1
2
3
4
5
6
7
8 LONG TITLE
9 General Description:
10 This bill modifies provisions related to governance of the Utah College of Applied
11 Technology.
12 Highlighted Provisions:
13 This bill:
14 ▸ defines terms;
15 ▸ renames a Utah College of Applied Technology college campus an applied
16 technology college;
17 ▸ renames the president of the Utah College of Applied Technology the commissioner
18 of technical education;
19 ▸ amends the duties of the commissioner of technical education;
20 ▸ amends provisions related to the membership of the Utah College of Applied
21 Technology Board of Trustees;
22 ▸ establishes a term limit for a member of the Utah College of Applied Technology
23 Board of Trustees;
24 ▸ amends provisions related to the appointment of an applied technology college
25 president; and
26 ▸ makes technical and conforming changes.
27 Money Appropriated in this Bill:
28 None
29 Other Special Clauses:
30 None
31 Utah Code Sections Affected:
32 AMENDS:
33 35A-1-206, as last amended by Laws of Utah 2014, Chapters 371 and 387
34 35A-5-402, as enacted by Laws of Utah 2015, Chapter 273
35 53A-1-402, as last amended by Laws of Utah 2005, Chapter 227
36 53A-1a-501.3, as last amended by Laws of Utah 2014, Chapter 363
37 53A-1a-521, as last amended by Laws of Utah 2014, Chapters 189 and 363
38 53A-15-102, as last amended by Laws of Utah 1995, Chapter 96
39 53A-15-202, as last amended by Laws of Utah 2013, Chapter 465
40 53A-17a-114, as last amended by Laws of Utah 2012, Chapter 288
41 53B-1-103, as last amended by Laws of Utah 2014, Chapter 88
42 53B-2-104, as last amended by Laws of Utah 2010, Chapters 211 and 286
43 53B-2-106, as last amended by Laws of Utah 2009, Chapter 370
44 53B-2a-101, as last amended by Laws of Utah 2009, Chapter 346
45 53B-2a-102, as last amended by Laws of Utah 2012, Chapter 78
46 53B-2a-103, as last amended by Laws of Utah 2014, Chapter 128
47 53B-2a-104, as last amended by Laws of Utah 2013, Chapter 310
48 53B-2a-105, as last amended by Laws of Utah 2009, Chapter 346
49 53B-2a-106, as last amended by Laws of Utah 2015, Chapter 404
50 53B-2a-107, as last amended by Laws of Utah 2009, Chapter 346
51 53B-2a-108, as last amended by Laws of Utah 2014, Chapter 128
52 53B-2a-109, as last amended by Laws of Utah 2010, Chapter 286
53 53B-2a-110, as last amended by Laws of Utah 2013, Chapter 310
54 53B-2a-112, as last amended by Laws of Utah 2009, Chapter 346
55 53B-2a-113, as last amended by Laws of Utah 2009, Chapter 346
56 53B-6-106, as last amended by Laws of Utah 2009, Chapter 370
57 53B-8d-102, as last amended by Laws of Utah 2008, Chapter 3
58 53B-16-102, as last amended by Laws of Utah 2009, Chapter 346
59 53B-17-105, as enacted by Laws of Utah 2014, Chapter 63
60 59-12-102, as last amended by Laws of Utah 2015, Chapters 182, 294, and 461
61 63A-9-101, as last amended by Laws of Utah 2008, Chapter 65
62 63I-2-253, as last amended by Laws of Utah 2015, Chapters 258, 418, and 456
63 63M-2-202, as last amended by Laws of Utah 2015, Chapter 357
64 63N-12-203, as renumbered and amended by Laws of Utah 2015, Chapter 283
65 63N-12-212, as renumbered and amended by Laws of Utah 2015, Chapter 283
66 67-1-12, as last amended by Laws of Utah 1999, Chapter 269
67
68 Be it enacted by the Legislature of the state of Utah:
69 Section 1. Section 35A-1-206 is amended to read:
70 35A-1-206. State Council on Workforce Services -- Appointment -- Membership
71 -- Terms of members -- Compensation.
72 (1) There is created a State Council on Workforce Services that shall:
73 (a) perform the activities described in Subsection (8);
74 (b) advise on issues requested by the department and the Legislature; and
75 (c) make recommendations to the department regarding:
76 (i) the implementation of Chapter 2, Economic Service Areas, Chapter 3, Employment
77 Support Act, and Chapter 5, Training and Workforce Improvement Act; and
78 (ii) the coordination of apprenticeship training.
79 (2) (a) The council shall consist of the following voting members:
80 (i) a private sector representative from each economic service area as designated by the
81 economic service area director;
82 (ii) the superintendent of public instruction or the superintendent's designee;
83 (iii) the commissioner of higher education or the commissioner's designee; and
84 (iv) the following members appointed by the governor in consultation with the
85 executive director:
86 (A) four representatives of small employers as defined by rule by the department;
87 (B) four representatives of large employers as defined by rule by the department;
88 (C) four representatives of employees or employee organizations, including at least one
89 representative from nominees suggested by public employees organizations;
90 (D) two representatives of the clients served under this title including
91 community-based organizations;
92 (E) a representative of veterans in the state;
93 (F) the executive director of the Utah State Office of Rehabilitation; and
94 (G) the [
95 commissioner of technical education.
96 (b) The following shall serve as nonvoting ex officio members of the council:
97 (i) the executive director or the executive director's designee;
98 (ii) a legislator appointed by the governor from nominations of the speaker of the
99 House of Representatives and president of the Senate;
100 (iii) the executive director of the Department of Human Services;
101 (iv) the director of the Governor's Office of Economic Development or the director's
102 designee; and
103 (v) the executive director of the Department of Health.
104 (3) (a) The governor shall appoint one nongovernmental member from the council as
105 the chair of the council.
106 (b) The chair shall serve at the pleasure of the governor.
107 (4) (a) A member appointed by the governor shall serve a term of four years and may
108 be reappointed to one additional term.
109 (b) A member shall continue to serve until the member's successor has been appointed
110 and qualified.
111 (c) Except as provided in Subsection (4)(d), as terms of council members expire, the
112 governor shall appoint each new member or reappointed member to a four-year term.
113 (d) Notwithstanding the requirements of Subsection (4)(c), the governor shall, at the
114 time of appointment or reappointment, adjust the length of terms to ensure that the terms of
115 council members are staggered so that approximately one half of the council is appointed every
116 two years.
117 (e) When a vacancy occurs in the membership for any reason, the replacement shall be
118 appointed for the unexpired term.
119 (5) A majority of the voting members constitutes a quorum for the transaction of
120 business.
121 (6) (a) A member who is not a legislator may not receive compensation or benefits for
122 the member's service, but may receive per diem and travel expenses as allowed in:
123 (i) Section 63A-3-106;
124 (ii) Section 63A-3-107; and
125 (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
126 63A-3-107.
127 (b) Compensation and expenses of a member who is a legislator are governed by
128 Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
129 (7) The department shall provide staff and administrative support to the council at the
130 direction of the executive director.
131 (8) The council shall:
132 (a) develop a state workforce services plan in accordance with Section 35A-1-207;
133 (b) review economic service area plans to certify consistency with state policy
134 guidelines;
135 (c) improve the understanding and visibility of state workforce services efforts through
136 external and internal marketing strategies;
137 (d) include in the annual written report described in Section 35A-1-109, information
138 and accomplishments related to the activities of the department;
139 (e) issue other studies, reports, or documents the council considers advisable that are
140 not required under Subsection (8)(d);
141 (f) coordinate the planning and delivery of workforce development services with public
142 education, higher education, vocational rehabilitation, and human services; and
143 (g) perform other responsibilities within the scope of workforce services as requested
144 by:
145 (i) the Legislature;
146 (ii) the governor; or
147 (iii) the executive director.
148 Section 2. Section 35A-5-402 is amended to read:
149 35A-5-402. Career and Technical Education Board creation -- Membership.
150 (1) There is created the Career and Technical Education Board, within the department,
151 composed of the following members:
152 (a) the state superintendent of public instruction or the state superintendent of public
153 instruction's designee;
154 (b) the commissioner of higher education or the commissioner of higher education's
155 designee;
156 (c) the [
157 technical education or the [
158 Technology commissioner of technical education's designee;
159 (d) the executive director of the department or the executive director of the
160 department's designee;
161 (e) the executive director of the Governor's Office of Economic Development or the
162 executive director of the Governor's Office of Economic Development's designee;
163 (f) one member of the governor's staff, appointed by the governor;
164 (g) five private sector members, representing business or industry that employs
165 individuals who hold certificates issued by a CTE program, appointed by the governor;
166 (h) a member of the Senate, appointed by the president of the Senate; and
167 (i) a member of the House of Representatives, appointed by the speaker of the House
168 of Representatives.
169 (2) The CTE Board shall select a chair and vice chair from among the members of the
170 CTE Board.
171 (3) The CTE Board shall meet at least quarterly.
172 (4) Attendance of a simple majority of the members of the CTE Board constitutes a
173 quorum for the transaction of official CTE Board business.
174 (5) Formal action by the CTE Board requires the majority vote of a quorum.
175 (6) A member of the CTE Board:
176 (a) may not receive compensation or benefits for the member's service; and
177 (b) may receive per diem and travel expenses in accordance with:
178 (i) Section 63A-3-106;
179 (ii) Section 63A-3-107; and
180 (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
181 63A-3-107.
182 Section 3. Section 53A-1-402 is amended to read:
183 53A-1-402. Board to establish minimum standards for public schools.
184 (1) The State Board of Education shall establish rules and minimum standards for the
185 public schools that are consistent with this title, including rules and minimum standards
186 governing the following:
187 (a) (i) the qualification and certification of educators and ancillary personnel who
188 provide direct student services;
189 (ii) required school administrative and supervisory services; and
190 (iii) the evaluation of instructional personnel;
191 (b) (i) access to programs;
192 (ii) attendance;
193 (iii) competency levels;
194 (iv) graduation requirements; and
195 (v) discipline and control;
196 (c) (i) school accreditation;
197 (ii) the academic year;
198 (iii) alternative and pilot programs;
199 (iv) curriculum and instruction requirements;
200 (v) school libraries; and
201 (vi) services to:
202 (A) persons with a disability as defined by and covered under:
203 (I) the Americans with Disabilities Act of 1990, 42 U.S.C. 12102;
204 (II) the Rehabilitation Act of 1973, 29 U.S.C. 705(20)(A); and
205 (III) the Individuals with Disabilities Education Act, 20 U.S.C. 1401(3); and
206 (B) other special groups;
207 (d) (i) state reimbursed bus routes;
208 (ii) bus safety and operational requirements; and
209 (iii) other transportation needs; and
210 (e) (i) school productivity and cost effectiveness measures;
211 (ii) federal programs;
212 (iii) school budget formats; and
213 (iv) financial, statistical, and student accounting requirements.
214 (2) The board shall determine if:
215 (a) the minimum standards have been met; and
216 (b) required reports are properly submitted.
217 (3) The board may apply for, receive, administer, and distribute to eligible applicants
218 funds made available through programs of the federal government.
219 (4) (a) [
220 Technology shall provide competency-based career and technical education courses that fulfill
221 high school graduation requirements, as requested and authorized by the State Board of
222 Education.
223 (b) A school district may grant a high school diploma to a student participating in
224 courses described under Subsection (4)(a) that are provided by [
225 college within the Utah College of Applied Technology.
226 Section 4. Section 53A-1a-501.3 is amended to read:
227 53A-1a-501.3. Definitions.
228 As used in this part:
229 (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
230 includes:
231 (a) cash;
232 (b) stock or other investments;
233 (c) real property;
234 (d) equipment and supplies;
235 (e) an ownership interest;
236 (f) a license;
237 (g) a cause of action; and
238 (h) any similar property.
239 (2) "Board of trustees of a higher education institution" or "board of trustees" means:
240 (a) the board of trustees of:
241 (i) the University of Utah;
242 (ii) Utah State University;
243 (iii) Weber State University;
244 (iv) Southern Utah University;
245 (v) Snow College;
246 (vi) Dixie State University;
247 (vii) Utah Valley University; or
248 (viii) Salt Lake Community College; or
249 (b) the [
250 within the Utah College of Applied Technology.
251 (3) "Charter agreement" or "charter" means an agreement made in accordance with
252 Section 53A-1a-508, that authorizes the operation of a charter school.
253 (4) "Charter school authorizer" or "authorizer" means the State Charter School Board,
254 local school board, or board of trustees of a higher education institution that authorizes the
255 establishment of a charter school.
256 (5) "Governing board" means the board that operates a charter school.
257 Section 5. Section 53A-1a-521 is amended to read:
258 53A-1a-521. Charter schools authorized by a board of trustees of a higher
259 education institution -- Application process -- Board of trustees responsibilities.
260 (1) Subject to the approval of the State Board of Education and except as provided in
261 Subsection (8), an applicant identified in Section 53A-1a-504 may enter into an agreement with
262 a board of trustees of a higher education institution authorizing the applicant to establish and
263 operate a charter school.
264 (2) (a) An applicant applying for authorization from a board of trustees to establish and
265 operate a charter school shall provide a copy of the application to the State Charter School
266 Board and the local school board of the school district in which the proposed charter school
267 shall be located either before or at the same time the applicant files the application with the
268 board of trustees.
269 (b) The State Charter School Board and the local school board may review the
270 application and offer suggestions or recommendations to the applicant or the board of trustees
271 before acting on the application.
272 (c) The board of trustees shall give due consideration to suggestions or
273 recommendations made by the State Charter School Board or the local school board under
274 Subsection (2)(b).
275 (3) (a) If a board of trustees approves an application to establish and operate a charter
276 school, the board of trustees shall submit the application to the State Board of Education.
277 (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
278 the application, approve or deny an application approved by a board of trustees.
279 (c) The State Board of Education's action under Subsection (3)(b) is final action subject
280 to judicial review.
281 (4) The State Board of Education shall make a rule providing a timeline for the
282 opening of a charter school following the approval of a charter school application by a board of
283 trustees.
284 (5) After approval of a charter school application, the applicant and the board of
285 trustees shall set forth the terms and conditions for the operation of the charter school in a
286 written charter agreement.
287 (6) (a) The school's charter may include a provision that the charter school pay an
288 annual fee for the board of trustees' costs in providing oversight of, and technical support to,
289 the charter school in accordance with Subsection (7).
290 (b) In the first two years that a charter school is in operation, an annual fee described in
291 Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
292 from the state in the current fiscal year.
293 (c) Beginning with the third year that a charter school is in operation, an annual fee
294 described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
295 school receives from the state in the current fiscal year.
296 (d) An annual fee described in Subsection (6)(a) shall be:
297 (i) paid to the board of trustees' higher education institution; and
298 (ii) expended as directed by the board of trustees.
299 (7) A board of trustees shall:
300 (a) annually review and evaluate the performance of charter schools authorized by the
301 board of trustees and hold the schools accountable for their performance;
302 (b) monitor charter schools authorized by the board of trustees for compliance with
303 federal and state laws, rules, and regulations; and
304 (c) provide technical support to charter schools authorized by the board of trustees to
305 assist them in understanding and performing their charter obligations.
306 (8) (a) In addition to complying with the requirements of this section, a [
307 of directors of [
308 Applied Technology shall obtain the approval of the Utah College of Applied Technology
309 Board of Trustees before entering into an agreement to establish and operate a charter school.
310 (b) If a [
311 college within the Utah College of Applied Technology approves an application to establish
312 and operate a charter school, the [
313 technology college board of directors shall submit the application to the Utah College of
314 Applied Technology Board of Trustees.
315 (c) The Utah College of Applied Technology Board of Trustees shall, by majority vote,
316 within 60 days of receipt of the application, approve or deny the application approved by the
317 [
318 (d) The Utah College of Applied Technology Board of Trustees may deny an
319 application approved by [
320 proposed charter school does not accomplish a purpose of charter schools as provided in
321 Section 53A-1a-503.
322 (e) A charter school application may not be denied on the basis that the establishment
323 of the charter school will have any or all of the following impacts on a public school, including
324 another charter school:
325 (i) an enrollment decline;
326 (ii) a decrease in funding; or
327 (iii) a modification of programs or services.
328 (9) (a) Subject to the requirements of this part, [
329
330 board of directors may establish:
331 (i) procedures for submitting applications to establish and operate a charter school [
332
333
334 (ii) criteria for [
335 and operate a charter school.
336 (b) The Utah College of Applied Technology Board of Trustees may not establish
337 policy governing the procedures or criteria described in Subsection (9)(a).
338 (10) Before [
339 accepts a charter school application, the [
340 directors shall, in accordance with State Board of Education rules, establish and make public
341 [
342 (a) application requirements, in accordance with Section 53A-1a-504;
343 (b) application process, including timelines, in accordance with this section; and
344 (c) minimum academic, financial, and enrollment standards.
345 Section 6. Section 53A-15-102 is amended to read:
346 53A-15-102. Early graduation incentives -- Incentive to school district -- Partial
347 tuition scholarship for student -- Payments.
348 (1) Any secondary public school student who has completed all required courses or
349 demonstrated mastery of required skills and competencies may, with the approval of the
350 student, the student's parent or guardian, and an authorized local school official, graduate at any
351 time.
352 (2) Each public high school shall receive an amount equal to 1/2 of the scholarship
353 awarded to each student who graduates from the school at or prior to the conclusion of the
354 eleventh grade, or a proportionately lesser amount for any student who graduates after the
355 conclusion of the eleventh grade but prior to the conclusion of the twelfth grade.
356 (3) (a) A student who graduates from high school at or prior to the conclusion of the
357 eleventh grade shall receive a centennial scholarship in the lesser amount of full tuition for one
358 year or $1,000 to be used for full time enrollment at a Utah public college, university,
359 community college, [
360 College of Applied Technology, or any other institution in the state of Utah, accredited by the
361 Northwest Association of Schools and Colleges that offers postsecondary courses of the
362 student's choice upon verification that the student has registered at the institution during the
363 fiscal year following graduation from high school.
364 (b) In the case of a student who graduates after the conclusion of the eleventh grade but
365 prior to the conclusion of the twelfth grade, the student shall receive a centennial scholarship of
366 a proportionately lesser amount.
367 (4) (a) The payments authorized in Subsections (2) and (3)(a) shall be made during the
368 fiscal year that follows the student's graduation.
369 (b) The payments authorized in Subsection (3)(b) may be made during the fiscal year in
370 which the student graduates or the fiscal year following the student's graduation.
371 (5) (a) The State Board of Education shall administer the payment program authorized
372 in Subsections (2), (3), and (4).
373 (b) (i) The Legislature shall make an annual appropriation from the Uniform School
374 Fund to the State Board of Education for the costs associated with the Centennial Scholarship
375 Program based on the projected number of students who will graduate before the conclusion of
376 the twelfth grade in any given year.
