1     
REVISOR'S TECHNICAL CORRECTIONS TO UTAH CODE

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ralph Okerlund

5     
House Sponsor: James A. Dunnigan

6     

7     LONG TITLE
8     General Description:
9          This bill modifies parts of the Utah Code to make technical corrections, including
10     eliminating references to repealed provisions, making minor wording changes, updating
11     cross-references, and correcting numbering.
12     Highlighted Provisions:
13          This bill:
14          ▸     modifies parts of the Utah Code to make technical corrections, including
15     eliminating references to repealed provisions, making minor wording changes,
16     updating cross-references, correcting numbering, and fixing errors that were created
17     from the previous year's session.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          4-11-5, as last amended by Laws of Utah 2010, Chapter 73
25          9-6-507, as renumbered and amended by Laws of Utah 1992, Chapter 241
26          9-8-302, as last amended by Laws of Utah 2007, Chapter 231
27          9-8-404, as last amended by Laws of Utah 2006, Chapter 292

28          10-1-114, as last amended by Laws of Utah 2015, Chapter 352
29          10-3c-203, as enacted by Laws of Utah 2015, Chapter 352
30          10-6-135, as last amended by Laws of Utah 2014, Chapter 377
31          10-8-15, as last amended by Laws of Utah 2010, Chapter 378
32          11-51-102, as last amended by Laws of Utah 2014, Chapter 296
33          13-14-204, as last amended by Laws of Utah 2010, Chapter 33
34          13-49-201, as last amended by Laws of Utah 2015, Chapter 236
35          13-49-203, as enacted by Laws of Utah 2012, Chapter 375
36          17B-1-502, as last amended by Laws of Utah 2015, Chapter 352
37          19-1-301.5, as last amended by Laws of Utah 2015, Chapters 379, 441 and last
38     amended by Coordination Clause, Laws of Utah 2015, Chapter 451
39          20A-1-306, as last amended by Laws of Utah 2014, Chapter 189
40          20A-7-702, as last amended by Laws of Utah 2013, Chapter 320
41          26-37a-102, as enacted by Laws of Utah 2015, Chapter 440
42          31A-22-619.6, as enacted by Laws of Utah 2013, Chapter 417
43          31A-33-106, as last amended by Laws of Utah 2015, Chapter 427
44          31A-37-301, as last amended by Laws of Utah 2015, Chapter 244
45          31A-37-502, as last amended by Laws of Utah 2015, Chapter 244
46          32B-1-102, as last amended by Laws of Utah 2013, Chapter 349
47          32B-4-415, as enacted by Laws of Utah 2010, Chapter 276
48          32B-6-404, as last amended by Laws of Utah 2011, Second Special Session, Chapter 2
49          34-19-5, as last amended by Laws of Utah 2007, Chapter 306
50          34-20-3, as last amended by Laws of Utah 2011, Chapter 297
51          34-20-8, as last amended by Laws of Utah 2011, Chapter 297
52          34-30-13, as enacted by Laws of Utah 1971, Chapter 74
53          34-38-2, as last amended by Laws of Utah 2010, Chapter 284
54          34-41-102, as enacted by Laws of Utah 1994, Chapter 18
55          34-45-107, as enacted by Laws of Utah 2009, Chapter 379
56          34A-2-213, as enacted by Laws of Utah 2013, Chapter 417
57          35A-3-103, as last amended by Laws of Utah 2015, Chapter 221
58          35A-8-1705, as renumbered and amended by Laws of Utah 2012, Chapter 212

59          41-6a-1616, as last amended by Laws of Utah 2015, Chapters 270, 405, and 412
60          46-4-503, as last amended by Laws of Utah 2014, Chapter 63
61          53-8-210, as renumbered and amended by Laws of Utah 1993, Chapters 26 and 234
62          53A-1-301, as last amended by Laws of Utah 2015, Chapter 415
63          53A-15-1504, as enacted by Laws of Utah 2015, Chapter 389
64          53A-15-1508, as enacted by Laws of Utah 2015, Chapter 389
65          53A-15-1509, as enacted by Laws of Utah 2015, Chapter 389
66          57-8-8.1, as enacted by Laws of Utah 2015, Chapter 22
67          57-16a-202, as enacted by Laws of Utah 2015, Chapter 233
68          58-37-8, as last amended by Laws of Utah 2015, Chapters 165 and 412
69          58-69-801, as last amended by Laws of Utah 2015, Chapter 343
70          58-85-104, as enacted by Laws of Utah 2015, Chapter 110
71          59-12-103, as last amended by Laws of Utah 2015, Chapter 283
72          59-12-2218, as last amended by Laws of Utah 2014, Chapter 271
73          59-22-202, as last amended by Laws of Utah 2004, Chapter 53
74          62A-2-121, as last amended by Laws of Utah 2015, Chapters 255 and 258
75          62A-2-122, as last amended by Laws of Utah 2015, Chapter 255
76          63A-5-208, as last amended by Laws of Utah 2012, Chapters 91, 347 and last amended
77     by Coordination Clause, Laws of Utah 2012, Chapter 347
78          63A-13-204, as last amended by Laws of Utah 2015, Chapter 135
79          63E-1-203, as last amended by Laws of Utah 2015, Chapter 226
80          63G-2-202, as last amended by Laws of Utah 2015, Chapter 258
81          63G-6a-408, as last amended by Laws of Utah 2015, Chapter 218
82          63G-6a-2105, as last amended by Laws of Utah 2014, Chapter 196
83          63H-7a-603, as enacted by Laws of Utah 2015, Chapter 411
84          63I-1-220, as last amended by Laws of Utah 2014, Chapter 231
85          63I-2-217, as and further amended by Revisor Instructions, Laws of Utah 2015,
86     Chapter 465 and last amended by Laws of Utah 2015, Chapter 465
87          63I-2-220, as last amended by Laws of Utah 2014, Chapter 3
88          63I-2-277, as last amended by Laws of Utah 2014, Chapter 189
89          63M-4-602, as enacted by Laws of Utah 2015, Chapter 356

90          67-1a-14, as enacted by Laws of Utah 2012, Chapter 35
91          67-19-13.5, as last amended by Laws of Utah 2015, Chapter 393
92          70A-2-311, as enacted by Laws of Utah 1965, Chapter 154
93          73-2-22, as last amended by Laws of Utah 2015, Chapter 258
94          73-22-3, as last amended by Laws of Utah 2015, Chapter 258
95          78B-14-613, as last amended by Laws of Utah 2015, Chapter 45
96     

97     Be it enacted by the Legislature of the state of Utah:
98          Section 1. Section 4-11-5 is amended to read:
99          4-11-5. County bee inspector -- Appointment -- Termination -- Compensation.
100          (1) The county executive upon the petition of five or more persons who raise bees
101     within the respective county shall, with the approval of the commissioner, appoint a qualified
102     person to act as a bee inspector within the county.
103          (2) A county bee inspector shall be employed at the pleasure of the county executive
104     and the commissioner, and is subject to termination of employment, with or without cause, at
105     the instance of either.
106          (3) Compensation for the county bee inspector shall be fixed by the county legislative
107     body.
108          (4) To be appointed a county bee inspector, a person shall demonstrate adequate
109     training and knowledge related to this chapter, bee diseases, and pests.
110          (5) A record concerning bee inspection shall be kept by the county executive or
111     commissioner.
112          (6) The county executive and the commissioner shall investigate a formal, written
113     complaint against a county bee inspector.
114          (7) The department may authorize an inspection if:
115          (a) a county bee inspector is not appointed; [and] or
116          (b) a conflict of interest arises with a county bee inspector.
117          Section 2. Section 9-6-507 is amended to read:
118          9-6-507. Spending restrictions -- Return of endowment.
119          (1) A qualifying organization, once it has received its endowment money from the state
120     fund, may not expend any of [those] that money or the required matching money in its

121     endowment fund, but may expend only the interest income earned on the money in its
122     endowment fund.
123          (2) If the board determines that a qualifying organization has expended any amount of
124     the endowment money received from the state fund or any amount of the required matching
125     money, the qualifying organization shall return the amount it received from the state fund. The
126     board shall reallocate any such returned money to qualifying organizations in the manner as
127     provided in Section 9-6-506.
128          Section 3. Section 9-8-302 is amended to read:
129          9-8-302. Definitions.
130          As used in this part and Part 4, Historic Sites:
131          (1) "Agency" means a department, division, office, bureau, board, commission, or
132     other administrative unit of the state.
133          (2) "Ancient human remains" means all or part of the following that are historic or
134     prehistoric:
135          (a) a physical individual; and
136          (b) any object on or attached to the physical individual that is placed on or attached to
137     the physical individual as part of the death rite or ceremony of a culture.
138          (3) "Antiquities Section" means the Antiquities Section of the Division of State History
139     created in Section 9-8-304.
140          (4) "Archaeological resources" means all material remains and their associations,
141     recoverable or discoverable through excavation or survey, that provide information pertaining
142     to the historic or prehistoric peoples of the state.
143          (5) "Collection" means a specimen and the associated records documenting the
144     specimen and its recovery.
145          (6) "Curation" means management and care of collections according to standard
146     professional museum practice, which may include inventorying, accessioning, labeling,
147     cataloging, identifying, evaluating, documenting, storing, maintaining, periodically inspecting,
148     cleaning, stabilizing, conserving, exhibiting, exchanging, or otherwise disposing of original
149     collections or reproductions, and providing access to and facilities for studying collections.
150          (7) "Curation facility" [is defined as provided] means the same as that term is defined
151     in Section 53B-17-603.

152          (8) "Division" means the Division of State History created in Section 9-8-201.
153          (9) "Excavate" means the recovery of archaeological resources.
154          (10) "Historic property" means any prehistoric or historic district, site, building,
155     structure, or specimen included in, or eligible for inclusion in, the National Register of Historic
156     Places or the State Register.
157          (11) "Indian tribe" means a tribe, band, nation, or other organized group or community
158     of Indians that is recognized as eligible for the special programs and services provided by the
159     United States to Indians because of their status as Indians.
160          (12) "Museum" means the Utah Museum of Natural History.
161          (13) (a) "Nonfederal land" means land in the state that is not owned, controlled, or held
162     in trust by the federal government.
163          (b) "Nonfederal land" includes:
164          (i) land owned or controlled by:
165          (A) the state;
166          (B) a county, city, or town;
167          (C) an Indian tribe, if the land is not held in trust by the United States for the Indian
168     tribe or the Indian tribe's members; or
169          (D) a person other than the federal government; or
170          (ii) school and institutional trust lands.
171          (14) "Principal investigator" means the individual with overall administrative
172     responsibility for the survey or excavation project authorized by the permit.
173          (15) "Repository" [is defined as provided] means the same as that term is defined in
174     Section 53B-17-603.
175          (16) "School and institutional trust lands" are those properties defined in Section
176     53C-1-103.
177          (17) "Site" means any petroglyphs, pictographs, structural remains, or geographic
178     location that is the source of archaeological resources or specimens.
179          (18) "Specimen" means all man-made artifacts and remains of an archaeological or
180     anthropological nature found on or below the surface of the earth, excluding structural remains.
181          (19) "State historic preservation officer" means that position mentioned in [16 U.S.C.
182     Sec. 470a] 54 U.S.C. Sec. 302303, as amended.

