Representative Don L. Ipson proposes the following substitute bill:


1     
UTAH COLLEGE OF APPLIED TECHNOLOGY

2     
GOVERNANCE AMENDMENTS

3     
2016 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Stephen H. Urquhart

6     
House Sponsor: Don L. Ipson

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          This bill provides a coordination clause.
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     Utah Code Sections Affected by Coordination Clause:
68          35A-1-206, as last amended by Laws of Utah 2014, Chapters 371 and 387
69     

70     Be it enacted by the Legislature of the state of Utah:
71          Section 1. Section 35A-1-206 is amended to read:
72          35A-1-206. State Council on Workforce Services -- Appointment -- Membership
73     -- Terms of members -- Compensation.
74          (1) There is created a State Council on Workforce Services that shall:
75          (a) perform the activities described in Subsection (8);
76          (b) advise on issues requested by the department and the Legislature; and
77          (c) make recommendations to the department regarding:
78          (i) the implementation of Chapter 2, Economic Service Areas, Chapter 3, Employment
79     Support Act, and Chapter 5, Training and Workforce Improvement Act; and
80          (ii) the coordination of apprenticeship training.
81          (2) (a) The council shall consist of the following voting members:
82          (i) a private sector representative from each economic service area as designated by the
83     economic service area director;
84          (ii) the superintendent of public instruction or the superintendent's designee;
85          (iii) the commissioner of higher education or the commissioner's designee; and
86          (iv) the following members appointed by the governor in consultation with the
87     executive director:

88          (A) four representatives of small employers as defined by rule by the department;
89          (B) four representatives of large employers as defined by rule by the department;
90          (C) four representatives of employees or employee organizations, including at least one
91     representative from nominees suggested by public employees organizations;
92          (D) two representatives of the clients served under this title including
93     community-based organizations;
94          (E) a representative of veterans in the state;
95          (F) the executive director of the Utah State Office of Rehabilitation; and
96          (G) the [Applied Technology College president] Utah College of Applied Technology
97     commissioner of technical education.
98          (b) The following shall serve as nonvoting ex officio members of the council:
99          (i) the executive director or the executive director's designee;
100          (ii) a legislator appointed by the governor from nominations of the speaker of the
101     House of Representatives and president of the Senate;
102          (iii) the executive director of the Department of Human Services;
103          (iv) the director of the Governor's Office of Economic Development or the director's
104     designee; and
105          (v) the executive director of the Department of Health.
106          (3) (a) The governor shall appoint one nongovernmental member from the council as
107     the chair of the council.
108          (b) The chair shall serve at the pleasure of the governor.
109          (4) (a) A member appointed by the governor shall serve a term of four years and may
110     be reappointed to one additional term.
111          (b) A member shall continue to serve until the member's successor has been appointed
112     and qualified.
113          (c) Except as provided in Subsection (4)(d), as terms of council members expire, the
114     governor shall appoint each new member or reappointed member to a four-year term.
115          (d) Notwithstanding the requirements of Subsection (4)(c), the governor shall, at the
116     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
117     council members are staggered so that approximately one half of the council is appointed every
118     two years.

119          (e) When a vacancy occurs in the membership for any reason, the replacement shall be
120     appointed for the unexpired term.
121          (5) A majority of the voting members constitutes a quorum for the transaction of
122     business.
123          (6) (a) A member who is not a legislator may not receive compensation or benefits for
124     the member's service, but may receive per diem and travel expenses as allowed in:
125          (i) Section 63A-3-106;
126          (ii) Section 63A-3-107; and
127          (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
128     63A-3-107.
129          (b) Compensation and expenses of a member who is a legislator are governed by
130     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
131          (7) The department shall provide staff and administrative support to the council at the
132     direction of the executive director.
133          (8) The council shall:
134          (a) develop a state workforce services plan in accordance with Section 35A-1-207;
135          (b) review economic service area plans to certify consistency with state policy
136     guidelines;
137          (c) improve the understanding and visibility of state workforce services efforts through
138     external and internal marketing strategies;
139          (d) include in the annual written report described in Section 35A-1-109, information
140     and accomplishments related to the activities of the department;
141          (e) issue other studies, reports, or documents the council considers advisable that are
142     not required under Subsection (8)(d);
143          (f) coordinate the planning and delivery of workforce development services with public
144     education, higher education, vocational rehabilitation, and human services; and
145          (g) perform other responsibilities within the scope of workforce services as requested
146     by:
147          (i) the Legislature;
148          (ii) the governor; or
149          (iii) the executive director.

150          Section 2. Section 35A-5-402 is amended to read:
151          35A-5-402. Career and Technical Education Board creation -- Membership.
152          (1) There is created the Career and Technical Education Board, within the department,
153     composed of the following members:
154          (a) the state superintendent of public instruction or the state superintendent of public
155     instruction's designee;
156          (b) the commissioner of higher education or the commissioner of higher education's
157     designee;
158          (c) the [president of the] Utah College of Applied Technology commissioner of
159     technical education or the [president of the] Utah College of Applied [Technology's]
160     Technology commissioner of technical education's designee;
161          (d) the executive director of the department or the executive director of the
162     department's designee;
163          (e) the executive director of the Governor's Office of Economic Development or the
164     executive director of the Governor's Office of Economic Development's designee;
165          (f) one member of the governor's staff, appointed by the governor;
166          (g) five private sector members, representing business or industry that employs
167     individuals who hold certificates issued by a CTE program, appointed by the governor;
168          (h) a member of the Senate, appointed by the president of the Senate; and
169          (i) a member of the House of Representatives, appointed by the speaker of the House
170     of Representatives.
171          (2) The CTE Board shall select a chair and vice chair from among the members of the
172     CTE Board.
173          (3) The CTE Board shall meet at least quarterly.
174          (4) Attendance of a simple majority of the members of the CTE Board constitutes a
175     quorum for the transaction of official CTE Board business.
176          (5) Formal action by the CTE Board requires the majority vote of a quorum.
177          (6) A member of the CTE Board:
178          (a) may not receive compensation or benefits for the member's service; and
179          (b) may receive per diem and travel expenses in accordance with:
180          (i) Section 63A-3-106;

181          (ii) Section 63A-3-107; and
182          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
183     63A-3-107.
184          Section 3. Section 53A-1-402 is amended to read:
185          53A-1-402. Board to establish minimum standards for public schools.
186          (1) The State Board of Education shall establish rules and minimum standards for the
187     public schools that are consistent with this title, including rules and minimum standards
188     governing the following:
189          (a) (i) the qualification and certification of educators and ancillary personnel who
190     provide direct student services;
191          (ii) required school administrative and supervisory services; and
192          (iii) the evaluation of instructional personnel;
193          (b) (i) access to programs;
194          (ii) attendance;
195          (iii) competency levels;
196          (iv) graduation requirements; and
197          (v) discipline and control;
198          (c) (i) school accreditation;
199          (ii) the academic year;
200          (iii) alternative and pilot programs;
201          (iv) curriculum and instruction requirements;
202          (v) school libraries; and
203          (vi) services to:
204          (A) persons with a disability as defined by and covered under:
205          (I) the Americans with Disabilities Act of 1990, 42 U.S.C. 12102;
206          (II) the Rehabilitation Act of 1973, 29 U.S.C. 705(20)(A); and
207          (III) the Individuals with Disabilities Education Act, 20 U.S.C. 1401(3); and
208          (B) other special groups;
209          (d) (i) state reimbursed bus routes;
210          (ii) bus safety and operational requirements; and
211          (iii) other transportation needs; and

212          (e) (i) school productivity and cost effectiveness measures;
213          (ii) federal programs;
214          (iii) school budget formats; and
215          (iv) financial, statistical, and student accounting requirements.
216          (2) The board shall determine if:
217          (a) the minimum standards have been met; and
218          (b) required reports are properly submitted.
219          (3) The board may apply for, receive, administer, and distribute to eligible applicants
220     funds made available through programs of the federal government.
221          (4) (a) [The] An applied technology college within the Utah College of Applied
222     Technology shall provide competency-based career and technical education courses that fulfill
223     high school graduation requirements, as requested and authorized by the State Board of
224     Education.
225          (b) A school district may grant a high school diploma to a student participating in
226     courses described under Subsection (4)(a) that are provided by [the] an applied technology
227     college within the Utah College of Applied Technology.
228          Section 4. Section 53A-1a-501.3 is amended to read:
229          53A-1a-501.3. Definitions.
230          As used in this part:
231          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
232     includes:
233          (a) cash;
234          (b) stock or other investments;
235          (c) real property;
236          (d) equipment and supplies;
237          (e) an ownership interest;
238          (f) a license;
239          (g) a cause of action; and
240          (h) any similar property.
241          (2) "Board of trustees of a higher education institution" or "board of trustees" means:
242          (a) the board of trustees of:

243          (i) the University of Utah;
244          (ii) Utah State University;
245          (iii) Weber State University;
246          (iv) Southern Utah University;
247          (v) Snow College;
248          (vi) Dixie State University;
249          (vii) Utah Valley University; or
250          (viii) Salt Lake Community College; or
251          (b) the [campus] board of directors of [a college campus] an applied technology college
252     within the Utah College of Applied Technology.
253          (3) "Charter agreement" or "charter" means an agreement made in accordance with
254     Section 53A-1a-508, that authorizes the operation of a charter school.
255          (4) "Charter school authorizer" or "authorizer" means the State Charter School Board,
256     local school board, or board of trustees of a higher education institution that authorizes the
257     establishment of a charter school.
258          (5) "Governing board" means the board that operates a charter school.
259          Section 5. Section 53A-1a-521 is amended to read:
260          53A-1a-521. Charter schools authorized by a board of trustees of a higher
261     education institution -- Application process -- Board of trustees responsibilities.
262          (1) Subject to the approval of the State Board of Education and except as provided in
263     Subsection (8), an applicant identified in Section 53A-1a-504 may enter into an agreement with
264     a board of trustees of a higher education institution authorizing the applicant to establish and
265     operate a charter school.
266          (2) (a) An applicant applying for authorization from a board of trustees to establish and
267     operate a charter school shall provide a copy of the application to the State Charter School
268     Board and the local school board of the school district in which the proposed charter school
269     shall be located either before or at the same time the applicant files the application with the
270     board of trustees.
271          (b) The State Charter School Board and the local school board may review the
272     application and offer suggestions or recommendations to the applicant or the board of trustees
273     before acting on the application.

274          (c) The board of trustees shall give due consideration to suggestions or
275     recommendations made by the State Charter School Board or the local school board under
276     Subsection (2)(b).
277          (3) (a) If a board of trustees approves an application to establish and operate a charter
278     school, the board of trustees shall submit the application to the State Board of Education.
279          (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
280     the application, approve or deny an application approved by a board of trustees.
281          (c) The State Board of Education's action under Subsection (3)(b) is final action subject
282     to judicial review.
283          (4) The State Board of Education shall make a rule providing a timeline for the
284     opening of a charter school following the approval of a charter school application by a board of
285     trustees.
286          (5) After approval of a charter school application, the applicant and the board of
287     trustees shall set forth the terms and conditions for the operation of the charter school in a
288     written charter agreement.
289          (6) (a) The school's charter may include a provision that the charter school pay an
290     annual fee for the board of trustees' costs in providing oversight of, and technical support to,
291     the charter school in accordance with Subsection (7).
292          (b) In the first two years that a charter school is in operation, an annual fee described in
293     Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
294     from the state in the current fiscal year.
295          (c) Beginning with the third year that a charter school is in operation, an annual fee
296     described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
297     school receives from the state in the current fiscal year.
298          (d) An annual fee described in Subsection (6)(a) shall be:
299          (i) paid to the board of trustees' higher education institution; and
300          (ii) expended as directed by the board of trustees.
301          (7) A board of trustees shall:
302          (a) annually review and evaluate the performance of charter schools authorized by the
303     board of trustees and hold the schools accountable for their performance;
304          (b) monitor charter schools authorized by the board of trustees for compliance with

305     federal and state laws, rules, and regulations; and
306          (c) provide technical support to charter schools authorized by the board of trustees to
307     assist them in understanding and performing their charter obligations.
308          (8) (a) In addition to complying with the requirements of this section, a [campus] board
309     of directors of [a college campus] an applied technology college within the Utah College of
310     Applied Technology shall obtain the approval of the Utah College of Applied Technology
311     Board of Trustees before entering into an agreement to establish and operate a charter school.
312          (b) If a [campus] board of directors of [a college campus with] an applied technology
313     college within the Utah College of Applied Technology approves an application to establish
314     and operate a charter school, the [campus board of directors of the college campus] applied
315     technology college board of directors shall submit the application to the Utah College of
316     Applied Technology Board of Trustees.
317          (c) The Utah College of Applied Technology Board of Trustees shall, by majority vote,
318     within 60 days of receipt of the application, approve or deny the application approved by the
319     [campus] applied technology college board of directors.
320          (d) The Utah College of Applied Technology Board of Trustees may deny an
321     application approved by [a campus] an applied technology college board of directors if the
322     proposed charter school does not accomplish a purpose of charter schools as provided in
323     Section 53A-1a-503.
324          (e) A charter school application may not be denied on the basis that the establishment
325     of the charter school will have any or all of the following impacts on a public school, including
326     another charter school:
327          (i) an enrollment decline;
328          (ii) a decrease in funding; or
329          (iii) a modification of programs or services.
330          (9) (a) Subject to the requirements of this part, [a campus board of directors of a
331     college campus within the Utah College of Applied Technology] an applied technology college
332     board of directors may establish:
333          (i) procedures for submitting applications to establish and operate a charter school [to a
334     campus board of directors of a college campus within the Utah College of Applied
335     Technology]; and

336          (ii) criteria for [a campus board of directors'] approval of an application to establish
337     and operate a charter school.
338          (b) The Utah College of Applied Technology Board of Trustees may not establish
339     policy governing the procedures or criteria described in Subsection (9)(a).
340          (10) Before [a board of trustees] an applied technology college board of directors
341     accepts a charter school application, the [board of trustees] applied technology college board of
342     directors shall, in accordance with State Board of Education rules, establish and make public
343     [the board of trustees']:
344          (a) application requirements, in accordance with Section 53A-1a-504;
345          (b) application process, including timelines, in accordance with this section; and
346          (c) minimum academic, financial, and enrollment standards.
347          Section 6. Section 53A-15-102 is amended to read:
348          53A-15-102. Early graduation incentives -- Incentive to school district -- Partial
349     tuition scholarship for student -- Payments.
350          (1) Any secondary public school student who has completed all required courses or
351     demonstrated mastery of required skills and competencies may, with the approval of the
352     student, the student's parent or guardian, and an authorized local school official, graduate at any
353     time.
354          (2) Each public high school shall receive an amount equal to 1/2 of the scholarship
355     awarded to each student who graduates from the school at or prior to the conclusion of the
356     eleventh grade, or a proportionately lesser amount for any student who graduates after the
357     conclusion of the eleventh grade but prior to the conclusion of the twelfth grade.
358          (3) (a) A student who graduates from high school at or prior to the conclusion of the
359     eleventh grade shall receive a centennial scholarship in the lesser amount of full tuition for one
360     year or $1,000 to be used for full time enrollment at a Utah public college, university,
361     community college, [applied technology center] applied technology college within the Utah
362     College of Applied Technology, or any other institution in the state of Utah, accredited by the
363     Northwest Association of Schools and Colleges that offers postsecondary courses of the
364     student's choice upon verification that the student has registered at the institution during the
365     fiscal year following graduation from high school.
366          (b) In the case of a student who graduates after the conclusion of the eleventh grade but

367     prior to the conclusion of the twelfth grade, the student shall receive a centennial scholarship of
368     a proportionately lesser amount.
369          (4) (a) The payments authorized in Subsections (2) and (3)(a) shall be made during the
370     fiscal year that follows the student's graduation.
371          (b) The payments authorized in Subsection (3)(b) may be made during the fiscal year in
372     which the student graduates or the fiscal year following the student's graduation.
373          (5) (a) The State Board of Education shall administer the payment program authorized
374     in Subsections (2), (3), and (4).
375          (b) (i) The Legislature shall make an annual appropriation from the Uniform School
376     Fund to the State Board of Education for the costs associated with the Centennial Scholarship
377     Program based on the projected number of students who will graduate before the conclusion of
378     the twelfth grade in any given year.
379          (ii) It is understood that the appropriation is offset by the state money that would
380     otherwise be required and appropriated for these students if they were enrolled in an additional
381     grade for a full year.
382          Section 7. Section 53A-15-202 is amended to read:
383          53A-15-202. Powers of the board.
384          The State Board of Education:
385          (1) shall establish minimum standards for career and technical education programs in the
386     public education system;
387          (2) may apply for, receive, administer, and distribute funds made available through
388     programs of federal and state governments to promote and aid career and technical education;
389          (3) shall cooperate with federal and state governments to administer programs which
390     promote and maintain career and technical education;
391          (4) shall cooperate with the Utah College of Applied Technology, Salt Lake Community
392     College's School of Applied Technology, Snow College, and Utah State University Eastern to
393     ensure that students in the public education system have access to career and technical education
394     at Utah College of Applied Technology [campuses] applied technology colleges, Salt Lake
395     Community College's School of Applied Technology, Snow College, and Utah State University
396     Eastern;
397          (5) shall require that before a minor student may participate in clinical experiences as part

398     of a health care occupation program at a high school or other institution to which the student has
399     been referred, the student's parent or legal guardian has:
400          (a) been first given written notice through appropriate disclosure when registering and
401     prior to participation that the program contains a clinical experience segment in which the student
402     will observe and perform specific health care procedures that may include personal care, patient
403     bathing, and bathroom assistance; and
404          (b) provided specific written consent for the student's participation in the program and
405     clinical experience; and
406          (6) shall, after consulting with school districts, charter schools, the Utah College of
407     Applied Technology, Salt Lake Community College's School of Applied Technology, Snow
408     College, and Utah State University Eastern, prepare and submit an annual report to the governor
409     and to the Legislature's Education Interim Committee by October 31 of each year detailing:
410          (a) how the career and technical education needs of secondary students are being met; and
411          (b) what access secondary students have to programs offered:
412          (i) at applied technology colleges; and
413          (ii) within the regions served by Salt Lake Community College's School of Applied
414     Technology, Snow College, and Utah State University Eastern.
415          Section 8. Section 53A-17a-114 is amended to read:
416          53A-17a-114. Career and technical education program alternatives.
417          (1) A secondary student may attend [a campus of] an applied technology college within
418     the Utah College of Applied Technology [created under Title 53B, Chapter 2a, Utah College of
419     Applied Technology,] if the secondary student's career and technical education goals are better
420     achieved by attending [the Utah College of Applied Technology] an applied technology college
421     as determined by:
422          (a) the secondary student; and
423          (b) if the secondary student is a minor, the secondary student's parent or legal guardian.
424          (2) [Beginning with the school year that occurs during the fiscal year that begins on July
425     1, 2011 and ends on June 30, 2012, a] A secondary student served under this section [in a campus
426     of] by an applied technology college within the Utah College of Applied Technology shall be
427     counted in the average daily membership of the sending school district or charter school.
428          Section 9. Section 53B-1-103 is amended to read:

429          53B-1-103. Establishment of State Board of Regents -- Powers and authority.
430          (1) There is established a State Board of Regents.
431          (2) (a) Except as provided in Subsection (2)(b), the board is vested with the control,
432     management, and supervision of the institutions of higher education designated in Section
433     53B-1-102 in a manner consistent with the policy and purpose of this title and the specific powers
434     and responsibilities granted to it.
435          (b) The board may only exercise powers relating to the Utah College of Applied
436     Technology and [its college campuses] applied technology colleges within the Utah College of
437     Applied Technology that are specifically provided in this title.
438          (c) The board shall coordinate and support articulation agreements between the Utah
439     College of Applied Technology or applied technology colleges within the Utah College of Applied
440     Technology and other institutions of higher education.
441          (d) The board shall prepare and submit an annual report detailing its progress and
442     recommendations on career and technical education issues to the governor and to the Legislature's
443     Education Interim Committee by October 31 of each year, which shall include information
444     detailing:
445          (i) how the career and technical education needs of secondary students are being met by
446     institutions of higher education other than applied technology colleges within the Utah College of
447     Applied Technology, including what access secondary students have to programs offered by Salt
448     Lake Community College's School of Applied Technology, Snow College, and Utah State
449     University Eastern;
450          (ii) how the emphasis on high demand, high wage, and high skill jobs in business and
451     industry is being provided;
452          (iii) performance outcomes, including:
453          (A) entered employment;
454          (B) job retention; and
455          (C) earnings; and
456          (iv) student tuition and fees.
457          (e) Except for the Utah College of Applied Technology, the board may modify the name
458     of an institution under its control and management, as designated in Section 53B-1-102, to reflect
459     the role and general course of study of the institution.