377 (ii) It is understood that the appropriation is offset by the state money that would
378 otherwise be required and appropriated for these students if they were enrolled in an additional
379 grade for a full year.
380 Section 7. Section 53A-15-202 is amended to read:
381 53A-15-202. Powers of the board.
382 The State Board of Education:
383 (1) shall establish minimum standards for career and technical education programs in the
384 public education system;
385 (2) may apply for, receive, administer, and distribute funds made available through
386 programs of federal and state governments to promote and aid career and technical education;
387 (3) shall cooperate with federal and state governments to administer programs which
388 promote and maintain career and technical education;
389 (4) shall cooperate with the Utah College of Applied Technology, Salt Lake Community
390 College's School of Applied Technology, Snow College, and Utah State University Eastern to
391 ensure that students in the public education system have access to career and technical education
392 at Utah College of Applied Technology [
393 Community College's School of Applied Technology, Snow College, and Utah State University
394 Eastern;
395 (5) shall require that before a minor student may participate in clinical experiences as part
396 of a health care occupation program at a high school or other institution to which the student has
397 been referred, the student's parent or legal guardian has:
398 (a) been first given written notice through appropriate disclosure when registering and
399 prior to participation that the program contains a clinical experience segment in which the student
400 will observe and perform specific health care procedures that may include personal care, patient
401 bathing, and bathroom assistance; and
402 (b) provided specific written consent for the student's participation in the program and
403 clinical experience; and
404 (6) shall, after consulting with school districts, charter schools, the Utah College of
405 Applied Technology, Salt Lake Community College's School of Applied Technology, Snow
406 College, and Utah State University Eastern, prepare and submit an annual report to the governor
407 and to the Legislature's Education Interim Committee by October 31 of each year detailing:
408 (a) how the career and technical education needs of secondary students are being met; and
409 (b) what access secondary students have to programs offered:
410 (i) at applied technology colleges; and
411 (ii) within the regions served by Salt Lake Community College's School of Applied
412 Technology, Snow College, and Utah State University Eastern.
413 Section 8. Section 53A-17a-114 is amended to read:
414 53A-17a-114. Career and technical education program alternatives.
415 (1) A secondary student may attend [
416 the Utah College of Applied Technology [
417
418 achieved by attending [
419 as determined by:
420 (a) the secondary student; and
421 (b) if the secondary student is a minor, the secondary student's parent or legal guardian.
422 (2) [
423
424
425 counted in the average daily membership of the sending school district or charter school.
426 Section 9. Section 53B-1-103 is amended to read:
427 53B-1-103. Establishment of State Board of Regents -- Powers and authority.
428 (1) There is established a State Board of Regents.
429 (2) (a) Except as provided in Subsection (2)(b), the board is vested with the control,
430 management, and supervision of the institutions of higher education designated in Section
431 53B-1-102 in a manner consistent with the policy and purpose of this title and the specific powers
432 and responsibilities granted to it.
433 (b) The board may only exercise powers relating to the Utah College of Applied
434 Technology and [
435 Applied Technology that are specifically provided in this title.
436 (c) The board shall coordinate and support articulation agreements between the Utah
437 College of Applied Technology or applied technology colleges within the Utah College of Applied
438 Technology and other institutions of higher education.
439 (d) The board shall prepare and submit an annual report detailing its progress and
440 recommendations on career and technical education issues to the governor and to the Legislature's
441 Education Interim Committee by October 31 of each year, which shall include information
442 detailing:
443 (i) how the career and technical education needs of secondary students are being met by
444 institutions of higher education other than applied technology colleges within the Utah College of
445 Applied Technology, including what access secondary students have to programs offered by Salt
446 Lake Community College's School of Applied Technology, Snow College, and Utah State
447 University Eastern;
448 (ii) how the emphasis on high demand, high wage, and high skill jobs in business and
449 industry is being provided;
450 (iii) performance outcomes, including:
451 (A) entered employment;
452 (B) job retention; and
453 (C) earnings; and
454 (iv) student tuition and fees.
455 (e) Except for the Utah College of Applied Technology, the board may modify the name
456 of an institution under its control and management, as designated in Section 53B-1-102, to reflect
457 the role and general course of study of the institution.
458 (f) The board may not conduct a feasibility study or perform another act relating to
459 merging any of the following institutions with another institution of higher education:
460 (i) [
461 (ii) [
462 (iii) [
463 (iv) [
464 (v) [
465 (vi) [
466 (vii) [
467 (viii) [
468 (3) This section does not affect the power and authority vested in the State Board of
469 Education to apply for, accept, and manage federal appropriations for the establishment and
470 maintenance of career and technical education.
471 (4) The board shall conduct a study regarding the feasibility of providing a veterans'
472 walk-in center or services at each state institution of higher education. The study shall include:
473 (a) an implementation plan for providing a walk-in center or services at each institution
474 of higher education;
475 (b) criteria, based upon the size of the institution, to determine whether the institution
476 should be required to provide a walk-in center or services;
477 (c) responsibilities of the walk-in center or services;
478 (d) a notification process about the walk-in center or services to veterans upon their
479 application for admission;
480 (e) the possibility of staffing a veterans walk-in center or services with veterans, including
481 through work-study positions to be filled by veterans;
482 (f) annual reports from each walk-in center and services to the board which includes
483 summary information of veterans served; and
484 (g) funding requirements for a veterans walk-in center and services.
485 (5) Presentation of the study, including the implementation plan with funding and other
486 recommendations, shall be made to a legislative committee, commission, or task force upon
487 request no later than the October 2014 interim meeting.
488 Section 10. Section 53B-2-104 is amended to read:
489 53B-2-104. Memberships of board of trustees -- Terms -- Vacancies -- Oath --
490 Officers -- Bylaws -- Quorum -- Committees -- Compensation.
491 (1) (a) The board of trustees of an institution of higher education consists of the following:
492 (i) except as provided in Subsection 53B-18-1201(3)(b), eight persons appointed by the
493 governor and approved by the Senate; and
494 (ii) two ex officio members who are the president of the institution's alumni association,
495 and the president of the associated students of the institution.
496 (b) The appointed members of the boards of trustees for Utah Valley University and Salt
497 Lake Community College shall be representative of the interests of business, industry, and labor.
498 (2) (a) The governor shall appoint four members of each board of trustees during each
499 odd-numbered year to four-year terms commencing on July 1 of the year of appointment.
500 (b) An appointed member holds office until a successor is appointed and qualified.
501 (c) The ex officio members serve for the same period as they serve as presidents and until
502 their successors have qualified.
503 (3) When a vacancy occurs in the membership for any reason, the replacement shall be
504 appointed for the unexpired term.
505 (4) (a) Each member shall take the official oath of office prior to assuming the office.
506 (b) The oath shall be filed with the Division of Archives and Records Services.
507 (5) Each board of trustees shall elect a chair and vice chair, who serve for two years and
508 until their successors are elected and qualified.
509 (6) (a) Each board of trustees may enact bylaws for its own government, including
510 provision for regular meetings.
511 (b) (i) The board of trustees may provide for an executive committee in its bylaws.
512 (ii) If established, the committee shall have full authority of the board of trustees to act
513 upon routine matters during the interim between board of trustees meetings.
514 (iii) The committee may act on nonroutine matters only under extraordinary and
515 emergency circumstances.
516 (iv) The committee shall report its activities to the board of trustees at its next regular
517 meeting following the action.
518 (c) Copies of the board of trustees' bylaws shall be filed with the board.
519 (7) A quorum is required to conduct business and consists of six members.
520 (8) A board of trustees may establish advisory committees.
521 (9) A member may not receive compensation or benefits for the member's service, but may
522 receive per diem and travel expenses in accordance with:
523 (a) Section 63A-3-106;
524 (b) Section 63A-3-107; and
525 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
526 (10) This section does not apply to a board of directors of an applied technology college
527 within the Utah College of Applied Technology.
528 Section 11. Section 53B-2-106 is amended to read:
529 53B-2-106. Duties and responsibilities of the president of each institution -- Approval
530 by board of trustees.
531 (1) (a) The president of each institution may exercise grants of power and authority as
532 delegated by the board, as well as the necessary and proper exercise of powers and authority not
533 specifically denied to the institution, its administration, faculty, or students by the board or by law,
534 to assure the effective and efficient administration and operation of the institution consistent with
535 the statewide master plan for higher education.
536 (b) The president of each institution may, after consultation with the institution's board of
537 trustees, exercise powers relating to the institution's employees, including faculty and persons
538 under contract with the institution, by implementing any of the following:
539 (i) furloughs;
540 (ii) reductions in force;
541 (iii) benefit adjustments;
542 (iv) program reductions or discontinuance;
543 (v) early retirement incentives that provide cost savings to the institution; and
544 (vi) other measures that provide cost savings to the institution.
545 (2) Except as provided by the board, the president of each institution, with the approval
546 of the institution's board of trustees may:
547 (a) (i) appoint a secretary, a treasurer, administrative officers, deans, faculty members, and
548 other professional personnel, prescribe their duties, and determine their salaries;
549 (ii) appoint support personnel, prescribe their duties, and determine their salaries from the
550 institution's position classification plan, which may:
551 (A) be based upon similarity of duties and responsibilities within the institution; and
552 (B) as funds permit, provide salary and benefits comparable with private enterprise;
553 (iii) adopt policies for:
554 (A) employee sick leave use and accrual; and
555 (B) service recognition for employees with more than 15 years of employment with the
556 institution; and
557 (iv) subject to the authority of, policy established by, and the approval of the board of
558 regents, and recognizing the status of the institutions within the state system of higher education
559 as bodies politic and corporate, appoint attorneys to provide legal advice to the institution's
560 administration and to coordinate legal affairs within the institution. The board of regents shall
561 coordinate activities of attorneys at the institutions of higher education. The institutions shall
562 provide an annual report to the board of regents on the activities of appointed attorneys. These
563 appointed attorneys may not conduct litigation, settle claims covered by the State Risk
564 Management Fund, or issue formal legal opinions but shall, in all respects, cooperate with the
565 Office of the Attorney General in providing legal representation to the institution;
566 (b) provide for the constitution, government, and organization of the faculty and
567 administration, and enact implementing rules, including the establishment of a prescribed system
568 of tenure;
569 (c) authorize the faculty to determine the general initiation and direction of instruction and
570 of the examination, admission, and classification of students. In recognition of the diverse nature
571 and traditions of the various institutions governed by the board, the systems of faculty government
572 need not be identical but should be designed to further faculty identification with and involvement
573 in the institution's pursuit of achievement and excellence and in fulfillment of the institution's role
574 as established in the statewide master plan for higher education; and
575 (d) enact rules for administration and operation of the institution which are consistent with
576 the prescribed role established by the board, rules enacted by the board, or the laws of the state.
577 The rules may provide for administrative, faculty, student, and joint committees with jurisdiction
578 over specified institutional matters, for student government and student affairs organization, for
579 the establishment of institutional standards in furtherance of the ideals of higher education fostered
580 and subscribed to by the institution, its administration, faculty, and students, and for the holding
581 of classes on legal holidays, other than Sunday.
582 (3) Compensation costs and related office expenses for appointed attorneys shall be funded
583 within existing budgets.
584 (4) The State Board of Regents shall establish guidelines relating to the roles and
585 relationships between institutional presidents and boards of trustees, including those matters which
586 must be approved by a board of trustees before implementation by the president.
587 (5) This section does not apply to a president of an applied technology college within the
588 Utah College of Applied Technology.
589 Section 12. Section 53B-2a-101 is amended to read:
590 53B-2a-101. Definitions.
591 As used in this chapter:
592 (1) "Applied technology college" means a member college of the Utah College of Applied
593 Technology.
594 [
595 Trustees.
596 [
597
598 (3) "Commissioner of technical education" means the Utah College of Applied Technology
599 commissioner of technical education.
600 [
601 demonstrated through business and industry approved standards and assessments, achieved through
602 participation in a hands-on learning environment, and which is tied to observable, measurable
603 performance objectives.
604 (5) "Member" means a member of the board of trustees.
605 [
606 (a) a method of instructional delivery that allows for flexible scheduling in response to
607 individual student needs or requirements and demonstrated competency when knowledge and skills
608 have been mastered;
609 (b) students have the flexibility to begin or end study at any time, progress through course
610 material at their own pace, and demonstrate competency when knowledge and skills have been
611 mastered; and
612 (c) if competency is demonstrated in a program of study, a credential, certificate, or
613 diploma may be awarded.
614 Section 13. Section 53B-2a-102 is amended to read:
615 53B-2a-102. Commissioner of technical education -- Appointment -- Duties.
616 (1) (a) The board of trustees, upon approval from the governor and with the consent of the
617 Senate [
618
619 of trustees' chief executive officer.
620 [
621
622 (b) The commissioner of technical education shall:
623 (i) have an appropriate and relevant educational background; and
624 (ii) have extensive experience in career and technical education.
625 (c) The [
626 discretion and may be terminated by:
627 (i) the board of trustees; or
628 (ii) the governor, after consultation with the board of trustees.
629 (d) If the board of trustees intends to appoint an interim or acting commissioner of
630 technical education during a leave of absence of the commissioner of technical education, the
631 board of trustees shall appoint the interim or acting commissioner of technical education with the
632 consent of the Senate.
633 [
634
635 [
636 [
637
638 [
639
640
641 [
642
643
644 [
645
646
647
648
649 [
650
651 [
652 [
653
654 [
655
656 [
657 [
658 [
659 [
660 [
661 [
662 [
663
664 [
665 [
666 [
667
668 [
669
670
671 [
672
673
674 [
675
676 (2) The board of trustees shall:
677 (a) set the salary of the commissioner of technical education;
678 (b) prescribe the duties and functions of the commissioner of technical education; and
679 (c) select a commissioner of technical education on the basis of outstanding professional
680 qualifications.
681 (3) The commissioner of technical education is responsible to the board of trustees to:
682 (a) ensure that the policies and programs of the board of trustees are properly executed;
683 (b) furnish information about the Utah College of Applied Technology and make
684 recommendations regarding the information to the board of trustees;
685 (c) provide state-level leadership in an activity affecting an applied technology college;
686 and
687 (d) perform other duties as assigned by the board of trustees in carrying out the board of
688 trustees' duties and responsibilities.
689 Section 14. Section 53B-2a-103 is amended to read:
690 53B-2a-103. Utah College of Applied Technology Board of Trustees -- Membership
691 -- Terms -- Vacancies -- Oath -- Officers -- Quorum -- Committees -- Compensation.
692 (1) There is created the Utah College of Applied Technology Board of Trustees[
693 (2) Except as provided in Subsections (3) and (4), the board of trustees is composed of the
694 following members:
695 (a) one member of the State Board of Education appointed by the chair of the State Board
696 of Education, to serve as a nonvoting member;
697 (b) one member of the State Board of Regents appointed by the chair of the State Board
698 of Regents, to serve as a nonvoting member;
699 (c) one member, representing business and industry employers from [
700 applied technology college board of directors [
701 appointed by a majority vote of the business and industry employer members of the [
702
703 (d) one member representing business and industry employers from the Snow College
704 Economic Development and Workforce Preparation Advisory Committee appointed by a majority
705 of the business and industry employer members of the advisory committee;
706 (e) one member representing business and industry employers from the Utah State
707 University Eastern career and technical education advisory committee appointed by a majority of
708 the business and industry employer members of the advisory committee;
709 (f) one member representing business and industry employers from the Salt Lake
710 Community College School of Applied Technology Board of Directors appointed by a majority
711 of the business and industry employer members of the board of directors;
712 (g) one business or industry employer representative appointed by the governor with the
713 consent of the Senate from nominations submitted by the speaker of the House of Representatives
714 and president of the Senate;
715 (h) one representative of union craft, trade, or apprenticeship programs that prepare
716 workers for employment in career and technical education fields, appointed by the governor with
717 the consent of the Senate;
718 (i) one representative of non-union craft, trade, or apprenticeship programs that prepare
719 workers for employment in career and technical education fields, appointed by the governor with
720 the consent of the Senate; and
721 (j) the executive director of the Governor's Office of Economic Development or the
722 executive director's designee.
723 [
724 (3) (a) Beginning on July 1, 2019, the board of trustees is composed of 15 voting members
725 appointed by the governor with the consent of the Senate, as follows:
726 (i) one member representing each applied technology college, selected from at least two
727 nominees presented to the governor by the board of directors of each applied technology college;
728 and
729 (ii) one member representing each of the following sectors:
730 (A) information technology;
731 (B) manufacturing;
732 (C) life sciences;
733 (D) health care;
734 (E) transportation;
735 (F) union craft, trade, or apprenticeship; and
736 (G) non-union craft, trade or apprenticeship.
737 (b) The seven members described in Subsection (3)(a)(ii) shall be selected from the state
738 at large, subject to the following conditions:
739 (i) at least four members shall reside in a geographic area served by an applied technology
740 college described in Section 53B-2a-105; and
741 (ii) no more than two members may reside in a single geographic area served by an applied
742 technology college described in Section 53B-2a-105.
743 [
744
745 [
746 [
747
748 [
749 (c) (i) In addition to the 15 voting members described in Subsection (3)(a), one member
750 of the Board of Regents, appointed by the chair of the Board of Regents, shall serve as a nonvoting
751 member of the board of trustees.
752 (ii) The nonvoting member from the Board of Regents is not subject to the term limit
753 described in Subsection (5)(b).
754 (d) The governor shall make appointments to the board [
755 nonpartisan basis.
756 (4) (a) Except as provided in Subsection (4)(d), to transition from the composition of the
757 board of trustees described in Subsection (2) to the composition described in Subsection (3), for
758 a member who was appointed to the board of trustees on or before May 10, 2016, the governor
759 shall appoint a replacement when the member's current term expires.
760 (b) In replacing a member who was appointed under Subsection (2)(c), the governor shall
761 appoint a member to represent the applied technology college represented by the member whose
762 term expires by:
763 (i) soliciting the applied technology college's board of directors to nominate at least two
764 individuals for the position; and
765 (ii) selecting from the nominees presented.
766 (c) In replacing a member who was appointed under Subsections (2)(d) through (2)(j), the
767 governor shall appoint a new member at large, ensuring representation from the sectors described
768 in Subsection (3)(a)(ii).
769 (d) (i) A member appointed under Subsection (2)(a) shall remain on the board of trustees
770 until June 30, 2019.
771 (ii) A member appointed under Subsection (2)(b) may remain on the board following the
772 transition to the board composition described in Subsection (3).
773 (e) In making an appointment under this Subsection (4), the governor:
774 (i) shall appoint a member on a nonpartisan basis; and
775 (ii) may not reappoint the member who is being replaced if the member has served on the
776 board of trustees for at least two consecutive full terms.