183          (20) (a) "State land" means land owned by the state including the state's:
184          (i) legislative and judicial branches;
185          (ii) departments, divisions, agencies, boards, commissions, councils, and committees;
186     and
187          (iii) institutions of higher education as defined under Section 53B-3-102.
188          (b) "State land" does not include:
189          (i) land owned by a political subdivision of the state;
190          (ii) land owned by a school district;
191          (iii) private land; or
192          (iv) school and institutional trust lands.
193          (21) "Survey" means a surface investigation for archaeological resources that may
194     include:
195          (a) insubstantial surface collection of archaeological resources; and
196          (b) limited subsurface testing that disturbs no more of a site than is necessary to
197     determine the nature and extent of the archaeological resources or whether the site is a historic
198     property.
199          Section 4. Section 9-8-404 is amended to read:
200          9-8-404. Agency responsibilities -- State historic preservation officer to comment
201     on undertaking -- Public Lands Policy Coordinating Office may require joint analysis.
202          (1) (a) Before expending any state funds or approving any undertaking, each agency
203     shall:
204          (i) take into account the effect of the expenditure or undertaking on any historic
205     property; and
206          (ii) unless exempted by agreement between the agency and the state historic
207     preservation officer, provide the state historic preservation officer with a written evaluation of
208     the expenditure's or undertaking's effect on the historic property.
209          (b) Once per month, the state historic preservation officer shall provide the Public
210     Lands Policy Coordinating Office with a list of undertakings on which an agency or federal
211     agency has requested the state historic preservation officer's or the Antiquities Section's advice
212     or consultation.
213          (c) The Public Lands Policy Coordinating Office may request the joint analysis

214     described in Subsections (2)(c) and (d) of any proposed undertaking on which the state historic
215     preservation officer or Antiquities Section is providing advice or consultation.
216          (2) (a) If the state historic preservation officer does not concur with the agency's
217     written evaluation required by Subsection (1)(a)(ii), the state historic preservation officer shall
218     inform the Public Lands Policy Coordinating Office of any objections.
219          (b) The Public Lands Policy Coordinating Office shall review the state historic
220     preservation officer's objections and determine whether or not to initiate the joint analysis
221     established in Subsections (2)(c) and (d).
222          (c) If the Public Lands Policy Coordinating Office determines further analysis is
223     necessary, the Public Lands Policy Coordinating Office shall, jointly with the agency and the
224     state historic preservation officer, analyze:
225          (i) the cost of the undertaking, excluding costs attributable to the identification,
226     potential recovery, or excavation of historic properties;
227          (ii) the ownership of the land involved;
228          (iii) the likelihood of the presence and the nature and type of historical properties that
229     may be affected by the expenditure or undertaking; and
230          (iv) clear and distinct alternatives for the identification, recovery, or excavation of
231     historic properties, including ways to maximize the amount of information recovered and
232     report that information at current standards of scientific rigor.
233          (d) The Public Lands Policy Coordinating Office, the agency, and the state historic
234     preservation officer shall also consider as part of the joint analysis:
235          (i) the estimated costs of the alternatives in Subsection (2)(c)(iv) in total and as a
236     percentage of the total cost of the undertaking; and
237          (ii) at least one plan for the identification, recovery, or excavation of historic properties
238     that does not substantially increase the cost of the proposed undertaking.
239          (3) (a) (i) If the state historic preservation officer concurs with the agency's evaluation
240     or if the Public Lands Policy Coordinating Office determines that the joint analysis is
241     unnecessary, the state historic preservation officer shall, no later than 30 calendar days after
242     receiving the agency's evaluation, provide formal comments on the agency's evaluation.
243          (ii) If a joint analysis is conducted, the state historic preservation officer shall provide
244     formal comments on the agency's evaluation no later than 30 calendar days after the conclusion

245     of the joint analysis.
246          (b) The state historic preservation officer shall ensure that the comments include the
247     results of any joint analysis conducted under Subsection (2).
248          (c) If a joint analysis is not conducted, the state historic preservation officer's
249     comments may include advice about ways to maximize the amount of historic, scientific,
250     archaeological, anthropological, and educational information recovered, in addition to the
251     physical recovery of specimens and the reporting of archaeological information at current
252     standards of scientific rigor.
253          (4) (a) Once per month, the state historic preservation officer shall provide the Public
254     Lands Policy Coordinating Office with a list of comments the state historic preservation officer
255     intends to make or has made as required or authorized by the National Historic Preservation
256     Act, [16 U.S.C. Sec. 470] 54 U.S.C. Sec. 300101 et seq.
257          (b) At the request of the Public Lands Policy Coordinating Office, the state historic
258     preservation officer shall discuss the comments with the Public Lands Policy Coordinating
259     Office.
260          Section 5. Section 10-1-114 is amended to read:
261          10-1-114. Repealer.
262          Title 10, Chapter 1, General Provisions; Chapter 2, Incorporation, Classification,
263     Boundaries, Consolidation, and Dissolution of Municipalities; Chapter 3, Municipal
264     Government; Chapter 5, Uniform Town Fiscal Procedures Act [for Utah Towns]; and Chapter
265     6, Uniform Fiscal Procedures Act [for Utah Cities], are repealed, except as provided in Section
266     10-1-115.
267          Section 6. Section 10-3c-203 is amended to read:
268          10-3c-203. Administrative and operational services -- Staff provided by county or
269     municipal services district.
270          (1) (a) The following officials elected or appointed, or persons employed by, the county
271     in which a [municipality] metro township is located shall, for the purposes of interpreting and
272     complying with applicable law, fulfill the responsibilities and hold the following metro
273     township offices or positions:
274          (i) the county treasurer shall fulfill the duties and hold the powers of treasurer for the
275     metro township;

276          (ii) the county clerk shall fulfill the duties and hold the powers of recorder and clerk for
277     the metro township;
278          (iii) the county surveyor shall fulfill, on behalf of the metro township, all surveyor
279     duties imposed by law;
280          (iv) the county engineer shall fulfill the duties and hold the powers of engineer for the
281     metro township;
282          (v) the district attorney shall provide legal counsel to the metro township; and
283          (vi) subject to Subsection (1)(b), the county auditor shall fulfill the duties and hold the
284     powers of auditor for the metro township.
285          (b) (i) The county auditor shall fulfill the duties and hold the powers of auditor for the
286     metro township to the extent that the county auditor's powers and duties are described in and
287     delegated to the county auditor in accordance with Title 17, Chapter 19a, County Auditor, and
288     a municipal auditor's powers and duties described in this title are the same.
289          (ii) Notwithstanding Subsection (1)(b), in a metro township, services described in
290     Sections 17-19a-203, 17-19a-204, and 17-19a-205, and services other than those described in
291     Subsection (1)(b)(i) that are provided by a municipal auditor in accordance with this title that
292     are required by law, shall be performed by county staff other than the county auditor.
293          (2) (a) Nothing in Subsection (1) may be construed to relieve an official described in
294     Subsections (1)(a)(i) through (iv) of a duty to either the county or metro township or a duty to
295     fulfill that official's position as required by law.
296          (b) Notwithstanding Subsection (2)(a), an official or the official's deputy or other
297     person described in Subsections (1)(a)(i) through (iv):
298          (i) is elected, appointed, or otherwise employed, in accordance with the provisions of
299     Title 17, Counties, as applicable to that official's or person's county office;
300          (ii) is paid a salary and benefits and subject to employment discipline in accordance
301     with the provisions of Title 17, Counties, as applicable to that official's or person's county
302     office;
303          (iii) is not subject to:
304          (A) Chapter 3, Part 11, Personnel Rules and Benefits; or
305          (B) Chapter 3, Part 13, Municipal Officers' and Employees' Ethics Act; and
306          (iv) is not required to provide a bond for the applicable municipal office if a bond for

307     the office is required by this title.
308          (3) The metro township may establish a planning commission in accordance with
309     Section 10-9a-301 and an appeal authority in accordance with Section 10-9a-701.
310          (4) A municipal services district established in accordance with Title 17B, Chapter 2a,
311     Part 11, Municipal Services District Act, and of which the metro township is a part, may
312     provide staff to the metro township planning commission and appeal authority.
313          (5) (a) This section applies only to a metro township in which:
314          (i) the electors at an election under Section 10-2a-404 chose a metro township that is
315     included in a municipal services district and has limited municipal powers; or
316          (ii) the metro township subsequently joins a municipal services district.
317          (b) This section does not apply to a metro township described in Subsection (5)(a) if
318     the municipal services district is dissolved.
319          Section 7. Section 10-6-135 is amended to read:
320          10-6-135. Operating and capital budgets.
321          (1) (a) As used in this section, "operating and capital budget" means a plan of financial
322     operation for an enterprise fund or other required special fund that includes estimates of
323     operating resources, expenses, and other outlays for a fiscal period.
324          (b) Except as otherwise expressly provided, any reference to "budget" or "budgets" and
325     the procedures and controls relating to them in other sections of this chapter do not apply or
326     refer to the operating and capital budgets described in this section.
327          (2) At or before the time the governing body adopts budgets for the funds described in
328     Section 10-6-109, the governing body shall adopt:
329          (a) an operating and capital budget for each enterprise fund for the ensuing fiscal
330     period; and
331          (b) the type of budget for other special funds as required by the Uniform Accounting
332     Manual for Utah Cities.
333          (3) (a) The governing body shall adopt and administer an operating and capital budget
334     in accordance with this Subsection (3).
335          (b) A governing body may spend or transfer money deposited in an enterprise fund for
336     a good, service, project, venture, or other purpose that is not directly related to the goods or
337     services provided by the enterprise for which the enterprise fund was created, if the governing

338     body:
339          (i) transfers the money from the enterprise fund to another fund; and
340          (ii) complies with the hearing and notice requirements of Subsections (3)(f)(i), (ii), and
341     (iii).
342          (c) At or before the first regularly scheduled meeting of the governing body in the last
343     May of the current fiscal period, the budget officer shall:
344          (i) prepare for the ensuing fiscal period and file with the governing body a tentative
345     operating and capital budget for:
346          (A) each enterprise fund; and
347          (B) other required special funds;
348          (ii) include with the tentative operating and capital budget described in Subsection
349     (3)[(d)(i)](c) specific work programs as submitted by each department head; and
350          (iii) include any other supporting data required by the governing body.
351          (d) Each city of the first or second class shall, and each city of the third, fourth, or fifth
352     class may, submit a supplementary estimate of all capital projects which a department head
353     believes should be undertaken within the three next succeeding fiscal periods.
354          (e) (i) Subject to Subsection (3)(e)(ii), the budget officer shall prepare all estimates
355     after review and consultation with each department head described in Subsection (3)(d).
356          (ii) After complying with Subsection (3)(e)(i), the budget officer may revise any
357     departmental estimate before it is filed with the governing body.
358          (f) (i) Except as provided in Subsection (3)(f)(iv), if the governing body includes in a
359     tentative budget or an amendment to a budget allocations or transfers from an enterprise fund
360     to another fund or a good, service, project, venture, or purpose other than reasonable
361     allocations of costs between the enterprise fund and the other fund, the governing body shall:
362          (A) hold a public hearing;
363          (B) prepare a written notice of the date, time, place, and purpose of the hearing, as
364     described in Subsection (3)(f)(ii); and
365          (C) subject to Subsection (3)(f)(iii), mail the written notice to each enterprise fund
366     customer at least seven days before the day of the hearing.
367          (ii) The purpose portion of the written notice required under Subsection (3)(f)(i)(B)
368     shall identify:

369          (A) the enterprise fund from which money is being transferred;
370          (B) the amount being transferred; and
371          (C) the fund to which the money is being transferred.
372          (iii) The governing body:
373          (A) may print the written notice required under Subsection (3)(f)(i) on the enterprise
374     fund customer's bill; and
375          (B) shall include the written notice required under Subsection (3)(f)(i) as a separate
376     notification mailed or transmitted with the enterprise fund customer's bill.
377          (iv) A governing body is not required to repeat the notice and hearing requirements in
378     this Subsection (3)(f) if the funds to be allocated or transferred for the current year were
379     previously approved by the governing body during the current year and at a public hearing that
380     complies with the notice and hearing requirements of this Subsection (3)(f).
381          (4) (a) Each tentative budget, amendment to a budget, or budget shall be reviewed and
382     considered by the governing body at any regular meeting or special meeting called for that
383     purpose.
384          (b) The governing body may make changes in the tentative budgets.
385          (5) Budgets for enterprise or other required special funds shall comply with the public
386     hearing requirements established in Sections 10-6-113 and 10-6-114.
387          (6) (a) Before the last June 30 of each fiscal period, or, in the case of a property tax
388     increase under Sections 59-2-919 through 59-2-923, before August 31 of the year for which a
389     property tax increase is proposed, the governing body shall adopt an operating and capital
390     budget for each applicable fund for the ensuing fiscal period.
391          (b) A copy of the budget as finally adopted for each fund shall be:
392          (i) certified by the budget officer;
393          (ii) filed by the budget officer in the office of the city auditor or city recorder;
394          (iii) available to the public during regular business hours; and
395          (iv) filed with the state auditor within 30 days after the day on which the budget is
396     adopted.
397          (7) (a) Upon final adoption, the operating and capital budget is in effect for the budget
398     period, subject to later amendment.
399          (b) During the budget period the governing body may, in any regular meeting or special

