1738 lessor is intended as a form of financing:
1739 (A) for the tangible personal property or product transferred electronically; and
1740 (B) to the purchaser-lessee; and
1741 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1742 is required to:
1743 (A) capitalize the tangible personal property or product transferred electronically for
1744 financial reporting purposes; and
1745 (B) account for the lease payments as payments made under a financing arrangement.
1746 (111) "Sales price" is as defined in Subsection (98).
1747 (112) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1748 amounts charged by a school:
1749 (i) sales that are directly related to the school's educational functions or activities
1750 including:
1751 (A) the sale of:
1752 (I) textbooks;
1753 (II) textbook fees;
1754 (III) laboratory fees;
1755 (IV) laboratory supplies; or
1756 (V) safety equipment;
1757 (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1758 that:
1759 (I) a student is specifically required to wear as a condition of participation in a
1760 school-related event or school-related activity; and
1761 (II) is not readily adaptable to general or continued usage to the extent that it takes the
1762 place of ordinary clothing;
1763 (C) sales of the following if the net or gross revenues generated by the sales are
1764 deposited into a school district fund or school fund dedicated to school meals:
1765 (I) food and food ingredients; or
1766 (II) prepared food; or
1767 (D) transportation charges for official school activities; or
1768 (ii) amounts paid to or amounts charged by a school for admission to a school-related
1769 event or school-related activity.
1770 (b) "Sales relating to schools" does not include:
1771 (i) bookstore sales of items that are not educational materials or supplies;
1772 (ii) except as provided in Subsection (112)(a)(i)(B):
1773 (A) clothing;
1774 (B) clothing accessories or equipment;
1775 (C) protective equipment; or
1776 (D) sports or recreational equipment; or
1777 (iii) amounts paid to or amounts charged by a school for admission to a school-related
1778 event or school-related activity if the amounts paid or charged are passed through to a person:
1779 (A) other than a:
1780 (I) school;
1781 (II) nonprofit organization authorized by a school board or a governing body of a
1782 private school to organize and direct a competitive secondary school activity; or
1783 (III) nonprofit association authorized by a school board or a governing body of a
1784 private school to organize and direct a competitive secondary school activity; and
1785 (B) that is required to collect sales and use taxes under this chapter.
1786 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1787 commission may make rules defining the term "passed through."
1788 (113) For purposes of this section and Section 59-12-104, "school":
1789 (a) means:
1790 (i) an elementary school or a secondary school that:
1791 (A) is a:
1792 (I) public school; or
1793 (II) private school; and
1794 (B) provides instruction for one or more grades kindergarten through 12; or
1795 (ii) a public school district; and
1796 (b) includes the Electronic High School as defined in Section 53A-15-1002.
1797 (114) "Seller" means a person that makes a sale, lease, or rental of:
1798 (a) tangible personal property;
1799 (b) a product transferred electronically; or
1800 (c) a service.
1801 (115) (a) "Semiconductor fabricating, processing, research, or development materials"
1802 means tangible personal property or a product transferred electronically if the tangible personal
1803 property or product transferred electronically is:
1804 (i) used primarily in the process of:
1805 (A) (I) manufacturing a semiconductor;
1806 (II) fabricating a semiconductor; or
1807 (III) research or development of a:
1808 (Aa) semiconductor; or
1809 (Bb) semiconductor manufacturing process; or
1810 (B) maintaining an environment suitable for a semiconductor; or
1811 (ii) consumed primarily in the process of:
1812 (A) (I) manufacturing a semiconductor;
1813 (II) fabricating a semiconductor; or
1814 (III) research or development of a:
1815 (Aa) semiconductor; or
1816 (Bb) semiconductor manufacturing process; or
1817 (B) maintaining an environment suitable for a semiconductor.