777 [
778
779 to a four-year term.
780 [
781
782 (ii) The governor shall ensure that member terms are staggered so that approximately
783 one-half of the members' terms [
784 [
785 (b) A member may not hold office for more than two consecutive full terms.
786 [
787 the governor shall appoint a replacement [
788 [
789 (b) The oath shall be filed with the Division of Archives and Records Services.
790 [
791 and until their successors are elected and qualified.
792 (b) A member may not serve more than two consecutive terms as the chair or vice chair.
793 [
794 own government, including [
795 (b) (i) The board of trustees [
796 board of trustees' bylaws.
797 (ii) [
798 trustees to act upon routine matters during the interim between board of trustees meetings.
799 (iii) The executive committee may act on nonroutine matters only under extraordinary and
800 emergency circumstances.
801 (iv) The executive committee shall report its activities to the board of trustees at [
802 board of trustees' next regular meeting following the executive committee's action.
803 [
804 of voting board of trustee members.
805 [
806 [
807 but may receive per diem and travel expenses in accordance with:
808 (a) Section 63A-3-106;
809 (b) Section 63A-3-107; and
810 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
811 Section 15. Section 53B-2a-104 is amended to read:
812 53B-2a-104. Utah College of Applied Technology Board of Trustees -- Powers and
813 duties.
814 (1) The Utah College of Applied Technology Board of Trustees is vested with the control,
815 management, and supervision of applied technology colleges within the Utah College of Applied
816 Technology [
817 the specific powers and responsibilities granted to [
818 (2) The [
819 (a) ensure that [
820 [
821 (b) appoint the [
822 applied technology in accordance with Section 53B-2a-102;
823 (c) advise the [
824 applied technology and the State Board of Regents on issues related to career and technical
825 education, including articulation with institutions of higher education and public education;
826 (d) ensure that a secondary student in the public education system has access to career and
827 technical education through an applied technology college in the secondary student's service
828 region;
829 (e) in consultation with the State Board of Education, the State Board of Regents, and
830 applied technology college presidents, develop strategies for providing career and technical
831 education in rural areas, considering distances between rural career and technical education
832 providers;
833 [
834 and prioritize the requests, and submit the request to:
835 (i) the Legislature; and
836 (ii) the Governor's Office of Management and Budget;
837 [
838 each applied technology college [
839 53B-2a-112, prioritize the requests, and submit the prioritized requests to the State Building Board;
840 [
841 commissioner of applied technology, establish benchmarks, provide oversight, evaluate program
842 performance, and obtain independent audits to ensure that [
843 technology college follows the non-credit career and technical education mission described in this
844 part;
845 [
846 [
847 of Applied Technology;
848 [
849 and recommendations on career and technical education issues to the governor and to the
850 Legislature's Education Interim Committee by October 31 of each year, which shall include
851 information detailing:
852 (i) how the career and technical education needs of secondary students are being met,
853 including what access secondary students have to programs offered at [
854 technology colleges;
855 (ii) how the emphasis on high demand, high wage, and high skill jobs in business and
856 industry described in [
857 (iii) performance outcomes, including:
858 (A) entered employment;
859 (B) job retention; and
860 (C) earnings; and
861 (iv) student tuition and fees; and
862 [
863 system of public education, the state system of higher education, the Department of Workforce
864 Services, and the Governor's Office of Economic Development on the delivery of career and
865 technical education.
866 [
867
868
869 (3) The board of trustees, the commissioner of applied technology, or an applied
870 technology college, president, or board of directors may not conduct a feasibility study or perform
871 another act relating to offering a degree or awarding credit.
872 Section 16. Section 53B-2a-105 is amended to read:
873 53B-2a-105. Utah College of Applied Technology -- Composition.
874 The Utah College of Applied Technology is composed of the following [
875 applied technology colleges:
876 (1) [
877 area encompassing:
878 (a) the Box Elder School District;
879 (b) the Cache School District;
880 (c) the Logan School District; and
881 (d) the Rich School District;
882 (2) [
883 geographic area encompassing:
884 (a) the Ogden City School District; and
885 (b) the Weber School District;
886 (3) [
887 encompassing:
888 (a) the Davis School District; and
889 (b) the Morgan School District;
890 (4) [
891 encompassing the Tooele County School District;
892 (5) [
893 geographic area encompassing:
894 (a) the Alpine School District;
895 (b) the Nebo School District;
896 (c) the Provo School District;
897 (d) the South Summit School District;
898 (e) the North Summit School District;
899 (f) the Wasatch School District; and
900 (g) the Park City School District;
901 (6) [
902 geographic area encompassing:
903 (a) the Daggett School District;
904 (b) the Duchesne School District; and
905 (c) the Uintah School District;
906 (7) [
907 area encompassing:
908 (a) the Beaver School District;
909 (b) the Garfield School District;
910 (c) the Iron School District; and
911 (d) the Kane School District; and
912 (8) [
913 encompassing the Washington School District.
914 Section 17. Section 53B-2a-106 is amended to read:
915 53B-2a-106. Applied technology colleges -- Duties.
916 (1) Each applied technology college within the Utah College of Applied Technology
917 [
918 [
919 (a) offer a non-credit post-secondary and secondary career and technical education
920 curriculum;
921 (b) offer that curriculum at:
922 (i) low cost to adult students, as approved by the board of trustees; and
923 (ii) no tuition to secondary students;
924 (c) provide career and technical education that will result in:
925 (i) appropriate licensing, certification, or other evidence of completion of training; and
926 (ii) qualification for specific employment, with an emphasis on high demand, high wage,
927 and high skill jobs in business and industry;
928 (d) develop cooperative agreements with school districts, charter schools, other higher
929 education institutions, businesses, industries, and community and private agencies to maximize
930 the availability of instructional facilities within the geographic area served by the applied
931 technology college [
932 (e) after consulting with school districts and charter schools within the geographic area
933 served by the applied technology college [
934 (i) ensure that secondary students in the public education system have access to career and
935 technical education at [
936 (ii) prepare and submit an annual report to the [
937 board of trustees detailing:
938 (A) how the career and technical education needs of secondary students within the region
939 are being met;
940 (B) what access secondary students within the region have to programs offered at [
941
942 (C) how the emphasis on high demand, high wage, high skill jobs in business and industry
943 described in Subsection (1)(c)(ii) is being provided; and
944 (D) student tuition and fees.
945 (2) [
946 (a) a competency-based high school diploma approved by the State Board of Education
947 in accordance with Section 53A-1-402;
948 (b) non-credit, basic instruction in areas such as reading, language arts, and mathematics
949 that are necessary for student success in a chosen career and technical education or job-related
950 program;
951 (c) non-credit courses of interest when similar offerings to the community are limited and
952 courses are financially self-supporting; and
953 (d) secondary school level courses through the Statewide Online Education Program in
954 accordance with Section 53A-15-1205.
955 (3) Except as provided in Subsection (2)(d), [
956 college may not:
957 (a) offer courses other than non-credit career and technical education or the non-credit,
958 basic instruction described in Subsections (2)(b) and (c);
959 (b) offer a degree;
960 (c) offer career and technical education or basic instruction outside the geographic area
961 served by the [
962 between an affected institution, except as provided in Subsection (6);
963 (d) provide tenure or academic rank for its instructors; [
964 (e) participate in intercollegiate athletics.
965 (4) The mission of [
966 non-credit career and technical education and may not expand to include credit-based academic
967 programs typically offered by community colleges or other institutions of higher education.
968 (5) [
969 member applied technology college of the Utah College of Applied Technology, and regional
970 affiliation shall be retained and recognized through local designations such as "Bridgerland
971 Applied Technology College: A member applied technology college of the Utah College of
972 Applied Technology [
973 (6) (a) [
974 education or basic instruction outside the geographic area served by the [
975 technology college without a cooperative agreement, as required in Subsection (3)(c), if:
976 (i) the career and technical education or basic instruction is specifically requested by:
977 (A) an employer; or
978 (B) a craft, trade, or apprenticeship program;
979 (ii) the [
980 the request; and
981 (iii) the affected institution is given an opportunity to make a proposal, prior to any
982 contract being finalized or training being initiated by the applied technology college [
983 the employer, craft, trade, or apprenticeship program about offering the requested career and
984 technical education or basic instruction, provided that the proposal shall be presented no later than
985 one business week from the delivery of the notice described under Subsection (6)(b).
986 (b) The requirements under Subsection (6)(a)(iii) do not apply if there is a prior training
987 relationship.
988 Section 18. Section 53B-2a-107 is amended to read:
989 53B-2a-107. Applied technology college presidents -- Appointments -- Duties.
990 (1) (a) The [
991 after consultation with [
992
993 president for [
994 (b) The board of trustees shall establish a policy for appointing an applied technology
995 college president that:
996 (i) requires the board of trustees to create a search committee that:
997 (A) shall include an equal number of board of trustee members and members from the
998 applied technology college board of directors; and
999 (B) may include applied technology college faculty, students, or other individuals;
1000 (ii) requires the search committee to seek nominations, interview candidates, and forward
1001 qualified candidates to the board of trustees for consideration;
1002 (iii) provides for at least two members of the applied technology college board of directors
1003 to participate in board of trustees' interviews of finalists; and
1004 (iv) provides for the board of trustees to vote to appoint an applied technology college
1005 president in a meeting that complies with Title 52, Chapter 4, Open and Public Meetings Act.
1006 [
1007 administrative officer of the college campus.
1008 [
1009 doctorate degree, but shall have extensive experience in career and technical education.
1010 [
1011 and evaluation administered by the [
1012 trustees, in cooperation with the [
1013 a process approved by the board of trustees.
1014 [
1015
1016
1017 (e) The board of trustees, in cooperation with an applied technology college board of
1018 directors, shall set the compensation for an applied technology college president.
1019 [
1020 (3) An applied technology college president shall:
1021 (a) serve as the executive officer of the [
1022 directors;
1023 (b) administer the day-to-day operations of the [
1024 college;
1025 (c) consult with the [
1026 (d) administer human resource policies and employee compensation plans in accordance
1027 with the requirements of the [
1028 trustees.
1029 Section 19. Section 53B-2a-108 is amended to read:
1030 53B-2a-108. Applied technology college boards of directors -- Membership --
1031 Appointments.
1032 [
1033 college board of directors appointed as follows:
1034 (1) the Bridgerland Applied Technology College [
1035 composed of the following 12 members:
1036 (a) one elected local school board member appointed by the board of education for the Box
1037 Elder School District;
1038 (b) one elected local school board member appointed by the board of education for the
1039 Cache School District;
1040 (c) one elected local school board member appointed by the board of education for the
1041 Logan School District;
1042 (d) one elected local school board member appointed by the board of education for the
1043 Rich School District;
1044 (e) one member of the Utah State University board of trustees; and
1045 (f) seven representatives of business or industry employers within the region appointed
1046 jointly by the members appointed under Subsections (1)(a) through (e);
1047 (2) the Ogden-Weber Applied Technology College [
1048 composed of the following 10 members:
1049 (a) one elected local school board member appointed by the board of education for the
1050 Ogden City School District;
1051 (b) one elected local school board member appointed by the board of education for the
1052 Weber School District;
1053 (c) one member of the Weber State University board of trustees; and
1054 (d) seven representatives of business or industry employers within the region appointed
1055 jointly by the members appointed under Subsections (2)(a) through (c);
1056 (3) the Davis Applied Technology College [
1057 composed of the following 10 members:
1058 (a) one elected local school board member appointed by the board of education for the
1059 Davis School District;
1060 (b) one elected local school board member appointed by the board of education for the
1061 Morgan School District;
1062 (c) one member of the Weber State University board of trustees; and
1063 (d) seven representatives of business or industry employers within the region appointed
1064 jointly by the members appointed under Subsections (3)(a) through (c);
1065 (4) the Tooele Applied Technology College [
1066 composed of the following 12 members:
1067 (a) one elected local school board member appointed by the board of education for the
1068 Tooele County School District;
1069 (b) one member of the Utah State University board of trustees; and
1070 (c) 10 representatives of business or industry employers within the region appointed jointly
1071 by the members appointed under Subsections (4)(a) and (b);
1072 (5) the Mountainland Applied Technology College [
1073 composed of the following 18 members:
1074 (a) one elected local school board member appointed by the board of education for the
1075 Alpine School District;
1076 (b) one elected local school board member appointed by the board of education for the
1077 Nebo School District;
1078 (c) one elected local school board member appointed by the board of education for the
1079 Provo School District;
1080 (d) one elected local school board member appointed by the board of education for the
1081 South Summit School District;
1082 (e) one elected local school board member appointed by the board of education for the
1083 North Summit School District;
1084 (f) one elected local school board member appointed by the board of education for the
1085 Wasatch School District;
1086 (g) one elected local school board member appointed by the board of education for the
1087 Park City School District;
1088 (h) one member of the Utah Valley University board of trustees; and
1089 (i) 10 representatives of business or industry employers within the region appointed jointly
1090 by the members appointed under Subsections (5)(a) through (h);
1091 (6) the Uintah Basin Applied Technology College [
1092 composed of the following 10 members:
1093 (a) one elected local school board member appointed by the board of education for the
1094 Daggett School District;
1095 (b) one elected local school board member appointed by the board of education for the
1096 Duchesne School District;
1097 (c) one elected local school board member appointed by the board of education for the
1098 Uintah School District;
1099 (d) one member of the Utah State University board of trustees; and
1100 (e) six representatives of business or industry employers within the region appointed
1101 jointly by the members appointed under Subsections (6)(a) through (d);
1102 (7) the Southwest Applied Technology College [
1103 composed of the following 12 members:
1104 (a) one elected local school board member appointed by the board of education for the
1105 Beaver School District;
1106 (b) one elected local school board member appointed by the board of education for the
1107 Garfield School District;
1108 (c) one elected local school board member appointed by the board of education for the Iron
1109 School District;
1110 (d) one elected local school board member appointed by the board of education for the
1111 Kane School District;
1112 (e) one member of the Southern Utah University board of trustees; and
1113 (f) seven representatives of business or industry employers within the region appointed
1114 jointly by the members appointed under Subsections (7)(a) through (e);
1115 (8) the Dixie Applied Technology College [
1116 composed of the following 10 members:
1117 (a) one elected local school board member appointed by the board of education for the
1118 Washington School District;
1119 (b) one member of the Dixie State University board of trustees; and
1120 (c) eight representatives of business or industry employers within the region appointed
1121 jointly by the members appointed under Subsections (8)(a) and (b); and
1122 (9) the representatives of business or industry employers shall be:
1123 (a) appointed jointly by the designated members from a list of names provided by local
1124 organizations or associations whose members employ workers with career and technical education;
1125 (b) individuals recognized for their knowledge and expertise;
1126 (c) individuals who represent current and emerging business and industry sectors of the
1127 state; and
1128 (d) appointed on a nonpartisan basis.
1129 Section 20. Section 53B-2a-109 is amended to read:
1130 53B-2a-109. Applied technology college boards of directors -- Terms -- Quorum --
1131 Chair-- Compensation.
1132 (1) (a) At the first meeting of [
1133 after July 1, 2009:
1134 (i) the representatives from the local school boards shall divide up their positions so that
1135 approximately half of them serve for two-year terms and half serve for four-year terms; and
1136 (ii) the representatives from business and industry employers shall divide up their positions
1137 so that approximately half of them serve for two-year terms and half serve for four-year terms.
1138 (b) Except as provided in Subsection (1)(a), individuals appointed to [
1139 applied technology college board of directors shall serve four-year terms.
1140 (2) The original appointing authority shall fill any vacancies that occur on [
1141 an applied technology college board of directors.
1142 (3) A majority of [
1143 quorum.
1144 (4) [
1145 its membership.
1146 (5) A member of an applied technology college board of directors may not receive
1147 compensation or benefits for the member's service, but may receive per diem and travel expenses
1148 in accordance with:
1149 (a) Section 63A-3-106;
1150 (b) Section 63A-3-107; and
1151 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
1152 (6) (a) [
1153 [
1154 that are in accordance with the policies of the [
1155 trustees.
1156 (b) (i) [
1157 executive committee in [
1158 (ii) If established, [
1159 [
1160 interim between board meetings.
1161 (iii) [
1162 extraordinary and emergency circumstances.
1163 (iv) [
1164 to the [
1165 of directors' next regular meeting following the action.
1166 (7) [
1167 committees.
1168 Section 21. Section 53B-2a-110 is amended to read:
1169 53B-2a-110. Applied technology college board of directors' powers and duties.
1170 (1) [
1171 (a) assist the [
1172 for [
1173
1174 (b) after consulting with the [
1175 higher education institutions, school districts, and charter schools within [
1176 technology college's region, prepare a comprehensive strategic plan for delivering career and
1177 technical education within [
1178 (c) consult with business, industry, the Department of Workforce Services, the Governor's
1179 Office of Economic Development, and the Governor's Office of Management and Budget on an
1180 ongoing basis to determine what workers and skills are needed for employment in Utah businesses
1181 and industries;
1182 (d) develop programs based upon the information gathered in accordance with Subsection
1183 (1)(c), including expedited program approval and termination procedures to meet market needs;
1184 (e) adopt an annual budget and fund balances;
1185 (f) develop policies for the operation of career and technical education facilities under [
1186 the applied technology college board of directors' jurisdiction;
1187 (g) establish human resources and compensation policies for all employees in accordance
1188 with policies of the [
1189 (h) approve credentials for employees and assign employees to duties in accordance with
1190 [
1191 accreditation guidelines;
1192 (i) conduct annual program evaluations;
1193 (j) appoint program advisory committees and other advisory groups to provide counsel,
1194 support, and recommendations for updating and improving the effectiveness of training programs
1195 and services;
1196 (k) approve regulations, both regular and emergency, to be issued and executed by the
1197 [
1198 (l) coordinate with local school boards, school districts, and charter schools to meet the
1199 career and technical education needs of secondary students; and
1200 (m) develop policies and procedures for the admission, classification, instruction, and
1201 examination of students in accordance with the policies and accreditation guidelines of the [
1202
1203 (2) Subsection (1)(g) does not apply to [
1204 (3) [
1205 jurisdiction over career and technical education provided by a school district or charter school or
1206 provided by a higher education institution independently of [
1207 technology college.
1208 (4) If a program advisory committee or other advisory group submits a printed
1209 recommendation to [
1210 applied technology college board of directors shall acknowledge the recommendation with a
1211 printed response that explains the [
1212 regarding the recommendation and the reasons for the action.
1213 Section 22. Section 53B-2a-112 is amended to read:
1214 53B-2a-112. Applied technology colleges -- Relationships with other public and
1215 higher education institutions -- Agreements -- Priorities -- New capital facilities.