400     meeting called for that purpose, review any one or more of the operating and capital budgets
401     for the purpose of determining if the total of any of them should be increased.
402          (c) If the governing body decides that the budget total of one or more of the funds
403     should be increased under Subsection (7)(b), the governing body shall follow the procedures
404     set forth in Section 10-6-136.
405          (8) Expenditures from operating and capital budgets shall conform to the requirements
406     relating to budgets specified in Sections 10-6-121 through 10-6-126.
407          Section 8. Section 10-8-15 is amended to read:
408          10-8-15. Waterworks -- Construction -- Extraterritorial jurisdiction.
409          They may construct or authorize the construction of waterworks within or without the
410     city limits, and for the purpose of maintaining and protecting the same from injury and the
411     water from pollution their jurisdiction shall extend over the territory occupied by such works,
412     and over all reservoirs, streams, canals, ditches, pipes and drains used in and necessary for the
413     construction, maintenance and operation of the same, and over the stream or source from which
414     the water is taken, for 15 miles above the point from which it is taken and for a distance of 300
415     feet on each side of such stream and over highways along such stream or watercourse within
416     said 15 miles and said 300 feet; provided, that the jurisdiction of cities of the first class shall be
417     over the entire watershed, except that livestock shall be permitted to graze beyond [one
418     thousand] 1,000 feet from any such stream or source; and provided further, that each city of the
419     first class shall provide a highway in and through its corporate limits, and so far as its
420     jurisdiction extends, which may not be closed to cattle, horses, sheep or hogs driven through
421     any such city, or through any territory adjacent thereto over which such city has jurisdiction,
422     but the board of commissioners of such city may enact ordinances placing under police
423     regulations the manner of driving such cattle, sheep, horses and hogs through such city, or any
424     territory adjacent thereto over which it has jurisdiction. They may enact all ordinances and
425     regulations necessary to carry the power herein conferred into effect, and are authorized and
426     empowered to enact ordinances preventing pollution or contamination of the streams or
427     watercourses from which the inhabitants of cities derive their water supply, in whole or in part,
428     for domestic and culinary purposes, and may enact ordinances prohibiting or regulating the
429     construction or maintenance of any closet, privy, outhouse or urinal within the area over which
430     the city has jurisdiction, and provide for permits for the construction and maintenance of the

431     same. In granting such permits they may annex thereto such reasonable conditions and
432     requirements for the protection of the public health as they deem proper, and may, if deemed
433     advisable, require that all closets, privies and urinals along such streams shall be provided with
434     effective septic tanks or other germ-destroying instrumentalities.
435          Section 9. Section 11-51-102 is amended to read:
436          11-51-102. Definitions.
437          As used in this chapter:
438          (1) "Chief executive officer" means:
439          (a) for a municipality:
440          (i) the mayor, if the municipality is operating under a form of municipal government
441     other than the council-manager form of government; or
442          (ii) the city manager, if the municipality is operating under the council-manager form
443     of government; or
444          (b) for a county:
445          (i) the chair of the county commission, if the county is operating under the county
446     commission or expanded county commission form of government;
447          (ii) the county executive officer, if the county is operating under the county-executive
448     council form of government; or
449          (iii) the county manager, if the county is operating under the council-manager form of
450     government.
451          (2) "County sheriff" means an individual elected to the office of county sheriff in the
452     state who meets the qualifications described in Section 17-22-1.5.
453          (3) "Federal agency" means the United States Bureau of Land Management, the United
454     States Forest Service, the United States Fish and Wildlife Service, or the National Park
455     Service.
456          (4) "Federally managed land" means land that is managed by the United States Bureau
457     of Land Management, the United States Forest Service, or the National Park Service.
458          (5) "National monument" means a national monument designated or declared in
459     accordance with the Antiquities Act of 1906, [16 U.S.C. Sec. 431] 54 U.S.C. Sec. 320301 et
460     seq.
461          (6) "National recreation area" means a recreation area designated by an act of

462     Congress.
463          (7) "Political subdivision" means a municipality or county.
464          Section 10. Section 13-14-204 is amended to read:
465          13-14-204. Franchisor's obligations related to service -- Franchisor audits -- Time
466     limits.
467          (1) Each franchisor shall specify in writing to each of its franchisees licensed as a new
468     motor vehicle dealer in this state:
469          (a) the franchisee's obligations for new motor vehicle preparation, delivery, and
470     warranty service on its products;
471          (b) the schedule of compensation to be paid to the franchisee for parts, work, and
472     service; and
473          (c) the time allowance for the performance of work and service.
474          (2) (a) The schedule of compensation described in Subsection (1) shall include
475     reasonable compensation for diagnostic work, as well as repair service, parts, and labor.
476          (b) Time allowances described in Subsection (1) for the diagnosis and performance of
477     warranty work and service shall be reasonable and adequate for the work to be performed.
478          (3) (a) In the determination of what constitutes reasonable compensation under this
479     section, the principal factor to be considered is the prevailing wage rates being paid by
480     franchisees in the relevant market area in which the franchisee is doing business.
481          (b) Compensation of the franchisee for warranty service work may not be less than the
482     amount charged by the franchisee for like parts and service to retail or fleet customers, if the
483     amounts are reasonable. In the case of a recreational vehicle franchisee, reimbursement for
484     parts used in the performance of warranty repairs, including those parts separately warranted
485     directly to the consumer by a recreational vehicle parts supplier, may not be less than the
486     franchisee's cost plus 20%. For purposes of this Subsection (3)(b), the term "cost" shall be that
487     same price paid by a franchisee to a franchisor or supplier for the part when the part is
488     purchased for a nonwarranty repair.
489          (4) A franchisor may not fail to:
490          (a) perform any warranty obligation;
491          (b) include in written notices of franchisor's recalls to new motor vehicle owners and
492     franchisees the expected date by which necessary parts and equipment will be available to

493     franchisees for the correction of the defects; or
494          (c) compensate any of the franchisees for repairs effected by the recall.
495          (5) If a franchisor disallows a franchisee's claim for a defective part, alleging that the
496     part is not defective, the franchisor at its option shall:
497          (a) return the part to the franchisee at the franchisor's expense; or
498          (b) pay the franchisee the cost of the part.
499          (6) (a) A claim made by a franchisee pursuant to this section for labor and parts shall
500     be paid within 30 days after its approval.
501          (b) A claim shall be either approved or disapproved by the franchisor within 30 days
502     after receipt of the claim on a form generally used by the franchisor and containing the
503     generally required information. Any claim not specifically disapproved of in writing within 30
504     days after the receipt of the form is considered to be approved and payment shall be made
505     within 30 days.
506          (7) Warranty service audits of franchisee records may be conducted by the franchisor
507     on a reasonable basis.
508          (8) A franchisee's claim for warranty compensation may be denied only if:
509          (a) the franchisee's claim is based on a nonwarranty repair;
510          (b) the franchisee lacks material documentation for the claim;
511          (c) the franchisee fails to comply materially with specific substantive terms and
512     conditions of the franchisor's warranty compensation program; or
513          (d) the franchisor has a bona fide belief based on competent evidence that the
514     franchisee's claim is intentionally false, fraudulent, or misrepresented.
515          (9) (a) Any charge backs for warranty parts or service compensation and service
516     incentives shall only be enforceable for the six-month period immediately following the date
517     the payment for warranty reimbursement was made by the franchisor.
518          (b) Except as provided in Subsection [(9)(c)] (9)(e), all charge backs levied by a
519     franchisor for sales compensation or sales incentives arising out of the sale or lease of a motor
520     vehicle sold or leased by a franchisee shall be compensable only if written notice of the charge
521     back is received by the franchisee within six months immediately following the sooner of:
522          (i) the date when the sales incentive program terminates; or
523          (ii) the date when payment for the sales compensation or sales incentive was made by

524     the franchisor to the franchisee.
525          (c) (i) Upon an audit, the franchisor shall provide the franchisee automated or written
526     notice explaining the amount of and reason for a charge back.
527          (ii) A franchisee may respond in writing within 30 days after the notice under
528     Subsection (9)(c)(i) to:
529          (A) explain a deficiency; or
530          (B) provide materials or information to correct and cure compliance with a provision
531     that is a basis for a charge back.
532          (d) A charge back:
533          (i) may not be based on a nonmaterial error that is clerical in nature; and
534          (ii) (A) shall be based on one or more specific instances of material noncompliance
535     with the franchisor's warranty compensation program or sales incentive program; and
536          (B) may not be extrapolated from a sampling of warranty claims or sales incentive
537     claims.
538          (e) The time limitations of this Subsection (9) do not preclude charge backs for any
539     fraudulent claim that was previously paid.
540          Section 11. Section 13-49-201 is amended to read:
541          13-49-201. Requirement to be registered as an immigration consultant --
542     Exemptions.
543          (1) (a) Except as provided in Subsection (1)(b), an individual may not engage in an
544     activity of an immigration consultant for compensation unless the individual is registered under
545     this chapter.
546          (b) Except for Subsections 13-49-303(3) and (4), this chapter does not apply to an
547     individual authorized:
548          (i) to practice law in this state; or
549          (ii) by federal law to represent [persons] an individual before the Board of Immigration
550     Appeals or the United States Citizenship and Immigration Services.
551          (2) An immigration consultant may only offer nonlegal assistance or advice in an
552     immigration matter.
553          Section 12. Section 13-49-203 is amended to read:
554          13-49-203. Requirement to submit to criminal background check.

555          (1) The division shall require an applicant for registration as an immigration consultant
556     to:
557          (a) submit a fingerprint card in a form acceptable to the division; and
558          (b) consent to a fingerprint criminal background check by the Utah Bureau of Criminal
559     Identification.
560          (2) (a) The division shall obtain information from a criminal history record maintained
561     by the Utah Bureau of Criminal Identification pursuant to Title 53, Chapter 10, Part 2, Bureau
562     of Criminal Identification.
563          (b) The information obtained under Subsection (2)[(b)](a) may only be used by the
564     division to determine whether an applicant for registration as an immigration consultant meets
565     the requirements of Subsection 13-49-202(1)(c).
566          Section 13. Section 17B-1-502 is amended to read:
567          17B-1-502. Withdrawal of area from local district -- Automatic withdrawal in
568     certain circumstances.
569          (1) (a) An area within the boundaries of a local district may be withdrawn from the
570     local district only as provided in this part or, if applicable, as provided in Chapter 2a, Part 11,
571     Municipal Services District Act.
572          (b) Except as provided in Subsections (2) and (3), the inclusion of an area of a local
573     district within a municipality because of a municipal incorporation under Title 10, Chapter 2a,
574     Municipal Incorporation, or a municipal annexation or boundary adjustment under Title 10,
575     Chapter 2, Part 4, Annexation, does not affect the requirements under this part for the process
576     of withdrawing that area from the local district.
577          (2) (a) An area within the boundaries of a local district is automatically withdrawn
578     from the local district by the annexation of the area to a municipality or the adding of the area
579     to a municipality by boundary adjustment under Title 10, Chapter 2, Part 4, Annexation, if:
580          (i) the local district provides:
581          (A) fire protection, paramedic, and emergency services; or
582          (B) law enforcement service;
583          (ii) an election for the creation of the local district was not required because of
584     Subsection 17B-1-214(3)(d); and
585          (iii) before annexation or boundary adjustment, the boundaries of the local district do