460          (f) The board may not conduct a feasibility study or perform another act relating to
461     merging any of the following institutions with another institution of higher education:
462          (i) [the] Bridgerland Applied Technology College [Campus];
463          (ii) [the] Ogden-Weber Applied Technology College [Campus];
464          (iii) [the] Davis Applied Technology College [Campus];
465          (iv) [the] Tooele Applied Technology College [Campus];
466          (v) [the] Mountainland Applied Technology College [Campus];
467          (vi) [the] Uintah Basin Applied Technology College [Campus];
468          (vii) [the] Southwest Applied Technology College [Campus]; and
469          (viii) [the] Dixie Applied Technology College [Campus].
470          (3) This section does not affect the power and authority vested in the State Board of
471     Education to apply for, accept, and manage federal appropriations for the establishment and
472     maintenance of career and technical education.
473          (4) The board shall conduct a study regarding the feasibility of providing a veterans'
474     walk-in center or services at each state institution of higher education. The study shall include:
475          (a) an implementation plan for providing a walk-in center or services at each institution
476     of higher education;
477          (b) criteria, based upon the size of the institution, to determine whether the institution
478     should be required to provide a walk-in center or services;
479          (c) responsibilities of the walk-in center or services;
480          (d) a notification process about the walk-in center or services to veterans upon their
481     application for admission;
482          (e) the possibility of staffing a veterans walk-in center or services with veterans, including
483     through work-study positions to be filled by veterans;
484          (f) annual reports from each walk-in center and services to the board which includes
485     summary information of veterans served; and
486          (g) funding requirements for a veterans walk-in center and services.
487          (5) Presentation of the study, including the implementation plan with funding and other
488     recommendations, shall be made to a legislative committee, commission, or task force upon
489     request no later than the October 2014 interim meeting.
490          Section 10. Section 53B-2-104 is amended to read:

491          53B-2-104. Memberships of board of trustees -- Terms -- Vacancies -- Oath --
492     Officers -- Bylaws -- Quorum -- Committees -- Compensation.
493          (1) (a) The board of trustees of an institution of higher education consists of the following:
494          (i) except as provided in Subsection 53B-18-1201(3)(b), eight persons appointed by the
495     governor and approved by the Senate; and
496          (ii) two ex officio members who are the president of the institution's alumni association,
497     and the president of the associated students of the institution.
498          (b) The appointed members of the boards of trustees for Utah Valley University and Salt
499     Lake Community College shall be representative of the interests of business, industry, and labor.
500          (2) (a) The governor shall appoint four members of each board of trustees during each
501     odd-numbered year to four-year terms commencing on July 1 of the year of appointment.
502          (b) An appointed member holds office until a successor is appointed and qualified.
503          (c) The ex officio members serve for the same period as they serve as presidents and until
504     their successors have qualified.
505          (3) When a vacancy occurs in the membership for any reason, the replacement shall be
506     appointed for the unexpired term.
507          (4) (a) Each member shall take the official oath of office prior to assuming the office.
508          (b) The oath shall be filed with the Division of Archives and Records Services.
509          (5) Each board of trustees shall elect a chair and vice chair, who serve for two years and
510     until their successors are elected and qualified.
511          (6) (a) Each board of trustees may enact bylaws for its own government, including
512     provision for regular meetings.
513          (b) (i) The board of trustees may provide for an executive committee in its bylaws.
514          (ii) If established, the committee shall have full authority of the board of trustees to act
515     upon routine matters during the interim between board of trustees meetings.
516          (iii) The committee may act on nonroutine matters only under extraordinary and
517     emergency circumstances.
518          (iv) The committee shall report its activities to the board of trustees at its next regular
519     meeting following the action.
520          (c) Copies of the board of trustees' bylaws shall be filed with the board.
521          (7) A quorum is required to conduct business and consists of six members.

522          (8) A board of trustees may establish advisory committees.
523          (9) A member may not receive compensation or benefits for the member's service, but may
524     receive per diem and travel expenses in accordance with:
525          (a) Section 63A-3-106;
526          (b) Section 63A-3-107; and
527          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
528          (10) This section does not apply to a board of directors of an applied technology college
529     within the Utah College of Applied Technology.
530          Section 11. Section 53B-2-106 is amended to read:
531          53B-2-106. Duties and responsibilities of the president of each institution -- Approval
532     by board of trustees.
533          (1) (a) The president of each institution may exercise grants of power and authority as
534     delegated by the board, as well as the necessary and proper exercise of powers and authority not
535     specifically denied to the institution, its administration, faculty, or students by the board or by law,
536     to assure the effective and efficient administration and operation of the institution consistent with
537     the statewide master plan for higher education.
538          (b) The president of each institution may, after consultation with the institution's board of
539     trustees, exercise powers relating to the institution's employees, including faculty and persons
540     under contract with the institution, by implementing any of the following:
541          (i) furloughs;
542          (ii) reductions in force;
543          (iii) benefit adjustments;
544          (iv) program reductions or discontinuance;
545          (v) early retirement incentives that provide cost savings to the institution; and
546          (vi) other measures that provide cost savings to the institution.
547          (2) Except as provided by the board, the president of each institution, with the approval
548     of the institution's board of trustees may:
549          (a) (i) appoint a secretary, a treasurer, administrative officers, deans, faculty members, and
550     other professional personnel, prescribe their duties, and determine their salaries;
551          (ii) appoint support personnel, prescribe their duties, and determine their salaries from the
552     institution's position classification plan, which may:

553          (A) be based upon similarity of duties and responsibilities within the institution; and
554          (B) as funds permit, provide salary and benefits comparable with private enterprise;
555          (iii) adopt policies for:
556          (A) employee sick leave use and accrual; and
557          (B) service recognition for employees with more than 15 years of employment with the
558     institution; and
559          (iv) subject to the authority of, policy established by, and the approval of the board of
560     regents, and recognizing the status of the institutions within the state system of higher education
561     as bodies politic and corporate, appoint attorneys to provide legal advice to the institution's
562     administration and to coordinate legal affairs within the institution. The board of regents shall
563     coordinate activities of attorneys at the institutions of higher education. The institutions shall
564     provide an annual report to the board of regents on the activities of appointed attorneys. These
565     appointed attorneys may not conduct litigation, settle claims covered by the State Risk
566     Management Fund, or issue formal legal opinions but shall, in all respects, cooperate with the
567     Office of the Attorney General in providing legal representation to the institution;
568          (b) provide for the constitution, government, and organization of the faculty and
569     administration, and enact implementing rules, including the establishment of a prescribed system
570     of tenure;
571          (c) authorize the faculty to determine the general initiation and direction of instruction and
572     of the examination, admission, and classification of students. In recognition of the diverse nature
573     and traditions of the various institutions governed by the board, the systems of faculty government
574     need not be identical but should be designed to further faculty identification with and involvement
575     in the institution's pursuit of achievement and excellence and in fulfillment of the institution's role
576     as established in the statewide master plan for higher education; and
577          (d) enact rules for administration and operation of the institution which are consistent with
578     the prescribed role established by the board, rules enacted by the board, or the laws of the state.
579     The rules may provide for administrative, faculty, student, and joint committees with jurisdiction
580     over specified institutional matters, for student government and student affairs organization, for
581     the establishment of institutional standards in furtherance of the ideals of higher education fostered
582     and subscribed to by the institution, its administration, faculty, and students, and for the holding
583     of classes on legal holidays, other than Sunday.

584          (3) Compensation costs and related office expenses for appointed attorneys shall be funded
585     within existing budgets.
586          (4) The State Board of Regents shall establish guidelines relating to the roles and
587     relationships between institutional presidents and boards of trustees, including those matters which
588     must be approved by a board of trustees before implementation by the president.
589          (5) This section does not apply to a president of an applied technology college within the
590     Utah College of Applied Technology.
591          Section 12. Section 53B-2a-101 is amended to read:
592          53B-2a-101. Definitions.
593          As used in this chapter:
594          (1) "Applied technology college" means a member college of the Utah College of Applied
595     Technology.
596          [(1)] (2) "Board of trustees" means the Utah College of Applied Technology Board of
597     Trustees.
598          [(2) "College campus" means a college campus of the Utah College of Applied
599     Technology.]
600          (3) "Commissioner of technical education" means the Utah College of Applied Technology
601     commissioner of technical education.
602          [(3)] (4) "Competency-based" means mastery of subject matter or skill level, as
603     demonstrated through business and industry approved standards and assessments, achieved through
604     participation in a hands-on learning environment, and which is tied to observable, measurable
605     performance objectives.
606          (5) "Member" means a member of the board of trustees.
607          [(4)] (6) "Open-entry, open-exit" means:
608          (a) a method of instructional delivery that allows for flexible scheduling in response to
609     individual student needs or requirements and demonstrated competency when knowledge and skills
610     have been mastered;
611          (b) students have the flexibility to begin or end study at any time, progress through course
612     material at their own pace, and demonstrate competency when knowledge and skills have been
613     mastered; and
614          (c) if competency is demonstrated in a program of study, a credential, certificate, or

615     diploma may be awarded.
616          Section 13. Section 53B-2a-102 is amended to read:
617          53B-2a-102. Commissioner of technical education -- Appointment -- Duties.
618          (1) (a) The board of trustees, upon approval from the governor and with the consent of the
619     Senate [for each appointee nominated on or after May 8, 2012], shall appoint a [president for the
620     Utah College of Applied Technology] commissioner of technical education to serve as the board
621     of trustees' chief executive officer.
622          [(b) The president of the Utah College of Applied Technology does not need to have a
623     doctorate degree, but shall]
624          (b) The commissioner of technical education shall:
625          (i) have an appropriate and relevant educational background; and
626          (ii) have extensive experience in career and technical education.
627          (c) The [president] commissioner of technical education shall serve at the board of trustees'
628     discretion and may be terminated by:
629          (i) the board of trustees; or
630          (ii) the governor, after consultation with the board of trustees.
631          (d) If the board of trustees intends to appoint an interim or acting commissioner of
632     technical education during a leave of absence of the commissioner of technical education, the
633     board of trustees shall appoint the interim or acting commissioner of technical education with the
634     consent of the Senate.
635          [(d)] (e) The name of each final candidate for [president of the Utah College of Applied
636     Technology] commissioner of technical education shall be publicly disclosed.
637          [(2) The president shall:]
638          [(a) direct the Utah College of Applied Technology and coordinate the activities of each
639     of its college campuses;]
640          [(b) in consultation with the board of trustees, campus presidents, and campus boards of
641     directors, prepare a comprehensive strategic plan for delivering career and technical education
642     through the Utah College of Applied Technology college campuses;]
643          [(c) after consulting with school districts, charter schools, and other higher education
644     institutions in the regions, ensure that the curricula of the Utah College of Applied Technology
645     meet the needs of the state, the regions, the school districts, and charter schools;]

646          [(d) in consultation with the board of trustees, campus presidents, and campus boards of
647     directors, and after consulting with school districts, charter schools, and other higher education
648     institutions in the region, develop strategies for providing career and technical education in rural
649     areas, specifically considering the distances between rural career and technical education
650     providers;]
651          [(e) establish minimum standards for career and technical education programs of the Utah
652     College of Applied Technology college campuses;]
653          [(f) in conjunction with the board of trustees:]
654          [(i) develop and implement a system of common definitions, standards, and criteria for
655     tracking and measuring the effectiveness of career and technical education;]
656          [(ii) maintain a central administration office for coordination, prioritization, support, and
657     reporting of college functions dealing with:]
658          [(A) budgets and audits;]
659          [(B) facilities, including capital, capital development, and leases;]
660          [(C) management information systems;]
661          [(D) campus and college master planning efforts;]
662          [(E) strategic planning;]
663          [(F) articulation with institutions of higher education and public education;]
664          [(G) legislative, State System of Public Education, State System of Higher Education, and
665     Board of Regents contact;]
666          [(H) general data collection; and]
667          [(I) programs, certificates, and curriculum; and]
668          [(iii) develop and implement a plan to inform citizens about the availability, cost, and
669     advantages of career and technical education;]
670          [(g) after consulting with the State Board of Education, school districts, and charter
671     schools, ensure that secondary students in the public education system have access to career and
672     technical education through the Utah College of Applied Technology college campuses;]
673          [(h) in conjunction with the board of trustees, establish benchmarks, provide oversight,
674     evaluate program performance, and obtain independent audits to ensure that college campuses
675     follow the non-credit career and technical education mission described in this part; and]
676          [(i) with the approval of the board of trustees, appoint each campus president in

677     accordance with Section 53B-2a-107 and annually set the compensation of each campus president.]
678          (2) The board of trustees shall:
679          (a) set the salary of the commissioner of technical education;
680          (b) prescribe the duties and functions of the commissioner of technical education; and
681          (c) select a commissioner of technical education on the basis of outstanding professional
682     qualifications.
683          (3) The commissioner of technical education is responsible to the board of trustees to:
684          (a) ensure that the policies and programs of the board of trustees are properly executed;
685          (b) furnish information about the Utah College of Applied Technology and make
686     recommendations regarding the information to the board of trustees;
687          (c) provide state-level leadership in an activity affecting an applied technology college;
688     and
689          (d) perform other duties as assigned by the board of trustees in carrying out the board of
690     trustees' duties and responsibilities.
691          Section 14. Section 53B-2a-103 is amended to read:
692          53B-2a-103. Utah College of Applied Technology Board of Trustees -- Membership
693     -- Terms -- Vacancies -- Oath -- Officers -- Quorum -- Committees -- Compensation.
694          (1) There is created the Utah College of Applied Technology Board of Trustees[,].
695          (2) Except as provided in Subsections (3) and (4), the board of trustees is composed of the
696     following members:
697          (a) one member of the State Board of Education appointed by the chair of the State Board
698     of Education, to serve as a nonvoting member;
699          (b) one member of the State Board of Regents appointed by the chair of the State Board
700     of Regents, to serve as a nonvoting member;
701          (c) one member, representing business and industry employers from [the campus] each
702     applied technology college board of directors [of each applied technology college campus],
703     appointed by a majority vote of the business and industry employer members of the [campus
704     board] applied technology college board of directors;
705          (d) one member representing business and industry employers from the Snow College
706     Economic Development and Workforce Preparation Advisory Committee appointed by a majority
707     of the business and industry employer members of the advisory committee;

708          (e) one member representing business and industry employers from the Utah State
709     University Eastern career and technical education advisory committee appointed by a majority of
710     the business and industry employer members of the advisory committee;
711          (f) one member representing business and industry employers from the Salt Lake
712     Community College School of Applied Technology Board of Directors appointed by a majority
713     of the business and industry employer members of the board of directors;
714          (g) one business or industry employer representative appointed by the governor with the
715     consent of the Senate from nominations submitted by the speaker of the House of Representatives
716     and president of the Senate;
717          (h) one representative of union craft, trade, or apprenticeship programs that prepare
718     workers for employment in career and technical education fields, appointed by the governor with
719     the consent of the Senate;
720          (i) one representative of non-union craft, trade, or apprenticeship programs that prepare
721     workers for employment in career and technical education fields, appointed by the governor with
722     the consent of the Senate; and
723          (j) the executive director of the Governor's Office of Economic Development or the
724     executive director's designee.
725          [(2) (a) In making appointments to the board of trustees, the governor shall consider:]
726          (3) (a) Beginning on July 1, 2019, the board of trustees is composed of 15 voting members
727     appointed by the governor with the consent of the Senate, as follows:
728          (i) one member representing each applied technology college, selected from at least two
729     nominees presented to the governor by the board of directors of each applied technology college;
730     and
731          (ii) one member representing each of the following sectors:
732          (A) information technology;
733          (B) manufacturing;
734          (C) life sciences;
735          (D) health care;
736          (E) transportation;
737          (F) union craft, trade, or apprenticeship; and
738          (G) non-union craft, trade, or apprenticeship.

739          (b) The seven members described in Subsection (3)(a)(ii) shall be selected from the state
740     at large, subject to the following conditions:
741          (i) at least four members shall reside in a geographic area served by an applied technology
742     college described in Section 53B-2a-105; and
743          (ii) no more than two members may reside in a single geographic area served by an applied
744     technology college described in Section 53B-2a-105.
745          [(i) individuals from the state at large with due consideration for geographical
746     representation;]
747          [(ii) individuals recognized for their knowledge and expertise; and]
748          [(iii) individuals who represent current and emerging business and industry sectors of the
749     state.]
750          [(b) Appointments]
751          (c) (i) In addition to the 15 voting members described in Subsection (3)(a), one member
752     of the Board of Regents, appointed by the chair of the Board of Regents, shall serve as a nonvoting
753     member of the board of trustees.
754          (ii) The nonvoting member from the Board of Regents is not subject to the term limit
755     described in Subsection (5)(b).
756          (d) The governor shall make appointments to the board [shall be made] of trustees on a
757     nonpartisan basis.
758          (4) (a) Except as provided in Subsection (4)(d), to transition from the composition of the
759     board of trustees described in Subsection (2) to the composition described in Subsection (3), for
760     a member who was appointed to the board of trustees on or before May 10, 2016, the governor
761     shall appoint a replacement:
762          (i) when the member's current term expires, for a member who, on May 10, 2016, has
763     served less than two consecutive full terms on the board of trustees; or
764          (ii) on May 10, 2016, for a member who, on May 10, 2016, has served two or more
765     consecutive full terms on the board of trustees.
766          (b) In replacing a member who was appointed under Subsection (2)(c), the governor shall
767     appoint a member to represent the applied technology college represented by the member whose
768     term expires by:
769          (i) soliciting the applied technology college's board of directors to nominate at least two

770     individuals for the position; and
771          (ii) selecting from the nominees presented.
772          (c) In replacing a member who was appointed under Subsections (2)(d) through (2)(j), the
773     governor shall appoint a new member at large, ensuring representation from the sectors described
774     in Subsection (3)(a)(ii).
775          (d) (i) A member appointed under Subsection (2)(a) shall remain on the board of trustees
776     until June 30, 2019.
777          (ii) A member appointed under Subsection (2)(b) may remain on the board following the
778     transition to the board composition described in Subsection (3).
779          (e) In making an appointment under this Subsection (4), the governor:
780          (i) shall appoint a member on a nonpartisan basis; and
781          (ii) may not reappoint the member who is being replaced if the member has served on the
782     board of trustees for at least two consecutive full terms.
783          [(3) (a)] (5) (a) (i) Except as provided under Subsection [(3)(b), members of the board of
784     trustees] (5)(a)(ii), a member shall be appointed commencing on July 1 of each odd-numbered year
785     to a four-year term.
786          [(b) Initial terms of the board members beginning on July 1, 2009 shall be staggered with
787     two-year and four-year terms so that]
788          (ii) The governor shall ensure that member terms are staggered so that approximately
789     one-half of the members' terms [will] expire in any odd-numbered year.
790          [(c) An appointed member holds office until a successor is appointed and qualified.]
791          (b) A member may not hold office for more than two consecutive full terms.
792          [(4)] (6) When a vacancy occurs [in] on the [membership] board of trustees for any reason,
793     the governor shall appoint a replacement [shall be appointed] for the unexpired term.
794          [(5)] (7) (a) Each member shall take the official oath of office prior to assuming the office.
795          (b) The oath shall be filed with the Division of Archives and Records Services.
796          [(6)] (8) (a) The board of trustees shall elect a chair and vice chair, who serve for two years
797     and until their successors are elected and qualified.
798          (b) A member may not serve more than two consecutive terms as the chair or vice chair.
799          [(7)] (9) (a) The board of trustees [may] shall enact bylaws for [its] the board of trustees'
800     own government, including [provision] provisions for regular meetings.