1216 (1) As used in this section, "higher education institution" means, for each [
1217 applied technology college, the higher education institution designated in Section 53B-2a-108 that
1218 has a representative on [
1219 (2) [
1220 duplication of career and technical education instructional facilities, programs, administration, and
1221 staff between the applied technology college [
1222 institutions.
1223 (3) [
1224 (a) with other higher education institutions to cultivate cooperative relationships;
1225 (b) with other public and higher education institutions to enhance career and technical
1226 education within its region; or
1227 (c) to comply with Subsection (2).
1228 (4) Before [
1229 facilities, [
1230 (a) maintaining [
1231 for both secondary and adult students;
1232 (b) coordinating with the president of a higher education institution and entering into any
1233 necessary agreements to provide career and technical education to both secondary and adult
1234 students that:
1235 (i) maintain and support existing higher education career and technical education
1236 programs; and
1237 (ii) maximize the use of existing higher education facilities; and
1238 (c) developing cooperative agreements with school districts, charter schools, other higher
1239 education institutions, businesses, industries, and community and private agencies to maximize
1240 the availability of career and technical education instructional facilities for both secondary and
1241 adult students.
1242 (5) (a) Before submitting a funding request pertaining to new capital facilities and land
1243 purchases to the [
1244 applied technology college shall:
1245 (i) ensure that all available instructional facilities are maximized in accordance with
1246 Subsections (4)(a) through (c); and
1247 (ii) coordinate the request with the president of a higher education institution, if applicable.
1248 (b) The State Building Board shall make a finding that the requirements of this section are
1249 met before [
1250
1251 purchases.
1252 (c) [
1253 construction of, plan for the design or construction of, or consent to the construction of a career
1254 and technical education facility without approval of the Legislature.
1255 (6) Before acquiring new fiscal and administrative support structures, [
1256 an applied technology college shall:
1257 (a) review the use of existing public or higher education administrative and accounting
1258 systems, financial record systems, and student and financial aid systems for the delivery of career
1259 and technical education in the region;
1260 (b) determine whether it is feasible to use those existing systems; and
1261 (c) with the approval of the [
1262 the board of trustees, use those existing systems.
1263 Section 23. Section 53B-2a-113 is amended to read:
1264 53B-2a-113. Applied technology colleges -- Leasing authority -- Lease-purchase
1265 agreements -- Report.
1266 (1) In accordance with Subsection 53B-2a-112(2), [
1267 technology college may enter into a lease with other higher education institutions, school districts,
1268 charter schools, state agencies, or business and industry for a term of:
1269 (a) one year or less with the approval of the [
1270 of directors; and
1271 (b) more than one year with the approval of the board of trustees and:
1272 (i) the approval of funding for the lease by the Legislature prior to [
1273 applied technology college entering into the lease; or
1274 (ii) the lease agreement includes language that allows termination of the lease without
1275 penalty.
1276 (2) (a) In accordance with Subsection 53B-2a-112(2), [
1277 [
1278 (i) there is a long-term benefit to the state;
1279 (ii) the project is included in both the [
1280 College of Applied Technology master plans;
1281 (iii) the lease-purchase agreement includes language that allows termination of the lease;
1282 (iv) the lease-purchase agreement is approved by the [
1283 board of directors and the board of trustees; and
1284 (v) the lease-purchase agreement is:
1285 (A) reviewed by the Division of Facilities Construction and Management;
1286 (B) reviewed by the State Building Board; and
1287 (C) approved by the Legislature.
1288 (b) An approval under Subsection (2)(a) shall include a recognition of:
1289 (i) all parties, dates, and elements of the agreement;
1290 (ii) the equity or collateral component that creates the benefit; and
1291 (iii) the options dealing with the sale and division of equity.
1292 (3) (a) Each [
1293 report to the board of trustees that details each of [
1294 annual costs, location, square footage, and recommendations for lease continuation.
1295 (b) The [
1296 compile and distribute an annual combined lease report for all [
1297 technology colleges to the Division of Facilities Construction Management and to others upon
1298 request.
1299 (4) The [
1300 combined lease report in determining planning, utilization, and budget requests.
1301 Section 24. Section 53B-6-106 is amended to read:
1302 53B-6-106. Jobs Now and Economic Development Initiatives.
1303 (1) (a) The Utah College of Applied Technology Board of Trustees shall develop,
1304 establish, and maintain a Jobs Now Initiative, to promote workforce preparation programs that
1305 meet critical needs and shortages throughout the state.
1306 (b) The State Board of Regents shall develop, establish, and maintain economic
1307 development initiatives within the system of higher education.
1308 (2) The initiatives specified in Subsection (1) shall provide support for technical training
1309 expansion that trains skilled potential employees within a period not to exceed 12 months for
1310 technical jobs in critical needs occupations and other innovative economic development policy
1311 initiatives.
1312 (3) (a) Subject to future budget constraints, the Legislature shall provide an annual
1313 appropriation to the Utah College of Applied Technology to fund the Jobs Now Initiative
1314 established in Subsection (1)(a).
1315 (b) (i) The Utah College of Applied Technology Board of Trustees shall allocate the
1316 appropriation for the Jobs Now Initiative to [
1317 the [
1318 (ii) [
1319 Subsection (3)(b)(i) for technical training expansion referred to in Subsection (2).
1320 (c) Subject to future budget constraints, the Legislature shall provide an annual
1321 appropriation to the State Board of Regents to fund economic development initiatives established
1322 pursuant Subsection (1)(b).
1323 (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1324 (i) the Utah College of Applied Technology Board of Trustees shall make rules to
1325 implement the Jobs Now Initiative; and
1326 (ii) the board shall make rules to implement economic development initiatives.
1327 Section 25. Section 53B-8d-102 is amended to read:
1328 53B-8d-102. Definitions.
1329 As used in this chapter:
1330 (1) "Division" means the Division of Child and Family Services.
1331 (2) "Long-term foster care" means an individual who remains in the custody of the
1332 division, whether or not the individual resides:
1333 (a) with licensed foster parents; or
1334 (b) in independent living arrangements under the supervision of the division.
1335 (3) "State institution of higher education" means:
1336 (a) [
1337 (b) [
1338 payment of tuition or fees for the attainment of educational or vocational objectives leading to a
1339 degree or certificate, including:
1340 [
1341 [
1342 [
1343 [
1344 (i) a business school;
1345 (ii) a technical school;
1346 (iii) an applied technology college within the Utah College of Applied Technology;
1347 (iv) a trade school; or
1348 (v) [
1349 (4) "Tuition" means tuition at the rate for residents of the state.
1350 (5) "Ward of the state" means an individual:
1351 (a) who is:
1352 (i) at least 17 years of age; and
1353 (ii) not older than 26 years of age;
1354 (b) who had a permanency goal in the individual's child and family plan, as described in
1355 Sections 62A-4a-205 and 78A-6-314, of long-term foster care while in the custody of the division;
1356 and
1357 (c) for whom the custody of the division was not terminated as a result of adoption.
1358 Section 26. Section 53B-16-102 is amended to read:
1359 53B-16-102. Changes in curriculum -- Substantial alterations in institutional
1360 operations -- Periodic review of programs -- Career and technical education curriculum
1361 changes.
1362 (1) Under procedures and policies approved by the board and developed in consultation
1363 with each institution of higher education, each institution may make such changes in its curriculum
1364 as necessary to better effectuate the institutional role previously approved by the board.
1365 (2) Notice of a change in the curriculum shall in all cases be promptly submitted to the
1366 board.
1367 (3) The board shall establish procedures and policies for considering institutional
1368 proposals for substantial alterations in the scope of existing institutional operations.
1369 (4) Alterations shall not be made without prior approval of the state board.
1370 (5) For purposes of this section, "substantial alteration" means the establishment of a
1371 branch, extension center, college, professional school, division, institute, department, or a new
1372 program in instruction, research, or public services or a new degree, diploma, or certificate.
1373 (6) The board shall conduct periodic reviews of all programs of instruction, research, and
1374 public service at each institution, including those funded by gifts, grants, and contracts, and may
1375 require the modification or termination of any program.
1376 (7) Prior to requiring modification or termination of a program, the board shall give the
1377 institution adequate opportunity for a hearing before the board.
1378 (8) In making decisions related to career and technical education curriculum changes, the
1379 board shall request a review of the proposed changes by the State Board of Education and the Utah
1380 College of Applied Technology Board of Trustees to ensure an orderly and systematic career and
1381 technical education curriculum that eliminates overlap and duplication of course work with the
1382 high schools and [
1383 Technology.
1384 Section 27. Section 53B-17-105 is amended to read:
1385 53B-17-105. Utah Education and Telehealth Network.
1386 (1) There is created the Utah Education and Telehealth Network, or UETN.
1387 (2) UETN shall:
1388 (a) coordinate and support the telecommunications needs of public and higher education,
1389 public libraries, and entities affiliated with the state systems of public and higher education as
1390 approved by the Utah Education and Telehealth Network Board, including the statewide
1391 development and implementation of a network for education, which utilizes satellite, microwave,
1392 fiber-optic, broadcast, and other transmission media;
1393 (b) coordinate the various telecommunications technology initiatives of public and higher
1394 education;
1395 (c) provide high-quality, cost-effective Internet access and appropriate interface equipment
1396 for schools and school systems;
1397 (d) procure, install, and maintain telecommunication services and equipment on behalf of
1398 public and higher education;
1399 (e) develop or implement other programs or services for the delivery of distance learning
1400 and telehealth services as directed by law;
1401 (f) apply for state and federal funding on behalf of:
1402 (i) public and higher education; and
1403 (ii) telehealth services;
1404 (g) in consultation with health care providers from a variety of health care systems, explore
1405 and encourage the development of telehealth services as a means of reducing health care costs and
1406 increasing health care quality and access, with emphasis on assisting rural health care providers
1407 and special populations; and
1408 (h) in consultation with the Utah Department of Health, advise the governor and the
1409 Legislature on:
1410 (i) the role of telehealth in the state;
1411 (ii) the policy issues related to telehealth;
1412 (iii) the changing telehealth needs and resources in the state; and
1413 (iv) state budgetary matters related to telehealth.
1414 (3) In performing the duties under Subsection (2), UETN shall:
1415 (a) provide services to schools, school districts, and the public and higher education
1416 systems through an open and competitive bidding process;
1417 (b) work with the private sector to deliver high-quality, cost-effective services;
1418 (c) avoid duplicating facilities, equipment, or services of private providers or public
1419 telecommunications service, as defined under Section 54-8b-2;
1420 (d) utilize statewide economic development criteria in the design and implementation of
1421 the educational telecommunications infrastructure; and
1422 (e) assure that public service entities, such as educators, public service providers, and
1423 public broadcasters, are provided access to the telecommunications infrastructure developed in the
1424 state.
1425 (4) The University of Utah shall provide administrative support for UETN.
1426 (5) (a) The Utah Education and Telehealth Network Board, which is the governing board
1427 for UETN, is created.
1428 (b) The Utah Education and Telehealth Network Board shall have 13 members as follows:
1429 (i) four members representing the state system of higher education appointed by the
1430 commissioner of higher education;
1431 (ii) four members representing the state system of public education including:
1432 (A) three members appointed by the State Board of Education; and
1433 (B) one member representing the Utah State Office of Education appointed by the state
1434 superintendent;
1435 (iii) one member representing applied technology centers appointed by the [
1436
1437 (iv) one member representing the state library appointed by the state librarian;
1438 (v) two members representing hospitals as follows:
1439 (A) the members may not be employed by the same hospital system;
1440 (B) one member shall represent a rural hospital;
1441 (C) one member shall represent an urban hospital; and
1442 (D) the chief administrator or the administrator's designee for each hospital licensed in this
1443 state shall select the two hospital representatives; and
1444 (vi) one member representing the office of the governor, appointed by the governor.
1445 (c) When a vacancy occurs in the membership for any reason, the replacement shall be
1446 appointed for the unexpired term.
1447 (d) (i) The board shall elect a chair.
1448 (ii) The chair shall set the agenda for the board meetings.
1449 (6) A member of the board may not receive compensation or benefits for the member's
1450 service, but may receive per diem and travel expenses in accordance with:
1451 (a) Section 63A-3-106;
1452 (b) Section 63A-3-107; and
1453 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
1454 (7) The board:
1455 (a) shall hire an executive director for UETN who may hire staff for UETN as permitted
1456 by the budget;
1457 (b) may terminate the executive director's employment or assignment;
1458 (c) shall determine the executive director's salary;
1459 (d) shall annually conduct a performance evaluation of the executive director;
1460 (e) shall establish policies the board determines are necessary for the operation of UETN
1461 and the administration of UETN's duties; and
1462 (f) shall advise UETN in:
1463 (i) the development and operation of a coordinated, statewide, multi-option
1464 telecommunications system to assist in the delivery of educational services and telehealth services
1465 throughout the state; and
1466 (ii) acquiring, producing, and distributing instructional content.
1467 (8) The executive director of UETN shall be an at-will employee.
1468 (9) UETN shall locate and maintain educational and telehealth telecommunication
1469 infrastructure throughout the state.
1470 (10) Educational institutions shall manage site operations under policy established by
1471 UETN.
1472 (11) Subject to future budget constraints, the Legislature shall provide an annual
1473 appropriation to operate UETN.
1474 (12) If the network operated by the Department of Technology Services is not available,
1475 UETN may provide network connections to the central administration of counties and
1476 municipalities for the sole purpose of transferring data to a secure facility for backup and disaster
1477 recovery.
1478 Section 28. Section 59-12-102 is amended to read:
1479 59-12-102. Definitions.
1480 As used in this chapter:
1481 (1) "800 service" means a telecommunications service that:
1482 (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
1483 (b) is typically marketed:
1484 (i) under the name 800 toll-free calling;
1485 (ii) under the name 855 toll-free calling;
1486 (iii) under the name 866 toll-free calling;
1487 (iv) under the name 877 toll-free calling;
1488 (v) under the name 888 toll-free calling; or
1489 (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the Federal
1490 Communications Commission.
1491 (2) (a) "900 service" means an inbound toll telecommunications service that:
1492 (i) a subscriber purchases;
1493 (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to the
1494 subscriber's:
1495 (A) prerecorded announcement; or
1496 (B) live service; and
1497 (iii) is typically marketed:
1498 (A) under the name 900 service; or
1499 (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
1500 Communications Commission.
1501 (b) "900 service" does not include a charge for:
1502 (i) a collection service a seller of a telecommunications service provides to a subscriber;
1503 or
1504 (ii) the following a subscriber sells to the subscriber's customer:
1505 (A) a product; or
1506 (B) a service.
1507 (3) (a) "Admission or user fees" includes season passes.
1508 (b) "Admission or user fees" does not include annual membership dues to private
1509 organizations.
1510 (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
1511 November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
1512 Agreement after November 12, 2002.
1513 (5) "Agreement combined tax rate" means the sum of the tax rates:
1514 (a) listed under Subsection (6); and
1515 (b) that are imposed within a local taxing jurisdiction.
1516 (6) "Agreement sales and use tax" means a tax imposed under:
1517 (a) Subsection 59-12-103(2)(a)(i)(A);
1518 (b) Subsection 59-12-103(2)(b)(i);
1519 (c) Subsection 59-12-103(2)(c)(i);
1520 (d) Subsection 59-12-103(2)(d)(i)(A)(I);
1521 (e) Section 59-12-204;
1522 (f) Section 59-12-401;
1523 (g) Section 59-12-402;
1524 (h) Section 59-12-402.1;
1525 (i) Section 59-12-703;
1526 (j) Section 59-12-802;
1527 (k) Section 59-12-804;
1528 (l) Section 59-12-1102;
1529 (m) Section 59-12-1302;
1530 (n) Section 59-12-1402;
1531 (o) Section 59-12-1802;
1532 (p) Section 59-12-2003;
1533 (q) Section 59-12-2103;
1534 (r) Section 59-12-2213;
1535 (s) Section 59-12-2214;
1536 (t) Section 59-12-2215;
1537 (u) Section 59-12-2216;
1538 (v) Section 59-12-2217; or
1539 (w) Section 59-12-2218.
1540 (7) "Aircraft" is as defined in Section 72-10-102.
1541 (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
1542 (a) except for:
1543 (i) an airline as defined in Section 59-2-102; or
1544 (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
1545 includes a corporation that is qualified to do business but is not otherwise doing business in the
1546 state, of an airline; and
1547 (b) that has the workers, expertise, and facilities to perform the following, regardless of
1548 whether the business entity performs the following in this state:
1549 (i) check, diagnose, overhaul, and repair:
1550 (A) an onboard system of a fixed wing turbine powered aircraft; and
1551 (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
1552 (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
1553 engine;
1554 (iii) perform at least the following maintenance on a fixed wing turbine powered aircraft:
1555 (A) an inspection;
1556 (B) a repair, including a structural repair or modification;
1557 (C) changing landing gear; and
1558 (D) addressing issues related to an aging fixed wing turbine powered aircraft;
1559 (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
1560 completely apply new paint to the fixed wing turbine powered aircraft; and
1561 (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that results
1562 in a change in the fixed wing turbine powered aircraft's certification requirements by the authority
1563 that certifies the fixed wing turbine powered aircraft.
1564 (9) "Alcoholic beverage" means a beverage that:
1565 (a) is suitable for human consumption; and
1566 (b) contains .5% or more alcohol by volume.
1567 (10) "Alternative energy" means:
1568 (a) biomass energy;
1569 (b) geothermal energy;
1570 (c) hydroelectric energy;
1571 (d) solar energy;
1572 (e) wind energy; or
1573 (f) energy that is derived from:
1574 (i) coal-to-liquids;
1575 (ii) nuclear fuel;
1576 (iii) oil-impregnated diatomaceous earth;
1577 (iv) oil sands;
1578 (v) oil shale;
1579 (vi) petroleum coke; or
1580 (vii) waste heat from:
1581 (A) an industrial facility; or
1582 (B) a power station in which an electric generator is driven through a process in which
1583 water is heated, turns into steam, and spins a steam turbine.
1584 (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production facility"
1585 means a facility that:
1586 (i) uses alternative energy to produce electricity; and
1587 (ii) has a production capacity of two megawatts or greater.
1588 (b) A facility is an alternative energy electricity production facility regardless of whether
1589 the facility is:
1590 (i) connected to an electric grid; or
1591 (ii) located on the premises of an electricity consumer.
1592 (12) (a) "Ancillary service" means a service associated with, or incidental to, the provision
1593 of telecommunications service.
1594 (b) "Ancillary service" includes:
1595 (i) a conference bridging service;
1596 (ii) a detailed communications billing service;
1597 (iii) directory assistance;
1598 (iv) a vertical service; or
1599 (v) a voice mail service.
1600 (13) "Area agency on aging" is as defined in Section 62A-3-101.