1818 (b) "Semiconductor fabricating, processing, research, or development materials"
1819 includes:
1820 (i) parts used in the repairs or renovations of tangible personal property or a product
1821 transferred electronically described in Subsection (115)(a); or
1822 (ii) a chemical, catalyst, or other material used to:
1823 (A) produce or induce in a semiconductor a:
1824 (I) chemical change; or
1825 (II) physical change;
1826 (B) remove impurities from a semiconductor; or
1827 (C) improve the marketable condition of a semiconductor.
1828 (116) "Senior citizen center" means a facility having the primary purpose of providing
1829 services to the aged as defined in Section 62A-3-101.
1830 (117) (a) Subject to Subsections (117)(b) and (c), "short-term lodging consumable"
1831 means tangible personal property that:
1832 (i) a business that provides accommodations and services described in Subsection
1833 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1834 to a purchaser;
1835 (ii) is intended to be consumed by the purchaser; and
1836 (iii) is:
1837 (A) included in the purchase price of the accommodations and services; and
1838 (B) not separately stated on an invoice, bill of sale, or other similar document provided
1839 to the purchaser.
1840 (b) "Short-term lodging consumable" includes:
1841 (i) a beverage;
1842 (ii) a brush or comb;
1843 (iii) a cosmetic;
1844 (iv) a hair care product;
1845 (v) lotion;
1846 (vi) a magazine;
1847 (vii) makeup;
1848 (viii) a meal;
1849 (ix) mouthwash;
1850 (x) nail polish remover;
1851 (xi) a newspaper;
1852 (xii) a notepad;
1853 (xiii) a pen;
1854 (xiv) a pencil;
1855 (xv) a razor;
1856 (xvi) saline solution;
1857 (xvii) a sewing kit;
1858 (xviii) shaving cream;
1859 (xix) a shoe shine kit;
1860 (xx) a shower cap;
1861 (xxi) a snack item;
1862 (xxii) soap;
1863 (xxiii) toilet paper;
1864 (xxiv) a toothbrush;
1865 (xxv) toothpaste; or
1866 (xxvi) an item similar to Subsections (117)(b)(i) through (xxv) as the commission may
1867 provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1868 Rulemaking Act.
1869 (c) "Short-term lodging consumable" does not include:
1870 (i) tangible personal property that is cleaned or washed to allow the tangible personal
1871 property to be reused; or
1872 (ii) a product transferred electronically.
1873 (118) "Simplified electronic return" means the electronic return:
1874 (a) described in Section 318(C) of the agreement; and
1875 (b) approved by the governing board of the agreement.
1876 (119) "Solar energy" means the sun used as the sole source of energy for producing
1877 electricity.
1878 (120) (a) "Sports or recreational equipment" means an item:
1879 (i) designed for human use; and
1880 (ii) that is:
1881 (A) worn in conjunction with:
1882 (I) an athletic activity; or
1883 (II) a recreational activity; and
1884 (B) not suitable for general use.
1885 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1886 commission shall make rules:
1887 (i) listing the items that constitute "sports or recreational equipment"; and
1888 (ii) that are consistent with the list of items that constitute "sports or recreational
1889 equipment" under the agreement.
1890 (121) "State" means the state of Utah, its departments, and agencies.
1891 (122) "Storage" means any keeping or retention of tangible personal property or any
1892 other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1893 sale in the regular course of business.
1894 (123) (a) Except as provided in Subsection (123)(d) or (e), "tangible personal property"
1895 means personal property that:
1896 (i) may be:
1897 (A) seen;
1898 (B) weighed;
1899 (C) measured;
1900 (D) felt; or
1901 (E) touched; or
1902 (ii) is in any manner perceptible to the senses.
1903 (b) "Tangible personal property" includes:
1904 (i) electricity;
1905 (ii) water;
1906 (iii) gas;
1907 (iv) steam; or
1908 (v) prewritten computer software, regardless of the manner in which the prewritten
1909 computer software is transferred.