801          (b) (i) The board of trustees [may] shall provide for an executive committee in [its] the
802     board of trustees' bylaws.
803          (ii) [If established, the] The executive committee shall have full authority of the board of
804     trustees to act upon routine matters during the interim between board of trustees meetings.
805          (iii) The executive committee may act on nonroutine matters only under extraordinary and
806     emergency circumstances.
807          (iv) The executive committee shall report its activities to the board of trustees at [its] the
808     board of trustees' next regular meeting following the executive committee's action.
809          [(8)] (10) A quorum shall be required to conduct business which shall consist of a majority
810     of voting board of trustee members.
811          [(9)] (11) The board of trustees may establish advisory committees.
812          [(10)] (12) A member may not receive compensation or benefits for the member's service,
813     but may receive per diem and travel expenses in accordance with:
814          (a) Section 63A-3-106;
815          (b) Section 63A-3-107; and
816          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
817          Section 15. Section 53B-2a-104 is amended to read:
818          53B-2a-104. Utah College of Applied Technology Board of Trustees -- Powers and
819     duties.
820          (1) The Utah College of Applied Technology Board of Trustees is vested with the control,
821     management, and supervision of applied technology colleges within the Utah College of Applied
822     Technology [college campuses] in a manner consistent with the policy and purpose of this title and
823     the specific powers and responsibilities granted to [it] the board of trustees.
824          (2) The [Utah College of Applied Technology Board of Trustees] board of trustees shall:
825          (a) ensure that [the Utah College of Applied Technology] an applied technology college
826     [campuses comply] complies with the requirements in Section 53B-2a-106;
827          (b) appoint the [president for the Utah College of Applied Technology] commissioner of
828     technical education in accordance with Section 53B-2a-102;
829          (c) advise the [president of the Utah College of Applied Technology] commissioner of
830     technical education and the State Board of Regents on issues related to career and technical
831     education, including articulation with institutions of higher education and public education;

832          (d) ensure that a secondary student in the public education system has access to career and
833     technical education through an applied technology college in the secondary student's service
834     region;
835          (e) in consultation with the State Board of Education, the State Board of Regents, and
836     applied technology college presidents, develop strategies for providing career and technical
837     education in rural areas, considering distances between rural career and technical education
838     providers;
839          [(d)] (f) receive budget requests from each applied technology college [campus], compile
840     and prioritize the requests, and submit the request to:
841          (i) the Legislature; and
842          (ii) the Governor's Office of Management and Budget;
843          [(e)] (g) receive funding requests pertaining to capital facilities and land purchases from
844     each applied technology college [campus], ensure that the requests comply with Section
845     53B-2a-112, prioritize the requests, and submit the prioritized requests to the State Building Board;
846          [(f)] (h) in conjunction with the [Utah College of Applied Technology president]
847     commissioner of technical education, establish benchmarks, provide oversight, evaluate program
848     performance, and obtain independent audits to ensure that [campuses follow] an applied
849     technology college follows the non-credit career and technical education mission described in this
850     part;
851          [(g)] (i) approve programs for the Utah College of Applied Technology;
852          [(h)] (j) approve the tuition rates for applied technology colleges within the Utah College
853     of Applied Technology;
854          [(i)] (k) prepare and submit an annual report detailing [its] the board of trustees' progress
855     and recommendations on career and technical education issues to the governor and to the
856     Legislature's Education Interim Committee by October 31 of each year, which shall include
857     information detailing:
858          (i) how the career and technical education needs of secondary students are being met,
859     including what access secondary students have to programs offered at [college campuses] applied
860     technology colleges;
861          (ii) how the emphasis on high demand, high wage, and high skill jobs in business and
862     industry described in [Subsection] Section 53B-2a-106[(1)(c)(ii)] is being provided;

863          (iii) performance outcomes, including:
864          (A) entered employment;
865          (B) job retention; and
866          (C) earnings; and
867          (iv) student tuition and fees; and
868          [(j)] (l) collaborate with the State Board of Regents, the State Board of Education, the state
869     system of public education, the state system of higher education, the Department of Workforce
870     Services, and the Governor's Office of Economic Development on the delivery of career and
871     technical education.
872          [(3) The Utah College of Applied Technology Board of Trustees, the president of the Utah
873     College of Applied Technology, and the Utah College of Applied Technology's college campuses,
874     presidents, and boards]
875          (3) The board of trustees, the commissioner of technical education, or an applied
876     technology college, president, or board of directors may not conduct a feasibility study or perform
877     another act relating to offering a degree or awarding credit.
878          Section 16. Section 53B-2a-105 is amended to read:
879          53B-2a-105. Utah College of Applied Technology -- Composition.
880          The Utah College of Applied Technology is composed of the following [college campuses]
881     applied technology colleges:
882          (1) [the] Bridgerland Applied Technology College [Campus], which serves the geographic
883     area encompassing:
884          (a) the Box Elder School District;
885          (b) the Cache School District;
886          (c) the Logan School District; and
887          (d) the Rich School District;
888          (2) [the] Ogden-Weber Applied Technology College [Campus], which serves the
889     geographic area encompassing:
890          (a) the Ogden City School District; and
891          (b) the Weber School District;
892          (3) [the] Davis Applied Technology College [Campus], which serves the geographic area
893     encompassing:

894          (a) the Davis School District; and
895          (b) the Morgan School District;
896          (4) [the] Tooele Applied Technology College [Campus], which serves the geographic area
897     encompassing the Tooele County School District;
898          (5) [the] Mountainland Applied Technology College [Campus], which serves the
899     geographic area encompassing:
900          (a) the Alpine School District;
901          (b) the Nebo School District;
902          (c) the Provo School District;
903          (d) the South Summit School District;
904          (e) the North Summit School District;
905          (f) the Wasatch School District; and
906          (g) the Park City School District;
907          (6) [the] Uintah Basin Applied Technology College [Campus], which serves the
908     geographic area encompassing:
909          (a) the Daggett School District;
910          (b) the Duchesne School District; and
911          (c) the Uintah School District;
912          (7) [the] Southwest Applied Technology College [Campus], which serves the geographic
913     area encompassing:
914          (a) the Beaver School District;
915          (b) the Garfield School District;
916          (c) the Iron School District; and
917          (d) the Kane School District; and
918          (8) [the] Dixie Applied Technology College [Campus], which serves the geographic area
919     encompassing the Washington School District.
920          Section 17. Section 53B-2a-106 is amended to read:
921          53B-2a-106. Applied technology colleges -- Duties.
922          (1) Each applied technology college within the Utah College of Applied Technology
923     [college campus] shall, within the geographic area served by the applied technology college
924     [campus]:

925          (a) offer a non-credit post-secondary and secondary career and technical education
926     curriculum;
927          (b) offer that curriculum at:
928          (i) low cost to adult students, as approved by the board of trustees; and
929          (ii) no tuition to secondary students;
930          (c) provide career and technical education that will result in:
931          (i) appropriate licensing, certification, or other evidence of completion of training; and
932          (ii) qualification for specific employment, with an emphasis on high demand, high wage,
933     and high skill jobs in business and industry;
934          (d) develop cooperative agreements with school districts, charter schools, other higher
935     education institutions, businesses, industries, and community and private agencies to maximize
936     the availability of instructional facilities within the geographic area served by the applied
937     technology college [campus]; and
938          (e) after consulting with school districts and charter schools within the geographic area
939     served by the applied technology college [campus]:
940          (i) ensure that secondary students in the public education system have access to career and
941     technical education at [each college campus] the applied technology college; and
942          (ii) prepare and submit an annual report to the [Utah College of Applied Technology]
943     board of trustees detailing:
944          (A) how the career and technical education needs of secondary students within the region
945     are being met;
946          (B) what access secondary students within the region have to programs offered at [college
947     campuses] the applied technology college;
948          (C) how the emphasis on high demand, high wage, high skill jobs in business and industry
949     described in Subsection (1)(c)(ii) is being provided; and
950          (D) student tuition and fees.
951          (2) [A] An applied technology college [campus] may offer:
952          (a) a competency-based high school diploma approved by the State Board of Education
953     in accordance with Section 53A-1-402;
954          (b) non-credit, basic instruction in areas such as reading, language arts, and mathematics
955     that are necessary for student success in a chosen career and technical education or job-related

956     program;
957          (c) non-credit courses of interest when similar offerings to the community are limited and
958     courses are financially self-supporting; and
959          (d) secondary school level courses through the Statewide Online Education Program in
960     accordance with Section 53A-15-1205.
961          (3) Except as provided in Subsection (2)(d), [a college campus] an applied technology
962     college may not:
963          (a) offer courses other than non-credit career and technical education or the non-credit,
964     basic instruction described in Subsections (2)(b) and (c);
965          (b) offer a degree;
966          (c) offer career and technical education or basic instruction outside the geographic area
967     served by the [college campus] applied technology college without a cooperative agreement
968     between an affected institution, except as provided in Subsection (6);
969          (d) provide tenure or academic rank for its instructors; [and] or
970          (e) participate in intercollegiate athletics.
971          (4) The mission of [a college campus] an applied technology college is limited to
972     non-credit career and technical education and may not expand to include credit-based academic
973     programs typically offered by community colleges or other institutions of higher education.
974          (5) [A campus] An applied technology college shall be recognized as a [college campus]
975     member applied technology college of the Utah College of Applied Technology, and regional
976     affiliation shall be retained and recognized through local designations such as "Bridgerland
977     Applied Technology College: A member applied technology college of the Utah College of
978     Applied Technology [Campus]."
979          (6) (a) [A college campus] An applied technology college may offer career and technical
980     education or basic instruction outside the geographic area served by the [college campus] applied
981     technology college without a cooperative agreement, as required in Subsection (3)(c), if:
982          (i) the career and technical education or basic instruction is specifically requested by:
983          (A) an employer; or
984          (B) a craft, trade, or apprenticeship program;
985          (ii) the [college campus] applied technology college notifies the affected institution about
986     the request; and

987          (iii) the affected institution is given an opportunity to make a proposal, prior to any
988     contract being finalized or training being initiated by the applied technology college [campus], to
989     the employer, craft, trade, or apprenticeship program about offering the requested career and
990     technical education or basic instruction, provided that the proposal shall be presented no later than
991     one business week from the delivery of the notice described under Subsection (6)(b).
992          (b) The requirements under Subsection (6)(a)(iii) do not apply if there is a prior training
993     relationship.
994          Section 18. Section 53B-2a-107 is amended to read:
995          53B-2a-107. Applied technology college presidents -- Appointments -- Duties.
996          (1) (a) The [president of the Utah College of Applied Technology] board of trustees shall,
997     after consultation with [a campus] an applied technology college board of directors [and with the
998     approval of the board of trustees, appoint a campus], appoint an applied technology college
999     president for [a college campus] an applied technology college.
1000          (b) The board of trustees shall establish a policy for appointing an applied technology
1001     college president that:
1002          (i) requires the board of trustees to create a search committee that:
1003          (A) shall include an equal number of board of trustee members and members from the
1004     applied technology college board of directors; and
1005          (B) may include applied technology college faculty, students, or other individuals;
1006          (ii) requires the search committee to seek nominations, interview candidates, and forward
1007     qualified candidates to the board of trustees for consideration;
1008          (iii) provides for at least two members of the applied technology college board of directors
1009     to participate in board of trustees' interviews of finalists; and
1010          (iv) provides for the board of trustees to vote to appoint an applied technology college
1011     president in a meeting that complies with Title 52, Chapter 4, Open and Public Meetings Act.
1012          [(b) A campus] (2) (a) An applied technology college president shall serve as the chief
1013     administrative officer of the college campus.
1014          [(c) A campus] (b) An applied technology college president does not need to have a
1015     doctorate degree, but shall have extensive experience in career and technical education.
1016          [(d) A campus] (c) An applied technology college president is subject to regular review
1017     and evaluation administered by the [Utah College of Applied Technology president] board of

1018     trustees, in cooperation with the [campus] applied technology college board of directors, through
1019     a process approved by the board of trustees.
1020          [(e) A campus] (d) An applied technology college president serves at the discretion of [the
1021     Utah College of Applied Technology president, in cooperation with the campus board of directors
1022     and] the board of trustees, in cooperation with the applied technology college board of directors.
1023          (e) The board of trustees, in cooperation with an applied technology college board of
1024     directors, shall set the compensation for an applied technology college president.
1025          [(2) Each campus president of a college campus shall:]
1026          (3) An applied technology college president shall:
1027          (a) serve as the executive officer of the [campus] applied technology college board of
1028     directors;
1029          (b) administer the day-to-day operations of the [college campus] applied technology
1030     college;
1031          (c) consult with the [campus] applied technology college board of directors; and
1032          (d) administer human resource policies and employee compensation plans in accordance
1033     with the requirements of the [Utah College of Applied Technology Board of Trustees] board of
1034     trustees.
1035          Section 19. Section 53B-2a-108 is amended to read:
1036          53B-2a-108. Applied technology college boards of directors -- Membership --
1037     Appointments.
1038          [A campus] An applied technology college shall have [a campus] an applied technology
1039     college board of directors appointed as follows:
1040          (1) the Bridgerland Applied Technology College [Campus] Board of Directors shall be
1041     composed of the following 12 members:
1042          (a) one elected local school board member appointed by the board of education for the Box
1043     Elder School District;
1044          (b) one elected local school board member appointed by the board of education for the
1045     Cache School District;
1046          (c) one elected local school board member appointed by the board of education for the
1047     Logan School District;
1048          (d) one elected local school board member appointed by the board of education for the

1049     Rich School District;
1050          (e) one member of the Utah State University board of trustees; and
1051          (f) seven representatives of business or industry employers within the region appointed
1052     jointly by the members appointed under Subsections (1)(a) through (e);
1053          (2) the Ogden-Weber Applied Technology College [Campus] Board of Directors shall be
1054     composed of the following 10 members:
1055          (a) one elected local school board member appointed by the board of education for the
1056     Ogden City School District;
1057          (b) one elected local school board member appointed by the board of education for the
1058     Weber School District;
1059          (c) one member of the Weber State University board of trustees; and
1060          (d) seven representatives of business or industry employers within the region appointed
1061     jointly by the members appointed under Subsections (2)(a) through (c);
1062          (3) the Davis Applied Technology College [Campus] Board of Directors shall be
1063     composed of the following 10 members:
1064          (a) one elected local school board member appointed by the board of education for the
1065     Davis School District;
1066          (b) one elected local school board member appointed by the board of education for the
1067     Morgan School District;
1068          (c) one member of the Weber State University board of trustees; and
1069          (d) seven representatives of business or industry employers within the region appointed
1070     jointly by the members appointed under Subsections (3)(a) through (c);
1071          (4) the Tooele Applied Technology College [Campus] Board of Directors shall be
1072     composed of the following 12 members:
1073          (a) one elected local school board member appointed by the board of education for the
1074     Tooele County School District;
1075          (b) one member of the Utah State University board of trustees; and
1076          (c) 10 representatives of business or industry employers within the region appointed jointly
1077     by the members appointed under Subsections (4)(a) and (b);
1078          (5) the Mountainland Applied Technology College [Campus] Board of Directors shall be
1079     composed of the following 18 members:

1080          (a) one elected local school board member appointed by the board of education for the
1081     Alpine School District;
1082          (b) one elected local school board member appointed by the board of education for the
1083     Nebo School District;
1084          (c) one elected local school board member appointed by the board of education for the
1085     Provo School District;
1086          (d) one elected local school board member appointed by the board of education for the
1087     South Summit School District;
1088          (e) one elected local school board member appointed by the board of education for the
1089     North Summit School District;
1090          (f) one elected local school board member appointed by the board of education for the
1091     Wasatch School District;
1092          (g) one elected local school board member appointed by the board of education for the
1093     Park City School District;
1094          (h) one member of the Utah Valley University board of trustees; and
1095          (i) 10 representatives of business or industry employers within the region appointed jointly
1096     by the members appointed under Subsections (5)(a) through (h);
1097          (6) the Uintah Basin Applied Technology College [Campus] Board of Directors shall be
1098     composed of the following 10 members:
1099          (a) one elected local school board member appointed by the board of education for the
1100     Daggett School District;
1101          (b) one elected local school board member appointed by the board of education for the
1102     Duchesne School District;
1103          (c) one elected local school board member appointed by the board of education for the
1104     Uintah School District;
1105          (d) one member of the Utah State University board of trustees; and
1106          (e) six representatives of business or industry employers within the region appointed
1107     jointly by the members appointed under Subsections (6)(a) through (d);
1108          (7) the Southwest Applied Technology College [Campus] Board of Directors shall be
1109     composed of the following 12 members:
1110          (a) one elected local school board member appointed by the board of education for the

1111     Beaver School District;
1112          (b) one elected local school board member appointed by the board of education for the
1113     Garfield School District;
1114          (c) one elected local school board member appointed by the board of education for the Iron
1115     School District;
1116          (d) one elected local school board member appointed by the board of education for the
1117     Kane School District;
1118          (e) one member of the Southern Utah University board of trustees; and
1119          (f) seven representatives of business or industry employers within the region appointed
1120     jointly by the members appointed under Subsections (7)(a) through (e);
1121          (8) the Dixie Applied Technology College [Campus] Board of Directors shall be
1122     composed of the following 10 members:
1123          (a) one elected local school board member appointed by the board of education for the
1124     Washington School District;
1125          (b) one member of the Dixie State University board of trustees; and
1126          (c) eight representatives of business or industry employers within the region appointed
1127     jointly by the members appointed under Subsections (8)(a) and (b); and
1128          (9) the representatives of business or industry employers shall be:
1129          (a) appointed jointly by the designated members from a list of names provided by local
1130     organizations or associations whose members employ workers with career and technical education;
1131          (b) individuals recognized for their knowledge and expertise;
1132          (c) individuals who represent current and emerging business and industry sectors of the
1133     state; and
1134          (d) appointed on a nonpartisan basis.
1135          Section 20. Section 53B-2a-109 is amended to read:
1136          53B-2a-109. Applied technology college boards of directors -- Terms -- Quorum --
1137     Chair-- Compensation.
1138          (1) (a) At the first meeting of [a campus] an applied technology college board of directors
1139     after July 1, 2009:
1140          (i) the representatives from the local school boards shall divide up their positions so that
1141     approximately half of them serve for two-year terms and half serve for four-year terms; and

1142          (ii) the representatives from business and industry employers shall divide up their positions
1143     so that approximately half of them serve for two-year terms and half serve for four-year terms.
1144          (b) Except as provided in Subsection (1)(a), individuals appointed to [a campus] an
1145     applied technology college board of directors shall serve four-year terms.
1146          (2) The original appointing authority shall fill any vacancies that occur on [the campus]
1147     an applied technology college board of directors.
1148          (3) A majority of [the campus] an applied technology college board of directors is a
1149     quorum.
1150          (4) [A campus] An applied technology college board of directors shall elect a chair from
1151     its membership.
1152          (5) A member of an applied technology college board of directors may not receive
1153     compensation or benefits for the member's service, but may receive per diem and travel expenses
1154     in accordance with:
1155          (a) Section 63A-3-106;
1156          (b) Section 63A-3-107; and
1157          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
1158          (6) (a) [A campus] An applied technology college board of directors may enact bylaws for
1159     [its] the applied technology college's own government, including provision for regular meetings,
1160     that are in accordance with the policies of the [Utah College of Applied Technology] board of
1161     trustees.
1162          (b) (i) [The campus] An applied technology college board of directors may provide for an
1163     executive committee in [its] the applied technology college board of directors' bylaws.
1164          (ii) If established, [the] an executive committee shall have the full authority of the
1165     [campus] applied technology college board of directors to act upon routine matters during the
1166     interim between board meetings.
1167          (iii) [The] An executive committee may act on nonroutine matters only under
1168     extraordinary and emergency circumstances.
1169          (iv) [The] An executive committee shall report [its] the executive committee's activities
1170     to the [campus] applied technology college board of directors at [its] the applied technology board
1171     of directors' next regular meeting following the action.
1172          (7) [A campus] An applied technology college board of directors may establish advisory