586     not include any of the annexing municipality.
587          (b) The effective date of a withdrawal under this Subsection (2) is governed by
588     Subsection 17B-1-512(2)(b).
589          (3) (a) Except as provided in Subsection (3)(c) or (d), an area within the boundaries of
590     a local district located in a county of the first class is automatically withdrawn from the local
591     district by the incorporation of a municipality whose boundaries include the area if:
592          (i) the local district provides:
593          (A) fire protection, paramedic, and emergency services;
594          (B) law enforcement service; or
595          (C) municipal services, as defined in Section 17B-2a-1102;
596          (ii) an election for the creation of the local district was not required because of
597     Subsection 17B-1-214(3)(d) or (g); and
598          (iii) the legislative body of the newly incorporated municipality:
599          (A) for a city or town incorporated under Title 10, Chapter 2a, Part 4, Incorporation of
600     Metro Townships and Unincorporated Islands in a County of the First Class on and after May
601     12, 2015, complies with the feasibility study requirements of Section 17B-2a-1110;
602          (B) adopts a resolution no later than 180 days after the effective date of incorporation
603     approving the withdrawal that includes the legal description of the area to be withdrawn; and
604          (C) delivers a copy of the resolution to the board of trustees of the local district.
605          (b) The effective date of a withdrawal under this Subsection (3) is governed by
606     Subsection 17B-1-512(2)(a).
607          (c) Section 17B-1-505 shall govern the withdrawal of an incorporated area within a
608     county of the first class after the expiration of the 180-day period described in Subsection
609     (3)(a)(iii)(B) if:
610          (i) the local district from which the area is withdrawn provides:
611          (A) fire protection, paramedic, and emergency services;
612          (B) law enforcement service; or
613          (C) municipal services, as defined in Section 17B-2a-1102; and
614          (ii) an election for the creation of the local district was not required under Subsection
615     17B-1-214(3)(d) or (g).
616          (d) An area within the boundaries of a local district that is incorporated as a metro

617     township and for which the residents of the metro township at an election to incorporate chose
618     to be included in a municipal services district is not subject to the provisions of this Subsection
619     (3).
620          Section 14. Section 19-1-301.5 is amended to read:
621          19-1-301.5. Permit review adjudicative proceedings.
622          (1) As used in this section:
623          (a) "Dispositive action" means a final agency action that:
624          (i) the executive director takes as part of a special adjudicative proceeding; and
625          (ii) is subject to judicial review, in accordance with Subsection (15).
626          (b) "Dispositive motion" means a motion that is equivalent to:
627          (i) a motion to dismiss under Utah Rules of Civil Procedure, Rule 12(b)(6);
628          (ii) a motion for judgment on the pleadings under Utah Rules of Civil Procedure, Rule
629     12(c); or
630          (iii) a motion for summary judgment under Utah Rules of Civil Procedure, Rule 56.
631          (c) "Financial assurance determination" means a decision on whether a facility, site,
632     plan, party, broker, owner, operator, generator, or permittee has met financial assurance or
633     financial responsibility requirements as determined by the director of the Division of Waste
634     Management and Radiation Control.
635          (d) "Party" means:
636          (i) the director who issued the permit order or financial assurance determination that is
637     being challenged in the special adjudicative proceeding under this section;
638          (ii) the permittee;
639          (iii) the person who applied for the permit, if the permit was denied;
640          (iv) the person who is subject to a financial assurance determination; or
641          (v) a person granted intervention by the administrative law judge.
642          (e) "Permit" means any of the following issued under this title:
643          (i) a permit;
644          (ii) a plan;
645          (iii) a license;
646          (iv) an approval order; or
647          (v) another administrative authorization made by a director.

648          (f) (i) "Permit order" means an order issued by a director that:
649          (A) approves a permit;
650          (B) renews a permit;
651          (C) denies a permit;
652          (D) modifies or amends a permit; or
653          (E) revokes and reissues a permit.
654          (ii) "Permit order" does not include an order terminating a permit.
655          (g) "Special adjudicative proceeding" means a proceeding under this section to resolve
656     a challenge to a:
657          (i) permit order; or
658          (ii) financial assurance determination.
659          (2) This section governs [permit] special adjudicative proceedings.
660          (3) Except as expressly provided in this section, the provisions of Title 63G, Chapter 4,
661     Administrative Procedures Act, do not apply to a special adjudicative proceeding under this
662     section.
663          (4) If a public comment period was provided during the permit application process or
664     the financial assurance determination process, a person who challenges an order, application, or
665     determination may only raise an issue or argument during the special adjudicative proceeding
666     that:
667          (a) the person raised during the public comment period; and
668          (b) was supported with information or documentation that is cited with reasonable
669     specificity and sufficiently enables the director to fully consider the substance and significance
670     of the issue.
671          (5) (a) Upon request by a party, the executive director shall issue a notice of
672     appointment appointing an administrative law judge, in accordance with Subsections
673     19-1-301(5) and (6), to conduct a special adjudicative proceeding under this section.
674          (b) The executive director shall issue a notice of appointment within 30 days after the
675     day on which a party files a request.
676          (c) A notice of appointment shall include:
677          (i) the agency's file number or other reference number assigned to the special
678     adjudicative proceeding;

679          (ii) the name of the special adjudicative proceeding; and
680          (iii) the administrative law judge's name, title, mailing address, email address, and
681     telephone number.
682          (6) (a) Only the following may file a petition for review of a permit order or financial
683     assurance determination:
684          (i) a party; or
685          (ii) a person who is seeking to intervene under Subsection (7).
686          (b) A person who files a petition for review of a permit order or a financial assurance
687     determination shall file the petition for review within 30 days after the day on which the permit
688     order or the financial assurance determination is issued.
689          (c) The department may, in accordance with Title 63G, Chapter 3, Utah Administrative
690     Rulemaking Act, make rules allowing the extension of the filing deadline described in
691     Subsection (6)(b).
692          (d) A petition for review shall:
693          (i) be served in accordance with department rule;
694          (ii) include the name and address of each person to whom a copy of the petition for
695     review is sent;
696          (iii) if known, include the agency's file number or other reference number assigned to
697     the special adjudicative proceeding;
698          (iv) state the date on which the petition for review is served;
699          (v) include a statement of the petitioner's position, including, as applicable:
700          (A) the legal authority under which the petition for review is requested;
701          (B) the legal authority under which the agency has jurisdiction to review the petition
702     for review;
703          (C) each of the petitioner's arguments in support of the petitioner's requested relief;
704          (D) an explanation of how each argument described in Subsection (6)(d)(v)(C) was
705     preserved;
706          (E) a detailed description of any permit condition to which the petitioner is objecting;
707          (F) any modification or addition to a permit that the petitioner is requesting;
708          (G) a demonstration that the agency's permit decision is based on a finding of fact or
709     conclusion of law that is clearly erroneous;

710          (H) if the agency director addressed a finding of fact or conclusion of law described in
711     Subsection (6)(d)(v)(G) in a response to public comment, a citation to the comment and
712     response that relates to the finding of fact or conclusion of law and an explanation of why the
713     director's response was clearly erroneous or otherwise warrants review; and
714          (I) a claim for relief.
715          (e) A person may not raise an issue or argument in a petition for review unless the
716     issue or argument:
717          (i) was preserved in accordance with Subsection (4); or
718          (ii) was not reasonably ascertainable before or during the public comment period.
719          (f) To demonstrate that an issue or argument was preserved in accordance with
720     Subsection (4), a petitioner shall include the following in the petitioner's petition for review:
721          (i) a citation to where the petitioner raised the issue or argument during the public
722     comment period; and
723          (ii) for each document upon which the petitioner relies in support of an issue or
724     argument, a description that:
725          (A) states why the document is part of the administrative record; and
726          (B) demonstrates that the petitioner cited the document with reasonable specificity in
727     accordance with Subsection (4)(b).
728          (7) (a) A person who is not a party may not participate in a special adjudicative
729     proceeding under this section unless the person is granted the right to intervene under this
730     Subsection (7).
731          (b) A person who seeks to intervene in a special adjudicative proceeding under this
732     section shall, within 30 days after the day on which the permit order or the financial assurance
733     determination being challenged was issued, file:
734          (i) a petition to intervene that:
735          (A) meets the requirements of Subsection 63G-4-207(1); and
736          (B) demonstrates that the person is entitled to intervention under Subsection (7)(d)(ii);
737     and
738          (ii) a timely petition for review.
739          (c) In a special adjudicative proceeding to review a permit order, the permittee is a
740     party to the special adjudicative proceeding regardless of who files the petition for review and

741     does not need to file a petition to intervene under Subsection (7)(b).
742          (d) An administrative law judge shall grant a petition to intervene in a special
743     adjudicative proceeding, if:
744          (i) the petition to intervene is timely filed; and
745          (ii) the petitioner:
746          (A) demonstrates that the petitioner's legal interests may be substantially affected by
747     the special adjudicative proceeding;
748          (B) demonstrates that the interests of justice and the orderly and prompt conduct of the
749     special adjudicative proceeding will not be materially impaired by allowing the intervention;
750     and
751          (C) in the petitioner's petition for review, raises issues or arguments that are preserved
752     in accordance with Subsection (4).
753          (e) An administrative law judge:
754          (i) shall issue an order granting or denying a petition to intervene in accordance with
755     Subsection 63G-4-207(3)(a); and
756          (ii) may impose conditions on intervenors as described in Subsections 63G-4-207(3)(b)
757     and (c).
758          (f) The department may, in accordance with Title 63G, Chapter 3, Utah Administrative
759     Rulemaking Act, make rules allowing the extension of the filing deadline described in
760     Subsection (7)(b).
761          (8) (a) Unless the parties otherwise agree, the schedule for a special adjudicative
762     proceeding is as follows:
763          (i) the director shall file and serve the administrative record within 40 days after the
764     day on which the executive director issues a notice of appointment, unless otherwise ordered
765     by the administrative law judge;
766          (ii) any dispositive motion shall be filed and served within 15 days after the day on
767     which the administrative record is filed and served;
768          (iii) the petitioner shall file and serve an opening brief of no more than 30 pages:
769          (A) within 30 days after the day on which the director files and serves the
770     administrative record; or
771          (B) if a party files and serves a dispositive motion, within 30 days after the day on

772     which the administrative law judge issues a decision on the dispositive motion, including a
773     decision to defer the motion;
774          (iv) each party shall file and serve a response brief of no more than 15 pages within 15
775     days after the day on which the petitioner files and serves the opening brief;
776          (v) the petitioner may file and serve a reply brief of not more than 15 pages within 15
777     days after the day on which the response brief is filed and served; and
778          (vi) if the petitioner files and serves a reply brief, each party may file and serve a
779     surreply brief of no more than five pages within five business days after the day on which the
780     petitioner files and serves the reply brief.
781          (b) (i) A reply brief may not raise an issue that was not raised in the response brief.
782          (ii) A surreply brief may not raise an issue that was not raised in the reply brief.
783          (9) (a) An administrative law judge shall conduct a special adjudicative proceeding
784     based only on the administrative record and not as a trial de novo.
785          (b) To the extent relative to the issues and arguments raised in the petition for review,
786     the administrative record consists of the following items, if they exist:
787          (i) (A) for review of a permit order, the permit application, draft permit, and final
788     permit; or
789          (B) for review of a financial assurance determination, the proposed financial assurance
790     determination from the owner or operator of the facility, the draft financial assurance
791     determination, and the final financial assurance determination;
792          (ii) each statement of basis, fact sheet, engineering review, or other substantive
793     explanation designated by the director as part of the basis for the decision relating to the permit
794     order or the financial assurance determination;
795          (iii) the notice and record of each public comment period;
796          (iv) the notice and record of each public hearing, including oral comments made during
797     the public hearing;
798          (v) written comments submitted during the public comment period;
799          (vi) responses to comments that are designated by the director as part of the basis for
800     the decision relating to the permit order or the financial assurance determination;
801          (vii) any information that is:
802          (A) requested by and submitted to the director; and