1910 (c) "Tangible personal property" includes the following regardless of whether the item
1911 is attached to real property:
1912 (i) a dishwasher;
1913 (ii) a dryer;
1914 (iii) a freezer;
1915 (iv) a microwave;
1916 (v) a refrigerator;
1917 (vi) a stove;
1918 (vii) a washer; or
1919 (viii) an item similar to Subsections (123)(c)(i) through (vii) as determined by the
1920 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1921 Rulemaking Act.
1922 (d) "Tangible personal property" does not include a product that is transferred
1923 electronically.
1924 (e) "Tangible personal property" does not include the following if attached to real
1925 property, regardless of whether the attachment to real property is only through a line that
1926 supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1927 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1928 Rulemaking Act:
1929 (i) a hot water heater;
1930 (ii) a water filtration system; or
1931 (iii) a water softener system.
1932 (124) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1933 software" means an item listed in Subsection (124)(b) if that item is purchased or leased
1934 primarily to enable or facilitate one or more of the following to function:
1935 (i) telecommunications switching or routing equipment, machinery, or software; or
1936 (ii) telecommunications transmission equipment, machinery, or software.
1937 (b) The following apply to Subsection (124)(a):
1938 (i) a pole;
1939 (ii) software;
1940 (iii) a supplementary power supply;
1941 (iv) temperature or environmental equipment or machinery;
1942 (v) test equipment;
1943 (vi) a tower; or
1944 (vii) equipment, machinery, or software that functions similarly to an item listed in
1945 Subsections (124)(b)(i) through (vi) as determined by the commission by rule made in
1946 accordance with Subsection (124)(c).
1947 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1948 commission may by rule define what constitutes equipment, machinery, or software that
1949 functions similarly to an item listed in Subsections (124)(b)(i) through (vi).
1950 (125) "Telecommunications equipment, machinery, or software required for 911
1951 service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1952 Sec. 20.18.
1953 (126) "Telecommunications maintenance or repair equipment, machinery, or software"
1954 means equipment, machinery, or software purchased or leased primarily to maintain or repair
1955 one or more of the following, regardless of whether the equipment, machinery, or software is
1956 purchased or leased as a spare part or as an upgrade or modification to one or more of the
1957 following:
1958 (a) telecommunications enabling or facilitating equipment, machinery, or software;
1959 (b) telecommunications switching or routing equipment, machinery, or software; or
1960 (c) telecommunications transmission equipment, machinery, or software.
1961 (127) (a) "Telecommunications service" means the electronic conveyance, routing, or
1962 transmission of audio, data, video, voice, or any other information or signal to a point, or
1963 among or between points.
1964 (b) "Telecommunications service" includes:
1965 (i) an electronic conveyance, routing, or transmission with respect to which a computer
1966 processing application is used to act:
1967 (A) on the code, form, or protocol of the content;
1968 (B) for the purpose of electronic conveyance, routing, or transmission; and
1969 (C) regardless of whether the service:
1970 (I) is referred to as voice over Internet protocol service; or
1971 (II) is classified by the Federal Communications Commission as enhanced or value
1972 added;
1973 (ii) an 800 service;
1974 (iii) a 900 service;
1975 (iv) a fixed wireless service;
1976 (v) a mobile wireless service;
1977 (vi) a postpaid calling service;
1978 (vii) a prepaid calling service;
1979 (viii) a prepaid wireless calling service; or
1980 (ix) a private communications service.
1981 (c) "Telecommunications service" does not include:
1982 (i) advertising, including directory advertising;
1983 (ii) an ancillary service;
1984 (iii) a billing and collection service provided to a third party;
1985 (iv) a data processing and information service if:
1986 (A) the data processing and information service allows data to be:
1987 (I) (Aa) acquired;
1988 (Bb) generated;
1989 (Cc) processed;
1990 (Dd) retrieved; or
1991 (Ee) stored; and
1992 (II) delivered by an electronic transmission to a purchaser; and
1993 (B) the purchaser's primary purpose for the underlying transaction is the processed data
1994 or information;
1995 (v) installation or maintenance of the following on a customer's premises:
1996 (A) equipment; or
1997 (B) wiring;
1998 (vi) Internet access service;
1999 (vii) a paging service;
2000 (viii) a product transferred electronically, including:
2001 (A) music;
2002 (B) reading material;
2003 (C) a ring tone;
2004 (D) software; or
2005 (E) video;
2006 (ix) a radio and television audio and video programming service:
2007 (A) regardless of the medium; and
2008 (B) including:
2009 (I) furnishing conveyance, routing, or transmission of a television audio and video
2010 programming service by a programming service provider;
2011 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
2012 (III) audio and video programming services delivered by a commercial mobile radio
2013 service provider as defined in 47 C.F.R. Sec. 20.3;
2014 (x) a value-added nonvoice data service; or
2015 (xi) tangible personal property.