1173     committees.
1174          Section 21. Section 53B-2a-110 is amended to read:
1175          53B-2a-110. Applied technology college board of directors' powers and duties.
1176          (1) [A campus] An applied technology college board of directors shall:
1177          (a) assist the [campus] applied technology college president in preparing a budget request
1178     for [its] the applied technology college's annual operations to the [Utah College of Applied
1179     Technology Board of Trustees] board of trustees;
1180          (b) after consulting with the [Utah College of Applied Technology] board of trustees, other
1181     higher education institutions, school districts, and charter schools within [its] the applied
1182     technology college's region, prepare a comprehensive strategic plan for delivering career and
1183     technical education within [its] the region;
1184          (c) consult with business, industry, the Department of Workforce Services, the Governor's
1185     Office of Economic Development, and the Governor's Office of Management and Budget on an
1186     ongoing basis to determine what workers and skills are needed for employment in Utah businesses
1187     and industries;
1188          (d) develop programs based upon the information gathered in accordance with Subsection
1189     (1)(c), including expedited program approval and termination procedures to meet market needs;
1190          (e) adopt an annual budget and fund balances;
1191          (f) develop policies for the operation of career and technical education facilities under [its]
1192     the applied technology college board of directors' jurisdiction;
1193          (g) establish human resources and compensation policies for all employees in accordance
1194     with policies of the [Utah College of Applied Technology Board of Trustees] board of trustees;
1195          (h) approve credentials for employees and assign employees to duties in accordance with
1196     [the Utah College of Applied Technology Board of Trustees] board of trustees policies and
1197     accreditation guidelines;
1198          (i) conduct annual program evaluations;
1199          (j) appoint program advisory committees and other advisory groups to provide counsel,
1200     support, and recommendations for updating and improving the effectiveness of training programs
1201     and services;
1202          (k) approve regulations, both regular and emergency, to be issued and executed by the
1203     [campus president] applied technology college president;

1204          (l) coordinate with local school boards, school districts, and charter schools to meet the
1205     career and technical education needs of secondary students; and
1206          (m) develop policies and procedures for the admission, classification, instruction, and
1207     examination of students in accordance with the policies and accreditation guidelines of the [Utah
1208     College of Applied Technology] board of trustees and the State Board of Education.
1209          (2) Subsection (1)(g) does not apply to [a campus] an applied technology college president.
1210          (3) [A campus] An applied technology college board of directors may not exercise [any]
1211     jurisdiction over career and technical education provided by a school district or charter school or
1212     provided by a higher education institution independently of [a college campus] an applied
1213     technology college.
1214          (4) If a program advisory committee or other advisory group submits a printed
1215     recommendation to [the campus] an applied technology college board of directors, the [campus]
1216     applied technology college board of directors shall acknowledge the recommendation with a
1217     printed response that explains the [campus] applied technology college board of directors' action
1218     regarding the recommendation and the reasons for the action.
1219          Section 22. Section 53B-2a-112 is amended to read:
1220          53B-2a-112. Applied technology colleges -- Relationships with other public and
1221     higher education institutions -- Agreements -- Priorities -- New capital facilities.
1222          (1) As used in this section, "higher education institution" means, for each [college campus]
1223     applied technology college, the higher education institution designated in Section 53B-2a-108 that
1224     has a representative on [its campus] the applied technology college's board of directors.
1225          (2) [A college campus] An applied technology college shall avoid any unnecessary
1226     duplication of career and technical education instructional facilities, programs, administration, and
1227     staff between the applied technology college [campus] and other public and higher education
1228     institutions.
1229          (3) [A] An applied technology college [campus] may enter into agreements:
1230          (a) with other higher education institutions to cultivate cooperative relationships;
1231          (b) with other public and higher education institutions to enhance career and technical
1232     education within its region; or
1233          (c) to comply with Subsection (2).
1234          (4) Before [a] an applied technology college [campus] develops [its own] new instructional

1235     facilities, [it] the applied technology college shall give priority to:
1236          (a) maintaining [its own] the applied technology college's existing instructional facilities
1237     for both secondary and adult students;
1238          (b) coordinating with the president of a higher education institution and entering into any
1239     necessary agreements to provide career and technical education to both secondary and adult
1240     students that:
1241          (i) maintain and support existing higher education career and technical education
1242     programs; and
1243          (ii) maximize the use of existing higher education facilities; and
1244          (c) developing cooperative agreements with school districts, charter schools, other higher
1245     education institutions, businesses, industries, and community and private agencies to maximize
1246     the availability of career and technical education instructional facilities for both secondary and
1247     adult students.
1248          (5) (a) Before submitting a funding request pertaining to new capital facilities and land
1249     purchases to the [Utah College of Applied Technology, a college campus] board of trustees, an
1250     applied technology college shall:
1251          (i) ensure that all available instructional facilities are maximized in accordance with
1252     Subsections (4)(a) through (c); and
1253          (ii) coordinate the request with the president of a higher education institution, if applicable.
1254          (b) The State Building Board shall make a finding that the requirements of this section are
1255     met before [it] the State Building Board may consider a funding request [of the Utah College of
1256     Applied Technology] from the board of trustees pertaining to new capital facilities and land
1257     purchases.
1258          (c) [A] An applied technology college [campus] may not construct, approve the
1259     construction of, plan for the design or construction of, or consent to the construction of a career
1260     and technical education facility without approval of the Legislature.
1261          (6) Before acquiring new fiscal and administrative support structures, [a college campus]
1262     an applied technology college shall:
1263          (a) review the use of existing public or higher education administrative and accounting
1264     systems, financial record systems, and student and financial aid systems for the delivery of career
1265     and technical education in the region;

1266          (b) determine whether it is feasible to use those existing systems; and
1267          (c) with the approval of the [campus] applied technology college board of directors and
1268     the board of trustees, use those existing systems.
1269          Section 23. Section 53B-2a-113 is amended to read:
1270          53B-2a-113. Applied technology colleges -- Leasing authority -- Lease-purchase
1271     agreements -- Report.
1272          (1) In accordance with Subsection 53B-2a-112(2), [a college campus] an applied
1273     technology college may enter into a lease with other higher education institutions, school districts,
1274     charter schools, state agencies, or business and industry for a term of:
1275          (a) one year or less with the approval of the [campus] applied technology college board
1276     of directors; and
1277          (b) more than one year with the approval of the board of trustees and:
1278          (i) the approval of funding for the lease by the Legislature prior to [a college campus] an
1279     applied technology college entering into the lease; or
1280          (ii) the lease agreement includes language that allows termination of the lease without
1281     penalty.
1282          (2) (a) In accordance with Subsection 53B-2a-112(2), [a] an applied technology college
1283     [campus] may enter into a lease-purchase agreement if:
1284          (i) there is a long-term benefit to the state;
1285          (ii) the project is included in both the [campus] applied technology college and Utah
1286     College of Applied Technology master plans;
1287          (iii) the lease-purchase agreement includes language that allows termination of the lease;
1288          (iv) the lease-purchase agreement is approved by the [campus] applied technology college
1289     board of directors and the board of trustees; and
1290          (v) the lease-purchase agreement is:
1291          (A) reviewed by the Division of Facilities Construction and Management;
1292          (B) reviewed by the State Building Board; and
1293          (C) approved by the Legislature.
1294          (b) An approval under Subsection (2)(a) shall include a recognition of:
1295          (i) all parties, dates, and elements of the agreement;
1296          (ii) the equity or collateral component that creates the benefit; and

1297          (iii) the options dealing with the sale and division of equity.
1298          (3) (a) Each [college campus] applied technology college shall provide an annual lease
1299     report to the board of trustees that details each of [its] the applied technology college's leases,
1300     annual costs, location, square footage, and recommendations for lease continuation.
1301          (b) The [president of the Utah College of Applied Technology] board of trustees shall
1302     compile and distribute an annual combined lease report for all [college campuses] applied
1303     technology colleges to the Division of Facilities Construction Management and to others upon
1304     request.
1305          (4) The [Utah College of Applied Technology] board of trustees shall use the annual
1306     combined lease report in determining planning, utilization, and budget requests.
1307          Section 24. Section 53B-6-106 is amended to read:
1308          53B-6-106. Jobs Now and Economic Development Initiatives.
1309          (1) (a) The Utah College of Applied Technology Board of Trustees shall develop,
1310     establish, and maintain a Jobs Now Initiative, to promote workforce preparation programs that
1311     meet critical needs and shortages throughout the state.
1312          (b) The State Board of Regents shall develop, establish, and maintain economic
1313     development initiatives within the system of higher education.
1314          (2) The initiatives specified in Subsection (1) shall provide support for technical training
1315     expansion that trains skilled potential employees within a period not to exceed 12 months for
1316     technical jobs in critical needs occupations and other innovative economic development policy
1317     initiatives.
1318          (3) (a) Subject to future budget constraints, the Legislature shall provide an annual
1319     appropriation to the Utah College of Applied Technology to fund the Jobs Now Initiative
1320     established in Subsection (1)(a).
1321          (b) (i) The Utah College of Applied Technology Board of Trustees shall allocate the
1322     appropriation for the Jobs Now Initiative to [college campuses] applied technology colleges within
1323     the [college] Utah College of Applied Technology.
1324          (ii) [A college campus] An applied technology college shall use money received under
1325     Subsection (3)(b)(i) for technical training expansion referred to in Subsection (2).
1326          (c) Subject to future budget constraints, the Legislature shall provide an annual
1327     appropriation to the State Board of Regents to fund economic development initiatives established

1328     pursuant Subsection (1)(b).
1329          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1330          (i) the Utah College of Applied Technology Board of Trustees shall make rules to
1331     implement the Jobs Now Initiative; and
1332          (ii) the board shall make rules to implement economic development initiatives.
1333          Section 25. Section 53B-8d-102 is amended to read:
1334          53B-8d-102. Definitions.
1335          As used in this chapter:
1336          (1) "Division" means the Division of Child and Family Services.
1337          (2) "Long-term foster care" means an individual who remains in the custody of the
1338     division, whether or not the individual resides:
1339          (a) with licensed foster parents; or
1340          (b) in independent living arrangements under the supervision of the division.
1341          (3) "State institution of higher education" means:
1342          (a) [those institutions] an institution designated in Section 53B-1-102; and
1343          (b) [any] a public institution that offers postsecondary education in consideration of the
1344     payment of tuition or fees for the attainment of educational or vocational objectives leading to a
1345     degree or certificate, including:
1346          [(i) business schools;]
1347          [(ii) technical schools;]
1348          [(iii) applied technology centers;]
1349          [(iv) trade schools; and]
1350          (i) a business school;
1351          (ii) a technical school;
1352          (iii) an applied technology college within the Utah College of Applied Technology;
1353          (iv) a trade school; or
1354          (v) [institutions] an institution offering related apprenticeship programs.
1355          (4) "Tuition" means tuition at the rate for residents of the state.
1356          (5) "Ward of the state" means an individual:
1357          (a) who is:
1358          (i) at least 17 years of age; and

1359          (ii) not older than 26 years of age;
1360          (b) who had a permanency goal in the individual's child and family plan, as described in
1361     Sections 62A-4a-205 and 78A-6-314, of long-term foster care while in the custody of the division;
1362     and
1363          (c) for whom the custody of the division was not terminated as a result of adoption.
1364          Section 26. Section 53B-16-102 is amended to read:
1365          53B-16-102. Changes in curriculum -- Substantial alterations in institutional
1366     operations -- Periodic review of programs -- Career and technical education curriculum
1367     changes.
1368          (1) Under procedures and policies approved by the board and developed in consultation
1369     with each institution of higher education, each institution may make such changes in its curriculum
1370     as necessary to better effectuate the institutional role previously approved by the board.
1371          (2) Notice of a change in the curriculum shall in all cases be promptly submitted to the
1372     board.
1373          (3) The board shall establish procedures and policies for considering institutional
1374     proposals for substantial alterations in the scope of existing institutional operations.
1375          (4) Alterations shall not be made without prior approval of the state board.
1376          (5) For purposes of this section, "substantial alteration" means the establishment of a
1377     branch, extension center, college, professional school, division, institute, department, or a new
1378     program in instruction, research, or public services or a new degree, diploma, or certificate.
1379          (6) The board shall conduct periodic reviews of all programs of instruction, research, and
1380     public service at each institution, including those funded by gifts, grants, and contracts, and may
1381     require the modification or termination of any program.
1382          (7) Prior to requiring modification or termination of a program, the board shall give the
1383     institution adequate opportunity for a hearing before the board.
1384          (8) In making decisions related to career and technical education curriculum changes, the
1385     board shall request a review of the proposed changes by the State Board of Education and the Utah
1386     College of Applied Technology Board of Trustees to ensure an orderly and systematic career and
1387     technical education curriculum that eliminates overlap and duplication of course work with the
1388     high schools and [the] applied technology colleges within the Utah College of Applied
1389     Technology.

1390          Section 27. Section 53B-17-105 is amended to read:
1391          53B-17-105. Utah Education and Telehealth Network.
1392          (1) There is created the Utah Education and Telehealth Network, or UETN.
1393          (2) UETN shall:
1394          (a) coordinate and support the telecommunications needs of public and higher education,
1395     public libraries, and entities affiliated with the state systems of public and higher education as
1396     approved by the Utah Education and Telehealth Network Board, including the statewide
1397     development and implementation of a network for education, which utilizes satellite, microwave,
1398     fiber-optic, broadcast, and other transmission media;
1399          (b) coordinate the various telecommunications technology initiatives of public and higher
1400     education;
1401          (c) provide high-quality, cost-effective Internet access and appropriate interface equipment
1402     for schools and school systems;
1403          (d) procure, install, and maintain telecommunication services and equipment on behalf of
1404     public and higher education;
1405          (e) develop or implement other programs or services for the delivery of distance learning
1406     and telehealth services as directed by law;
1407          (f) apply for state and federal funding on behalf of:
1408          (i) public and higher education; and
1409          (ii) telehealth services;
1410          (g) in consultation with health care providers from a variety of health care systems, explore
1411     and encourage the development of telehealth services as a means of reducing health care costs and
1412     increasing health care quality and access, with emphasis on assisting rural health care providers
1413     and special populations; and
1414          (h) in consultation with the Utah Department of Health, advise the governor and the
1415     Legislature on:
1416          (i) the role of telehealth in the state;
1417          (ii) the policy issues related to telehealth;
1418          (iii) the changing telehealth needs and resources in the state; and
1419          (iv) state budgetary matters related to telehealth.
1420          (3) In performing the duties under Subsection (2), UETN shall:

1421          (a) provide services to schools, school districts, and the public and higher education
1422     systems through an open and competitive bidding process;
1423          (b) work with the private sector to deliver high-quality, cost-effective services;
1424          (c) avoid duplicating facilities, equipment, or services of private providers or public
1425     telecommunications service, as defined under Section 54-8b-2;
1426          (d) utilize statewide economic development criteria in the design and implementation of
1427     the educational telecommunications infrastructure; and
1428          (e) assure that public service entities, such as educators, public service providers, and
1429     public broadcasters, are provided access to the telecommunications infrastructure developed in the
1430     state.
1431          (4) The University of Utah shall provide administrative support for UETN.
1432          (5) (a) The Utah Education and Telehealth Network Board, which is the governing board
1433     for UETN, is created.
1434          (b) The Utah Education and Telehealth Network Board shall have 13 members as follows:
1435          (i) four members representing the state system of higher education appointed by the
1436     commissioner of higher education;
1437          (ii) four members representing the state system of public education including:
1438          (A) three members appointed by the State Board of Education; and
1439          (B) one member representing the Utah State Office of Education appointed by the state
1440     superintendent;
1441          (iii) one member representing applied technology [centers] colleges appointed by the
1442     [president of the] Utah College of Applied Technology commissioner of technical education;
1443          (iv) one member representing the state library appointed by the state librarian;
1444          (v) two members representing hospitals as follows:
1445          (A) the members may not be employed by the same hospital system;
1446          (B) one member shall represent a rural hospital;
1447          (C) one member shall represent an urban hospital; and
1448          (D) the chief administrator or the administrator's designee for each hospital licensed in this
1449     state shall select the two hospital representatives; and
1450          (vi) one member representing the office of the governor, appointed by the governor.
1451          (c) When a vacancy occurs in the membership for any reason, the replacement shall be

1452     appointed for the unexpired term.
1453          (d) (i) The board shall elect a chair.
1454          (ii) The chair shall set the agenda for the board meetings.
1455          (6) A member of the board may not receive compensation or benefits for the member's
1456     service, but may receive per diem and travel expenses in accordance with:
1457          (a) Section 63A-3-106;
1458          (b) Section 63A-3-107; and
1459          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 63A-3-107.
1460          (7) The board:
1461          (a) shall hire an executive director for UETN who may hire staff for UETN as permitted
1462     by the budget;
1463          (b) may terminate the executive director's employment or assignment;
1464          (c) shall determine the executive director's salary;
1465          (d) shall annually conduct a performance evaluation of the executive director;
1466          (e) shall establish policies the board determines are necessary for the operation of UETN
1467     and the administration of UETN's duties; and
1468          (f) shall advise UETN in:
1469          (i) the development and operation of a coordinated, statewide, multi-option
1470     telecommunications system to assist in the delivery of educational services and telehealth services
1471     throughout the state; and
1472          (ii) acquiring, producing, and distributing instructional content.
1473          (8) The executive director of UETN shall be an at-will employee.
1474          (9) UETN shall locate and maintain educational and telehealth telecommunication
1475     infrastructure throughout the state.
1476          (10) Educational institutions shall manage site operations under policy established by
1477     UETN.
1478          (11) Subject to future budget constraints, the Legislature shall provide an annual
1479     appropriation to operate UETN.
1480          (12) If the network operated by the Department of Technology Services is not available,
1481     UETN may provide network connections to the central administration of counties and
1482     municipalities for the sole purpose of transferring data to a secure facility for backup and disaster

1483     recovery.
1484          Section 28. Section 59-12-102 is amended to read:
1485          59-12-102. Definitions.
1486          As used in this chapter:
1487          (1) "800 service" means a telecommunications service that:
1488          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
1489          (b) is typically marketed:
1490          (i) under the name 800 toll-free calling;
1491          (ii) under the name 855 toll-free calling;
1492          (iii) under the name 866 toll-free calling;
1493          (iv) under the name 877 toll-free calling;
1494          (v) under the name 888 toll-free calling; or
1495          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the Federal
1496     Communications Commission.
1497          (2) (a) "900 service" means an inbound toll telecommunications service that:
1498          (i) a subscriber purchases;
1499          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to the
1500     subscriber's:
1501          (A) prerecorded announcement; or
1502          (B) live service; and
1503          (iii) is typically marketed:
1504          (A) under the name 900 service; or
1505          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
1506     Communications Commission.
1507          (b) "900 service" does not include a charge for:
1508          (i) a collection service a seller of a telecommunications service provides to a subscriber;
1509     or
1510          (ii) the following a subscriber sells to the subscriber's customer:
1511          (A) a product; or
1512          (B) a service.
1513          (3) (a) "Admission or user fees" includes season passes.