1601 (14) "Assisted amusement device" means an amusement device, skill device, or ride device
1602 that is started and stopped by an individual:
1603 (a) who is not the purchaser or renter of the right to use or operate the amusement device,
1604 skill device, or ride device; and
1605 (b) at the direction of the seller of the right to use the amusement device, skill device, or
1606 ride device.
1607 (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
1608 washing of tangible personal property if the cleaning or washing labor is primarily performed by
1609 an individual:
1610 (a) who is not the purchaser of the cleaning or washing of the tangible personal property;
1611 and
1612 (b) at the direction of the seller of the cleaning or washing of the tangible personal
1613 property.
1614 (16) "Authorized carrier" means:
1615 (a) in the case of vehicles operated over public highways, the holder of credentials
1616 indicating that the vehicle is or will be operated pursuant to both the International Registration
1617 Plan and the International Fuel Tax Agreement;
1618 (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
1619 certificate or air carrier's operating certificate; or
1620 (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
1621 a person who uses locomotives, freight cars, railroad work equipment, or other rolling stock in
1622 more than one state.
1623 (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
1624 following that is used as the primary source of energy to produce fuel or electricity:
1625 (i) material from a plant or tree; or
1626 (ii) other organic matter that is available on a renewable basis, including:
1627 (A) slash and brush from forests and woodlands;
1628 (B) animal waste;
1629 (C) waste vegetable oil;
1630 (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
1631 wastewater residuals, or through the conversion of a waste material through a nonincineration,
1632 thermal conversion process;
1633 (E) aquatic plants; and
1634 (F) agricultural products.
1635 (b) "Biomass energy" does not include:
1636 (i) black liquor; or
1637 (ii) treated woods.
1638 (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
1639 property, products, or services if the tangible personal property, products, or services are:
1640 (i) distinct and identifiable; and
1641 (ii) sold for one nonitemized price.
1642 (b) "Bundled transaction" does not include:
1643 (i) the sale of tangible personal property if the sales price varies, or is negotiable, on the
1644 basis of the selection by the purchaser of the items of tangible personal property included in the
1645 transaction;
1646 (ii) the sale of real property;
1647 (iii) the sale of services to real property;
1648 (iv) the retail sale of tangible personal property and a service if:
1649 (A) the tangible personal property:
1650 (I) is essential to the use of the service; and
1651 (II) is provided exclusively in connection with the service; and
1652 (B) the service is the true object of the transaction;
1653 (v) the retail sale of two services if:
1654 (A) one service is provided that is essential to the use or receipt of a second service;
1655 (B) the first service is provided exclusively in connection with the second service; and
1656 (C) the second service is the true object of the transaction;
1657 (vi) a transaction that includes tangible personal property or a product subject to taxation
1658 under this chapter and tangible personal property or a product that is not subject to taxation under
1659 this chapter if the:
1660 (A) seller's purchase price of the tangible personal property or product subject to taxation
1661 under this chapter is de minimis; or
1662 (B) seller's sales price of the tangible personal property or product subject to taxation under
1663 this chapter is de minimis; and
1664 (vii) the retail sale of tangible personal property that is not subject to taxation under this
1665 chapter and tangible personal property that is subject to taxation under this chapter if:
1666 (A) that retail sale includes:
1667 (I) food and food ingredients;
1668 (II) a drug;
1669 (III) durable medical equipment;
1670 (IV) mobility enhancing equipment;
1671 (V) an over-the-counter drug;
1672 (VI) a prosthetic device; or
1673 (VII) a medical supply; and
1674 (B) subject to Subsection (18)(f):
1675 (I) the seller's purchase price of the tangible personal property subject to taxation under
1676 this chapter is 50% or less of the seller's total purchase price of that retail sale; or
1677 (II) the seller's sales price of the tangible personal property subject to taxation under this
1678 chapter is 50% or less of the seller's total sales price of that retail sale.
1679 (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
1680 service that is distinct and identifiable does not include:
1681 (A) packaging that:
1682 (I) accompanies the sale of the tangible personal property, product, or service; and
1683 (II) is incidental or immaterial to the sale of the tangible personal property, product, or
1684 service;
1685 (B) tangible personal property, a product, or a service provided free of charge with the
1686 purchase of another item of tangible personal property, a product, or a service; or
1687 (C) an item of tangible personal property, a product, or a service included in the definition
1688 of "purchase price."
1689 (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
1690 product, or a service is provided free of charge with the purchase of another item of tangible
1691 personal property, a product, or a service if the sales price of the purchased item of tangible
1692 personal property, product, or service does not vary depending on the inclusion of the tangible
1693 personal property, product, or service provided free of charge.
1694 (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price does
1695 not include a price that is separately identified by tangible personal property, product, or service
1696 on the following, regardless of whether the following is in paper format or electronic format:
1697 (A) a binding sales document; or
1698 (B) another supporting sales-related document that is available to a purchaser.
1699 (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another supporting
1700 sales-related document that is available to a purchaser includes:
1701 (A) a bill of sale;
1702 (B) a contract;
1703 (C) an invoice;
1704 (D) a lease agreement;
1705 (E) a periodic notice of rates and services;
1706 (F) a price list;
1707 (G) a rate card;
1708 (H) a receipt; or
1709 (I) a service agreement.
1710 (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal property
1711 or a product subject to taxation under this chapter is de minimis if:
1712 (A) the seller's purchase price of the tangible personal property or product is 10% or less
1713 of the seller's total purchase price of the bundled transaction; or
1714 (B) the seller's sales price of the tangible personal property or product is 10% or less of the
1715 seller's total sales price of the bundled transaction.
1716 (ii) For purposes of Subsection (18)(b)(vi), a seller:
1717 (A) shall use the seller's purchase price or the seller's sales price to determine if the
1718 purchase price or sales price of the tangible personal property or product subject to taxation under
1719 this chapter is de minimis; and
1720 (B) may not use a combination of the seller's purchase price and the seller's sales price to
1721 determine if the purchase price or sales price of the tangible personal property or product subject
1722 to taxation under this chapter is de minimis.
1723 (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
1724 contract to determine if the sales price of tangible personal property or a product is de minimis.
1725 (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of the
1726 seller's purchase price and the seller's sales price to determine if tangible personal property subject
1727 to taxation under this chapter is 50% or less of the seller's total purchase price or sales price of that
1728 retail sale.
1729 (19) "Certified automated system" means software certified by the governing board of the
1730 agreement that:
1731 (a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
1732 (i) on a transaction; and
1733 (ii) in the states that are members of the agreement;
1734 (b) determines the amount of agreement sales and use tax to remit to a state that is a
1735 member of the agreement; and
1736 (c) maintains a record of the transaction described in Subsection (19)(a)(i).
1737 (20) "Certified service provider" means an agent certified:
1738 (a) by the governing board of the agreement; and
1739 (b) to perform all of a seller's sales and use tax functions for an agreement sales and use
1740 tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's own
1741 purchases.
1742 (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
1743 suitable for general use.
1744 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1745 commission shall make rules:
1746 (i) listing the items that constitute "clothing"; and
1747 (ii) that are consistent with the list of items that constitute "clothing" under the agreement.
1748 (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
1749 (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
1750 that does not constitute industrial use under Subsection (56) or residential use under Subsection
1751 (106).
1752 (24) (a) "Common carrier" means a person engaged in or transacting the business of
1753 transporting passengers, freight, merchandise, or other property for hire within this state.
1754 (b) (i) "Common carrier" does not include a person who, at the time the person is traveling
1755 to or from that person's place of employment, transports a passenger to or from the passenger's
1756 place of employment.
1757 (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3, Utah
1758 Administrative Rulemaking Act, the commission may make rules defining what constitutes a
1759 person's place of employment.
1760 (c) "Common carrier" does not include a person that provides transportation network
1761 services, as defined in Section 13-51-102.
1762 (25) "Component part" includes:
1763 (a) poultry, dairy, and other livestock feed, and their components;
1764 (b) baling ties and twine used in the baling of hay and straw;
1765 (c) fuel used for providing temperature control of orchards and commercial greenhouses
1766 doing a majority of their business in wholesale sales, and for providing power for off-highway type
1767 farm machinery; and
1768 (d) feed, seeds, and seedlings.
1769 (26) "Computer" means an electronic device that accepts information:
1770 (a) (i) in digital form; or
1771 (ii) in a form similar to digital form; and
1772 (b) manipulates that information for a result based on a sequence of instructions.
1773 (27) "Computer software" means a set of coded instructions designed to cause:
1774 (a) a computer to perform a task; or
1775 (b) automatic data processing equipment to perform a task.
1776 (28) "Computer software maintenance contract" means a contract that obligates a seller
1777 of computer software to provide a customer with:
1778 (a) future updates or upgrades to computer software;
1779 (b) support services with respect to computer software; or
1780 (c) a combination of Subsections (28)(a) and (b).
1781 (29) (a) "Conference bridging service" means an ancillary service that links two or more
1782 participants of an audio conference call or video conference call.
1783 (b) "Conference bridging service" may include providing a telephone number as part of
1784 the ancillary service described in Subsection (29)(a).
1785 (c) "Conference bridging service" does not include a telecommunications service used to
1786 reach the ancillary service described in Subsection (29)(a).
1787 (30) "Construction materials" means any tangible personal property that will be converted
1788 into real property.
1789 (31) "Delivered electronically" means delivered to a purchaser by means other than
1790 tangible storage media.
1791 (32) (a) "Delivery charge" means a charge:
1792 (i) by a seller of:
1793 (A) tangible personal property;
1794 (B) a product transferred electronically; or
1795 (C) services; and
1796 (ii) for preparation and delivery of the tangible personal property, product transferred
1797 electronically, or services described in Subsection (32)(a)(i) to a location designated by the
1798 purchaser.
1799 (b) "Delivery charge" includes a charge for the following:
1800 (i) transportation;
1801 (ii) shipping;
1802 (iii) postage;
1803 (iv) handling;
1804 (v) crating; or
1805 (vi) packing.
1806 (33) "Detailed telecommunications billing service" means an ancillary service of separately
1807 stating information pertaining to individual calls on a customer's billing statement.
1808 (34) "Dietary supplement" means a product, other than tobacco, that:
1809 (a) is intended to supplement the diet;
1810 (b) contains one or more of the following dietary ingredients:
1811 (i) a vitamin;
1812 (ii) a mineral;
1813 (iii) an herb or other botanical;
1814 (iv) an amino acid;
1815 (v) a dietary substance for use by humans to supplement the diet by increasing the total
1816 dietary intake; or
1817 (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
1818 described in Subsections (34)(b)(i) through (v);
1819 (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
1820 (A) tablet form;
1821 (B) capsule form;
1822 (C) powder form;
1823 (D) softgel form;
1824 (E) gelcap form; or
1825 (F) liquid form; or
1826 (ii) if the product is not intended for ingestion in a form described in Subsections
1827 (34)(c)(i)(A) through (F), is not represented:
1828 (A) as conventional food; and
1829 (B) for use as a sole item of:
1830 (I) a meal; or
1831 (II) the diet; and
1832 (d) is required to be labeled as a dietary supplement:
1833 (i) identifiable by the "Supplemental Facts" box found on the label; and
1834 (ii) as required by 21 C.F.R. Sec. 101.36.
1835 (35) "Digital audio-visual work" means a series of related images which, when shown in
1836 succession, imparts an impression of motion, together with accompanying sounds, if any.
1837 (36) (a) "Digital audio work" means a work that results from the fixation of a series of
1838 musical, spoken, or other sounds.
1839 (b) "Digital audio work" includes a ringtone.
1840 (37) "Digital book" means a work that is generally recognized in the ordinary and usual
1841 sense as a book.
1842 (38) (a) "Direct mail" means printed material delivered or distributed by United States mail
1843 or other delivery service:
1844 (i) to:
1845 (A) a mass audience; or
1846 (B) addressees on a mailing list provided:
1847 (I) by a purchaser of the mailing list; or
1848 (II) at the discretion of the purchaser of the mailing list; and
1849 (ii) if the cost of the printed material is not billed directly to the recipients.
1850 (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1851 purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1852 (c) "Direct mail" does not include multiple items of printed material delivered to a single
1853 address.
1854 (39) "Directory assistance" means an ancillary service of providing:
1855 (a) address information; or
1856 (b) telephone number information.
1857 (40) (a) "Disposable home medical equipment or supplies" means medical equipment or
1858 supplies that:
1859 (i) cannot withstand repeated use; and
1860 (ii) are purchased by, for, or on behalf of a person other than:
1861 (A) a health care facility as defined in Section 26-21-2;
1862 (B) a health care provider as defined in Section 78B-3-403;
1863 (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
1864 (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
1865 (b) "Disposable home medical equipment or supplies" does not include:
1866 (i) a drug;
1867 (ii) durable medical equipment;
1868 (iii) a hearing aid;
1869 (iv) a hearing aid accessory;
1870 (v) mobility enhancing equipment; or
1871 (vi) tangible personal property used to correct impaired vision, including:
1872 (A) eyeglasses; or
1873 (B) contact lenses.
1874 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1875 commission may by rule define what constitutes medical equipment or supplies.
1876 (41) "Drilling equipment manufacturer" means a facility:
1877 (a) located in the state;
1878 (b) with respect to which 51% or more of the manufacturing activities of the facility
1879 consist of manufacturing component parts of drilling equipment;
1880 (c) that uses pressure of 800,000 or more pounds per square inch as part of the
1881 manufacturing process; and
1882 (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
1883 manufacturing process.
1884 (42) (a) "Drug" means a compound, substance, or preparation, or a component of a
1885 compound, substance, or preparation that is:
1886 (i) recognized in:
1887 (A) the official United States Pharmacopoeia;
1888 (B) the official Homeopathic Pharmacopoeia of the United States;
1889 (C) the official National Formulary; or
1890 (D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
1891 (ii) intended for use in the:
1892 (A) diagnosis of disease;
1893 (B) cure of disease;
1894 (C) mitigation of disease;
1895 (D) treatment of disease; or
1896 (E) prevention of disease; or
1897 (iii) intended to affect:
1898 (A) the structure of the body; or
1899 (B) any function of the body.
1900 (b) "Drug" does not include:
1901 (i) food and food ingredients;
1902 (ii) a dietary supplement;
1903 (iii) an alcoholic beverage; or
1904 (iv) a prosthetic device.
1905 (43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
1906 equipment that:
1907 (i) can withstand repeated use;
1908 (ii) is primarily and customarily used to serve a medical purpose;
1909 (iii) generally is not useful to a person in the absence of illness or injury; and
1910 (iv) is not worn in or on the body.
1911 (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1912 equipment described in Subsection (43)(a).
1913 (c) "Durable medical equipment" does not include mobility enhancing equipment.
1914 (44) "Electronic" means:
1915 (a) relating to technology; and
1916 (b) having:
1917 (i) electrical capabilities;
1918 (ii) digital capabilities;
1919 (iii) magnetic capabilities;
1920 (iv) wireless capabilities;
1921 (v) optical capabilities;
1922 (vi) electromagnetic capabilities; or
1923 (vii) capabilities similar to Subsections (44)(b)(i) through (vi).
1924 (45) "Electronic financial payment service" means an establishment:
1925 (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1926 Clearinghouse Activities, of the 2012 North American Industry Classification System of the
1927 federal Executive Office of the President, Office of Management and Budget; and
1928 (b) that performs electronic financial payment services.
1929 (46) "Employee" is as defined in Section 59-10-401.
1930 (47) "Fixed guideway" means a public transit facility that uses and occupies:
1931 (a) rail for the use of public transit; or
1932 (b) a separate right-of-way for the use of public transit.
1933 (48) "Fixed wing turbine powered aircraft" means an aircraft that:
1934 (a) is powered by turbine engines;
1935 (b) operates on jet fuel; and
1936 (c) has wings that are permanently attached to the fuselage of the aircraft.
1937 (49) "Fixed wireless service" means a telecommunications service that provides radio
1938 communication between fixed points.
1939 (50) (a) "Food and food ingredients" means substances:
1940 (i) regardless of whether the substances are in:
1941 (A) liquid form;
1942 (B) concentrated form;
1943 (C) solid form;
1944 (D) frozen form;
1945 (E) dried form; or
1946 (F) dehydrated form; and
1947 (ii) that are:
1948 (A) sold for:
1949 (I) ingestion by humans; or
1950 (II) chewing by humans; and
1951 (B) consumed for the substance's:
1952 (I) taste; or
1953 (II) nutritional value.
1954 (b) "Food and food ingredients" includes an item described in Subsection (91)(b)(iii).
1955 (c) "Food and food ingredients" does not include:
1956 (i) an alcoholic beverage;
1957 (ii) tobacco; or
1958 (iii) prepared food.
1959 (51) (a) "Fundraising sales" means sales:
1960 (i) (A) made by a school; or
1961 (B) made by a school student;
1962 (ii) that are for the purpose of raising funds for the school to purchase equipment,
1963 materials, or provide transportation; and
1964 (iii) that are part of an officially sanctioned school activity.
1965 (b) For purposes of Subsection (51)(a)(iii), "officially sanctioned school activity" means
1966 a school activity:
1967 (i) that is conducted in accordance with a formal policy adopted by the school or school
1968 district governing the authorization and supervision of fundraising activities;
1969 (ii) that does not directly or indirectly compensate an individual teacher or other
1970 educational personnel by direct payment, commissions, or payment in kind; and
1971 (iii) the net or gross revenues from which are deposited in a dedicated account controlled
1972 by the school or school district.
1973 (52) "Geothermal energy" means energy contained in heat that continuously flows outward
1974 from the earth that is used as the sole source of energy to produce electricity.
1975 (53) "Governing board of the agreement" means the governing board of the agreement that
1976 is:
1977 (a) authorized to administer the agreement; and
1978 (b) established in accordance with the agreement.
1979 (54) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1980 (i) the executive branch of the state, including all departments, institutions, boards,
1981 divisions, bureaus, offices, commissions, and committees;
1982 (ii) the judicial branch of the state, including the courts, the Judicial Council, the Office
1983 of the Court Administrator, and similar administrative units in the judicial branch;
1984 (iii) the legislative branch of the state, including the House of Representatives, the Senate,
1985 the Legislative Printing Office, the Office of Legislative Research and General Counsel, the Office
1986 of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
1987 (iv) the National Guard;
1988 (v) an independent entity as defined in Section 63E-1-102; or
1989 (vi) a political subdivision as defined in Section 17B-1-102.
1990 (b) "Governmental entity" does not include the state systems of public and higher
1991 education, including:
1992 (i) [
1993 Applied Technology;
1994 (ii) a school;
1995 (iii) the State Board of Education;
1996 (iv) the State Board of Regents; or
1997 (v) an institution of higher education.