2016 (128) (a) "Telecommunications service provider" means a person that:
2017 (i) owns, controls, operates, or manages a telecommunications service; and
2018 (ii) engages in an activity described in Subsection (128)(a)(i) for the shared use with or
2019 resale to any person of the telecommunications service.
2020 (b) A person described in Subsection (128)(a) is a telecommunications service provider
2021 whether or not the Public Service Commission of Utah regulates:
2022 (i) that person; or
2023 (ii) the telecommunications service that the person owns, controls, operates, or
2024 manages.
2025 (129) (a) "Telecommunications switching or routing equipment, machinery, or
2026 software" means an item listed in Subsection (129)(b) if that item is purchased or leased
2027 primarily for switching or routing:
2028 (i) an ancillary service;
2029 (ii) data communications;
2030 (iii) voice communications; or
2031 (iv) telecommunications service.
2032 (b) The following apply to Subsection (129)(a):
2033 (i) a bridge;
2034 (ii) a computer;
2035 (iii) a cross connect;
2036 (iv) a modem;
2037 (v) a multiplexer;
2038 (vi) plug in circuitry;
2039 (vii) a router;
2040 (viii) software;
2041 (ix) a switch; or
2042 (x) equipment, machinery, or software that functions similarly to an item listed in
2043 Subsections (129)(b)(i) through (ix) as determined by the commission by rule made in
2044 accordance with Subsection (129)(c).
2045 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2046 commission may by rule define what constitutes equipment, machinery, or software that
2047 functions similarly to an item listed in Subsections (129)(b)(i) through (ix).
2048 (130) (a) "Telecommunications transmission equipment, machinery, or software"
2049 means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
2050 sending, receiving, or transporting:
2051 (i) an ancillary service;
2052 (ii) data communications;
2053 (iii) voice communications; or
2054 (iv) telecommunications service.
2055 (b) The following apply to Subsection (130)(a):
2056 (i) an amplifier;
2057 (ii) a cable;
2058 (iii) a closure;
2059 (iv) a conduit;
2060 (v) a controller;
2061 (vi) a duplexer;
2062 (vii) a filter;
2063 (viii) an input device;
2064 (ix) an input/output device;
2065 (x) an insulator;
2066 (xi) microwave machinery or equipment;
2067 (xii) an oscillator;
2068 (xiii) an output device;
2069 (xiv) a pedestal;
2070 (xv) a power converter;
2071 (xvi) a power supply;
2072 (xvii) a radio channel;
2073 (xviii) a radio receiver;
2074 (xix) a radio transmitter;
2075 (xx) a repeater;
2076 (xxi) software;
2077 (xxii) a terminal;
2078 (xxiii) a timing unit;
2079 (xxiv) a transformer;
2080 (xxv) a wire; or
2081 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2082 Subsections (130)(b)(i) through (xxv) as determined by the commission by rule made in
2083 accordance with Subsection (130)(c).
2084 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2085 commission may by rule define what constitutes equipment, machinery, or software that
2086 functions similarly to an item listed in Subsections (130)(b)(i) through (xxv).
2087 (131) (a) "Textbook for a higher education course" means a textbook or other printed
2088 material that is required for a course:
2089 (i) offered by an institution of higher education; and
2090 (ii) that the purchaser of the textbook or other printed material attends or will attend.