803          (B) designated by the director as part of the basis for the decision relating to the permit
804     order or the financial assurance determination;
805          (viii) any additional information specified by rule;
806          (ix) any additional documents agreed to by the parties; and
807          (x) information supplementing the record under Subsection (9)(c).
808          (c) (i) There is a rebuttable presumption against supplementing the record.
809          (ii) A party may move to supplement the record described in Subsection (9)(b) with
810     technical or factual information.
811          (iii) The administrative law judge may grant a motion to supplement the record
812     described in Subsection (9)(b) with technical or factual information if the moving party proves
813     that:
814          (A) good cause exists for supplementing the record;
815          (B) supplementing the record is in the interest of justice; and
816          (C) supplementing the record is necessary for resolution of the issues.
817          (iv) The department may, in accordance with Title 63G, Chapter 3, Utah
818     Administrative Rulemaking Act, make rules permitting further supplementation of the record.
819          (10) (a) Except as otherwise provided by this section, the administrative law judge shall
820     review and respond to a petition for review in accordance with Subsections 63G-4-201(3)(d)
821     and (e), following the relevant procedures for formal adjudicative proceedings.
822          (b) The administrative law judge shall require the parties to file responsive briefs in
823     accordance with Subsection (8).
824          (c) If an administrative law judge enters an order of default against a party, the
825     administrative law judge shall enter the order of default in accordance with Section 63G-4-209.
826          (d) The administrative law judge, in conducting a special adjudicative proceeding:
827          (i) may not participate in an ex parte communication with a party to the special
828     adjudicative proceeding regarding the merits of the special adjudicative proceeding unless
829     notice and an opportunity to be heard are afforded to all parties; and
830          (ii) shall, upon receiving an ex parte communication, place the communication in the
831     public record of the proceeding and afford all parties an opportunity to comment on the
832     information.
833          (e) In conducting a special adjudicative proceeding, the administrative law judge may

834     take judicial notice of matters not in the administrative record, in accordance with Utah Rules
835     of Evidence, Rule 201.
836          (f) An administrative law judge may take any action in a special adjudicative
837     proceeding that is not a dispositive action.
838          (11) (a) A person who files a petition for review has the burden of demonstrating that
839     an issue or argument raised in the petition for review has been preserved in accordance with
840     Subsection (4).
841          (b) The administrative law judge shall dismiss, with prejudice, any issue or argument
842     raised in a petition for review that has not been preserved in accordance with Subsection (4).
843          (12) In response to a dispositive motion, within 45 days after the day on which oral
844     argument takes place, or, if there is no oral argument, within 45 days after the day on which the
845     reply brief on the dispositive motion is due, the administrative law judge shall:
846          (a) submit a proposed dispositive action to the executive director recommending full or
847     partial resolution of the special adjudicative proceeding, that includes:
848          (i) written findings of fact;
849          (ii) written conclusions of law; and
850          (iii) a recommended order; or
851          (b) if the administrative law judge determines that a full or partial resolution of the
852     special adjudicative proceeding is not appropriate, issue an order that explains the basis for the
853     administrative law judge's determination.
854          (13) For each issue or argument that is not dismissed or otherwise resolved under
855     Subsection (11)(b) or (12), the administrative law judge shall:
856          (a) provide the parties an opportunity for briefing and oral argument in accordance with
857     this section;
858          (b) conduct a review of the director's order or determination, based on the record
859     described in Subsections (9)(b), (9)(c), and (10)(e); and
860          (c) within 60 days after the day on which the reply brief on the dispositive motion is
861     due, submit to the executive director a proposed dispositive action, that includes:
862          (i) written findings of fact;
863          (ii) written conclusions of law; and
864          (iii) a recommended order.

865          (14) (a) When the administrative law judge submits a proposed dispositive action to
866     the executive director, the executive director may:
867          (i) adopt, adopt with modifications, or reject the proposed dispositive action; or
868          (ii) return the proposed dispositive action to the administrative law judge for further
869     action as directed.
870          (b) On review of a proposed dispositive action, the executive director shall uphold all
871     factual, technical, and scientific agency determinations that are not clearly erroneous based on
872     the petitioner's marshaling of the evidence.
873          (c) In reviewing a proposed dispositive action during a special adjudicative proceeding,
874     the executive director may take judicial notice of matters not in the record, in accordance with
875     Utah Rules of Evidence, Rule 201.
876          (d) The executive director may use the executive director's technical expertise in
877     making a determination.
878          (15) (a) A party may seek judicial review in the Utah Court of Appeals of a dispositive
879     action in a special adjudicative proceeding, in accordance with Sections 63G-4-401,
880     63G-4-403, and 63G-4-405.
881          (b) An appellate court shall limit its review of a dispositive action of a special
882     adjudicative proceeding under this section to:
883          (i) the record described in Subsections (9)(b), (9)(c), (10)(e), and (14)(c); and
884          (ii) the record made by the administrative law judge and the executive director during
885     the special adjudicative proceeding.
886          (c) During judicial review of a dispositive action, the appellate court shall:
887          (i) review all agency determinations in accordance with Subsection 63G-4-403(4),
888     recognizing that the agency has been granted substantial discretion to interpret its governing
889     statutes and rules; and
890          (ii) uphold all factual, technical, and scientific agency determinations that are not
891     clearly erroneous based upon the petitioner's marshaling of the evidence.
892          (16) (a) The filing of a petition for review does not:
893          (i) stay a permit order or a financial assurance determination; or
894          (ii) delay the effective date of a permit order or a portion of a financial assurance
895     determination.

896          (b) A permit order or a financial assurance determination may not be stayed or delayed
897     unless a stay is granted under this Subsection (16).
898          (c) The administrative law judge shall:
899          (i) consider a party's motion to stay a permit order or a financial assurance
900     determination during a special adjudicative proceeding; and
901          (ii) within 45 days after the day on which the reply brief on the motion to stay is due,
902     submit a proposed determination on the stay to the executive director.
903          (d) The administrative law judge may not recommend to the executive director a stay
904     of a permit order or a financial assurance determination, or a portion of a permit order or a
905     portion of a financial assurance determination, unless:
906          (i) all parties agree to the stay; or
907          (ii) the party seeking the stay demonstrates that:
908          (A) the party seeking the stay will suffer irreparable harm unless the stay is issued;
909          (B) the threatened injury to the party seeking the stay outweighs whatever damage the
910     proposed stay is likely to cause the party restrained or enjoined;
911          (C) the stay, if issued, would not be adverse to the public interest; and
912          (D) there is a substantial likelihood that the party seeking the stay will prevail on the
913     merits of the underlying claim, or the case presents serious issues on the merits, which should
914     be the subject of further adjudication.
915          (e) A party may appeal the executive director's decision regarding a stay of a permit
916     order or a financial assurance determination to the Utah Court of Appeals, in accordance with
917     Section 78A-4-103.
918          (17) (a) Subject to Subsection (17)(c), the administrative law judge shall issue a written
919     response to a non-dispositive motion within 45 days after the day on which the reply brief on
920     the non-dispositive motion is due or, if the administrative law judge grants oral argument on
921     the non-dispositive motion, within 45 days after the day on which oral argument takes place.
922          (b) If the administrative law judge determines that the administrative law judge needs
923     more time to issue a response to a non-dispositive motion, the administrative law judge may
924     issue a response after the deadline described in Subsection (17)(a) if, before the deadline
925     expires, the administrative law judge gives notice to the parties that includes:
926          (i) the amount of additional time that the administrative law judge requires; and

927          (ii) the reason the administrative law judge needs the additional time.
928          (c) If the administrative law judge grants oral argument on a non-dispositive motion,
929     the administrative law judge shall hold the oral argument within 30 days after the day on which
930     the reply brief on the non-dispositive motion is due.
931          Section 15. Section 20A-1-306 is amended to read:
932          20A-1-306. Electronic signatures prohibited.
933          Notwithstanding Title 46, Chapter 4, Uniform Electronic Transactions Act, and
934     Subsections 68-3-12(1)(e) and 68-3-12.5[(26)](27) and [(35)] (38), an electronic signature may
935     not be used to sign a petition to:
936          (1) qualify a ballot proposition for the ballot under Chapter 7, Issues Submitted to the
937     Voters;
938          (2) organize and register a political party under Chapter 8, Political Party Formation
939     and Procedures; or
940          (3) qualify a candidate for the ballot under Chapter 9, Candidate Qualifications and
941     Nominating Procedures.
942          Section 16. Section 20A-7-702 is amended to read:
943          20A-7-702. Voter information pamphlet -- Form -- Contents -- Distribution.
944          (1) The lieutenant governor shall ensure that all information submitted for publication
945     in the voter information pamphlet is:
946          (a) printed and bound in a single pamphlet;
947          (b) printed in clear readable type, no less than 10 point, except that the text of any
948     measure may be set forth in eight-point type; and
949          (c) printed on a quality and weight of paper that best serves the voters.
950          (2) The voter information pamphlet shall contain the following items in this order:
951          (a) a cover title page;
952          (b) an introduction to the pamphlet by the lieutenant governor;
953          (c) a table of contents;
954          (d) a list of all candidates for constitutional offices;
955          (e) a list of candidates for each legislative district;
956          (f) a 100-word statement of qualifications for each candidate for the office of governor,
957     lieutenant governor, attorney general, state auditor, or state treasurer, if submitted by the

958     candidate to the lieutenant governor's office before 5 p.m. on the date that falls 105 days before
959     the date of the election;
960          (g) information pertaining to all measures to be submitted to the voters, beginning a
961     new page for each measure and containing, in the following order for each measure:
962          (i) a copy of the number and ballot title of the measure;
963          (ii) the final vote cast by the Legislature on the measure if it is a measure submitted by
964     the Legislature or by referendum;
965          (iii) the impartial analysis of the measure prepared by the Office of Legislative
966     Research and General Counsel;
967          (iv) the arguments in favor of the measure, the rebuttal to the arguments in favor of the
968     measure, the arguments against the measure, and the rebuttal to the arguments against the
969     measure, with the name and title of the authors at the end of each argument or rebuttal;
970          (v) for each constitutional amendment, a complete copy of the text of the constitutional
971     amendment, with all new language underlined, and all deleted language placed within brackets;
972          (vi) for each initiative qualified for the ballot, a copy of the measure as certified by the
973     lieutenant governor and a copy of the fiscal impact estimate prepared according to Section
974     20A-7-202.5; and
975          (vii) for each referendum qualified for the ballot, a complete copy of the text of the law
976     being submitted to the voters for their approval or rejection, with all new language underlined
977     and all deleted language placed within brackets, as applicable;
978          (h) a description provided by the Judicial Performance Evaluation Commission of the
979     selection and retention process for judges, including, in the following order:
980          (i) a description of the judicial selection process;
981          (ii) a description of the judicial performance evaluation process;
982          (iii) a description of the judicial retention election process;
983          (iv) a list of the criteria of the judicial performance evaluation and the minimum
984     performance standards;
985          (v) the names of the judges standing for retention election; and
986          (vi) for each judge:
987          (A) a list of the counties in which the judge is subject to retention election;
988          (B) a short biography of professional qualifications and a recent photograph;

989          (C) a narrative concerning the judge's performance;
990          (D) for each standard of performance, a statement identifying whether or not the judge
991     met the standard and, if not, the manner in which the judge failed to meet the standard;
992          (E) a statement identifying whether or not the Judicial Performance Evaluation
993     Commission recommends the judge be retained or declines to make a recommendation and the
994     number of votes for and against the commission's recommendation;
995          (F) any statement provided by a judge who is not recommended for retention by the
996     Judicial Performance Evaluation Commission under Section 78A-12-203;
997          (G) in a bar graph, the average of responses to each survey category, displayed with an
998     identification of the minimum acceptable score as set by Section 78A-12-205 and the average
999     score of all judges of the same court level; and
1000          (H) a website address that contains the Judicial Performance Evaluation Commission's
1001     report on the judge's performance evaluation;
1002          (i) for each judge, a statement provided by the Utah Supreme Court identifying the
1003     cumulative number of informal reprimands, when consented to by the judge in accordance with
1004     Title 78A, Chapter 11, Judicial Conduct Commission, formal reprimands, and all orders of
1005     censure and suspension issued by the Utah Supreme Court under Utah Constitution, Article
1006     VIII, Section 13, during the judge's current term and the immediately preceding term, and a
1007     detailed summary of the supporting reasons for each violation of the Code of Judicial Conduct
1008     that the judge has received;
1009          (j) an explanation of ballot marking procedures prepared by the lieutenant governor,
1010     indicating the ballot marking procedure used by each county and explaining how to mark the
1011     ballot for each procedure;
1012          (k) voter registration information, including information on how to obtain an absentee
1013     ballot;
1014          (l) a list of all county clerks' offices and phone numbers; and
1015          (m) on the back cover page, a printed copy of the following statement signed by the
1016     lieutenant governor:
1017          "I, _______________ (print name), Lieutenant Governor of Utah, certify that the
1018     measures contained in this pamphlet will be submitted to the voters of Utah at the election to
1019     be held throughout the state on ____ (date of election), and that this pamphlet is complete and