1998 (55) "Hydroelectric energy" means water used as the sole source of energy to produce
1999 electricity.
2000 (56) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
2001 fuels:
2002 (a) in mining or extraction of minerals;
2003 (b) in agricultural operations to produce an agricultural product up to the time of harvest
2004 or placing the agricultural product into a storage facility, including:
2005 (i) commercial greenhouses;
2006 (ii) irrigation pumps;
2007 (iii) farm machinery;
2008 (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered under
2009 Title 41, Chapter 1a, Part 2, Registration; and
2010 (v) other farming activities;
2011 (c) in manufacturing tangible personal property at an establishment described in SIC Codes
2012 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
2013 of the President, Office of Management and Budget;
2014 (d) by a scrap recycler if:
2015 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
2016 or more of the following items into prepared grades of processed materials for use in new products:
2017 (A) iron;
2018 (B) steel;
2019 (C) nonferrous metal;
2020 (D) paper;
2021 (E) glass;
2022 (F) plastic;
2023 (G) textile; or
2024 (H) rubber; and
2025 (ii) the new products under Subsection (56)(d)(i) would otherwise be made with
2026 nonrecycled materials; or
2027 (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
2028 cogeneration facility as defined in Section 54-2-1.
2029 (57) (a) Except as provided in Subsection (57)(b), "installation charge" means a charge for
2030 installing:
2031 (i) tangible personal property; or
2032 (ii) a product transferred electronically.
2033 (b) "Installation charge" does not include a charge for:
2034 (i) repairs or renovations of:
2035 (A) tangible personal property; or
2036 (B) a product transferred electronically; or
2037 (ii) attaching tangible personal property or a product transferred electronically:
2038 (A) to other tangible personal property; and
2039 (B) as part of a manufacturing or fabrication process.
2040 (58) "Institution of higher education" means an institution of higher education listed in
2041 Section 53B-2-101.
2042 (59) (a) "Lease" or "rental" means a transfer of possession or control of tangible personal
2043 property or a product transferred electronically for:
2044 (i) (A) a fixed term; or
2045 (B) an indeterminate term; and
2046 (ii) consideration.
2047 (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
2048 amount of consideration may be increased or decreased by reference to the amount realized upon
2049 sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code.
2050 (c) "Lease" or "rental" does not include:
2051 (i) a transfer of possession or control of property under a security agreement or deferred
2052 payment plan that requires the transfer of title upon completion of the required payments;
2053 (ii) a transfer of possession or control of property under an agreement that requires the
2054 transfer of title:
2055 (A) upon completion of required payments; and
2056 (B) if the payment of an option price does not exceed the greater of:
2057 (I) $100; or
2058 (II) 1% of the total required payments; or
2059 (iii) providing tangible personal property along with an operator for a fixed period of time
2060 or an indeterminate period of time if the operator is necessary for equipment to perform as
2061 designed.
2062 (d) For purposes of Subsection (59)(c)(iii), an operator is necessary for equipment to
2063 perform as designed if the operator's duties exceed the:
2064 (i) set-up of tangible personal property;
2065 (ii) maintenance of tangible personal property; or
2066 (iii) inspection of tangible personal property.
2067 (60) "Life science establishment" means an establishment in this state that is classified
2068 under the following NAICS codes of the 2007 North American Industry Classification System of
2069 the federal Executive Office of the President, Office of Management and Budget:
2070 (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
2071 (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
2072 Manufacturing; or
2073 (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
2074 (61) "Life science research and development facility" means a facility owned, leased, or
2075 rented by a life science establishment if research and development is performed in 51% or more
2076 of the total area of the facility.
2077 (62) "Load and leave" means delivery to a purchaser by use of a tangible storage media
2078 if the tangible storage media is not physically transferred to the purchaser.
2079 (63) "Local taxing jurisdiction" means a:
2080 (a) county that is authorized to impose an agreement sales and use tax;
2081 (b) city that is authorized to impose an agreement sales and use tax; or
2082 (c) town that is authorized to impose an agreement sales and use tax.
2083 (64) "Manufactured home" is as defined in Section 15A-1-302.
2084 (65) "Manufacturing facility" means:
2085 (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
2086 Classification Manual of the federal Executive Office of the President, Office of Management and
2087 Budget;
2088 (b) a scrap recycler if:
2089 (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
2090 or more of the following items into prepared grades of processed materials for use in new products:
2091 (A) iron;
2092 (B) steel;
2093 (C) nonferrous metal;
2094 (D) paper;
2095 (E) glass;
2096 (F) plastic;
2097 (G) textile; or
2098 (H) rubber; and
2099 (ii) the new products under Subsection (65)(b)(i) would otherwise be made with
2100 nonrecycled materials; or
2101 (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is placed
2102 in service on or after May 1, 2006.
2103 (66) "Member of the immediate family of the producer" means a person who is related to
2104 a producer described in Subsection 59-12-104(20)(a) as a:
2105 (a) child or stepchild, regardless of whether the child or stepchild is:
2106 (i) an adopted child or adopted stepchild; or
2107 (ii) a foster child or foster stepchild;
2108 (b) grandchild or stepgrandchild;
2109 (c) grandparent or stepgrandparent;
2110 (d) nephew or stepnephew;
2111 (e) niece or stepniece;
2112 (f) parent or stepparent;
2113 (g) sibling or stepsibling;
2114 (h) spouse;
2115 (i) person who is the spouse of a person described in Subsections (66)(a) through (g); or
2116 (j) person similar to a person described in Subsections (66)(a) through (i) as determined
2117 by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2118 Rulemaking Act.
2119 (67) "Mobile home" is as defined in Section 15A-1-302.
2120 (68) "Mobile telecommunications service" is as defined in the Mobile
2121 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2122 (69) (a) "Mobile wireless service" means a telecommunications service, regardless of the
2123 technology used, if:
2124 (i) the origination point of the conveyance, routing, or transmission is not fixed;
2125 (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
2126 (iii) the origination point described in Subsection (69)(a)(i) and the termination point
2127 described in Subsection (69)(a)(ii) are not fixed.
2128 (b) "Mobile wireless service" includes a telecommunications service that is provided by
2129 a commercial mobile radio service provider.
2130 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2131 commission may by rule define "commercial mobile radio service provider."
2132 (70) (a) Except as provided in Subsection (70)(c), "mobility enhancing equipment" means
2133 equipment that is:
2134 (i) primarily and customarily used to provide or increase the ability to move from one
2135 place to another;
2136 (ii) appropriate for use in a:
2137 (A) home; or
2138 (B) motor vehicle; and
2139 (iii) not generally used by persons with normal mobility.
2140 (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of the
2141 equipment described in Subsection (70)(a).
2142 (c) "Mobility enhancing equipment" does not include:
2143 (i) a motor vehicle;
2144 (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
2145 vehicle manufacturer;
2146 (iii) durable medical equipment; or
2147 (iv) a prosthetic device.
2148 (71) "Model 1 seller" means a seller registered under the agreement that has selected a
2149 certified service provider as the seller's agent to perform all of the seller's sales and use tax
2150 functions for agreement sales and use taxes other than the seller's obligation under Section
2151 59-12-124 to remit a tax on the seller's own purchases.
2152 (72) "Model 2 seller" means a seller registered under the agreement that:
2153 (a) except as provided in Subsection (72)(b), has selected a certified automated system to
2154 perform the seller's sales tax functions for agreement sales and use taxes; and
2155 (b) retains responsibility for remitting all of the sales tax:
2156 (i) collected by the seller; and
2157 (ii) to the appropriate local taxing jurisdiction.
2158 (73) (a) Subject to Subsection (73)(b), "model 3 seller" means a seller registered under the
2159 agreement that has:
2160 (i) sales in at least five states that are members of the agreement;
2161 (ii) total annual sales revenues of at least $500,000,000;
2162 (iii) a proprietary system that calculates the amount of tax:
2163 (A) for an agreement sales and use tax; and
2164 (B) due to each local taxing jurisdiction; and
2165 (iv) entered into a performance agreement with the governing board of the agreement.
2166 (b) For purposes of Subsection (73)(a), "model 3 seller" includes an affiliated group of
2167 sellers using the same proprietary system.
2168 (74) "Model 4 seller" means a seller that is registered under the agreement and is not a
2169 model 1 seller, model 2 seller, or model 3 seller.
2170 (75) "Modular home" means a modular unit as defined in Section 15A-1-302.
2171 (76) "Motor vehicle" is as defined in Section 41-1a-102.
2172 (77) "Oil sands" means impregnated bituminous sands that:
2173 (a) contain a heavy, thick form of petroleum that is released when heated, mixed with other
2174 hydrocarbons, or otherwise treated;
2175 (b) yield mixtures of liquid hydrocarbon; and
2176 (c) require further processing other than mechanical blending before becoming finished
2177 petroleum products.
2178 (78) "Oil shale" means a group of fine black to dark brown shales containing kerogen
2179 material that yields petroleum upon heating and distillation.
2180 (79) "Optional computer software maintenance contract" means a computer software
2181 maintenance contract that a customer is not obligated to purchase as a condition to the retail sale
2182 of computer software.
2183 (80) (a) "Other fuels" means products that burn independently to produce heat or energy.
2184 (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
2185 property.
2186 (81) (a) "Paging service" means a telecommunications service that provides transmission
2187 of a coded radio signal for the purpose of activating a specific pager.
2188 (b) For purposes of Subsection (81)(a), the transmission of a coded radio signal includes
2189 a transmission by message or sound.
2190 (82) "Pawnbroker" is as defined in Section 13-32a-102.
2191 (83) "Pawn transaction" is as defined in Section 13-32a-102.
2192 (84) (a) "Permanently attached to real property" means that for tangible personal property
2193 attached to real property:
2194 (i) the attachment of the tangible personal property to the real property:
2195 (A) is essential to the use of the tangible personal property; and
2196 (B) suggests that the tangible personal property will remain attached to the real property
2197 in the same place over the useful life of the tangible personal property; or
2198 (ii) if the tangible personal property is detached from the real property, the detachment
2199 would:
2200 (A) cause substantial damage to the tangible personal property; or
2201 (B) require substantial alteration or repair of the real property to which the tangible
2202 personal property is attached.
2203 (b) "Permanently attached to real property" includes:
2204 (i) the attachment of an accessory to the tangible personal property if the accessory is:
2205 (A) essential to the operation of the tangible personal property; and
2206 (B) attached only to facilitate the operation of the tangible personal property;
2207 (ii) a temporary detachment of tangible personal property from real property for a repair
2208 or renovation if the repair or renovation is performed where the tangible personal property and real
2209 property are located; or
2210 (iii) property attached to oil, gas, or water pipelines, except for the property listed in
2211 Subsection (84)(c)(iii) or (iv).
2212 (c) "Permanently attached to real property" does not include:
2213 (i) the attachment of portable or movable tangible personal property to real property if that
2214 portable or movable tangible personal property is attached to real property only for:
2215 (A) convenience;
2216 (B) stability; or
2217 (C) for an obvious temporary purpose;
2218 (ii) the detachment of tangible personal property from real property except for the
2219 detachment described in Subsection (84)(b)(ii);
2220 (iii) an attachment of the following tangible personal property to real property if the
2221 attachment to real property is only through a line that supplies water, electricity, gas,
2222 telecommunications, cable, or supplies a similar item as determined by the commission by rule
2223 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2224 (A) a computer;
2225 (B) a telephone;
2226 (C) a television; or
2227 (D) tangible personal property similar to Subsections (84)(c)(iii)(A) through (C) as
2228 determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2229 Administrative Rulemaking Act; or
2230 (iv) an item listed in Subsection (124)(c).
2231 (85) "Person" includes any individual, firm, partnership, joint venture, association,
2232 corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
2233 municipality, district, or other local governmental entity of the state, or any group or combination
2234 acting as a unit.
2235 (86) "Place of primary use":
2236 (a) for telecommunications service other than mobile telecommunications service, means
2237 the street address representative of where the customer's use of the telecommunications service
2238 primarily occurs, which shall be:
2239 (i) the residential street address of the customer; or
2240 (ii) the primary business street address of the customer; or
2241 (b) for mobile telecommunications service, is as defined in the Mobile
2242 Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2243 (87) (a) "Postpaid calling service" means a telecommunications service a person obtains
2244 by making a payment on a call-by-call basis:
2245 (i) through the use of a:
2246 (A) bank card;
2247 (B) credit card;
2248 (C) debit card; or
2249 (D) travel card; or
2250 (ii) by a charge made to a telephone number that is not associated with the origination or
2251 termination of the telecommunications service.
2252 (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
2253 service, that would be a prepaid wireless calling service if the service were exclusively a
2254 telecommunications service.
2255 (88) "Postproduction" means an activity related to the finishing or duplication of a medium
2256 described in Subsection 59-12-104(54)(a).
2257 (89) "Prepaid calling service" means a telecommunications service:
2258 (a) that allows a purchaser access to telecommunications service that is exclusively
2259 telecommunications service;
2260 (b) that:
2261 (i) is paid for in advance; and
2262 (ii) enables the origination of a call using an:
2263 (A) access number; or
2264 (B) authorization code;
2265 (c) that is dialed:
2266 (i) manually; or
2267 (ii) electronically; and
2268 (d) sold in predetermined units or dollars that decline:
2269 (i) by a known amount; and
2270 (ii) with use.
2271 (90) "Prepaid wireless calling service" means a telecommunications service:
2272 (a) that provides the right to utilize:
2273 (i) mobile wireless service; and
2274 (ii) other service that is not a telecommunications service, including:
2275 (A) the download of a product transferred electronically;
2276 (B) a content service; or
2277 (C) an ancillary service;
2278 (b) that:
2279 (i) is paid for in advance; and
2280 (ii) enables the origination of a call using an:
2281 (A) access number; or
2282 (B) authorization code;
2283 (c) that is dialed:
2284 (i) manually; or
2285 (ii) electronically; and
2286 (d) sold in predetermined units or dollars that decline:
2287 (i) by a known amount; and
2288 (ii) with use.
2289 (91) (a) "Prepared food" means:
2290 (i) food:
2291 (A) sold in a heated state; or
2292 (B) heated by a seller;
2293 (ii) two or more food ingredients mixed or combined by the seller for sale as a single item;
2294 or
2295 (iii) except as provided in Subsection (91)(c), food sold with an eating utensil provided
2296 by the seller, including a:
2297 (A) plate;
2298 (B) knife;
2299 (C) fork;
2300 (D) spoon;
2301 (E) glass;
2302 (F) cup;
2303 (G) napkin; or
2304 (H) straw.
2305 (b) "Prepared food" does not include:
2306 (i) food that a seller only:
2307 (A) cuts;
2308 (B) repackages; or
2309 (C) pasteurizes; or
2310 (ii) (A) the following:
2311 (I) raw egg;
2312 (II) raw fish;
2313 (III) raw meat;
2314 (IV) raw poultry; or
2315 (V) a food containing an item described in Subsections (91)(b)(ii)(A)(I) through (IV); and
2316 (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
2317 Food and Drug Administration's Food Code that a consumer cook the items described in
2318 Subsection (91)(b)(ii)(A) to prevent food borne illness; or
2319 (iii) the following if sold without eating utensils provided by the seller:
2320 (A) food and food ingredients sold by a seller if the seller's proper primary classification
2321 under the 2002 North American Industry Classification System of the federal Executive Office of
2322 the President, Office of Management and Budget, is manufacturing in Sector 311, Food
2323 Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
2324 (B) food and food ingredients sold in an unheated state:
2325 (I) by weight or volume; and
2326 (II) as a single item; or
2327 (C) a bakery item, including:
2328 (I) a bagel;
2329 (II) a bar;
2330 (III) a biscuit;
2331 (IV) bread;
2332 (V) a bun;
2333 (VI) a cake;
2334 (VII) a cookie;
2335 (VIII) a croissant;
2336 (IX) a danish;
2337 (X) a donut;
2338 (XI) a muffin;
2339 (XII) a pastry;
2340 (XIII) a pie;
2341 (XIV) a roll;
2342 (XV) a tart;
2343 (XVI) a torte; or
2344 (XVII) a tortilla.
2345 (c) An eating utensil provided by the seller does not include the following used to transport
2346 the food:
2347 (i) a container; or
2348 (ii) packaging.
2349 (92) "Prescription" means an order, formula, or recipe that is issued:
2350 (a) (i) orally;
2351 (ii) in writing;
2352 (iii) electronically; or
2353 (iv) by any other manner of transmission; and
2354 (b) by a licensed practitioner authorized by the laws of a state.
2355 (93) (a) Except as provided in Subsection (93)(b)(ii) or (iii), "prewritten computer
2356 software" means computer software that is not designed and developed:
2357 (i) by the author or other creator of the computer software; and
2358 (ii) to the specifications of a specific purchaser.
2359 (b) "Prewritten computer software" includes:
2360 (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
2361 software is not designed and developed:
2362 (A) by the author or other creator of the computer software; and
2363 (B) to the specifications of a specific purchaser;
2364 (ii) computer software designed and developed by the author or other creator of the
2365 computer software to the specifications of a specific purchaser if the computer software is sold to
2366 a person other than the purchaser; or
2367 (iii) except as provided in Subsection (93)(c), prewritten computer software or a prewritten
2368 portion of prewritten computer software:
2369 (A) that is modified or enhanced to any degree; and
2370 (B) if the modification or enhancement described in Subsection (93)(b)(iii)(A) is designed
2371 and developed to the specifications of a specific purchaser.
2372 (c) "Prewritten computer software" does not include a modification or enhancement
2373 described in Subsection (93)(b)(iii) if the charges for the modification or enhancement are:
2374 (i) reasonable; and
2375 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the invoice
2376 or other statement of price provided to the purchaser at the time of sale or later, as demonstrated
2377 by:
2378 (A) the books and records the seller keeps at the time of the transaction in the regular
2379 course of business, including books and records the seller keeps at the time of the transaction in
2380 the regular course of business for nontax purposes;
2381 (B) a preponderance of the facts and circumstances at the time of the transaction; and
2382 (C) the understanding of all of the parties to the transaction.
2383 (94) (a) "Private communications service" means a telecommunications service:
2384 (i) that entitles a customer to exclusive or priority use of one or more communications
2385 channels between or among termination points; and
2386 (ii) regardless of the manner in which the one or more communications channels are
2387 connected.
2388 (b) "Private communications service" includes the following provided in connection with
2389 the use of one or more communications channels:
2390 (i) an extension line;
2391 (ii) a station;
2392 (iii) switching capacity; or
2393 (iv) another associated service that is provided in connection with the use of one or more
2394 communications channels as defined in Section 59-12-215.
2395 (95) (a) Except as provided in Subsection (95)(b), "product transferred electronically"
2396 means a product transferred electronically that would be subject to a tax under this chapter if that
2397 product was transferred in a manner other than electronically.