2091 (b) "Textbook for a higher education course" includes a textbook in electronic format.
2092 (132) "Tobacco" means:
2093 (a) a cigarette;
2094 (b) a cigar;
2095 (c) chewing tobacco;
2096 (d) pipe tobacco; or
2097 (e) any other item that contains tobacco.
2098 (133) "Unassisted amusement device" means an amusement device, skill device, or
2099 ride device that is started and stopped by the purchaser or renter of the right to use or operate
2100 the amusement device, skill device, or ride device.
2101 (134) (a) "Use" means the exercise of any right or power over tangible personal
2102 property, a product transferred electronically, or a service under Subsection 59-12-103(1),
2103 incident to the ownership or the leasing of that tangible personal property, product transferred
2104 electronically, or service.
2105 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
2106 property, a product transferred electronically, or a service in the regular course of business and
2107 held for resale.
2108 (135) "Value-added nonvoice data service" means a service:
2109 (a) that otherwise meets the definition of a telecommunications service except that a
2110 computer processing application is used to act primarily for a purpose other than conveyance,
2111 routing, or transmission; and
2112 (b) with respect to which a computer processing application is used to act on data or
2113 information:
2114 (i) code;
2115 (ii) content;
2116 (iii) form; or
2117 (iv) protocol.
2118 (136) (a) Subject to Subsection (136)(b), "vehicle" means the following that are
2119 required to be titled, registered, or titled and registered:
2120 (i) an aircraft as defined in Section 72-10-102;
2121 (ii) a vehicle as defined in Section 41-1a-102;
2122 (iii) an off-highway vehicle as defined in Section 41-22-2; or
2123 (iv) a vessel as defined in Section 41-1a-102.
2124 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
2125 (i) a vehicle described in Subsection (136)(a); or
2126 (ii) (A) a locomotive;
2127 (B) a freight car;
2128 (C) railroad work equipment; or
2129 (D) other railroad rolling stock.
2130 (137) "Vehicle dealer" means a person engaged in the business of buying, selling, or
2131 exchanging a vehicle as defined in Subsection (136).
2132 (138) (a) "Vertical service" means an ancillary service that:
2133 (i) is offered in connection with one or more telecommunications services; and
2134 (ii) offers an advanced calling feature that allows a customer to:
2135 (A) identify a caller; and
2136 (B) manage multiple calls and call connections.
2137 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2138 conference bridging service.
2139 (139) (a) "Voice mail service" means an ancillary service that enables a customer to
2140 receive, send, or store a recorded message.
2141 (b) "Voice mail service" does not include a vertical service that a customer is required
2142 to have in order to utilize a voice mail service.
2143 (140) (a) Except as provided in Subsection (140)(b), "waste energy facility" means a
2144 facility that generates electricity:
2145 (i) using as the primary source of energy waste materials that would be placed in a
2146 landfill or refuse pit if it were not used to generate electricity, including:
2147 (A) tires;
2148 (B) waste coal;
2149 (C) oil shale; or
2150 (D) municipal solid waste; and
2151 (ii) in amounts greater than actually required for the operation of the facility.
2152 (b) "Waste energy facility" does not include a facility that incinerates:
2153 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2154 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2155 (141) "Watercraft" means a vessel as defined in Section 73-18-2.
2156 (142) "Wind energy" means wind used as the sole source of energy to produce
2157 electricity.
2158 (143) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
2159 location by the United States Postal Service.
2160 Section 14. Appropriation.
2161 Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
2162 the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following sums of money
2163 are appropriated from resources not otherwise appropriated, or reduced from amounts
2164 previously appropriated, out of the funds or accounts indicated. These sums of money are in
2165 addition to any amounts previously appropriated for fiscal year 2016.
2166 To Department of Commerce - Commerce General Regulation
2167 From General Fund Restricted - Commerce Service Account
$20,000
2168 Schedule of Programs:
2169 Consumer Protection $20,000