1514          (b) "Admission or user fees" does not include annual membership dues to private
1515     organizations.
1516          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
1517     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
1518     Agreement after November 12, 2002.
1519          (5) "Agreement combined tax rate" means the sum of the tax rates:
1520          (a) listed under Subsection (6); and
1521          (b) that are imposed within a local taxing jurisdiction.
1522          (6) "Agreement sales and use tax" means a tax imposed under:
1523          (a) Subsection 59-12-103(2)(a)(i)(A);
1524          (b) Subsection 59-12-103(2)(b)(i);
1525          (c) Subsection 59-12-103(2)(c)(i);
1526          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
1527          (e) Section 59-12-204;
1528          (f) Section 59-12-401;
1529          (g) Section 59-12-402;
1530          (h) Section 59-12-402.1;
1531          (i) Section 59-12-703;
1532          (j) Section 59-12-802;
1533          (k) Section 59-12-804;
1534          (l) Section 59-12-1102;
1535          (m) Section 59-12-1302;
1536          (n) Section 59-12-1402;
1537          (o) Section 59-12-1802;
1538          (p) Section 59-12-2003;
1539          (q) Section 59-12-2103;
1540          (r) Section 59-12-2213;
1541          (s) Section 59-12-2214;
1542          (t) Section 59-12-2215;
1543          (u) Section 59-12-2216;
1544          (v) Section 59-12-2217; or

1545          (w) Section 59-12-2218.
1546          (7) "Aircraft" is as defined in Section 72-10-102.
1547          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
1548          (a) except for:
1549          (i) an airline as defined in Section 59-2-102; or
1550          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
1551     includes a corporation that is qualified to do business but is not otherwise doing business in the
1552     state, of an airline; and
1553          (b) that has the workers, expertise, and facilities to perform the following, regardless of
1554     whether the business entity performs the following in this state:
1555          (i) check, diagnose, overhaul, and repair:
1556          (A) an onboard system of a fixed wing turbine powered aircraft; and
1557          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
1558          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
1559     engine;
1560          (iii) perform at least the following maintenance on a fixed wing turbine powered aircraft:
1561          (A) an inspection;
1562          (B) a repair, including a structural repair or modification;
1563          (C) changing landing gear; and
1564          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
1565          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
1566     completely apply new paint to the fixed wing turbine powered aircraft; and
1567          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that results
1568     in a change in the fixed wing turbine powered aircraft's certification requirements by the authority
1569     that certifies the fixed wing turbine powered aircraft.
1570          (9) "Alcoholic beverage" means a beverage that:
1571          (a) is suitable for human consumption; and
1572          (b) contains .5% or more alcohol by volume.
1573          (10) "Alternative energy" means:
1574          (a) biomass energy;
1575          (b) geothermal energy;

1576          (c) hydroelectric energy;
1577          (d) solar energy;
1578          (e) wind energy; or
1579          (f) energy that is derived from:
1580          (i) coal-to-liquids;
1581          (ii) nuclear fuel;
1582          (iii) oil-impregnated diatomaceous earth;
1583          (iv) oil sands;
1584          (v) oil shale;
1585          (vi) petroleum coke; or
1586          (vii) waste heat from:
1587          (A) an industrial facility; or
1588          (B) a power station in which an electric generator is driven through a process in which
1589     water is heated, turns into steam, and spins a steam turbine.
1590          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production facility"
1591     means a facility that:
1592          (i) uses alternative energy to produce electricity; and
1593          (ii) has a production capacity of two megawatts or greater.
1594          (b) A facility is an alternative energy electricity production facility regardless of whether
1595     the facility is:
1596          (i) connected to an electric grid; or
1597          (ii) located on the premises of an electricity consumer.
1598          (12) (a) "Ancillary service" means a service associated with, or incidental to, the provision
1599     of telecommunications service.
1600          (b) "Ancillary service" includes:
1601          (i) a conference bridging service;
1602          (ii) a detailed communications billing service;
1603          (iii) directory assistance;
1604          (iv) a vertical service; or
1605          (v) a voice mail service.
1606          (13) "Area agency on aging" is as defined in Section 62A-3-101.

1607          (14) "Assisted amusement device" means an amusement device, skill device, or ride device
1608     that is started and stopped by an individual:
1609          (a) who is not the purchaser or renter of the right to use or operate the amusement device,
1610     skill device, or ride device; and
1611          (b) at the direction of the seller of the right to use the amusement device, skill device, or
1612     ride device.
1613          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
1614     washing of tangible personal property if the cleaning or washing labor is primarily performed by
1615     an individual:
1616          (a) who is not the purchaser of the cleaning or washing of the tangible personal property;
1617     and
1618          (b) at the direction of the seller of the cleaning or washing of the tangible personal
1619     property.
1620          (16) "Authorized carrier" means:
1621          (a) in the case of vehicles operated over public highways, the holder of credentials
1622     indicating that the vehicle is or will be operated pursuant to both the International Registration
1623     Plan and the International Fuel Tax Agreement;
1624          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
1625     certificate or air carrier's operating certificate; or
1626          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling stock,
1627     a person who uses locomotives, freight cars, railroad work equipment, or other rolling stock in
1628     more than one state.
1629          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
1630     following that is used as the primary source of energy to produce fuel or electricity:
1631          (i) material from a plant or tree; or
1632          (ii) other organic matter that is available on a renewable basis, including:
1633          (A) slash and brush from forests and woodlands;
1634          (B) animal waste;
1635          (C) waste vegetable oil;
1636          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
1637     wastewater residuals, or through the conversion of a waste material through a nonincineration,

1638     thermal conversion process;
1639          (E) aquatic plants; and
1640          (F) agricultural products.
1641          (b) "Biomass energy" does not include:
1642          (i) black liquor; or
1643          (ii) treated woods.
1644          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
1645     property, products, or services if the tangible personal property, products, or services are:
1646          (i) distinct and identifiable; and
1647          (ii) sold for one nonitemized price.
1648          (b) "Bundled transaction" does not include:
1649          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on the
1650     basis of the selection by the purchaser of the items of tangible personal property included in the
1651     transaction;
1652          (ii) the sale of real property;
1653          (iii) the sale of services to real property;
1654          (iv) the retail sale of tangible personal property and a service if:
1655          (A) the tangible personal property:
1656          (I) is essential to the use of the service; and
1657          (II) is provided exclusively in connection with the service; and
1658          (B) the service is the true object of the transaction;
1659          (v) the retail sale of two services if:
1660          (A) one service is provided that is essential to the use or receipt of a second service;
1661          (B) the first service is provided exclusively in connection with the second service; and
1662          (C) the second service is the true object of the transaction;
1663          (vi) a transaction that includes tangible personal property or a product subject to taxation
1664     under this chapter and tangible personal property or a product that is not subject to taxation under
1665     this chapter if the:
1666          (A) seller's purchase price of the tangible personal property or product subject to taxation
1667     under this chapter is de minimis; or
1668          (B) seller's sales price of the tangible personal property or product subject to taxation under

1669     this chapter is de minimis; and
1670          (vii) the retail sale of tangible personal property that is not subject to taxation under this
1671     chapter and tangible personal property that is subject to taxation under this chapter if:
1672          (A) that retail sale includes:
1673          (I) food and food ingredients;
1674          (II) a drug;
1675          (III) durable medical equipment;
1676          (IV) mobility enhancing equipment;
1677          (V) an over-the-counter drug;
1678          (VI) a prosthetic device; or
1679          (VII) a medical supply; and
1680          (B) subject to Subsection (18)(f):
1681          (I) the seller's purchase price of the tangible personal property subject to taxation under
1682     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
1683          (II) the seller's sales price of the tangible personal property subject to taxation under this
1684     chapter is 50% or less of the seller's total sales price of that retail sale.
1685          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
1686     service that is distinct and identifiable does not include:
1687          (A) packaging that:
1688          (I) accompanies the sale of the tangible personal property, product, or service; and
1689          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
1690     service;
1691          (B) tangible personal property, a product, or a service provided free of charge with the
1692     purchase of another item of tangible personal property, a product, or a service; or
1693          (C) an item of tangible personal property, a product, or a service included in the definition
1694     of "purchase price."
1695          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
1696     product, or a service is provided free of charge with the purchase of another item of tangible
1697     personal property, a product, or a service if the sales price of the purchased item of tangible
1698     personal property, product, or service does not vary depending on the inclusion of the tangible
1699     personal property, product, or service provided free of charge.

1700          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price does
1701     not include a price that is separately identified by tangible personal property, product, or service
1702     on the following, regardless of whether the following is in paper format or electronic format:
1703          (A) a binding sales document; or
1704          (B) another supporting sales-related document that is available to a purchaser.
1705          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another supporting
1706     sales-related document that is available to a purchaser includes:
1707          (A) a bill of sale;
1708          (B) a contract;
1709          (C) an invoice;
1710          (D) a lease agreement;
1711          (E) a periodic notice of rates and services;
1712          (F) a price list;
1713          (G) a rate card;
1714          (H) a receipt; or
1715          (I) a service agreement.
1716          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal property
1717     or a product subject to taxation under this chapter is de minimis if:
1718          (A) the seller's purchase price of the tangible personal property or product is 10% or less
1719     of the seller's total purchase price of the bundled transaction; or
1720          (B) the seller's sales price of the tangible personal property or product is 10% or less of the
1721     seller's total sales price of the bundled transaction.
1722          (ii) For purposes of Subsection (18)(b)(vi), a seller:
1723          (A) shall use the seller's purchase price or the seller's sales price to determine if the
1724     purchase price or sales price of the tangible personal property or product subject to taxation under
1725     this chapter is de minimis; and
1726          (B) may not use a combination of the seller's purchase price and the seller's sales price to
1727     determine if the purchase price or sales price of the tangible personal property or product subject
1728     to taxation under this chapter is de minimis.
1729          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
1730     contract to determine if the sales price of tangible personal property or a product is de minimis.

1731          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of the
1732     seller's purchase price and the seller's sales price to determine if tangible personal property subject
1733     to taxation under this chapter is 50% or less of the seller's total purchase price or sales price of that
1734     retail sale.
1735          (19) "Certified automated system" means software certified by the governing board of the
1736     agreement that:
1737          (a) calculates the agreement sales and use tax imposed within a local taxing jurisdiction:
1738          (i) on a transaction; and
1739          (ii) in the states that are members of the agreement;
1740          (b) determines the amount of agreement sales and use tax to remit to a state that is a
1741     member of the agreement; and
1742          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
1743          (20) "Certified service provider" means an agent certified:
1744          (a) by the governing board of the agreement; and
1745          (b) to perform all of a seller's sales and use tax functions for an agreement sales and use
1746     tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's own
1747     purchases.
1748          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
1749     suitable for general use.
1750          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1751     commission shall make rules:
1752          (i) listing the items that constitute "clothing"; and
1753          (ii) that are consistent with the list of items that constitute "clothing" under the agreement.
1754          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
1755          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other fuels
1756     that does not constitute industrial use under Subsection (56) or residential use under Subsection
1757     (106).
1758          (24) (a) "Common carrier" means a person engaged in or transacting the business of
1759     transporting passengers, freight, merchandise, or other property for hire within this state.
1760          (b) (i) "Common carrier" does not include a person who, at the time the person is traveling
1761     to or from that person's place of employment, transports a passenger to or from the passenger's

1762     place of employment.
1763          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3, Utah
1764     Administrative Rulemaking Act, the commission may make rules defining what constitutes a
1765     person's place of employment.
1766          (c) "Common carrier" does not include a person that provides transportation network
1767     services, as defined in Section 13-51-102.
1768          (25) "Component part" includes:
1769          (a) poultry, dairy, and other livestock feed, and their components;
1770          (b) baling ties and twine used in the baling of hay and straw;
1771          (c) fuel used for providing temperature control of orchards and commercial greenhouses
1772     doing a majority of their business in wholesale sales, and for providing power for off-highway type
1773     farm machinery; and
1774          (d) feed, seeds, and seedlings.
1775          (26) "Computer" means an electronic device that accepts information:
1776          (a) (i) in digital form; or
1777          (ii) in a form similar to digital form; and
1778          (b) manipulates that information for a result based on a sequence of instructions.
1779          (27) "Computer software" means a set of coded instructions designed to cause:
1780          (a) a computer to perform a task; or
1781          (b) automatic data processing equipment to perform a task.
1782          (28) "Computer software maintenance contract" means a contract that obligates a seller
1783     of computer software to provide a customer with:
1784          (a) future updates or upgrades to computer software;
1785          (b) support services with respect to computer software; or
1786          (c) a combination of Subsections (28)(a) and (b).
1787          (29) (a) "Conference bridging service" means an ancillary service that links two or more
1788     participants of an audio conference call or video conference call.
1789          (b) "Conference bridging service" may include providing a telephone number as part of
1790     the ancillary service described in Subsection (29)(a).
1791          (c) "Conference bridging service" does not include a telecommunications service used to
1792     reach the ancillary service described in Subsection (29)(a).

1793          (30) "Construction materials" means any tangible personal property that will be converted
1794     into real property.
1795          (31) "Delivered electronically" means delivered to a purchaser by means other than
1796     tangible storage media.
1797          (32) (a) "Delivery charge" means a charge:
1798          (i) by a seller of:
1799          (A) tangible personal property;
1800          (B) a product transferred electronically; or
1801          (C) services; and
1802          (ii) for preparation and delivery of the tangible personal property, product transferred
1803     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
1804     purchaser.
1805          (b) "Delivery charge" includes a charge for the following:
1806          (i) transportation;
1807          (ii) shipping;
1808          (iii) postage;
1809          (iv) handling;
1810          (v) crating; or
1811          (vi) packing.
1812          (33) "Detailed telecommunications billing service" means an ancillary service of separately
1813     stating information pertaining to individual calls on a customer's billing statement.
1814          (34) "Dietary supplement" means a product, other than tobacco, that:
1815          (a) is intended to supplement the diet;
1816          (b) contains one or more of the following dietary ingredients:
1817          (i) a vitamin;
1818          (ii) a mineral;
1819          (iii) an herb or other botanical;
1820          (iv) an amino acid;
1821          (v) a dietary substance for use by humans to supplement the diet by increasing the total
1822     dietary intake; or
1823          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient

1824     described in Subsections (34)(b)(i) through (v);
1825          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
1826          (A) tablet form;
1827          (B) capsule form;
1828          (C) powder form;
1829          (D) softgel form;
1830          (E) gelcap form; or
1831          (F) liquid form; or
1832          (ii) if the product is not intended for ingestion in a form described in Subsections
1833     (34)(c)(i)(A) through (F), is not represented:
1834          (A) as conventional food; and
1835          (B) for use as a sole item of:
1836          (I) a meal; or
1837          (II) the diet; and
1838          (d) is required to be labeled as a dietary supplement:
1839          (i) identifiable by the "Supplemental Facts" box found on the label; and
1840          (ii) as required by 21 C.F.R. Sec. 101.36.
1841          (35) "Digital audio-visual work" means a series of related images which, when shown in
1842     succession, imparts an impression of motion, together with accompanying sounds, if any.
1843          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
1844     musical, spoken, or other sounds.
1845          (b) "Digital audio work" includes a ringtone.
1846          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
1847     sense as a book.
1848          (38) (a) "Direct mail" means printed material delivered or distributed by United States mail
1849     or other delivery service:
1850          (i) to:
1851          (A) a mass audience; or
1852          (B) addressees on a mailing list provided:
1853          (I) by a purchaser of the mailing list; or
1854          (II) at the discretion of the purchaser of the mailing list; and

1855          (ii) if the cost of the printed material is not billed directly to the recipients.
1856          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
1857     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
1858          (c) "Direct mail" does not include multiple items of printed material delivered to a single
1859     address.
1860          (39) "Directory assistance" means an ancillary service of providing:
1861          (a) address information; or
1862          (b) telephone number information.
1863          (40) (a) "Disposable home medical equipment or supplies" means medical equipment or
1864     supplies that:
1865          (i) cannot withstand repeated use; and
1866          (ii) are purchased by, for, or on behalf of a person other than:
1867          (A) a health care facility as defined in Section 26-21-2;
1868          (B) a health care provider as defined in Section 78B-3-403;
1869          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
1870          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
1871          (b) "Disposable home medical equipment or supplies" does not include:
1872          (i) a drug;
1873          (ii) durable medical equipment;
1874          (iii) a hearing aid;
1875          (iv) a hearing aid accessory;
1876          (v) mobility enhancing equipment; or
1877          (vi) tangible personal property used to correct impaired vision, including:
1878          (A) eyeglasses; or
1879          (B) contact lenses.
1880          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1881     commission may by rule define what constitutes medical equipment or supplies.
1882          (41) "Drilling equipment manufacturer" means a facility:
1883          (a) located in the state;
1884          (b) with respect to which 51% or more of the manufacturing activities of the facility
1885     consist of manufacturing component parts of drilling equipment;

1886          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
1887     manufacturing process; and
1888          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
1889     manufacturing process.
1890          (42) (a) "Drug" means a compound, substance, or preparation, or a component of a
1891     compound, substance, or preparation that is:
1892          (i) recognized in:
1893          (A) the official United States Pharmacopoeia;
1894          (B) the official Homeopathic Pharmacopoeia of the United States;
1895          (C) the official National Formulary; or
1896          (D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
1897          (ii) intended for use in the:
1898          (A) diagnosis of disease;
1899          (B) cure of disease;
1900          (C) mitigation of disease;
1901          (D) treatment of disease; or
1902          (E) prevention of disease; or
1903          (iii) intended to affect:
1904          (A) the structure of the body; or
1905          (B) any function of the body.
1906          (b) "Drug" does not include:
1907          (i) food and food ingredients;
1908          (ii) a dietary supplement;
1909          (iii) an alcoholic beverage; or
1910          (iv) a prosthetic device.
1911          (43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
1912     equipment that:
1913          (i) can withstand repeated use;
1914          (ii) is primarily and customarily used to serve a medical purpose;
1915          (iii) generally is not useful to a person in the absence of illness or injury; and
1916          (iv) is not worn in or on the body.

1917          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
1918     equipment described in Subsection (43)(a).
1919          (c) "Durable medical equipment" does not include mobility enhancing equipment.
1920          (44) "Electronic" means:
1921          (a) relating to technology; and
1922          (b) having:
1923          (i) electrical capabilities;
1924          (ii) digital capabilities;
1925          (iii) magnetic capabilities;
1926          (iv) wireless capabilities;
1927          (v) optical capabilities;
1928          (vi) electromagnetic capabilities; or
1929          (vii) capabilities similar to Subsections (44)(b)(i) through (vi).
1930          (45) "Electronic financial payment service" means an establishment:
1931          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
1932     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
1933     federal Executive Office of the President, Office of Management and Budget; and
1934          (b) that performs electronic financial payment services.
1935          (46) "Employee" is as defined in Section 59-10-401.
1936          (47) "Fixed guideway" means a public transit facility that uses and occupies:
1937          (a) rail for the use of public transit; or
1938          (b) a separate right-of-way for the use of public transit.
1939          (48) "Fixed wing turbine powered aircraft" means an aircraft that:
1940          (a) is powered by turbine engines;
1941          (b) operates on jet fuel; and
1942          (c) has wings that are permanently attached to the fuselage of the aircraft.
1943          (49) "Fixed wireless service" means a telecommunications service that provides radio
1944     communication between fixed points.
1945          (50) (a) "Food and food ingredients" means substances:
1946          (i) regardless of whether the substances are in:
1947          (A) liquid form;

1948          (B) concentrated form;
1949          (C) solid form;
1950          (D) frozen form;
1951          (E) dried form; or
1952          (F) dehydrated form; and
1953          (ii) that are:
1954          (A) sold for:
1955          (I) ingestion by humans; or
1956          (II) chewing by humans; and
1957          (B) consumed for the substance's:
1958          (I) taste; or
1959          (II) nutritional value.
1960          (b) "Food and food ingredients" includes an item described in Subsection (91)(b)(iii).
1961          (c) "Food and food ingredients" does not include:
1962          (i) an alcoholic beverage;
1963          (ii) tobacco; or
1964          (iii) prepared food.
1965          (51) (a) "Fundraising sales" means sales:
1966          (i) (A) made by a school; or
1967          (B) made by a school student;
1968          (ii) that are for the purpose of raising funds for the school to purchase equipment,
1969     materials, or provide transportation; and
1970          (iii) that are part of an officially sanctioned school activity.
1971          (b) For purposes of Subsection (51)(a)(iii), "officially sanctioned school activity" means
1972     a school activity:
1973          (i) that is conducted in accordance with a formal policy adopted by the school or school
1974     district governing the authorization and supervision of fundraising activities;
1975          (ii) that does not directly or indirectly compensate an individual teacher or other
1976     educational personnel by direct payment, commissions, or payment in kind; and
1977          (iii) the net or gross revenues from which are deposited in a dedicated account controlled
1978     by the school or school district.