1020     correct according to law.
1021     SEAL
1022          Witness my hand and the Great Seal of the State, at Salt Lake City, Utah this ____ day
1023     of ____ (month), ____ (year)
1024     
(signed) ____________________________________

1025     
Lieutenant Governor"

1026          (3) No earlier than 75 days, and no later than 15 days, before the day on which voting
1027     commences, the lieutenant governor shall:
1028          (a) (i) distribute one copy of the voter information pamphlet to each household within
1029     the state;
1030          (ii) distribute to each household within the state a notice:
1031          (A) printed on a postage prepaid, preaddressed return form that a person may use to
1032     request delivery of a voter information pamphlet by mail;
1033          (B) that states the address of the Statewide Electronic Voter Information Website
1034     authorized by Section 20A-7-801; and
1035          (C) that states the phone number a voter may call to request delivery of a voter
1036     information pamphlet by mail; or
1037          (iii) ensure that one copy of the voter information pamphlet is placed in one issue of
1038     every newspaper of general circulation in the state;
1039          (b) ensure that a sufficient number of printed voter information pamphlets are available
1040     for distribution as required by this section;
1041          (c) provide voter information pamphlets to each county clerk for free distribution upon
1042     request and for placement at polling places; and
1043          (d) ensure that the distribution of the voter information pamphlets is completed 15 days
1044     before the election.
1045          (4) The lieutenant governor may distribute a voter information pamphlet at a location
1046     frequented by a person who cannot easily access the Statewide Electronic Voter Information
1047     Website authorized by Section 20A-7-801.
1048          [(5) The lieutenant governor shall:]
1049          [(a) conduct a study to evaluate the effectiveness of the notice authorized by this
1050     section; and]

1051          [(b) provide the results of a study described in Subsection (5)(a) to the Government
1052     Operations Interim Committee by October 1, 2013.]
1053          Section 17. Section 26-37a-102 is amended to read:
1054          26-37a-102. Definitions.
1055          As used in this chapter:
1056          (1) "Ambulance service provider" means:
1057          (a) an ambulance provider as defined in Section 26-8a-102; or
1058          (b) a non-911 service provider as defined in Section 26-8a-102.
1059          (2) "Assessment" means the Medicaid ambulance service provider assessment
1060     established by this chapter.
1061          (3) "Division" means the Division of Health Care Financing within the department.
1062          (4) "Non-federal portion" means the non-federal share the division needs to seed
1063     amounts that will support fee-for-service ambulance service provider rates, as described in
1064     Section 26-37a-105.
1065          (5) "Total transports" means the number of total ambulance transports applicable to a
1066     given fiscal year, as determined under Subsection 26-37a-104(5).
1067          Section 18. Section 31A-22-619.6 is amended to read:
1068          31A-22-619.6. Coordination of benefits with workers' compensation claim --
1069     Health insurer's duty to pay.
1070          (1) As used in this section:
1071          (a) "Employee" means an employee, worker, or operative as defined in Section
1072     34A-2-104.
1073          (b) "Employer" is as enumerated and defined in Section 34A-2-103.
1074          (c) "Health benefit plan":
1075          (i) means the same as that term is [as] defined in Section 31A-1-301;
1076          (ii) includes:
1077          (A) a health maintenance organization;
1078          (B) a third party administrator that offers, sells, manages, or administers a health
1079     benefit plan; and
1080          (C) the Public Employees' Benefit and Insurance Program created in Section
1081     49-20-103; and

1082          (iii) excludes a health benefit plan offered by an insurer that has a market share in the
1083     state's fully insured market that is less than 2%, as determined in the department's annual
1084     Market Share Report published by the department.
1085          (d) "Workers' compensation carrier" means any of the entities an employer may use to
1086     provide workers' compensation benefits for its employees under Section 34A-2-201.
1087          (e) "Workers' compensation claim" means a claim for compensation for medical
1088     benefits under Title 34A, Chapter 2, Workers' Compensation Act, or Title 34A, Chapter 3,
1089     Utah Occupational Disease Act.
1090          (2) (a) For medical claims incurred on or after July 1, 2014, an employee's health
1091     benefit plan may not delay or deny payment of benefits due to the employee under the terms of
1092     a health benefit plan by claiming that treatment for the employee's injury or disease is the
1093     responsibility of the employer's workers' compensation carrier if:
1094          (i) the employee or a health care provider on behalf of an employee files an application
1095     for hearing regarding the workers' compensation claim with the Division of Adjudication under
1096     Section 34A-2-801; and
1097          (ii) the health benefit plan received a notice from the Labor Commission that an
1098     application for hearing was filed in accordance with Subsection (2)(a)(i).
1099          (b) The Labor Commission shall provide the notice required by Subsection (2)(a)(ii) in
1100     accordance with Subsection 34A-2-213(2).
1101          (3) A health benefit plan that receives a medical claim from the employee or a health
1102     care provider and a notice from the Labor Commission in accordance with Subsection (2):
1103          (a) shall pay the medical claim directly to the health care provider in the dollar amount
1104     paid under the limits, terms, and conditions of the employee's health benefit plan; and
1105          (b) may send a notice to the Labor Commission or the attorney for the injured worker
1106     informing the parties that the health benefit plan paid a claim under the provisions of this
1107     section.
1108          (4) If the claims for medical services paid pursuant to Subsection (3) are determined to
1109     be compensable by the workers' compensation carrier in a final order under Section 34A-2-801
1110     or under the terms of a settlement agreement under Section [34A-2-801] 34A-2-420, the
1111     workers' compensation carrier shall pay the health benefit plan and employee in accordance
1112     with Subsection 34A-2-213(3)(b).

1113          (5) (a) A health care provider who receives payment for a medical claim from a health
1114     benefit plan under the provisions of Subsection (3) may not request additional payment for the
1115     medical claim from the workers' compensation carrier if the final order under Section
1116     34A-2-801 or terms of the settlement agreement under Section [34A-2-801] 34A-2-420
1117     determine that the medical claim was compensable by the workers' compensation carrier.
1118          (b) A health benefit plan that is reimbursed under the provisions of Subsection
1119     34A-2-213(3) for a medical claim may not seek reimbursement or autorecovery from the health
1120     care provider for any difference between the amount of the claim paid by the health benefit
1121     plan and the reimbursement to the health benefit plan by the workers' compensation carrier
1122     under Subsection 34A-2-213(3).
1123          (c) If a final order of the Labor Commission under Section 34A-2-801 or the terms of a
1124     settlement agreement under Section [34A-2-801] 34A-2-420 determines that a medical claim is
1125     compensable by the workers' compensation carrier, the workers' compensation carrier may not
1126     seek reimbursement or autorecovery from a health care provider for any part of the medical
1127     claim that is the responsibility of the workers' compensation carrier under the order or
1128     settlement agreement.
1129          (6) This section sunsets in accordance with Section 63I-1-231.
1130          Section 19. Section 31A-33-106 is amended to read:
1131          31A-33-106. Board of directors -- Status of the fund in relationship to the state.
1132          (1) There is created a board of directors of the Workers' Compensation Fund.
1133          (2) The board shall consist of seven directors.
1134          (3) One director shall be the chief executive officer of the fund.
1135          (4) (a) In accordance with a plan that meets the requirements of this section and the
1136     fund's articles of incorporation and bylaws, the board shall nominate and the policyholders
1137     shall elect six public directors as follows:
1138          (i) four directors who are owners, officers, or employees of policyholders, each of
1139     whom is an owner, officer, or employee of a policyholder that has been insured by the Workers'
1140     Compensation Fund for at least one year before the election of the director representing the
1141     policyholder; and
1142          (ii) two directors from the public in general.
1143          (b) The plan described in Subsection (4)(a) shall comply with Section 31A-5-409 to the

1144     extent that Section 31A-5-409 does not conflict with this section.
1145          (5) No two directors may represent or be employed by the same policyholder.
1146          (6) At least five directors elected by the policyholders shall have had previous
1147     experience in:
1148          (a) the actuarial profession;
1149          (b) accounting;
1150          (c) investments;
1151          (d) risk management;
1152          (e) occupational safety;
1153          (f) casualty insurance; or
1154          (g) the legal profession.
1155          (7) A director who represents a policyholder that fails to maintain workers'
1156     compensation insurance through the Workers' Compensation Fund shall immediately resign
1157     from the board.
1158          (8) A person may not be a director if that person:
1159          (a) has any interest as a stockholder, employee, attorney, or contractor of a competing
1160     insurance carrier providing workers' compensation insurance in Utah;
1161          (b) fails to meet or comply with the conflict of interest policies established by the
1162     board; or
1163          (c) is not bondable.
1164          (9) After notice and a hearing, the board may remove any director for cause which
1165     includes:
1166          (a) neglect of duty; or
1167          (b) malfeasance.
1168          (10) (a) Except as required by Subsection (10)(b), the term of office of the directors
1169     elected by the policyholders shall be four years, beginning July 1 of the year of [appointment]
1170     election.
1171          (b) Notwithstanding the requirements of Subsection (10)(a), the board shall, at the time
1172     of election or reelection, adjust the length of terms to ensure that no more than two terms
1173     expire in a calendar year.
1174          (11) A director shall hold office until the director's successor is selected and qualified.

1175          (12) When a vacancy occurs in the membership of the board for any reason, the
1176     replacement shall be appointed by a majority of the board for the unexpired term, after which
1177     time the replacement shall stand for policyholder election as described in the fund's articles of
1178     incorporation and bylaws.
1179          (13) The board shall annually elect a chair and other officers as needed from its
1180     membership.
1181          (14) (a) The board shall meet at least quarterly at a time and place designated by the
1182     chair.
1183          (b) The chair:
1184          (i) may call board meetings more frequently than quarterly; and
1185          (ii) shall call additional board meetings if requested to do so by a majority of the board.
1186          (15) Four directors are a quorum for the purpose of transacting all business of the
1187     board.
1188          (16) Each decision of the board requires the affirmative vote of at least four directors
1189     for approval.
1190          (17) (a) (i) A director may receive compensation and be reimbursed for reasonable
1191     expenses incurred in the performance of the director's official duties:
1192          (A) as determined by the board of directors; and
1193          (B) if the aggregate of compensation paid to all directors of the Workers'
1194     Compensation Fund in a calendar year is less than or equal to the amount described in
1195     Subsection (17)(a)(ii).
1196          (ii) (A) For the period beginning January 1, 2016, and ending December 31, 2016, the
1197     amount described in Subsection (17)(a)(i)(B) is $150,000.
1198          (B) For calendar years beginning on or after January 1, 2017, the amount described in
1199     Subsection (17)(a)(i)(B) is the sum of the amount under this Subsection (17)(a) for the previous
1200     year and an amount equal to the greater of:
1201          (I) an amount calculated by multiplying the amount under this Subsection (17)(a) for
1202     the previous year by the actual percent change during the previous calendar year in the
1203     consumer price index; and
1204          (II) 0.
1205          (C) For purposes of this Subsection (17), the consumer price index shall be calculated

1206     as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1207          (b) Directors may decline to receive compensation and expenses for their service.
1208          (c) The Worker's Compensation Fund shall pay compensation to and reimburse
1209     reasonable expenses of directors as permitted by this section:
1210          (i) from the Injury Fund; and
1211          (ii) upon vouchers drawn in the same manner as the Workers' Compensation Fund pays
1212     its normal operating expenses.
1213          (d) The chief executive officer of the Workers' Compensation Fund shall serve on the
1214     board without payment of compensation, but may be reimbursed for reasonable expenses in
1215     accordance with Subsection (17)(a).
1216          (e) The Workers' Compensation Fund shall annually report to the commissioner
1217     compensation and expenses paid to the directors on the board.
1218          (18) The placement of this chapter in this title does not:
1219          (a) remove from the board of directors the managerial, financial, or operational control
1220     of the Workers' Compensation Fund;
1221          (b) give to the state or the governor managerial, financial, or operational control of the
1222     Workers' Compensation Fund;
1223          (c) consistent with Section 31A-33-105, cause the state to be liable for any:
1224          (i) obligation of the Workers' Compensation Fund; or
1225          (ii) expense, liability, or debt described in Section 31A-33-105;
1226          (d) alter the legal status of the Workers' Compensation Fund as:
1227          (i) a nonprofit, self-supporting, quasi-public corporation; and
1228          (ii) an insurer:
1229          (A) regulated under this title;
1230          (B) that is structured to operate in perpetuity; and
1231          (C) domiciled in the state; or
1232          (e) alter the requirement that the Workers' Compensation Fund provide workers'
1233     compensation:
1234          (i) for the purposes set forth in Section 31A-33-102;
1235          (ii) consistent with Section 34A-2-201; and
1236          (iii) as provided in Section 31A-22-1001.