2398 (b) "Product transferred electronically" does not include:
2399 (i) an ancillary service;
2400 (ii) computer software; or
2401 (iii) a telecommunications service.
2402 (96) (a) "Prosthetic device" means a device that is worn on or in the body to:
2403 (i) artificially replace a missing portion of the body;
2404 (ii) prevent or correct a physical deformity or physical malfunction; or
2405 (iii) support a weak or deformed portion of the body.
2406 (b) "Prosthetic device" includes:
2407 (i) parts used in the repairs or renovation of a prosthetic device;
2408 (ii) replacement parts for a prosthetic device;
2409 (iii) a dental prosthesis; or
2410 (iv) a hearing aid.
2411 (c) "Prosthetic device" does not include:
2412 (i) corrective eyeglasses; or
2413 (ii) contact lenses.
2414 (97) (a) "Protective equipment" means an item:
2415 (i) for human wear; and
2416 (ii) that is:
2417 (A) designed as protection:
2418 (I) to the wearer against injury or disease; or
2419 (II) against damage or injury of other persons or property; and
2420 (B) not suitable for general use.
2421 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2422 commission shall make rules:
2423 (i) listing the items that constitute "protective equipment"; and
2424 (ii) that are consistent with the list of items that constitute "protective equipment" under
2425 the agreement.
2426 (98) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
2427 printed matter, other than a photocopy:
2428 (i) regardless of:
2429 (A) characteristics;
2430 (B) copyright;
2431 (C) form;
2432 (D) format;
2433 (E) method of reproduction; or
2434 (F) source; and
2435 (ii) made available in printed or electronic format.
2436 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2437 commission may by rule define the term "photocopy."
2438 (99) (a) "Purchase price" and "sales price" mean the total amount of consideration:
2439 (i) valued in money; and
2440 (ii) for which tangible personal property, a product transferred electronically, or services
2441 are:
2442 (A) sold;
2443 (B) leased; or
2444 (C) rented.
2445 (b) "Purchase price" and "sales price" include:
2446 (i) the seller's cost of the tangible personal property, a product transferred electronically,
2447 or services sold;
2448 (ii) expenses of the seller, including:
2449 (A) the cost of materials used;
2450 (B) a labor cost;
2451 (C) a service cost;
2452 (D) interest;
2453 (E) a loss;
2454 (F) the cost of transportation to the seller; or
2455 (G) a tax imposed on the seller;
2456 (iii) a charge by the seller for any service necessary to complete the sale; or
2457 (iv) consideration a seller receives from a person other than the purchaser if:
2458 (A) (I) the seller actually receives consideration from a person other than the purchaser;
2459 and
2460 (II) the consideration described in Subsection (99)(b)(iv)(A)(I) is directly related to a price
2461 reduction or discount on the sale;
2462 (B) the seller has an obligation to pass the price reduction or discount through to the
2463 purchaser;
2464 (C) the amount of the consideration attributable to the sale is fixed and determinable by
2465 the seller at the time of the sale to the purchaser; and
2466 (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
2467 seller to claim a price reduction or discount; and
2468 (Bb) a person other than the seller authorizes, distributes, or grants the certificate, coupon,
2469 or other documentation with the understanding that the person other than the seller will reimburse
2470 any seller to whom the certificate, coupon, or other documentation is presented;
2471 (II) the purchaser identifies that purchaser to the seller as a member of a group or
2472 organization allowed a price reduction or discount, except that a preferred customer card that is
2473 available to any patron of a seller does not constitute membership in a group or organization
2474 allowed a price reduction or discount; or
2475 (III) the price reduction or discount is identified as a third party price reduction or discount
2476 on the:
2477 (Aa) invoice the purchaser receives; or
2478 (Bb) certificate, coupon, or other documentation the purchaser presents.
2479 (c) "Purchase price" and "sales price" do not include:
2480 (i) a discount:
2481 (A) in a form including:
2482 (I) cash;
2483 (II) term; or
2484 (III) coupon;
2485 (B) that is allowed by a seller;
2486 (C) taken by a purchaser on a sale; and
2487 (D) that is not reimbursed by a third party; or
2488 (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
2489 stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of sale
2490 or later, as demonstrated by the books and records the seller keeps at the time of the transaction
2491 in the regular course of business, including books and records the seller keeps at the time of the
2492 transaction in the regular course of business for nontax purposes, by a preponderance of the facts
2493 and circumstances at the time of the transaction, and by the understanding of all of the parties to
2494 the transaction:
2495 (A) the following from credit extended on the sale of tangible personal property or
2496 services:
2497 (I) a carrying charge;
2498 (II) a financing charge; or
2499 (III) an interest charge;
2500 (B) a delivery charge;
2501 (C) an installation charge;
2502 (D) a manufacturer rebate on a motor vehicle; or
2503 (E) a tax or fee legally imposed directly on the consumer.
2504 (100) "Purchaser" means a person to whom:
2505 (a) a sale of tangible personal property is made;
2506 (b) a product is transferred electronically; or
2507 (c) a service is furnished.
2508 (101) "Regularly rented" means:
2509 (a) rented to a guest for value three or more times during a calendar year; or
2510 (b) advertised or held out to the public as a place that is regularly rented to guests for
2511 value.
2512 (102) "Rental" is as defined in Subsection (59).
2513 (103) (a) Except as provided in Subsection (103)(b), "repairs or renovations of tangible
2514 personal property" means:
2515 (i) a repair or renovation of tangible personal property that is not permanently attached to
2516 real property; or
2517 (ii) attaching tangible personal property or a product transferred electronically to other
2518 tangible personal property or detaching tangible personal property or a product transferred
2519 electronically from other tangible personal property if:
2520 (A) the other tangible personal property to which the tangible personal property or product
2521 transferred electronically is attached or from which the tangible personal property or product
2522 transferred electronically is detached is not permanently attached to real property; and
2523 (B) the attachment of tangible personal property or a product transferred electronically to
2524 other tangible personal property or detachment of tangible personal property or a product
2525 transferred electronically from other tangible personal property is made in conjunction with a
2526 repair or replacement of tangible personal property or a product transferred electronically.
2527 (b) "Repairs or renovations of tangible personal property" does not include:
2528 (i) attaching prewritten computer software to other tangible personal property if the other
2529 tangible personal property to which the prewritten computer software is attached is not
2530 permanently attached to real property; or
2531 (ii) detaching prewritten computer software from other tangible personal property if the
2532 other tangible personal property from which the prewritten computer software is detached is not
2533 permanently attached to real property.
2534 (104) "Research and development" means the process of inquiry or experimentation aimed
2535 at the discovery of facts, devices, technologies, or applications and the process of preparing those
2536 devices, technologies, or applications for marketing.
2537 (105) (a) "Residential telecommunications services" means a telecommunications service
2538 or an ancillary service that is provided to an individual for personal use:
2539 (i) at a residential address; or
2540 (ii) at an institution, including a nursing home or a school, if the telecommunications
2541 service or ancillary service is provided to and paid for by the individual residing at the institution
2542 rather than the institution.
2543 (b) For purposes of Subsection (105)(a)(i), a residential address includes an:
2544 (i) apartment; or
2545 (ii) other individual dwelling unit.
2546 (106) "Residential use" means the use in or around a home, apartment building, sleeping
2547 quarters, and similar facilities or accommodations.
2548 (107) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
2549 (a) resale;
2550 (b) sublease; or
2551 (c) subrent.
2552 (108) (a) "Retailer" means any person engaged in a regularly organized business in
2553 tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
2554 who is selling to the user or consumer and not for resale.
2555 (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2556 engaged in the business of selling to users or consumers within the state.
2557 (109) (a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
2558 in any manner, of tangible personal property or any other taxable transaction under Subsection
2559 59-12-103(1), for consideration.
2560 (b) "Sale" includes:
2561 (i) installment and credit sales;
2562 (ii) any closed transaction constituting a sale;
2563 (iii) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
2564 (iv) any transaction if the possession of property is transferred but the seller retains the title
2565 as security for the payment of the price; and
2566 (v) any transaction under which right to possession, operation, or use of any article of
2567 tangible personal property is granted under a lease or contract and the transfer of possession would
2568 be taxable if an outright sale were made.
2569 (110) "Sale at retail" is as defined in Subsection (107).
2570 (111) "Sale-leaseback transaction" means a transaction by which title to tangible personal
2571 property or a product transferred electronically that is subject to a tax under this chapter is
2572 transferred:
2573 (a) by a purchaser-lessee;
2574 (b) to a lessor;
2575 (c) for consideration; and
2576 (d) if:
2577 (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase of
2578 the tangible personal property or product transferred electronically;
2579 (ii) the sale of the tangible personal property or product transferred electronically to the
2580 lessor is intended as a form of financing:
2581 (A) for the tangible personal property or product transferred electronically; and
2582 (B) to the purchaser-lessee; and
2583 (iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
2584 required to:
2585 (A) capitalize the tangible personal property or product transferred electronically for
2586 financial reporting purposes; and
2587 (B) account for the lease payments as payments made under a financing arrangement.
2588 (112) "Sales price" is as defined in Subsection (99).
2589 (113) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
2590 amounts charged by a school:
2591 (i) sales that are directly related to the school's educational functions or activities
2592 including:
2593 (A) the sale of:
2594 (I) textbooks;
2595 (II) textbook fees;
2596 (III) laboratory fees;
2597 (IV) laboratory supplies; or
2598 (V) safety equipment;
2599 (B) the sale of a uniform, protective equipment, or sports or recreational equipment that:
2600 (I) a student is specifically required to wear as a condition of participation in a
2601 school-related event or school-related activity; and
2602 (II) is not readily adaptable to general or continued usage to the extent that it takes the
2603 place of ordinary clothing;
2604 (C) sales of the following if the net or gross revenues generated by the sales are deposited
2605 into a school district fund or school fund dedicated to school meals:
2606 (I) food and food ingredients; or
2607 (II) prepared food; or
2608 (D) transportation charges for official school activities; or
2609 (ii) amounts paid to or amounts charged by a school for admission to a school-related
2610 event or school-related activity.
2611 (b) "Sales relating to schools" does not include:
2612 (i) bookstore sales of items that are not educational materials or supplies;
2613 (ii) except as provided in Subsection (113)(a)(i)(B):
2614 (A) clothing;
2615 (B) clothing accessories or equipment;
2616 (C) protective equipment; or
2617 (D) sports or recreational equipment; or
2618 (iii) amounts paid to or amounts charged by a school for admission to a school-related
2619 event or school-related activity if the amounts paid or charged are passed through to a person:
2620 (A) other than a:
2621 (I) school;
2622 (II) nonprofit organization authorized by a school board or a governing body of a private
2623 school to organize and direct a competitive secondary school activity; or
2624 (III) nonprofit association authorized by a school board or a governing body of a private
2625 school to organize and direct a competitive secondary school activity; and
2626 (B) that is required to collect sales and use taxes under this chapter.
2627 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2628 commission may make rules defining the term "passed through."
2629 (114) For purposes of this section and Section 59-12-104, "school":
2630 (a) means:
2631 (i) an elementary school or a secondary school that:
2632 (A) is a:
2633 (I) public school; or
2634 (II) private school; and
2635 (B) provides instruction for one or more grades kindergarten through 12; or
2636 (ii) a public school district; and
2637 (b) includes the Electronic High School as defined in Section 53A-15-1002.
2638 (115) "Seller" means a person that makes a sale, lease, or rental of:
2639 (a) tangible personal property;
2640 (b) a product transferred electronically; or
2641 (c) a service.
2642 (116) (a) "Semiconductor fabricating, processing, research, or development materials"
2643 means tangible personal property or a product transferred electronically if the tangible personal
2644 property or product transferred electronically is:
2645 (i) used primarily in the process of:
2646 (A) (I) manufacturing a semiconductor;
2647 (II) fabricating a semiconductor; or
2648 (III) research or development of a:
2649 (Aa) semiconductor; or
2650 (Bb) semiconductor manufacturing process; or
2651 (B) maintaining an environment suitable for a semiconductor; or
2652 (ii) consumed primarily in the process of:
2653 (A) (I) manufacturing a semiconductor;
2654 (II) fabricating a semiconductor; or
2655 (III) research or development of a:
2656 (Aa) semiconductor; or
2657 (Bb) semiconductor manufacturing process; or
2658 (B) maintaining an environment suitable for a semiconductor.
2659 (b) "Semiconductor fabricating, processing, research, or development materials" includes:
2660 (i) parts used in the repairs or renovations of tangible personal property or a product
2661 transferred electronically described in Subsection (116)(a); or
2662 (ii) a chemical, catalyst, or other material used to:
2663 (A) produce or induce in a semiconductor a:
2664 (I) chemical change; or
2665 (II) physical change;
2666 (B) remove impurities from a semiconductor; or
2667 (C) improve the marketable condition of a semiconductor.
2668 (117) "Senior citizen center" means a facility having the primary purpose of providing
2669 services to the aged as defined in Section 62A-3-101.
2670 (118) (a) Subject to Subsections (118)(b) and (c), "short-term lodging consumable" means
2671 tangible personal property that:
2672 (i) a business that provides accommodations and services described in Subsection
2673 59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services to
2674 a purchaser;
2675 (ii) is intended to be consumed by the purchaser; and
2676 (iii) is:
2677 (A) included in the purchase price of the accommodations and services; and
2678 (B) not separately stated on an invoice, bill of sale, or other similar document provided to
2679 the purchaser.
2680 (b) "Short-term lodging consumable" includes:
2681 (i) a beverage;
2682 (ii) a brush or comb;
2683 (iii) a cosmetic;
2684 (iv) a hair care product;
2685 (v) lotion;
2686 (vi) a magazine;
2687 (vii) makeup;
2688 (viii) a meal;
2689 (ix) mouthwash;
2690 (x) nail polish remover;
2691 (xi) a newspaper;
2692 (xii) a notepad;
2693 (xiii) a pen;
2694 (xiv) a pencil;
2695 (xv) a razor;
2696 (xvi) saline solution;
2697 (xvii) a sewing kit;
2698 (xviii) shaving cream;
2699 (xix) a shoe shine kit;
2700 (xx) a shower cap;
2701 (xxi) a snack item;
2702 (xxii) soap;
2703 (xxiii) toilet paper;
2704 (xxiv) a toothbrush;
2705 (xxv) toothpaste; or
2706 (xxvi) an item similar to Subsections (118)(b)(i) through (xxv) as the commission may
2707 provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2708 Act.
2709 (c) "Short-term lodging consumable" does not include:
2710 (i) tangible personal property that is cleaned or washed to allow the tangible personal
2711 property to be reused; or
2712 (ii) a product transferred electronically.
2713 (119) "Simplified electronic return" means the electronic return:
2714 (a) described in Section 318(C) of the agreement; and
2715 (b) approved by the governing board of the agreement.
2716 (120) "Solar energy" means the sun used as the sole source of energy for producing
2717 electricity.
2718 (121) (a) "Sports or recreational equipment" means an item:
2719 (i) designed for human use; and
2720 (ii) that is:
2721 (A) worn in conjunction with:
2722 (I) an athletic activity; or
2723 (II) a recreational activity; and
2724 (B) not suitable for general use.
2725 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2726 commission shall make rules:
2727 (i) listing the items that constitute "sports or recreational equipment"; and
2728 (ii) that are consistent with the list of items that constitute "sports or recreational
2729 equipment" under the agreement.
2730 (122) "State" means the state of Utah, its departments, and agencies.
2731 (123) "Storage" means any keeping or retention of tangible personal property or any other
2732 taxable transaction under Subsection 59-12-103(1), in this state for any purpose except sale in the
2733 regular course of business.
2734 (124) (a) Except as provided in Subsection (124)(d) or (e), "tangible personal property"
2735 means personal property that:
2736 (i) may be:
2737 (A) seen;
2738 (B) weighed;
2739 (C) measured;
2740 (D) felt; or
2741 (E) touched; or
2742 (ii) is in any manner perceptible to the senses.
2743 (b) "Tangible personal property" includes:
2744 (i) electricity;
2745 (ii) water;
2746 (iii) gas;
2747 (iv) steam; or
2748 (v) prewritten computer software, regardless of the manner in which the prewritten
2749 computer software is transferred.
2750 (c) "Tangible personal property" includes the following regardless of whether the item is
2751 attached to real property:
2752 (i) a dishwasher;
2753 (ii) a dryer;
2754 (iii) a freezer;
2755 (iv) a microwave;
2756 (v) a refrigerator;
2757 (vi) a stove;
2758 (vii) a washer; or
2759 (viii) an item similar to Subsections (124)(c)(i) through (vii) as determined by the
2760 commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2761 Rulemaking Act.
2762 (d) "Tangible personal property" does not include a product that is transferred
2763 electronically.
2764 (e) "Tangible personal property" does not include the following if attached to real property,
2765 regardless of whether the attachment to real property is only through a line that supplies water,
2766 electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
2767 rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2768 (i) a hot water heater;
2769 (ii) a water filtration system; or
2770 (iii) a water softener system.
2771 (125) (a) "Telecommunications enabling or facilitating equipment, machinery, or software"
2772 means an item listed in Subsection (125)(b) if that item is purchased or leased primarily to enable
2773 or facilitate one or more of the following to function:
2774 (i) telecommunications switching or routing equipment, machinery, or software; or
2775 (ii) telecommunications transmission equipment, machinery, or software.
2776 (b) The following apply to Subsection (125)(a):
2777 (i) a pole;
2778 (ii) software;
2779 (iii) a supplementary power supply;
2780 (iv) temperature or environmental equipment or machinery;
2781 (v) test equipment;
2782 (vi) a tower; or
2783 (vii) equipment, machinery, or software that functions similarly to an item listed in
2784 Subsections (125)(b)(i) through (vi) as determined by the commission by rule made in accordance
2785 with Subsection (125)(c).
2786 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2787 commission may by rule define what constitutes equipment, machinery, or software that functions
2788 similarly to an item listed in Subsections (125)(b)(i) through (vi).
2789 (126) "Telecommunications equipment, machinery, or software required for 911 service"
2790 means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec. 20.18.
2791 (127) "Telecommunications maintenance or repair equipment, machinery, or software"
2792 means equipment, machinery, or software purchased or leased primarily to maintain or repair one
2793 or more of the following, regardless of whether the equipment, machinery, or software is
2794 purchased or leased as a spare part or as an upgrade or modification to one or more of the
2795 following:
2796 (a) telecommunications enabling or facilitating equipment, machinery, or software;
2797 (b) telecommunications switching or routing equipment, machinery, or software; or
2798 (c) telecommunications transmission equipment, machinery, or software.
2799 (128) (a) "Telecommunications service" means the electronic conveyance, routing, or
2800 transmission of audio, data, video, voice, or any other information or signal to a point, or among
2801 or between points.