1979          (52) "Geothermal energy" means energy contained in heat that continuously flows outward
1980     from the earth that is used as the sole source of energy to produce electricity.
1981          (53) "Governing board of the agreement" means the governing board of the agreement that
1982     is:
1983          (a) authorized to administer the agreement; and
1984          (b) established in accordance with the agreement.
1985          (54) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
1986          (i) the executive branch of the state, including all departments, institutions, boards,
1987     divisions, bureaus, offices, commissions, and committees;
1988          (ii) the judicial branch of the state, including the courts, the Judicial Council, the Office
1989     of the Court Administrator, and similar administrative units in the judicial branch;
1990          (iii) the legislative branch of the state, including the House of Representatives, the Senate,
1991     the Legislative Printing Office, the Office of Legislative Research and General Counsel, the Office
1992     of the Legislative Auditor General, and the Office of the Legislative Fiscal Analyst;
1993          (iv) the National Guard;
1994          (v) an independent entity as defined in Section 63E-1-102; or
1995          (vi) a political subdivision as defined in Section 17B-1-102.
1996          (b) "Governmental entity" does not include the state systems of public and higher
1997     education, including:
1998          (i) [a college campus of] an applied technology college within the Utah College of Applied
1999     Technology;
2000          (ii) a school;
2001          (iii) the State Board of Education;
2002          (iv) the State Board of Regents; or
2003          (v) an institution of higher education.
2004          (55) "Hydroelectric energy" means water used as the sole source of energy to produce
2005     electricity.
2006          (56) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or other
2007     fuels:
2008          (a) in mining or extraction of minerals;
2009          (b) in agricultural operations to produce an agricultural product up to the time of harvest

2010     or placing the agricultural product into a storage facility, including:
2011          (i) commercial greenhouses;
2012          (ii) irrigation pumps;
2013          (iii) farm machinery;
2014          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered under
2015     Title 41, Chapter 1a, Part 2, Registration; and
2016          (v) other farming activities;
2017          (c) in manufacturing tangible personal property at an establishment described in SIC Codes
2018     2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal Executive Office
2019     of the President, Office of Management and Budget;
2020          (d) by a scrap recycler if:
2021          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
2022     or more of the following items into prepared grades of processed materials for use in new products:
2023          (A) iron;
2024          (B) steel;
2025          (C) nonferrous metal;
2026          (D) paper;
2027          (E) glass;
2028          (F) plastic;
2029          (G) textile; or
2030          (H) rubber; and
2031          (ii) the new products under Subsection (56)(d)(i) would otherwise be made with
2032     nonrecycled materials; or
2033          (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
2034     cogeneration facility as defined in Section 54-2-1.
2035          (57) (a) Except as provided in Subsection (57)(b), "installation charge" means a charge for
2036     installing:
2037          (i) tangible personal property; or
2038          (ii) a product transferred electronically.
2039          (b) "Installation charge" does not include a charge for:
2040          (i) repairs or renovations of:

2041          (A) tangible personal property; or
2042          (B) a product transferred electronically; or
2043          (ii) attaching tangible personal property or a product transferred electronically:
2044          (A) to other tangible personal property; and
2045          (B) as part of a manufacturing or fabrication process.
2046          (58) "Institution of higher education" means an institution of higher education listed in
2047     Section 53B-2-101.
2048          (59) (a) "Lease" or "rental" means a transfer of possession or control of tangible personal
2049     property or a product transferred electronically for:
2050          (i) (A) a fixed term; or
2051          (B) an indeterminate term; and
2052          (ii) consideration.
2053          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
2054     amount of consideration may be increased or decreased by reference to the amount realized upon
2055     sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue Code.
2056          (c) "Lease" or "rental" does not include:
2057          (i) a transfer of possession or control of property under a security agreement or deferred
2058     payment plan that requires the transfer of title upon completion of the required payments;
2059          (ii) a transfer of possession or control of property under an agreement that requires the
2060     transfer of title:
2061          (A) upon completion of required payments; and
2062          (B) if the payment of an option price does not exceed the greater of:
2063          (I) $100; or
2064          (II) 1% of the total required payments; or
2065          (iii) providing tangible personal property along with an operator for a fixed period of time
2066     or an indeterminate period of time if the operator is necessary for equipment to perform as
2067     designed.
2068          (d) For purposes of Subsection (59)(c)(iii), an operator is necessary for equipment to
2069     perform as designed if the operator's duties exceed the:
2070          (i) set-up of tangible personal property;
2071          (ii) maintenance of tangible personal property; or

2072          (iii) inspection of tangible personal property.
2073          (60) "Life science establishment" means an establishment in this state that is classified
2074     under the following NAICS codes of the 2007 North American Industry Classification System of
2075     the federal Executive Office of the President, Office of Management and Budget:
2076          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
2077          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
2078     Manufacturing; or
2079          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
2080          (61) "Life science research and development facility" means a facility owned, leased, or
2081     rented by a life science establishment if research and development is performed in 51% or more
2082     of the total area of the facility.
2083          (62) "Load and leave" means delivery to a purchaser by use of a tangible storage media
2084     if the tangible storage media is not physically transferred to the purchaser.
2085          (63) "Local taxing jurisdiction" means a:
2086          (a) county that is authorized to impose an agreement sales and use tax;
2087          (b) city that is authorized to impose an agreement sales and use tax; or
2088          (c) town that is authorized to impose an agreement sales and use tax.
2089          (64) "Manufactured home" is as defined in Section 15A-1-302.
2090          (65) "Manufacturing facility" means:
2091          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard Industrial
2092     Classification Manual of the federal Executive Office of the President, Office of Management and
2093     Budget;
2094          (b) a scrap recycler if:
2095          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process one
2096     or more of the following items into prepared grades of processed materials for use in new products:
2097          (A) iron;
2098          (B) steel;
2099          (C) nonferrous metal;
2100          (D) paper;
2101          (E) glass;
2102          (F) plastic;

2103          (G) textile; or
2104          (H) rubber; and
2105          (ii) the new products under Subsection (65)(b)(i) would otherwise be made with
2106     nonrecycled materials; or
2107          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is placed
2108     in service on or after May 1, 2006.
2109          (66) "Member of the immediate family of the producer" means a person who is related to
2110     a producer described in Subsection 59-12-104(20)(a) as a:
2111          (a) child or stepchild, regardless of whether the child or stepchild is:
2112          (i) an adopted child or adopted stepchild; or
2113          (ii) a foster child or foster stepchild;
2114          (b) grandchild or stepgrandchild;
2115          (c) grandparent or stepgrandparent;
2116          (d) nephew or stepnephew;
2117          (e) niece or stepniece;
2118          (f) parent or stepparent;
2119          (g) sibling or stepsibling;
2120          (h) spouse;
2121          (i) person who is the spouse of a person described in Subsections (66)(a) through (g); or
2122          (j) person similar to a person described in Subsections (66)(a) through (i) as determined
2123     by the commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2124     Rulemaking Act.
2125          (67) "Mobile home" is as defined in Section 15A-1-302.
2126          (68) "Mobile telecommunications service" is as defined in the Mobile
2127     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2128          (69) (a) "Mobile wireless service" means a telecommunications service, regardless of the
2129     technology used, if:
2130          (i) the origination point of the conveyance, routing, or transmission is not fixed;
2131          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
2132          (iii) the origination point described in Subsection (69)(a)(i) and the termination point
2133     described in Subsection (69)(a)(ii) are not fixed.

2134          (b) "Mobile wireless service" includes a telecommunications service that is provided by
2135     a commercial mobile radio service provider.
2136          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2137     commission may by rule define "commercial mobile radio service provider."
2138          (70) (a) Except as provided in Subsection (70)(c), "mobility enhancing equipment" means
2139     equipment that is:
2140          (i) primarily and customarily used to provide or increase the ability to move from one
2141     place to another;
2142          (ii) appropriate for use in a:
2143          (A) home; or
2144          (B) motor vehicle; and
2145          (iii) not generally used by persons with normal mobility.
2146          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of the
2147     equipment described in Subsection (70)(a).
2148          (c) "Mobility enhancing equipment" does not include:
2149          (i) a motor vehicle;
2150          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
2151     vehicle manufacturer;
2152          (iii) durable medical equipment; or
2153          (iv) a prosthetic device.
2154          (71) "Model 1 seller" means a seller registered under the agreement that has selected a
2155     certified service provider as the seller's agent to perform all of the seller's sales and use tax
2156     functions for agreement sales and use taxes other than the seller's obligation under Section
2157     59-12-124 to remit a tax on the seller's own purchases.
2158          (72) "Model 2 seller" means a seller registered under the agreement that:
2159          (a) except as provided in Subsection (72)(b), has selected a certified automated system to
2160     perform the seller's sales tax functions for agreement sales and use taxes; and
2161          (b) retains responsibility for remitting all of the sales tax:
2162          (i) collected by the seller; and
2163          (ii) to the appropriate local taxing jurisdiction.
2164          (73) (a) Subject to Subsection (73)(b), "model 3 seller" means a seller registered under the

2165     agreement that has:
2166          (i) sales in at least five states that are members of the agreement;
2167          (ii) total annual sales revenues of at least $500,000,000;
2168          (iii) a proprietary system that calculates the amount of tax:
2169          (A) for an agreement sales and use tax; and
2170          (B) due to each local taxing jurisdiction; and
2171          (iv) entered into a performance agreement with the governing board of the agreement.
2172          (b) For purposes of Subsection (73)(a), "model 3 seller" includes an affiliated group of
2173     sellers using the same proprietary system.
2174          (74) "Model 4 seller" means a seller that is registered under the agreement and is not a
2175     model 1 seller, model 2 seller, or model 3 seller.
2176          (75) "Modular home" means a modular unit as defined in Section 15A-1-302.
2177          (76) "Motor vehicle" is as defined in Section 41-1a-102.
2178          (77) "Oil sands" means impregnated bituminous sands that:
2179          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with other
2180     hydrocarbons, or otherwise treated;
2181          (b) yield mixtures of liquid hydrocarbon; and
2182          (c) require further processing other than mechanical blending before becoming finished
2183     petroleum products.
2184          (78) "Oil shale" means a group of fine black to dark brown shales containing kerogen
2185     material that yields petroleum upon heating and distillation.
2186          (79) "Optional computer software maintenance contract" means a computer software
2187     maintenance contract that a customer is not obligated to purchase as a condition to the retail sale
2188     of computer software.
2189          (80) (a) "Other fuels" means products that burn independently to produce heat or energy.
2190          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible personal
2191     property.
2192          (81) (a) "Paging service" means a telecommunications service that provides transmission
2193     of a coded radio signal for the purpose of activating a specific pager.
2194          (b) For purposes of Subsection (81)(a), the transmission of a coded radio signal includes
2195     a transmission by message or sound.

2196          (82) "Pawnbroker" is as defined in Section 13-32a-102.
2197          (83) "Pawn transaction" is as defined in Section 13-32a-102.
2198          (84) (a) "Permanently attached to real property" means that for tangible personal property
2199     attached to real property:
2200          (i) the attachment of the tangible personal property to the real property:
2201          (A) is essential to the use of the tangible personal property; and
2202          (B) suggests that the tangible personal property will remain attached to the real property
2203     in the same place over the useful life of the tangible personal property; or
2204          (ii) if the tangible personal property is detached from the real property, the detachment
2205     would:
2206          (A) cause substantial damage to the tangible personal property; or
2207          (B) require substantial alteration or repair of the real property to which the tangible
2208     personal property is attached.
2209          (b) "Permanently attached to real property" includes:
2210          (i) the attachment of an accessory to the tangible personal property if the accessory is:
2211          (A) essential to the operation of the tangible personal property; and
2212          (B) attached only to facilitate the operation of the tangible personal property;
2213          (ii) a temporary detachment of tangible personal property from real property for a repair
2214     or renovation if the repair or renovation is performed where the tangible personal property and real
2215     property are located; or
2216          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
2217     Subsection (84)(c)(iii) or (iv).
2218          (c) "Permanently attached to real property" does not include:
2219          (i) the attachment of portable or movable tangible personal property to real property if that
2220     portable or movable tangible personal property is attached to real property only for:
2221          (A) convenience;
2222          (B) stability; or
2223          (C) for an obvious temporary purpose;
2224          (ii) the detachment of tangible personal property from real property except for the
2225     detachment described in Subsection (84)(b)(ii);
2226          (iii) an attachment of the following tangible personal property to real property if the

2227     attachment to real property is only through a line that supplies water, electricity, gas,
2228     telecommunications, cable, or supplies a similar item as determined by the commission by rule
2229     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2230          (A) a computer;
2231          (B) a telephone;
2232          (C) a television; or
2233          (D) tangible personal property similar to Subsections (84)(c)(iii)(A) through (C) as
2234     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
2235     Administrative Rulemaking Act; or
2236          (iv) an item listed in Subsection (124)(c).
2237          (85) "Person" includes any individual, firm, partnership, joint venture, association,
2238     corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
2239     municipality, district, or other local governmental entity of the state, or any group or combination
2240     acting as a unit.
2241          (86) "Place of primary use":
2242          (a) for telecommunications service other than mobile telecommunications service, means
2243     the street address representative of where the customer's use of the telecommunications service
2244     primarily occurs, which shall be:
2245          (i) the residential street address of the customer; or
2246          (ii) the primary business street address of the customer; or
2247          (b) for mobile telecommunications service, is as defined in the Mobile
2248     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
2249          (87) (a) "Postpaid calling service" means a telecommunications service a person obtains
2250     by making a payment on a call-by-call basis:
2251          (i) through the use of a:
2252          (A) bank card;
2253          (B) credit card;
2254          (C) debit card; or
2255          (D) travel card; or
2256          (ii) by a charge made to a telephone number that is not associated with the origination or
2257     termination of the telecommunications service.

2258          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
2259     service, that would be a prepaid wireless calling service if the service were exclusively a
2260     telecommunications service.
2261          (88) "Postproduction" means an activity related to the finishing or duplication of a medium
2262     described in Subsection 59-12-104(54)(a).
2263          (89) "Prepaid calling service" means a telecommunications service:
2264          (a) that allows a purchaser access to telecommunications service that is exclusively
2265     telecommunications service;
2266          (b) that:
2267          (i) is paid for in advance; and
2268          (ii) enables the origination of a call using an:
2269          (A) access number; or
2270          (B) authorization code;
2271          (c) that is dialed:
2272          (i) manually; or
2273          (ii) electronically; and
2274          (d) sold in predetermined units or dollars that decline:
2275          (i) by a known amount; and
2276          (ii) with use.
2277          (90) "Prepaid wireless calling service" means a telecommunications service:
2278          (a) that provides the right to utilize:
2279          (i) mobile wireless service; and
2280          (ii) other service that is not a telecommunications service, including:
2281          (A) the download of a product transferred electronically;
2282          (B) a content service; or
2283          (C) an ancillary service;
2284          (b) that:
2285          (i) is paid for in advance; and
2286          (ii) enables the origination of a call using an:
2287          (A) access number; or
2288          (B) authorization code;

2289          (c) that is dialed:
2290          (i) manually; or
2291          (ii) electronically; and
2292          (d) sold in predetermined units or dollars that decline:
2293          (i) by a known amount; and
2294          (ii) with use.
2295          (91) (a) "Prepared food" means:
2296          (i) food:
2297          (A) sold in a heated state; or
2298          (B) heated by a seller;
2299          (ii) two or more food ingredients mixed or combined by the seller for sale as a single item;
2300     or
2301          (iii) except as provided in Subsection (91)(c), food sold with an eating utensil provided
2302     by the seller, including a:
2303          (A) plate;
2304          (B) knife;
2305          (C) fork;
2306          (D) spoon;
2307          (E) glass;
2308          (F) cup;
2309          (G) napkin; or
2310          (H) straw.
2311          (b) "Prepared food" does not include:
2312          (i) food that a seller only:
2313          (A) cuts;
2314          (B) repackages; or
2315          (C) pasteurizes; or
2316          (ii) (A) the following:
2317          (I) raw egg;
2318          (II) raw fish;
2319          (III) raw meat;

2320          (IV) raw poultry; or
2321          (V) a food containing an item described in Subsections (91)(b)(ii)(A)(I) through (IV); and
2322          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
2323     Food and Drug Administration's Food Code that a consumer cook the items described in
2324     Subsection (91)(b)(ii)(A) to prevent food borne illness; or
2325          (iii) the following if sold without eating utensils provided by the seller:
2326          (A) food and food ingredients sold by a seller if the seller's proper primary classification
2327     under the 2002 North American Industry Classification System of the federal Executive Office of
2328     the President, Office of Management and Budget, is manufacturing in Sector 311, Food
2329     Manufacturing, except for Subsector 3118, Bakeries and Tortilla Manufacturing;
2330          (B) food and food ingredients sold in an unheated state:
2331          (I) by weight or volume; and
2332          (II) as a single item; or
2333          (C) a bakery item, including:
2334          (I) a bagel;
2335          (II) a bar;
2336          (III) a biscuit;
2337          (IV) bread;
2338          (V) a bun;
2339          (VI) a cake;
2340          (VII) a cookie;
2341          (VIII) a croissant;
2342          (IX) a danish;
2343          (X) a donut;
2344          (XI) a muffin;
2345          (XII) a pastry;
2346          (XIII) a pie;
2347          (XIV) a roll;
2348          (XV) a tart;
2349          (XVI) a torte; or
2350          (XVII) a tortilla.