1237          Section 20. Section 31A-37-301 is amended to read:
1238          31A-37-301. Incorporation -- Organization.
1239          (1) A pure captive insurance company or a sponsored captive insurance company shall
1240     be incorporated as a stock insurer with the capital of the pure captive insurance company or
1241     sponsored captive insurance company:
1242          (a) divided into shares; and
1243          (b) held by the stockholders of the pure captive insurance company or sponsored
1244     captive insurance company.
1245          (2) A pure captive insurance company or a sponsored captive insurance company
1246     formed as a limited liability company shall be organized as a members' interest insurer with the
1247     capital of the pure captive insurance company or sponsored captive insurance company:
1248          (a) divided into interests; and
1249          (b) held by the members of the pure captive insurance company or sponsored captive
1250     insurance company.
1251          (3) An association captive insurance company or an industrial insured captive
1252     insurance company may be:
1253          (a) incorporated as a stock insurer with the capital of the association captive insurance
1254     company or industrial insured captive insurance company:
1255          (i) divided into shares; and
1256          (ii) held by the stockholders of the association captive insurance company or industrial
1257     insured captive insurance company;
1258          (b) incorporated as a mutual insurer without capital stock, with a governing body
1259     elected by the member organizations of the association captive insurance company or industrial
1260     insured captive insurance company; or
1261          (c) organized as a reciprocal.
1262          (4) A captive insurance company formed as a corporation may not have fewer than
1263     three incorporators of whom one shall be a resident of this state.
1264          (5) A captive insurance company formed as a limited liability company may not have
1265     fewer than three organizers of whom one shall be a resident of this state.
1266          (6) (a) Before a captive insurance company formed as a corporation files the
1267     corporation's articles of incorporation with the Division of Corporations and Commercial

1268     Code, the incorporators shall obtain from the commissioner a certificate finding that the
1269     establishment and maintenance of the proposed corporation will promote the general good of
1270     the state.
1271          (b) In considering a request for a certificate under Subsection (6)(a), the commissioner
1272     shall consider:
1273          (i) the character, reputation, financial standing, and purposes of the incorporators;
1274          (ii) the character, reputation, financial responsibility, insurance experience, and
1275     business qualifications of the officers and directors;
1276          (iii) any information in:
1277          (A) the application for a certificate of authority; or
1278          (B) the department's files; and
1279          (iv) other aspects that the commissioner considers advisable.
1280          (7) (a) Before a captive insurance company formed as a limited liability company files
1281     the limited liability company's [articles] certificate of organization with the Division of
1282     Corporations and Commercial Code, the limited liability company shall obtain from the
1283     commissioner a certificate finding that the establishment and maintenance of the proposed
1284     limited liability company will promote the general good of the state.
1285          (b) In considering a request for a certificate under Subsection (7)(a), the commissioner
1286     shall consider:
1287          (i) the character, reputation, financial standing, and purposes of the organizers;
1288          (ii) the character, reputation, financial responsibility, insurance experience, and
1289     business qualifications of the managers;
1290          (iii) any information in:
1291          (A) the application for a certificate of authority; or
1292          (B) the department's files; and
1293          (iv) other aspects that the commissioner considers advisable.
1294          (8) (a) A captive insurance company formed as a corporation shall file with the
1295     Division of Corporations and Commercial Code:
1296          (i) the captive insurance company's articles of incorporation;
1297          (ii) the certificate issued pursuant to Subsection (6); and
1298          (iii) the fees required by the Division of Corporations and Commercial Code.

1299          (b) The Division of Corporations and Commercial Code shall file both the articles of
1300     incorporation and the certificate described in Subsection (6) for a captive insurance company
1301     that complies with this section.
1302          (9) (a) A captive insurance company formed as a limited liability company shall file
1303     with the Division of Corporations and Commercial Code:
1304          (i) the captive insurance company's certificate of organization;
1305          (ii) the certificate issued pursuant to Subsection (7); and
1306          (iii) the fees required by the Division of Corporations and Commercial Code.
1307          (b) The Division of Corporations and Commercial Code shall file both the certificate
1308     of organization and the certificate described in Subsection (7) for a captive insurance company
1309     that complies with this section.
1310          (10) (a) The organizers of a captive insurance company formed as a reciprocal insurer
1311     shall obtain from the commissioner a certificate finding that the establishment and maintenance
1312     of the proposed association will promote the general good of the state.
1313          (b) In considering a request for a certificate under Subsection (10)(a), the
1314     commissioner shall consider:
1315          (i) the character, reputation, financial standing, and purposes of the incorporators;
1316          (ii) the character, reputation, financial responsibility, insurance experience, and
1317     business qualifications of the officers and directors;
1318          (iii) any information in:
1319          (A) the application for a certificate of authority; or
1320          (B) the department's files; and
1321          (iv) other aspects that the commissioner considers advisable.
1322          (11) (a) An alien captive insurance company that has received a certificate of authority
1323     to act as a branch captive insurance company shall obtain from the commissioner a certificate
1324     finding that:
1325          (i) the home state of the alien captive insurance company imposes statutory or
1326     regulatory standards in a form acceptable to the commissioner on companies transacting the
1327     business of insurance in that state; and
1328          (ii) after considering the character, reputation, financial responsibility, insurance
1329     experience, and business qualifications of the officers and directors of the alien captive

1330     insurance company, and other relevant information, the establishment and maintenance of the
1331     branch operations will promote the general good of the state.
1332          (b) After the commissioner issues a certificate under Subsection (11)(a) to an alien
1333     captive insurance company, the alien captive insurance company may register to do business in
1334     this state.
1335          (12) At least one of the members of the board of directors of a captive insurance
1336     company formed as a corporation shall be a resident of this state.
1337          (13) At least one of the managers of a limited liability company shall be a resident of
1338     this state.
1339          (14) At least one of the members of the subscribers' advisory committee of a captive
1340     insurance company formed as a reciprocal insurer shall be a resident of this state.
1341          (15) (a) A captive insurance company formed as a corporation under this chapter has
1342     the privileges and is subject to the provisions of the general corporation law as well as the
1343     applicable provisions contained in this chapter.
1344          (b) If a conflict exists between a provision of the general corporation law and a
1345     provision of this chapter, this chapter shall control.
1346          (c) Except as provided in Subsection (15)(d), the provisions of this title pertaining to a
1347     merger, consolidation, conversion, mutualization, and redomestication apply in determining the
1348     procedures to be followed by a captive insurance company in carrying out any of the
1349     transactions described in those provisions.
1350          (d) Notwithstanding Subsection (15)(c), the commissioner may waive or modify the
1351     requirements for public notice and hearing in accordance with rules adopted under Section
1352     31A-37-106.
1353          (e) If a notice of public hearing is required, but no one requests a hearing, the
1354     commissioner may cancel the public hearing.
1355          (16) (a) A captive insurance company formed as a limited liability company under this
1356     chapter has the privileges and is subject to Title 48, Chapter 2c, Utah Revised Limited Liability
1357     Company Act, or Title 48, Chapter 3a, Utah Revised Uniform Limited Liability Company Act,
1358     as appropriate pursuant to Section 48-3a-1405, as well as the applicable provisions in this
1359     chapter.
1360          (b) If a conflict exists between a provision of the limited liability company law and a

1361     provision of this chapter, this chapter controls.
1362          (c) The provisions of this title pertaining to a merger, consolidation, conversion,
1363     mutualization, and redomestication apply in determining the procedures to be followed by a
1364     captive insurance company in carrying out any of the transactions described in those
1365     provisions.
1366          (d) Notwithstanding Subsection (16)(c), the commissioner may waive or modify the
1367     requirements for public notice and hearing in accordance with rules adopted under Section
1368     31A-37-106.
1369          (e) If a notice of public hearing is required, but no one requests a hearing, the
1370     commissioner may cancel the public hearing.
1371          (17) (a) A captive insurance company formed as a reciprocal insurer under this chapter
1372     has the powers set forth in Section 31A-4-114 in addition to the applicable provisions of this
1373     chapter.
1374          (b) If a conflict exists between the provisions of Section 31A-4-114 and the provisions
1375     of this chapter with respect to a captive insurance company, this chapter shall control.
1376          (c) To the extent a reciprocal insurer is made subject to other provisions of this title
1377     pursuant to Section 31A-14-208, the provisions are not applicable to a reciprocal insurer
1378     formed under this chapter unless the provisions are expressly made applicable to a captive
1379     insurance company under this chapter.
1380          (d) In addition to the provisions of this Subsection (17), a captive insurance company
1381     organized as a reciprocal insurer that is an industrial insured group has the privileges of Section
1382     31A-4-114 in addition to applicable provisions of this title.
1383          (18) (a) The articles of incorporation or bylaws of a captive insurance company formed
1384     as a corporation may not authorize a quorum of a board of directors to consist of fewer than
1385     one-third of the fixed or prescribed number of directors as provided in Section 16-10a-824.
1386          (b) The certificate of organization of a captive insurance company formed as a limited
1387     liability company may not authorize a quorum of a board of managers to consist of fewer than
1388     one-third of the fixed or prescribed number of directors required in Section 16-10a-824.
1389          Section 21. Section 31A-37-502 is amended to read:
1390          31A-37-502. Examination.
1391          (1) (a) As provided in this section, the commissioner, or a person appointed by the

1392     commissioner, shall examine each captive insurance company in each five-year period.
1393          (b) The five-year period described in Subsection (1)(a) shall be determined on the basis
1394     of five full annual accounting periods of operation.
1395          (c) The examination is to be made as of:
1396          (i) December 31 of the full [three] five-year period; or
1397          (ii) the last day of the month of an annual accounting period authorized for a captive
1398     insurance company under this section.
1399          (d) In addition to an examination required under this Subsection (1), the commissioner,
1400     or a person appointed by the commissioner may examine a captive insurance company
1401     whenever the commissioner determines it to be prudent.
1402          (2) During an examination under this section the commissioner, or a person appointed
1403     by the commissioner, shall thoroughly inspect and examine the affairs of the captive insurance
1404     company to ascertain:
1405          (a) the financial condition of the captive insurance company;
1406          (b) the ability of the captive insurance company to fulfill the obligations of the captive
1407     insurance company; and
1408          (c) whether the captive insurance company has complied with this chapter.
1409          (3) The commissioner may accept a comprehensive annual independent audit in lieu of
1410     an examination:
1411          (a) of a scope satisfactory to the commissioner; and
1412          (b) performed by an independent auditor approved by the commissioner.
1413          (4) A captive insurance company that is inspected and examined under this section
1414     shall pay, as provided in Subsection 31A-37-202(6)(b), the expenses and charges of an
1415     inspection and examination.
1416          Section 22. Section 32B-1-102 is amended to read:
1417          32B-1-102. Definitions.
1418          As used in this title:
1419          (1) "Airport lounge" means a business location:
1420          (a) at which an alcoholic product is sold at retail for consumption on the premises; and
1421          (b) that is located at an international airport with a United States Customs office on the
1422     premises of the international airport.