2802 (b) "Telecommunications service" includes:
2803 (i) an electronic conveyance, routing, or transmission with respect to which a computer
2804 processing application is used to act:
2805 (A) on the code, form, or protocol of the content;
2806 (B) for the purpose of electronic conveyance, routing, or transmission; and
2807 (C) regardless of whether the service:
2808 (I) is referred to as voice over Internet protocol service; or
2809 (II) is classified by the Federal Communications Commission as enhanced or value added;
2810 (ii) an 800 service;
2811 (iii) a 900 service;
2812 (iv) a fixed wireless service;
2813 (v) a mobile wireless service;
2814 (vi) a postpaid calling service;
2815 (vii) a prepaid calling service;
2816 (viii) a prepaid wireless calling service; or
2817 (ix) a private communications service.
2818 (c) "Telecommunications service" does not include:
2819 (i) advertising, including directory advertising;
2820 (ii) an ancillary service;
2821 (iii) a billing and collection service provided to a third party;
2822 (iv) a data processing and information service if:
2823 (A) the data processing and information service allows data to be:
2824 (I) (Aa) acquired;
2825 (Bb) generated;
2826 (Cc) processed;
2827 (Dd) retrieved; or
2828 (Ee) stored; and
2829 (II) delivered by an electronic transmission to a purchaser; and
2830 (B) the purchaser's primary purpose for the underlying transaction is the processed data
2831 or information;
2832 (v) installation or maintenance of the following on a customer's premises:
2833 (A) equipment; or
2834 (B) wiring;
2835 (vi) Internet access service;
2836 (vii) a paging service;
2837 (viii) a product transferred electronically, including:
2838 (A) music;
2839 (B) reading material;
2840 (C) a ring tone;
2841 (D) software; or
2842 (E) video;
2843 (ix) a radio and television audio and video programming service:
2844 (A) regardless of the medium; and
2845 (B) including:
2846 (I) furnishing conveyance, routing, or transmission of a television audio and video
2847 programming service by a programming service provider;
2848 (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
2849 (III) audio and video programming services delivered by a commercial mobile radio
2850 service provider as defined in 47 C.F.R. Sec. 20.3;
2851 (x) a value-added nonvoice data service; or
2852 (xi) tangible personal property.
2853 (129) (a) "Telecommunications service provider" means a person that:
2854 (i) owns, controls, operates, or manages a telecommunications service; and
2855 (ii) engages in an activity described in Subsection (129)(a)(i) for the shared use with or
2856 resale to any person of the telecommunications service.
2857 (b) A person described in Subsection (129)(a) is a telecommunications service provider
2858 whether or not the Public Service Commission of Utah regulates:
2859 (i) that person; or
2860 (ii) the telecommunications service that the person owns, controls, operates, or manages.
2861 (130) (a) "Telecommunications switching or routing equipment, machinery, or software"
2862 means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
2863 switching or routing:
2864 (i) an ancillary service;
2865 (ii) data communications;
2866 (iii) voice communications; or
2867 (iv) telecommunications service.
2868 (b) The following apply to Subsection (130)(a):
2869 (i) a bridge;
2870 (ii) a computer;
2871 (iii) a cross connect;
2872 (iv) a modem;
2873 (v) a multiplexer;
2874 (vi) plug in circuitry;
2875 (vii) a router;
2876 (viii) software;
2877 (ix) a switch; or
2878 (x) equipment, machinery, or software that functions similarly to an item listed in
2879 Subsections (130)(b)(i) through (ix) as determined by the commission by rule made in accordance
2880 with Subsection (130)(c).
2881 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2882 commission may by rule define what constitutes equipment, machinery, or software that functions
2883 similarly to an item listed in Subsections (130)(b)(i) through (ix).
2884 (131) (a) "Telecommunications transmission equipment, machinery, or software" means
2885 an item listed in Subsection (131)(b) if that item is purchased or leased primarily for sending,
2886 receiving, or transporting:
2887 (i) an ancillary service;
2888 (ii) data communications;
2889 (iii) voice communications; or
2890 (iv) telecommunications service.
2891 (b) The following apply to Subsection (131)(a):
2892 (i) an amplifier;
2893 (ii) a cable;
2894 (iii) a closure;
2895 (iv) a conduit;
2896 (v) a controller;
2897 (vi) a duplexer;
2898 (vii) a filter;
2899 (viii) an input device;
2900 (ix) an input/output device;
2901 (x) an insulator;
2902 (xi) microwave machinery or equipment;
2903 (xii) an oscillator;
2904 (xiii) an output device;
2905 (xiv) a pedestal;
2906 (xv) a power converter;
2907 (xvi) a power supply;
2908 (xvii) a radio channel;
2909 (xviii) a radio receiver;
2910 (xix) a radio transmitter;
2911 (xx) a repeater;
2912 (xxi) software;
2913 (xxii) a terminal;
2914 (xxiii) a timing unit;
2915 (xxiv) a transformer;
2916 (xxv) a wire; or
2917 (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2918 Subsections (131)(b)(i) through (xxv) as determined by the commission by rule made in
2919 accordance with Subsection (131)(c).
2920 (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2921 commission may by rule define what constitutes equipment, machinery, or software that functions
2922 similarly to an item listed in Subsections (131)(b)(i) through (xxv).
2923 (132) (a) "Textbook for a higher education course" means a textbook or other printed
2924 material that is required for a course:
2925 (i) offered by an institution of higher education; and
2926 (ii) that the purchaser of the textbook or other printed material attends or will attend.
2927 (b) "Textbook for a higher education course" includes a textbook in electronic format.
2928 (133) "Tobacco" means:
2929 (a) a cigarette;
2930 (b) a cigar;
2931 (c) chewing tobacco;
2932 (d) pipe tobacco; or
2933 (e) any other item that contains tobacco.
2934 (134) "Unassisted amusement device" means an amusement device, skill device, or ride
2935 device that is started and stopped by the purchaser or renter of the right to use or operate the
2936 amusement device, skill device, or ride device.
2937 (135) (a) "Use" means the exercise of any right or power over tangible personal property,
2938 a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the
2939 ownership or the leasing of that tangible personal property, product transferred electronically, or
2940 service.
2941 (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
2942 property, a product transferred electronically, or a service in the regular course of business and held
2943 for resale.
2944 (136) "Value-added nonvoice data service" means a service:
2945 (a) that otherwise meets the definition of a telecommunications service except that a
2946 computer processing application is used to act primarily for a purpose other than conveyance,
2947 routing, or transmission; and
2948 (b) with respect to which a computer processing application is used to act on data or
2949 information:
2950 (i) code;
2951 (ii) content;
2952 (iii) form; or
2953 (iv) protocol.
2954 (137) (a) Subject to Subsection (137)(b), "vehicle" means the following that are required
2955 to be titled, registered, or titled and registered:
2956 (i) an aircraft as defined in Section 72-10-102;
2957 (ii) a vehicle as defined in Section 41-1a-102;
2958 (iii) an off-highway vehicle as defined in Section 41-22-2; or
2959 (iv) a vessel as defined in Section 41-1a-102.
2960 (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
2961 (i) a vehicle described in Subsection (137)(a); or
2962 (ii) (A) a locomotive;
2963 (B) a freight car;
2964 (C) railroad work equipment; or
2965 (D) other railroad rolling stock.
2966 (138) "Vehicle dealer" means a person engaged in the business of buying, selling, or
2967 exchanging a vehicle as defined in Subsection (137).
2968 (139) (a) "Vertical service" means an ancillary service that:
2969 (i) is offered in connection with one or more telecommunications services; and
2970 (ii) offers an advanced calling feature that allows a customer to:
2971 (A) identify a caller; and
2972 (B) manage multiple calls and call connections.
2973 (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2974 conference bridging service.
2975 (140) (a) "Voice mail service" means an ancillary service that enables a customer to
2976 receive, send, or store a recorded message.
2977 (b) "Voice mail service" does not include a vertical service that a customer is required to
2978 have in order to utilize a voice mail service.
2979 (141) (a) Except as provided in Subsection (141)(b), "waste energy facility" means a
2980 facility that generates electricity:
2981 (i) using as the primary source of energy waste materials that would be placed in a landfill
2982 or refuse pit if it were not used to generate electricity, including:
2983 (A) tires;
2984 (B) waste coal;
2985 (C) oil shale; or
2986 (D) municipal solid waste; and
2987 (ii) in amounts greater than actually required for the operation of the facility.
2988 (b) "Waste energy facility" does not include a facility that incinerates:
2989 (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2990 (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2991 (142) "Watercraft" means a vessel as defined in Section 73-18-2.
2992 (143) "Wind energy" means wind used as the sole source of energy to produce electricity.
2993 (144) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
2994 location by the United States Postal Service.
2995 Section 29. Section 63A-9-101 is amended to read:
2996 63A-9-101. Definitions.
2997 (1) (a) "Agency" means each department, commission, board, council, agency, institution,
2998 officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,
2999 panel, or other administrative unit of the state.
3000 (b) "Agency" includes the State Board of Education, the Office of Education, [
3001
3002 Technology, the board of regents, the institutional councils of each higher education institution,
3003 and each higher education institution.
3004 (c) "Agency" includes the legislative and judicial branches.
3005 (2) "Committee" means the Motor Vehicle Review Committee created by this chapter.
3006 (3) "Director" means the director of the division.
3007 (4) "Division" means the Division of Fleet Operations created by this chapter.
3008 (5) "Executive director" means the executive director of the Department of Administrative
3009 Services.
3010 (6) "Local agency" means:
3011 (a) a county;
3012 (b) a municipality;
3013 (c) a school district;
3014 (d) a local district;
3015 (e) a special service district;
3016 (f) an interlocal entity as defined under Section 11-13-103; or
3017 (g) any other political subdivision of the state, including a local commission, board, or
3018 other governmental entity that is vested with the authority to make decisions regarding the public's
3019 business.
3020 (7) (a) "Motor vehicle" means a self-propelled vehicle capable of carrying passengers.
3021 (b) "Motor vehicle" includes vehicles used for construction and other nontransportation
3022 purposes.
3023 (8) "State vehicle" means each motor vehicle owned, operated, or in the possession of an
3024 agency.
3025 Section 30. Section 63I-2-253 is amended to read:
3026 63I-2-253. Repeal dates -- Titles 53, 53A, and 53B.
3027 (1) Section 53A-1-403.5 is repealed July 1, 2017.
3028 [
3029 [
3030 [
3031 [
3032 [
3033 repealed July 1, 2017.
3034 (6) (a) Subsections 53B-2a-103(2) and (4) are repealed July 1, 2019.
3035 (b) When repealing Subsections 53B-2a-103(2) and (4), the Office of Legislative Research
3036 and General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
3037 necessary changes to subsection numbering and cross references.
3038 Section 31. Section 63M-2-202 is amended to read:
3039 63M-2-202. Technology outreach innovation program.
3040 (1) As funding becomes available from the Legislature or other sources, the USTAR
3041 governing authority shall establish a technology outreach innovation program, also known as the
3042 TOIP, at up to five locations distributed strategically throughout Utah.
3043 (2) The USTAR governing authority shall ensure that the technology innovation outreach
3044 program acts as a resource to:
3045 (a) broker ideas, new technologies, and services to entrepreneurs and businesses
3046 throughout a defined service area;
3047 (b) engage local entrepreneurs and professors at applied technology [
3048 within the Utah College of Applied Technology, colleges, and universities by connecting them to
3049 Utah's research universities;
3050 (c) screen business ideas and new technologies to ensure that the ones with the highest
3051 growth potential receive the most targeted services and attention;
3052 (d) connect market ideas and technologies in new or existing businesses or industries or
3053 in regional colleges and universities with the expertise of Utah's research universities;
3054 (e) assist businesses, [
3055 Utah College of Applied Technology, colleges, and universities in developing commercial
3056 applications for their research; and
3057 (f) disseminate and share discoveries and technologies emanating from Utah's research
3058 universities to local entrepreneurs, businesses, [
3059 colleges within the Utah College of Applied Technology, colleges, and universities.
3060 (3) In designing and operating the TOIP, for each TOIP location the USTAR governing
3061 authority:
3062 (a) may hire a TOIP director;
3063 (b) shall establish written performance standards and expectations; and
3064 (c) shall require reporting related to those performance standards and expectations on at
3065 least an annual basis.
3066 (4) A TOIP director hired under Subsection (3) shall:
3067 (a) be categorized as a schedule AC employee in accordance with Section 67-19-15;
3068 (b) report to, and be supervised by, the executive director;
3069 (c) ensure the TOIP serves to further the vision and mission of the USTAR initiative; and
3070 (d) as directed by the executive director, implement the policies and procedures adopted
3071 by the USTAR governing authority.
3072 Section 32. Section 63N-12-203 is amended to read:
3073 63N-12-203. STEM Action Center Board creation -- Membership.
3074 (1) There is created the STEM Action Center Board within the office, composed of the
3075 following members:
3076 (a) six private sector members who represent business, appointed by the governor;
3077 (b) the state superintendent of public instruction or the state superintendent of public
3078 instruction's designee;
3079 (c) the commissioner of higher education or the commissioner of higher education's
3080 designee;
3081 (d) one member appointed by the governor;
3082 (e) a member of the State Board of Education, chosen by the chair of the State Board of
3083 Education;
3084 (f) the executive director of the office or the executive director's designee;
3085 (g) the [
3086 education or [
3087 commissioner of technical education's designee; and
3088 (h) one member who has a degree in engineering and experience working in a government
3089 military installation, appointed by the governor.
3090 (2) (a) The private sector members appointed by the governor in Subsection (1)(a) shall
3091 represent a business or trade association whose primary focus is science, technology, or
3092 engineering.
3093 (b) Except as required by Subsection (2)(c), members appointed by the governor shall be
3094 appointed to four-year terms.
3095 (c) The length of terms of the members shall be staggered so that approximately half of
3096 the committee is appointed every two years.
3097 (d) The members may not serve more than two full consecutive terms except where the
3098 governor determines that an additional term is in the best interest of the state.
3099 (e) When a vacancy occurs in the membership for any reason, the replacement shall be
3100 appointed for the unexpired term.
3101 (3) Attendance of a simple majority of the members constitutes a quorum for the
3102 transaction of official committee business.
3103 (4) Formal action by the committee requires a majority vote of a quorum.
3104 (5) A member may not receive compensation or benefits for the member's service, but may
3105 receive per diem and travel expenses in accordance with:
3106 (a) Section 63A-3-106;
3107 (b) Section 63A-3-107; and
3108 (c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
3109 (6) The governor shall select the chair of the board to serve a one-year term.
3110 (7) The executive director of the office or the executive director's designee shall serve as
3111 the vice chair of the board.
3112 Section 33. Section 63N-12-212 is amended to read:
3113 63N-12-212. High school STEM education initiative.
3114 (1) Subject to legislative appropriations, after consulting with State Board of Education
3115 staff, the STEM Action Center shall award grants to school districts and charter schools to fund
3116 STEM related certification for high school students.
3117 (2) (a) A school district or charter school may apply for a grant from the STEM Action
3118 Center, through a competitive process, to fund the school district's or charter school's STEM
3119 related certification training program.
3120 (b) A school district's or charter school's STEM related certification training program shall:
3121 (i) prepare high school students to be job ready for available STEM related positions of
3122 employment; and
3123 (ii) when a student completes the program, result in the student gaining a nationally
3124 industry-recognized employer STEM related certification.
3125 (3) A school district or charter school may partner with one or more of the following to
3126 provide a STEM related certification program:
3127 (a) [
3128 [
3129 (b) Salt Lake Community College;
3130 (c) Snow College; or
3131 (d) a private sector employer.
3132 Section 34. Section 67-1-12 is amended to read:
3133 67-1-12. Displaced defense workers.
3134 (1) The governor, through the Department of Workforce Services, may use funds
3135 specifically appropriated by the Legislature to benefit, in a manner prescribed by Subsection (2):
3136 (a) Department of Defense employees within the state who lose their employment because
3137 of reductions in defense spending by the federal government;
3138 (b) persons dismissed by a defense-related industry employer because of reductions in
3139 federal government defense contracts received by the employer; and
3140 (c) defense-related businesses in the state that have been severely and adversely impacted
3141 because of reductions in defense spending.
3142 (2) Funds appropriated under this section before fiscal year 1999-2000 but not expended
3143 shall remain with the agency that possesses the funds and shall be used in a manner consistent with
3144 this section. Any amount appropriated under this section in fiscal year 1999-2000 or thereafter may
3145 be used to:
3146 (a) provide matching or enhancement funds for grants, loans, or other assistance received
3147 by the state from the United States Department of Labor, Department of Defense, or other federal
3148 agency to assist in retraining, community assistance, or technology transfer activities;
3149 (b) fund or match available private or public funds from the state or local level to be used
3150 for retraining, community assistance, technology transfer, or educational projects coordinated by
3151 state or federal agencies;
3152 (c) provide for retraining, upgraded services, and programs at applied technology [
3153 colleges, public schools, higher education institutions, or any other appropriate public or private
3154 entity that are designed to teach specific job skills requested by a private employer in the state or
3155 required for occupations that are in demand in the state;
3156 (d) aid public or private entities that provide assistance in locating new employment;
3157 (e) inform the public of assistance programs available for persons who have lost their
3158 employment;
3159 (f) increase funding for assistance and retraining programs;
3160 (g) provide assistance for small start-up companies owned or operated by persons who
3161 have lost their employment;
3162 (h) enhance the implementation of dual-use technologies programs, community adjustment
3163 assistance programs, or other relevant programs under Pub. L. No. 102-484; and
3164 (i) coordinate local and national resources to protect and enhance current Utah defense
3165 installations and related operations and to facilitate conversion or enhancement efforts by:
3166 (i) creating and operating state information clearinghouse operations that monitor relevant
3167 activities on the federal, state, and local level;
3168 (ii) identifying, seeking, and matching funds from federal and other public agencies and
3169 private donors;
3170 (iii) identifying and coordinating needs in different geographic areas;
3171 (iv) coordinating training and retraining centers;
3172 (v) coordinating technology transfer efforts between public entities, private entities, and
3173 institutions of higher education;
3174 (vi) facilitating the development of local and national awareness and support for Utah
3175 defense installations;
3176 (vii) studying the creation of strategic alliances, tax incentives, and relocation and
3177 consolidation assistance; and
3178 (viii) exploring feasible alternative uses for the physical and human resources at defense
3179 installations and in related industries should reductions in mission occur.
3180 (3) The governor, through the Department of Workforce Services, may coordinate and
3181 administer the expenditure of money under this section and collaborate with applied technology
3182 centers, public institutions of higher learning, or other appropriate public or private entities to
3183 provide retraining and other services described in Subsection (2).