2351          (c) An eating utensil provided by the seller does not include the following used to transport
2352     the food:
2353          (i) a container; or
2354          (ii) packaging.
2355          (92) "Prescription" means an order, formula, or recipe that is issued:
2356          (a) (i) orally;
2357          (ii) in writing;
2358          (iii) electronically; or
2359          (iv) by any other manner of transmission; and
2360          (b) by a licensed practitioner authorized by the laws of a state.
2361          (93) (a) Except as provided in Subsection (93)(b)(ii) or (iii), "prewritten computer
2362     software" means computer software that is not designed and developed:
2363          (i) by the author or other creator of the computer software; and
2364          (ii) to the specifications of a specific purchaser.
2365          (b) "Prewritten computer software" includes:
2366          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
2367     software is not designed and developed:
2368          (A) by the author or other creator of the computer software; and
2369          (B) to the specifications of a specific purchaser;
2370          (ii) computer software designed and developed by the author or other creator of the
2371     computer software to the specifications of a specific purchaser if the computer software is sold to
2372     a person other than the purchaser; or
2373          (iii) except as provided in Subsection (93)(c), prewritten computer software or a prewritten
2374     portion of prewritten computer software:
2375          (A) that is modified or enhanced to any degree; and
2376          (B) if the modification or enhancement described in Subsection (93)(b)(iii)(A) is designed
2377     and developed to the specifications of a specific purchaser.
2378          (c) "Prewritten computer software" does not include a modification or enhancement
2379     described in Subsection (93)(b)(iii) if the charges for the modification or enhancement are:
2380          (i) reasonable; and
2381          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the invoice

2382     or other statement of price provided to the purchaser at the time of sale or later, as demonstrated
2383     by:
2384          (A) the books and records the seller keeps at the time of the transaction in the regular
2385     course of business, including books and records the seller keeps at the time of the transaction in
2386     the regular course of business for nontax purposes;
2387          (B) a preponderance of the facts and circumstances at the time of the transaction; and
2388          (C) the understanding of all of the parties to the transaction.
2389          (94) (a) "Private communications service" means a telecommunications service:
2390          (i) that entitles a customer to exclusive or priority use of one or more communications
2391     channels between or among termination points; and
2392          (ii) regardless of the manner in which the one or more communications channels are
2393     connected.
2394          (b) "Private communications service" includes the following provided in connection with
2395     the use of one or more communications channels:
2396          (i) an extension line;
2397          (ii) a station;
2398          (iii) switching capacity; or
2399          (iv) another associated service that is provided in connection with the use of one or more
2400     communications channels as defined in Section 59-12-215.
2401          (95) (a) Except as provided in Subsection (95)(b), "product transferred electronically"
2402     means a product transferred electronically that would be subject to a tax under this chapter if that
2403     product was transferred in a manner other than electronically.
2404          (b) "Product transferred electronically" does not include:
2405          (i) an ancillary service;
2406          (ii) computer software; or
2407          (iii) a telecommunications service.
2408          (96) (a) "Prosthetic device" means a device that is worn on or in the body to:
2409          (i) artificially replace a missing portion of the body;
2410          (ii) prevent or correct a physical deformity or physical malfunction; or
2411          (iii) support a weak or deformed portion of the body.
2412          (b) "Prosthetic device" includes:

2413          (i) parts used in the repairs or renovation of a prosthetic device;
2414          (ii) replacement parts for a prosthetic device;
2415          (iii) a dental prosthesis; or
2416          (iv) a hearing aid.
2417          (c) "Prosthetic device" does not include:
2418          (i) corrective eyeglasses; or
2419          (ii) contact lenses.
2420          (97) (a) "Protective equipment" means an item:
2421          (i) for human wear; and
2422          (ii) that is:
2423          (A) designed as protection:
2424          (I) to the wearer against injury or disease; or
2425          (II) against damage or injury of other persons or property; and
2426          (B) not suitable for general use.
2427          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2428     commission shall make rules:
2429          (i) listing the items that constitute "protective equipment"; and
2430          (ii) that are consistent with the list of items that constitute "protective equipment" under
2431     the agreement.
2432          (98) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
2433     printed matter, other than a photocopy:
2434          (i) regardless of:
2435          (A) characteristics;
2436          (B) copyright;
2437          (C) form;
2438          (D) format;
2439          (E) method of reproduction; or
2440          (F) source; and
2441          (ii) made available in printed or electronic format.
2442          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2443     commission may by rule define the term "photocopy."

2444          (99) (a) "Purchase price" and "sales price" mean the total amount of consideration:
2445          (i) valued in money; and
2446          (ii) for which tangible personal property, a product transferred electronically, or services
2447     are:
2448          (A) sold;
2449          (B) leased; or
2450          (C) rented.
2451          (b) "Purchase price" and "sales price" include:
2452          (i) the seller's cost of the tangible personal property, a product transferred electronically,
2453     or services sold;
2454          (ii) expenses of the seller, including:
2455          (A) the cost of materials used;
2456          (B) a labor cost;
2457          (C) a service cost;
2458          (D) interest;
2459          (E) a loss;
2460          (F) the cost of transportation to the seller; or
2461          (G) a tax imposed on the seller;
2462          (iii) a charge by the seller for any service necessary to complete the sale; or
2463          (iv) consideration a seller receives from a person other than the purchaser if:
2464          (A) (I) the seller actually receives consideration from a person other than the purchaser;
2465     and
2466          (II) the consideration described in Subsection (99)(b)(iv)(A)(I) is directly related to a price
2467     reduction or discount on the sale;
2468          (B) the seller has an obligation to pass the price reduction or discount through to the
2469     purchaser;
2470          (C) the amount of the consideration attributable to the sale is fixed and determinable by
2471     the seller at the time of the sale to the purchaser; and
2472          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
2473     seller to claim a price reduction or discount; and
2474          (Bb) a person other than the seller authorizes, distributes, or grants the certificate, coupon,

2475     or other documentation with the understanding that the person other than the seller will reimburse
2476     any seller to whom the certificate, coupon, or other documentation is presented;
2477          (II) the purchaser identifies that purchaser to the seller as a member of a group or
2478     organization allowed a price reduction or discount, except that a preferred customer card that is
2479     available to any patron of a seller does not constitute membership in a group or organization
2480     allowed a price reduction or discount; or
2481          (III) the price reduction or discount is identified as a third party price reduction or discount
2482     on the:
2483          (Aa) invoice the purchaser receives; or
2484          (Bb) certificate, coupon, or other documentation the purchaser presents.
2485          (c) "Purchase price" and "sales price" do not include:
2486          (i) a discount:
2487          (A) in a form including:
2488          (I) cash;
2489          (II) term; or
2490          (III) coupon;
2491          (B) that is allowed by a seller;
2492          (C) taken by a purchaser on a sale; and
2493          (D) that is not reimbursed by a third party; or
2494          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
2495     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of sale
2496     or later, as demonstrated by the books and records the seller keeps at the time of the transaction
2497     in the regular course of business, including books and records the seller keeps at the time of the
2498     transaction in the regular course of business for nontax purposes, by a preponderance of the facts
2499     and circumstances at the time of the transaction, and by the understanding of all of the parties to
2500     the transaction:
2501          (A) the following from credit extended on the sale of tangible personal property or
2502     services:
2503          (I) a carrying charge;
2504          (II) a financing charge; or
2505          (III) an interest charge;

2506          (B) a delivery charge;
2507          (C) an installation charge;
2508          (D) a manufacturer rebate on a motor vehicle; or
2509          (E) a tax or fee legally imposed directly on the consumer.
2510          (100) "Purchaser" means a person to whom:
2511          (a) a sale of tangible personal property is made;
2512          (b) a product is transferred electronically; or
2513          (c) a service is furnished.
2514          (101) "Regularly rented" means:
2515          (a) rented to a guest for value three or more times during a calendar year; or
2516          (b) advertised or held out to the public as a place that is regularly rented to guests for
2517     value.
2518          (102) "Rental" is as defined in Subsection (59).
2519          (103) (a) Except as provided in Subsection (103)(b), "repairs or renovations of tangible
2520     personal property" means:
2521          (i) a repair or renovation of tangible personal property that is not permanently attached to
2522     real property; or
2523          (ii) attaching tangible personal property or a product transferred electronically to other
2524     tangible personal property or detaching tangible personal property or a product transferred
2525     electronically from other tangible personal property if:
2526          (A) the other tangible personal property to which the tangible personal property or product
2527     transferred electronically is attached or from which the tangible personal property or product
2528     transferred electronically is detached is not permanently attached to real property; and
2529          (B) the attachment of tangible personal property or a product transferred electronically to
2530     other tangible personal property or detachment of tangible personal property or a product
2531     transferred electronically from other tangible personal property is made in conjunction with a
2532     repair or replacement of tangible personal property or a product transferred electronically.
2533          (b) "Repairs or renovations of tangible personal property" does not include:
2534          (i) attaching prewritten computer software to other tangible personal property if the other
2535     tangible personal property to which the prewritten computer software is attached is not
2536     permanently attached to real property; or

2537          (ii) detaching prewritten computer software from other tangible personal property if the
2538     other tangible personal property from which the prewritten computer software is detached is not
2539     permanently attached to real property.
2540          (104) "Research and development" means the process of inquiry or experimentation aimed
2541     at the discovery of facts, devices, technologies, or applications and the process of preparing those
2542     devices, technologies, or applications for marketing.
2543          (105) (a) "Residential telecommunications services" means a telecommunications service
2544     or an ancillary service that is provided to an individual for personal use:
2545          (i) at a residential address; or
2546          (ii) at an institution, including a nursing home or a school, if the telecommunications
2547     service or ancillary service is provided to and paid for by the individual residing at the institution
2548     rather than the institution.
2549          (b) For purposes of Subsection (105)(a)(i), a residential address includes an:
2550          (i) apartment; or
2551          (ii) other individual dwelling unit.
2552          (106) "Residential use" means the use in or around a home, apartment building, sleeping
2553     quarters, and similar facilities or accommodations.
2554          (107) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other than:
2555          (a) resale;
2556          (b) sublease; or
2557          (c) subrent.
2558          (108) (a) "Retailer" means any person engaged in a regularly organized business in
2559     tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
2560     who is selling to the user or consumer and not for resale.
2561          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
2562     engaged in the business of selling to users or consumers within the state.
2563          (109) (a) "Sale" means any transfer of title, exchange, or barter, conditional or otherwise,
2564     in any manner, of tangible personal property or any other taxable transaction under Subsection
2565     59-12-103(1), for consideration.
2566          (b) "Sale" includes:
2567          (i) installment and credit sales;

2568          (ii) any closed transaction constituting a sale;
2569          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this chapter;
2570          (iv) any transaction if the possession of property is transferred but the seller retains the title
2571     as security for the payment of the price; and
2572          (v) any transaction under which right to possession, operation, or use of any article of
2573     tangible personal property is granted under a lease or contract and the transfer of possession would
2574     be taxable if an outright sale were made.
2575          (110) "Sale at retail" is as defined in Subsection (107).
2576          (111) "Sale-leaseback transaction" means a transaction by which title to tangible personal
2577     property or a product transferred electronically that is subject to a tax under this chapter is
2578     transferred:
2579          (a) by a purchaser-lessee;
2580          (b) to a lessor;
2581          (c) for consideration; and
2582          (d) if:
2583          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase of
2584     the tangible personal property or product transferred electronically;
2585          (ii) the sale of the tangible personal property or product transferred electronically to the
2586     lessor is intended as a form of financing:
2587          (A) for the tangible personal property or product transferred electronically; and
2588          (B) to the purchaser-lessee; and
2589          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee is
2590     required to:
2591          (A) capitalize the tangible personal property or product transferred electronically for
2592     financial reporting purposes; and
2593          (B) account for the lease payments as payments made under a financing arrangement.
2594          (112) "Sales price" is as defined in Subsection (99).
2595          (113) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
2596     amounts charged by a school:
2597          (i) sales that are directly related to the school's educational functions or activities
2598     including:

2599          (A) the sale of:
2600          (I) textbooks;
2601          (II) textbook fees;
2602          (III) laboratory fees;
2603          (IV) laboratory supplies; or
2604          (V) safety equipment;
2605          (B) the sale of a uniform, protective equipment, or sports or recreational equipment that:
2606          (I) a student is specifically required to wear as a condition of participation in a
2607     school-related event or school-related activity; and
2608          (II) is not readily adaptable to general or continued usage to the extent that it takes the
2609     place of ordinary clothing;
2610          (C) sales of the following if the net or gross revenues generated by the sales are deposited
2611     into a school district fund or school fund dedicated to school meals:
2612          (I) food and food ingredients; or
2613          (II) prepared food; or
2614          (D) transportation charges for official school activities; or
2615          (ii) amounts paid to or amounts charged by a school for admission to a school-related
2616     event or school-related activity.
2617          (b) "Sales relating to schools" does not include:
2618          (i) bookstore sales of items that are not educational materials or supplies;
2619          (ii) except as provided in Subsection (113)(a)(i)(B):
2620          (A) clothing;
2621          (B) clothing accessories or equipment;
2622          (C) protective equipment; or
2623          (D) sports or recreational equipment; or
2624          (iii) amounts paid to or amounts charged by a school for admission to a school-related
2625     event or school-related activity if the amounts paid or charged are passed through to a person:
2626          (A) other than a:
2627          (I) school;
2628          (II) nonprofit organization authorized by a school board or a governing body of a private
2629     school to organize and direct a competitive secondary school activity; or

2630          (III) nonprofit association authorized by a school board or a governing body of a private
2631     school to organize and direct a competitive secondary school activity; and
2632          (B) that is required to collect sales and use taxes under this chapter.
2633          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2634     commission may make rules defining the term "passed through."
2635          (114) For purposes of this section and Section 59-12-104, "school":
2636          (a) means:
2637          (i) an elementary school or a secondary school that:
2638          (A) is a:
2639          (I) public school; or
2640          (II) private school; and
2641          (B) provides instruction for one or more grades kindergarten through 12; or
2642          (ii) a public school district; and
2643          (b) includes the Electronic High School as defined in Section 53A-15-1002.
2644          (115) "Seller" means a person that makes a sale, lease, or rental of:
2645          (a) tangible personal property;
2646          (b) a product transferred electronically; or
2647          (c) a service.
2648          (116) (a) "Semiconductor fabricating, processing, research, or development materials"
2649     means tangible personal property or a product transferred electronically if the tangible personal
2650     property or product transferred electronically is:
2651          (i) used primarily in the process of:
2652          (A) (I) manufacturing a semiconductor;
2653          (II) fabricating a semiconductor; or
2654          (III) research or development of a:
2655          (Aa) semiconductor; or
2656          (Bb) semiconductor manufacturing process; or
2657          (B) maintaining an environment suitable for a semiconductor; or
2658          (ii) consumed primarily in the process of:
2659          (A) (I) manufacturing a semiconductor;
2660          (II) fabricating a semiconductor; or

2661          (III) research or development of a:
2662          (Aa) semiconductor; or
2663          (Bb) semiconductor manufacturing process; or
2664          (B) maintaining an environment suitable for a semiconductor.
2665          (b) "Semiconductor fabricating, processing, research, or development materials" includes:
2666          (i) parts used in the repairs or renovations of tangible personal property or a product
2667     transferred electronically described in Subsection (116)(a); or
2668          (ii) a chemical, catalyst, or other material used to:
2669          (A) produce or induce in a semiconductor a:
2670          (I) chemical change; or
2671          (II) physical change;
2672          (B) remove impurities from a semiconductor; or
2673          (C) improve the marketable condition of a semiconductor.
2674          (117) "Senior citizen center" means a facility having the primary purpose of providing
2675     services to the aged as defined in Section 62A-3-101.
2676          (118) (a) Subject to Subsections (118)(b) and (c), "short-term lodging consumable" means
2677     tangible personal property that:
2678          (i) a business that provides accommodations and services described in Subsection
2679     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services to
2680     a purchaser;
2681          (ii) is intended to be consumed by the purchaser; and
2682          (iii) is:
2683          (A) included in the purchase price of the accommodations and services; and
2684          (B) not separately stated on an invoice, bill of sale, or other similar document provided to
2685     the purchaser.
2686          (b) "Short-term lodging consumable" includes:
2687          (i) a beverage;
2688          (ii) a brush or comb;
2689          (iii) a cosmetic;
2690          (iv) a hair care product;
2691          (v) lotion;

2692          (vi) a magazine;
2693          (vii) makeup;
2694          (viii) a meal;
2695          (ix) mouthwash;
2696          (x) nail polish remover;
2697          (xi) a newspaper;
2698          (xii) a notepad;
2699          (xiii) a pen;
2700          (xiv) a pencil;
2701          (xv) a razor;
2702          (xvi) saline solution;
2703          (xvii) a sewing kit;
2704          (xviii) shaving cream;
2705          (xix) a shoe shine kit;
2706          (xx) a shower cap;
2707          (xxi) a snack item;
2708          (xxii) soap;
2709          (xxiii) toilet paper;
2710          (xxiv) a toothbrush;
2711          (xxv) toothpaste; or
2712          (xxvi) an item similar to Subsections (118)(b)(i) through (xxv) as the commission may
2713     provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
2714     Act.
2715          (c) "Short-term lodging consumable" does not include:
2716          (i) tangible personal property that is cleaned or washed to allow the tangible personal
2717     property to be reused; or
2718          (ii) a product transferred electronically.
2719          (119) "Simplified electronic return" means the electronic return:
2720          (a) described in Section 318(C) of the agreement; and
2721          (b) approved by the governing board of the agreement.
2722          (120) "Solar energy" means the sun used as the sole source of energy for producing

2723     electricity.
2724          (121) (a) "Sports or recreational equipment" means an item:
2725          (i) designed for human use; and
2726          (ii) that is:
2727          (A) worn in conjunction with:
2728          (I) an athletic activity; or
2729          (II) a recreational activity; and
2730          (B) not suitable for general use.
2731          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2732     commission shall make rules:
2733          (i) listing the items that constitute "sports or recreational equipment"; and
2734          (ii) that are consistent with the list of items that constitute "sports or recreational
2735     equipment" under the agreement.
2736          (122) "State" means the state of Utah, its departments, and agencies.
2737          (123) "Storage" means any keeping or retention of tangible personal property or any other
2738     taxable transaction under Subsection 59-12-103(1), in this state for any purpose except sale in the
2739     regular course of business.
2740          (124) (a) Except as provided in Subsection (124)(d) or (e), "tangible personal property"
2741     means personal property that:
2742          (i) may be:
2743          (A) seen;
2744          (B) weighed;
2745          (C) measured;
2746          (D) felt; or
2747          (E) touched; or
2748          (ii) is in any manner perceptible to the senses.
2749          (b) "Tangible personal property" includes:
2750          (i) electricity;
2751          (ii) water;
2752          (iii) gas;
2753          (iv) steam; or

2754          (v) prewritten computer software, regardless of the manner in which the prewritten
2755     computer software is transferred.
2756          (c) "Tangible personal property" includes the following regardless of whether the item is
2757     attached to real property:
2758          (i) a dishwasher;
2759          (ii) a dryer;
2760          (iii) a freezer;
2761          (iv) a microwave;
2762          (v) a refrigerator;
2763          (vi) a stove;
2764          (vii) a washer; or
2765          (viii) an item similar to Subsections (124)(c)(i) through (vii) as determined by the
2766     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
2767     Rulemaking Act.
2768          (d) "Tangible personal property" does not include a product that is transferred
2769     electronically.
2770          (e) "Tangible personal property" does not include the following if attached to real property,
2771     regardless of whether the attachment to real property is only through a line that supplies water,
2772     electricity, gas, telephone, cable, or supplies a similar item as determined by the commission by
2773     rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
2774          (i) a hot water heater;
2775          (ii) a water filtration system; or
2776          (iii) a water softener system.
2777          (125) (a) "Telecommunications enabling or facilitating equipment, machinery, or software"
2778     means an item listed in Subsection (125)(b) if that item is purchased or leased primarily to enable
2779     or facilitate one or more of the following to function:
2780          (i) telecommunications switching or routing equipment, machinery, or software; or
2781          (ii) telecommunications transmission equipment, machinery, or software.
2782          (b) The following apply to Subsection (125)(a):
2783          (i) a pole;
2784          (ii) software;

2785          (iii) a supplementary power supply;
2786          (iv) temperature or environmental equipment or machinery;
2787          (v) test equipment;
2788          (vi) a tower; or
2789          (vii) equipment, machinery, or software that functions similarly to an item listed in
2790     Subsections (125)(b)(i) through (vi) as determined by the commission by rule made in accordance
2791     with Subsection (125)(c).
2792          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2793     commission may by rule define what constitutes equipment, machinery, or software that functions
2794     similarly to an item listed in Subsections (125)(b)(i) through (vi).
2795          (126) "Telecommunications equipment, machinery, or software required for 911 service"
2796     means equipment, machinery, or software that is required to comply with 47 C.F.R. Sec. 20.18.
2797          (127) "Telecommunications maintenance or repair equipment, machinery, or software"
2798     means equipment, machinery, or software purchased or leased primarily to maintain or repair one
2799     or more of the following, regardless of whether the equipment, machinery, or software is
2800     purchased or leased as a spare part or as an upgrade or modification to one or more of the
2801     following:
2802          (a) telecommunications enabling or facilitating equipment, machinery, or software;
2803          (b) telecommunications switching or routing equipment, machinery, or software; or
2804          (c) telecommunications transmission equipment, machinery, or software.
2805          (128) (a) "Telecommunications service" means the electronic conveyance, routing, or
2806     transmission of audio, data, video, voice, or any other information or signal to a point, or among
2807     or between points.
2808          (b) "Telecommunications service" includes:
2809          (i) an electronic conveyance, routing, or transmission with respect to which a computer
2810     processing application is used to act:
2811          (A) on the code, form, or protocol of the content;
2812          (B) for the purpose of electronic conveyance, routing, or transmission; and
2813          (C) regardless of whether the service:
2814          (I) is referred to as voice over Internet protocol service; or
2815          (II) is classified by the Federal Communications Commission as enhanced or value added;

2816          (ii) an 800 service;
2817          (iii) a 900 service;
2818          (iv) a fixed wireless service;
2819          (v) a mobile wireless service;
2820          (vi) a postpaid calling service;
2821          (vii) a prepaid calling service;
2822          (viii) a prepaid wireless calling service; or
2823          (ix) a private communications service.
2824          (c) "Telecommunications service" does not include:
2825          (i) advertising, including directory advertising;
2826          (ii) an ancillary service;
2827          (iii) a billing and collection service provided to a third party;
2828          (iv) a data processing and information service if:
2829          (A) the data processing and information service allows data to be:
2830          (I) (Aa) acquired;
2831          (Bb) generated;
2832          (Cc) processed;
2833          (Dd) retrieved; or
2834          (Ee) stored; and
2835          (II) delivered by an electronic transmission to a purchaser; and
2836          (B) the purchaser's primary purpose for the underlying transaction is the processed data
2837     or information;
2838          (v) installation or maintenance of the following on a customer's premises:
2839          (A) equipment; or
2840          (B) wiring;
2841          (vi) Internet access service;
2842          (vii) a paging service;
2843          (viii) a product transferred electronically, including:
2844          (A) music;
2845          (B) reading material;
2846          (C) a ring tone;

2847          (D) software; or
2848          (E) video;
2849          (ix) a radio and television audio and video programming service:
2850          (A) regardless of the medium; and
2851          (B) including:
2852          (I) furnishing conveyance, routing, or transmission of a television audio and video
2853     programming service by a programming service provider;
2854          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
2855          (III) audio and video programming services delivered by a commercial mobile radio
2856     service provider as defined in 47 C.F.R. Sec. 20.3;
2857          (x) a value-added nonvoice data service; or
2858          (xi) tangible personal property.
2859          (129) (a) "Telecommunications service provider" means a person that:
2860          (i) owns, controls, operates, or manages a telecommunications service; and
2861          (ii) engages in an activity described in Subsection (129)(a)(i) for the shared use with or
2862     resale to any person of the telecommunications service.
2863          (b) A person described in Subsection (129)(a) is a telecommunications service provider
2864     whether or not the Public Service Commission of Utah regulates:
2865          (i) that person; or
2866          (ii) the telecommunications service that the person owns, controls, operates, or manages.
2867          (130) (a) "Telecommunications switching or routing equipment, machinery, or software"
2868     means an item listed in Subsection (130)(b) if that item is purchased or leased primarily for
2869     switching or routing:
2870          (i) an ancillary service;
2871          (ii) data communications;
2872          (iii) voice communications; or
2873          (iv) telecommunications service.
2874          (b) The following apply to Subsection (130)(a):
2875          (i) a bridge;
2876          (ii) a computer;
2877          (iii) a cross connect;

2878          (iv) a modem;
2879          (v) a multiplexer;
2880          (vi) plug in circuitry;
2881          (vii) a router;
2882          (viii) software;
2883          (ix) a switch; or
2884          (x) equipment, machinery, or software that functions similarly to an item listed in
2885     Subsections (130)(b)(i) through (ix) as determined by the commission by rule made in accordance
2886     with Subsection (130)(c).
2887          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2888     commission may by rule define what constitutes equipment, machinery, or software that functions
2889     similarly to an item listed in Subsections (130)(b)(i) through (ix).
2890          (131) (a) "Telecommunications transmission equipment, machinery, or software" means
2891     an item listed in Subsection (131)(b) if that item is purchased or leased primarily for sending,
2892     receiving, or transporting:
2893          (i) an ancillary service;
2894          (ii) data communications;
2895          (iii) voice communications; or
2896          (iv) telecommunications service.
2897          (b) The following apply to Subsection (131)(a):
2898          (i) an amplifier;
2899          (ii) a cable;
2900          (iii) a closure;
2901          (iv) a conduit;
2902          (v) a controller;
2903          (vi) a duplexer;
2904          (vii) a filter;
2905          (viii) an input device;
2906          (ix) an input/output device;
2907          (x) an insulator;
2908          (xi) microwave machinery or equipment;

2909          (xii) an oscillator;
2910          (xiii) an output device;
2911          (xiv) a pedestal;
2912          (xv) a power converter;
2913          (xvi) a power supply;
2914          (xvii) a radio channel;
2915          (xviii) a radio receiver;
2916          (xix) a radio transmitter;
2917          (xx) a repeater;
2918          (xxi) software;
2919          (xxii) a terminal;
2920          (xxiii) a timing unit;
2921          (xxiv) a transformer;
2922          (xxv) a wire; or
2923          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
2924     Subsections (131)(b)(i) through (xxv) as determined by the commission by rule made in
2925     accordance with Subsection (131)(c).
2926          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2927     commission may by rule define what constitutes equipment, machinery, or software that functions
2928     similarly to an item listed in Subsections (131)(b)(i) through (xxv).
2929          (132) (a) "Textbook for a higher education course" means a textbook or other printed
2930     material that is required for a course:
2931          (i) offered by an institution of higher education; and
2932          (ii) that the purchaser of the textbook or other printed material attends or will attend.
2933          (b) "Textbook for a higher education course" includes a textbook in electronic format.
2934          (133) "Tobacco" means:
2935          (a) a cigarette;
2936          (b) a cigar;
2937          (c) chewing tobacco;
2938          (d) pipe tobacco; or
2939          (e) any other item that contains tobacco.

2940          (134) "Unassisted amusement device" means an amusement device, skill device, or ride
2941     device that is started and stopped by the purchaser or renter of the right to use or operate the
2942     amusement device, skill device, or ride device.
2943          (135) (a) "Use" means the exercise of any right or power over tangible personal property,
2944     a product transferred electronically, or a service under Subsection 59-12-103(1), incident to the
2945     ownership or the leasing of that tangible personal property, product transferred electronically, or
2946     service.
2947          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
2948     property, a product transferred electronically, or a service in the regular course of business and held
2949     for resale.
2950          (136) "Value-added nonvoice data service" means a service:
2951          (a) that otherwise meets the definition of a telecommunications service except that a
2952     computer processing application is used to act primarily for a purpose other than conveyance,
2953     routing, or transmission; and
2954          (b) with respect to which a computer processing application is used to act on data or
2955     information:
2956          (i) code;
2957          (ii) content;
2958          (iii) form; or
2959          (iv) protocol.
2960          (137) (a) Subject to Subsection (137)(b), "vehicle" means the following that are required
2961     to be titled, registered, or titled and registered:
2962          (i) an aircraft as defined in Section 72-10-102;
2963          (ii) a vehicle as defined in Section 41-1a-102;
2964          (iii) an off-highway vehicle as defined in Section 41-22-2; or
2965          (iv) a vessel as defined in Section 41-1a-102.
2966          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
2967          (i) a vehicle described in Subsection (137)(a); or
2968          (ii) (A) a locomotive;
2969          (B) a freight car;
2970          (C) railroad work equipment; or

2971          (D) other railroad rolling stock.
2972          (138) "Vehicle dealer" means a person engaged in the business of buying, selling, or
2973     exchanging a vehicle as defined in Subsection (137).
2974          (139) (a) "Vertical service" means an ancillary service that:
2975          (i) is offered in connection with one or more telecommunications services; and
2976          (ii) offers an advanced calling feature that allows a customer to:
2977          (A) identify a caller; and
2978          (B) manage multiple calls and call connections.
2979          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
2980     conference bridging service.
2981          (140) (a) "Voice mail service" means an ancillary service that enables a customer to
2982     receive, send, or store a recorded message.
2983          (b) "Voice mail service" does not include a vertical service that a customer is required to
2984     have in order to utilize a voice mail service.
2985          (141) (a) Except as provided in Subsection (141)(b), "waste energy facility" means a
2986     facility that generates electricity:
2987          (i) using as the primary source of energy waste materials that would be placed in a landfill
2988     or refuse pit if it were not used to generate electricity, including:
2989          (A) tires;
2990          (B) waste coal;
2991          (C) oil shale; or
2992          (D) municipal solid waste; and
2993          (ii) in amounts greater than actually required for the operation of the facility.
2994          (b) "Waste energy facility" does not include a facility that incinerates:
2995          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
2996          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
2997          (142) "Watercraft" means a vessel as defined in Section 73-18-2.
2998          (143) "Wind energy" means wind used as the sole source of energy to produce electricity.
2999          (144) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
3000     location by the United States Postal Service.
3001          Section 29. Section 63A-9-101 is amended to read:

3002          63A-9-101. Definitions.
3003          (1) (a) "Agency" means each department, commission, board, council, agency, institution,
3004     officer, corporation, fund, division, office, committee, authority, laboratory, library, unit, bureau,
3005     panel, or other administrative unit of the state.
3006          (b) "Agency" includes the State Board of Education, the Office of Education, [each
3007     Applied Technology Center] an applied technology college within the Utah College of Applied
3008     Technology, the board of regents, the institutional councils of each higher education institution,
3009     and each higher education institution.
3010          (c) "Agency" includes the legislative and judicial branches.
3011          (2) "Committee" means the Motor Vehicle Review Committee created by this chapter.
3012          (3) "Director" means the director of the division.
3013          (4) "Division" means the Division of Fleet Operations created by this chapter.
3014          (5) "Executive director" means the executive director of the Department of Administrative
3015     Services.
3016          (6) "Local agency" means:
3017          (a) a county;
3018          (b) a municipality;
3019          (c) a school district;
3020          (d) a local district;
3021          (e) a special service district;
3022          (f) an interlocal entity as defined under Section 11-13-103; or
3023          (g) any other political subdivision of the state, including a local commission, board, or
3024     other governmental entity that is vested with the authority to make decisions regarding the public's
3025     business.
3026          (7) (a) "Motor vehicle" means a self-propelled vehicle capable of carrying passengers.
3027          (b) "Motor vehicle" includes vehicles used for construction and other nontransportation
3028     purposes.
3029          (8) "State vehicle" means each motor vehicle owned, operated, or in the possession of an
3030     agency.
3031          Section 30. Section 63I-2-253 is amended to read:
3032          63I-2-253. Repeal dates -- Titles 53, 53A, and 53B.

3033          (1) Section 53A-1-403.5 is repealed July 1, 2017.
3034          [(2) Subsection 53A-1-410(5) is repealed July 1, 2015.]
3035          [(3)] (2) Section 53A-1-411 is repealed July 1, 2017.
3036          [(4)] (3) Section 53A-1a-513.5 is repealed July 1, 2017.
3037          [(5)] (4) Title 53A, Chapter 1a, Part 10, UPSTART, is repealed July 1, 2019.
3038          [(6)] (5) Title 53A, Chapter 8a, Part 8, Peer Assistance and Review Pilot Program, is
3039     repealed July 1, 2017.
3040          (6) (a) Subsections 53B-2a-103(2) and (4) are repealed July 1, 2019.
3041          (b) When repealing Subsections 53B-2a-103(2) and (4), the Office of Legislative Research
3042     and General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
3043     necessary changes to subsection numbering and cross references.
3044          Section 31. Section 63M-2-202 is amended to read:
3045          63M-2-202. Technology outreach innovation program.
3046          (1) As funding becomes available from the Legislature or other sources, the USTAR
3047     governing authority shall establish a technology outreach innovation program, also known as the
3048     TOIP, at up to five locations distributed strategically throughout Utah.
3049          (2) The USTAR governing authority shall ensure that the technology innovation outreach
3050     program acts as a resource to:
3051          (a) broker ideas, new technologies, and services to entrepreneurs and businesses
3052     throughout a defined service area;
3053          (b) engage local entrepreneurs and professors at applied technology [centers] colleges
3054     within the Utah College of Applied Technology, colleges, and universities by connecting them to
3055     Utah's research universities;
3056          (c) screen business ideas and new technologies to ensure that the ones with the highest
3057     growth potential receive the most targeted services and attention;
3058          (d) connect market ideas and technologies in new or existing businesses or industries or
3059     in regional colleges and universities with the expertise of Utah's research universities;
3060          (e) assist businesses, [applied technology centers] applied technology colleges within the
3061     Utah College of Applied Technology, colleges, and universities in developing commercial
3062     applications for their research; and
3063          (f) disseminate and share discoveries and technologies emanating from Utah's research

3064     universities to local entrepreneurs, businesses, [applied technology centers] applied technology
3065     colleges within the Utah College of Applied Technology, colleges, and universities.
3066          (3) In designing and operating the TOIP, for each TOIP location the USTAR governing
3067     authority:
3068          (a) may hire a TOIP director;
3069          (b) shall establish written performance standards and expectations; and
3070          (c) shall require reporting related to those performance standards and expectations on at
3071     least an annual basis.
3072          (4) A TOIP director hired under Subsection (3) shall:
3073          (a) be categorized as a schedule AC employee in accordance with Section 67-19-15;
3074          (b) report to, and be supervised by, the executive director;
3075          (c) ensure the TOIP serves to further the vision and mission of the USTAR initiative; and
3076          (d) as directed by the executive director, implement the policies and procedures adopted
3077     by the USTAR governing authority.
3078          Section 32. Section 63N-12-203 is amended to read:
3079          63N-12-203. STEM Action Center Board creation -- Membership.
3080          (1) There is created the STEM Action Center Board within the office, composed of the
3081     following members:
3082          (a) six private sector members who represent business, appointed by the governor;
3083          (b) the state superintendent of public instruction or the state superintendent of public
3084     instruction's designee;
3085          (c) the commissioner of higher education or the commissioner of higher education's
3086     designee;
3087          (d) one member appointed by the governor;
3088          (e) a member of the State Board of Education, chosen by the chair of the State Board of
3089     Education;
3090          (f) the executive director of the office or the executive director's designee;
3091          (g) the [president of the] Utah College of Applied Technology commissioner of technical
3092     education or [the president of] the Utah College of Applied [Technology's] Technology
3093     commissioner of technical education's designee; and
3094          (h) one member who has a degree in engineering and experience working in a government

3095     military installation, appointed by the governor.
3096          (2) (a) The private sector members appointed by the governor in Subsection (1)(a) shall
3097     represent a business or trade association whose primary focus is science, technology, or
3098     engineering.
3099          (b) Except as required by Subsection (2)(c), members appointed by the governor shall be
3100     appointed to four-year terms.
3101          (c) The length of terms of the members shall be staggered so that approximately half of
3102     the committee is appointed every two years.
3103          (d) The members may not serve more than two full consecutive terms except where the
3104     governor determines that an additional term is in the best interest of the state.
3105          (e) When a vacancy occurs in the membership for any reason, the replacement shall be
3106     appointed for the unexpired term.
3107          (3) Attendance of a simple majority of the members constitutes a quorum for the
3108     transaction of official committee business.
3109          (4) Formal action by the committee requires a majority vote of a quorum.
3110          (5) A member may not receive compensation or benefits for the member's service, but may
3111     receive per diem and travel expenses in accordance with:
3112          (a) Section 63A-3-106;
3113          (b) Section 63A-3-107; and
3114          (c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
3115          (6) The governor shall select the chair of the board to serve a one-year term.
3116          (7) The executive director of the office or the executive director's designee shall serve as
3117     the vice chair of the board.
3118          Section 33. Section 63N-12-212 is amended to read:
3119          63N-12-212. High school STEM education initiative.
3120          (1) Subject to legislative appropriations, after consulting with State Board of Education
3121     staff, the STEM Action Center shall award grants to school districts and charter schools to fund
3122     STEM related certification for high school students.
3123          (2) (a) A school district or charter school may apply for a grant from the STEM Action
3124     Center, through a competitive process, to fund the school district's or charter school's STEM
3125     related certification training program.

3126          (b) A school district's or charter school's STEM related certification training program shall:
3127          (i) prepare high school students to be job ready for available STEM related positions of
3128     employment; and
3129          (ii) when a student completes the program, result in the student gaining a nationally
3130     industry-recognized employer STEM related certification.
3131          (3) A school district or charter school may partner with one or more of the following to
3132     provide a STEM related certification program:
3133          (a) [a] an applied technology college within the Utah College of Applied Technology
3134     [college campus];
3135          (b) Salt Lake Community College;
3136          (c) Snow College; or
3137          (d) a private sector employer.
3138          Section 34. Section 67-1-12 is amended to read:
3139          67-1-12. Displaced defense workers.
3140          (1) The governor, through the Department of Workforce Services, may use funds
3141     specifically appropriated by the Legislature to benefit, in a manner prescribed by Subsection (2):
3142          (a) Department of Defense employees within the state who lose their employment because
3143     of reductions in defense spending by the federal government;
3144          (b) persons dismissed by a defense-related industry employer because of reductions in
3145     federal government defense contracts received by the employer; and
3146          (c) defense-related businesses in the state that have been severely and adversely impacted
3147     because of reductions in defense spending.
3148          (2) Funds appropriated under this section before fiscal year 1999-2000 but not expended
3149     shall remain with the agency that possesses the funds and shall be used in a manner consistent with
3150     this section. Any amount appropriated under this section in fiscal year 1999-2000 or thereafter may
3151     be used to:
3152          (a) provide matching or enhancement funds for grants, loans, or other assistance received
3153     by the state from the United States Department of Labor, Department of Defense, or other federal
3154     agency to assist in retraining, community assistance, or technology transfer activities;
3155          (b) fund or match available private or public funds from the state or local level to be used
3156     for retraining, community assistance, technology transfer, or educational projects coordinated by

3157     state or federal agencies;
3158          (c) provide for retraining, upgraded services, and programs at applied technology [centers]
3159     colleges, public schools, higher education institutions, or any other appropriate public or private
3160     entity that are designed to teach specific job skills requested by a private employer in the state or
3161     required for occupations that are in demand in the state;
3162          (d) aid public or private entities that provide assistance in locating new employment;
3163          (e) inform the public of assistance programs available for persons who have lost their
3164     employment;
3165          (f) increase funding for assistance and retraining programs;
3166          (g) provide assistance for small start-up companies owned or operated by persons who
3167     have lost their employment;
3168          (h) enhance the implementation of dual-use technologies programs, community adjustment
3169     assistance programs, or other relevant programs under Pub. L. No. 102-484; and
3170          (i) coordinate local and national resources to protect and enhance current Utah defense
3171     installations and related operations and to facilitate conversion or enhancement efforts by:
3172          (i) creating and operating state information clearinghouse operations that monitor relevant
3173     activities on the federal, state, and local level;
3174          (ii) identifying, seeking, and matching funds from federal and other public agencies and
3175     private donors;
3176          (iii) identifying and coordinating needs in different geographic areas;
3177          (iv) coordinating training and retraining centers;
3178          (v) coordinating technology transfer efforts between public entities, private entities, and
3179     institutions of higher education;
3180          (vi) facilitating the development of local and national awareness and support for Utah
3181     defense installations;
3182          (vii) studying the creation of strategic alliances, tax incentives, and relocation and
3183     consolidation assistance; and
3184          (viii) exploring feasible alternative uses for the physical and human resources at defense
3185     installations and in related industries should reductions in mission occur.
3186          (3) The governor, through the Department of Workforce Services, may coordinate and
3187     administer the expenditure of money under this section and collaborate with applied technology

3188     centers, public institutions of higher learning, or other appropriate public or private entities to
3189     provide retraining and other services described in Subsection (2).
3190          Section 35. Coordinating S.B. 131 with S.B. 148 -- Substantive and technical
3191     amendments.
3192          If this S.B. 131 and S.B. 148, Workforce Services Revisions, both pass and become law,
3193     it is the intent of the Legislature that the Office of Legislative Research and General Counsel
3194     prepare the Utah Code database for publication on July 1, 2016, by modifying Subsection
3195     35A-1-206(2)(i) in S.B. 148 to read:
3196          "(i) the commissioner of technical education of the Utah College of Applied Technology
3197     or the commissioner of technical education's designee;".