1423          (2) "Airport lounge license" means a license issued in accordance with Chapter 5,
1424     Retail License Act, and Chapter 6, Part 5, Airport Lounge License.
1425          (3) "Alcoholic beverage" means the following:
1426          (a) beer; or
1427          (b) liquor.
1428          (4) (a) "Alcoholic product" means a product that:
1429          (i) contains at least .5% of alcohol by volume; and
1430          (ii) is obtained by fermentation, infusion, decoction, brewing, distillation, or other
1431     process that uses liquid or combinations of liquids, whether drinkable or not, to create alcohol
1432     in an amount equal to or greater than .5% of alcohol by volume.
1433          (b) "Alcoholic product" includes an alcoholic beverage.
1434          (c) "Alcoholic product" does not include any of the following common items that
1435     otherwise come within the definition of an alcoholic product:
1436          (i) except as provided in Subsection (4)(d), an extract;
1437          (ii) vinegar;
1438          (iii) cider;
1439          (iv) essence;
1440          (v) tincture;
1441          (vi) food preparation; or
1442          (vii) an over-the-counter medicine.
1443          (d) "Alcoholic product" includes an extract containing alcohol obtained by distillation
1444     when it is used as a flavoring in the manufacturing of an alcoholic product.
1445          (5) "Alcohol training and education seminar" means a seminar that is:
1446          (a) required by Chapter 5, Part 4, Alcohol Training and Education Act; and
1447          (b) described in Section 62A-15-401.
1448          (6) "Banquet" means an event:
1449          (a) that is held at one or more designated locations approved by the commission in or
1450     on the premises of a:
1451          (i) hotel;
1452          (ii) resort facility;
1453          (iii) sports center; or

1454          (iv) convention center;
1455          (b) for which there is a contract:
1456          (i) between a person operating a facility listed in Subsection (6)(a) and another person;
1457     and
1458          (ii) under which the person operating a facility listed in Subsection (6)(a) is required to
1459     provide an alcoholic product at the event; and
1460          (c) at which food and alcoholic products may be sold, offered for sale, or furnished.
1461          (7) (a) "Bar" means a surface or structure:
1462          (i) at which an alcoholic product is:
1463          (A) stored; or
1464          (B) dispensed; or
1465          (ii) from which an alcoholic product is served.
1466          (b) "Bar structure" means a surface or structure on a licensed premises if on or at any
1467     place of the surface or structure an alcoholic product is:
1468          (i) stored; or
1469          (ii) dispensed.
1470          (8) (a) Subject to Subsection (8)(d), "beer" means a product that:
1471          (i) contains at least .5% of alcohol by volume, but not more than 4% of alcohol by
1472     volume or 3.2% by weight; and
1473          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
1474          (b) "Beer" may or may not contain hops or other vegetable products.
1475          (c) "Beer" includes a product that:
1476          (i) contains alcohol in the percentages described in Subsection (8)(a); and
1477          (ii) is referred to as:
1478          (A) beer;
1479          (B) ale;
1480          (C) porter;
1481          (D) stout;
1482          (E) lager; or
1483          (F) a malt or malted beverage.
1484          (d) "Beer" does not include a flavored malt beverage.

1485          (9) "Beer-only restaurant license" means a license issued in accordance with Chapter 5,
1486     Retail License Act, and Chapter 6, Part 9, Beer-Only Restaurant License.
1487          (10) "Beer retailer" means a business:
1488          (a) that is engaged, primarily or incidentally, in the retail sale of beer to a patron,
1489     whether for consumption on or off the business premises; and
1490          (b) to whom a license is issued:
1491          (i) for an off-premise beer retailer, in accordance with Chapter 7, Part 2, Off-Premise
1492     Beer Retailer Local Authority; or
1493          (ii) for an on-premise beer retailer, in accordance with Chapter 5, Retail License Act,
1494     and Chapter 6, Part 7, On-Premise Beer Retailer License.
1495          (11) "Beer wholesaling license" means a license:
1496          (a) issued in accordance with Chapter 13, Beer Wholesaling License Act; and
1497          (b) to import for sale, or sell beer in wholesale or jobbing quantities to one or more
1498     retail licensees or off-premise beer retailers.
1499          (12) "Billboard" means a public display used to advertise, including:
1500          (a) a light device;
1501          (b) a painting;
1502          (c) a drawing;
1503          (d) a poster;
1504          (e) a sign;
1505          (f) a signboard; or
1506          (g) a scoreboard.
1507          (13) "Brewer" means a person engaged in manufacturing:
1508          (a) beer;
1509          (b) heavy beer; or
1510          (c) a flavored malt beverage.
1511          (14) "Brewery manufacturing license" means a license issued in accordance with
1512     Chapter 11, Part 5, Brewery Manufacturing License.
1513          (15) "Certificate of approval" means a certificate of approval obtained from the
1514     department under Section 32B-11-201.
1515          (16) "Chartered bus" means a passenger bus, coach, or other motor vehicle provided by

1516     a bus company to a group of persons pursuant to a common purpose:
1517          (a) under a single contract;
1518          (b) at a fixed charge in accordance with the bus company's tariff; and
1519          (c) to give the group of persons the exclusive use of the passenger bus, coach, or other
1520     motor vehicle, and a driver to travel together to one or more specified destinations.
1521          (17) "Church" means a building:
1522          (a) set apart for worship;
1523          (b) in which religious services are held;
1524          (c) with which clergy is associated; and
1525          (d) that is tax exempt under the laws of this state.
1526          (18) (a) "Club license" means a license issued in accordance with Chapter 5, Retail
1527     License Act, and Chapter 6, Part 4, Club License.
1528          (b) "Club license" includes:
1529          (i) a dining club license;
1530          (ii) an equity club license;
1531          (iii) a fraternal club license; or
1532          (iv) a social club license.
1533          (19) "Commission" means the Alcoholic Beverage Control Commission created in
1534     Section 32B-2-201.
1535          (20) "Commissioner" means a member of the commission.
1536          (21) "Community location" means:
1537          (a) a public or private school;
1538          (b) a church;
1539          (c) a public library;
1540          (d) a public playground; or
1541          (e) a public park.
1542          (22) "Community location governing authority" means:
1543          (a) the governing body of the community location; or
1544          (b) if the commission does not know who is the governing body of a community
1545     location, a person who appears to the commission to have been given on behalf of the
1546     community location the authority to prohibit an activity at the community location.

1547          (23) "Container" means a receptacle that contains an alcoholic product, including:
1548          (a) a bottle;
1549          (b) a vessel; or
1550          (c) a similar item.
1551          (24) "Convention center" means a facility that is:
1552          (a) in total at least 30,000 square feet; and
1553          (b) otherwise defined as a "convention center" by the commission by rule.
1554          (25) (a) Subject to Subsection (25)(b), "counter" means a surface or structure in a
1555     dining area of a licensed premises where seating is provided to a patron for service of food.
1556          (b) "Counter" does not include a surface or structure if on or at any point of the surface
1557     or structure an alcoholic product is:
1558          (i) stored; or
1559          (ii) dispensed.
1560          (26) "Department" means the Department of Alcoholic Beverage Control created in
1561     Section 32B-2-203.
1562          (27) "Department compliance officer" means an individual who is:
1563          (a) an auditor or inspector; and
1564          (b) employed by the department.
1565          (28) "Department sample" means liquor that is placed in the possession of the
1566     department for testing, analysis, and sampling.
1567          (29) "Dining club license" means a license issued in accordance with Chapter 5, Retail
1568     License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
1569     dining club license.
1570          (30) "Director," unless the context requires otherwise, means the director of the
1571     department.
1572          (31) "Disciplinary proceeding" means an adjudicative proceeding permitted under this
1573     title:
1574          (a) against a person subject to administrative action; and
1575          (b) that is brought on the basis of a violation of this title.
1576          (32) (a) Subject to Subsection (32)(b), "dispense" means:
1577          (i) drawing of an alcoholic product:

1578          (A) from an area where it is stored; or
1579          (B) as provided in Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii),
1580     32B-6-805(15)(b)(ii), or 32B-6-905(12)(b)(ii); and
1581          (ii) using the alcoholic product described in Subsection (32)(a)(i) on the premises of
1582     the licensed premises to mix or prepare an alcoholic product to be furnished to a patron of the
1583     retail licensee.
1584          (b) The definition of "dispense" in this Subsection (32) applies only to:
1585          (i) a full-service restaurant license;
1586          (ii) a limited-service restaurant license;
1587          (iii) a reception center license; and
1588          (iv) a beer-only restaurant license.
1589          (33) "Distillery manufacturing license" means a license issued in accordance with
1590     Chapter 11, Part 4, Distillery Manufacturing License.
1591          (34) "Distressed merchandise" means an alcoholic product in the possession of the
1592     department that is saleable, but for some reason is unappealing to the public.
1593          (35) "Educational facility" includes:
1594          (a) a nursery school;
1595          (b) an infant day care center; and
1596          (c) a trade and technical school.
1597          (36) "Equity club license" means a license issued in accordance with Chapter 5, Retail
1598     License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as an
1599     equity club license.
1600          (37) "Event permit" means:
1601          (a) a single event permit; or
1602          (b) a temporary beer event permit.
1603          (38) "Exempt license" means a license exempt under Section 32B-1-201 from being
1604     considered in determining the total number of [a] retail [license] licenses that the commission
1605     may issue at any time.
1606          (39) (a) "Flavored malt beverage" means a beverage:
1607          (i) that contains at least .5% alcohol by volume;
1608          (ii) that is treated by processing, filtration, or another method of manufacture that is not

1609     generally recognized as a traditional process in the production of a beer as described in 27
1610     C.F.R. Sec. 25.55;
1611          (iii) to which is added a flavor or other ingredient containing alcohol, except for a hop
1612     extract; and
1613          (iv) (A) for which the producer is required to file a formula for approval with the
1614     federal Alcohol and Tobacco Tax and Trade Bureau pursuant to 27 C.F.R. Sec. 25.55; or
1615          (B) that is not exempt under Subdivision (f) of 27 C.F.R. Sec. 25.55.
1616          (b) "Flavored malt beverage" is considered liquor for purposes of this title.
1617          (40) "Fraternal club license" means a license issued in accordance with Chapter 5,
1618     Retail License Act, and Chapter 6, Part 4, Club License, that is designated by the commission
1619     as a fraternal club license.
1620          (41) "Full-service restaurant license" means a license issued in accordance with
1621     Chapter 5, Retail License Act, and Chapter 6, Part 2, Full-Service Restaurant License.
1622          (42) (a) "Furnish" means by any means to provide with, supply, or give an individual
1623     an alcoholic product, by sale or otherwise.
1624          (b) "Furnish" includes to:
1625          (i) serve;
1626          (ii) deliver; or
1627          (iii) otherwise make available.
1628          (43) "Guest" means an individual who meets the requirements of Subsection
1629     32B-6-407(9).
1630          (44) "Health care practitioner" means:
1631          (a) a podiatrist licensed under Title 58, Chapter 5a, Podiatric Physician Licensing Act;
1632          (b) an optometrist licensed under Title 58, Chapter 16a, Utah Optometry Practice Act;
1633          (c) a pharmacist licensed under Title 58, Chapter 17b, Pharmacy Practice Act;
1634          (d) a physical therapist licensed under Title 58, Chapter 24b, Physical Therapy Practice
1635     Act;
1636          (e) a nurse or advanced practice registered nurse licensed under Title 58, Chapter 31b,
1637     Nurse Practice Act;
1638          (f) a recreational therapist licensed under Title 58, Chapter 40, Recreational Therapy
1639     Practice Act;

1640          (g) an occupational therapist licensed under Title 58, Chapter 42a, Occupational
1641     Therapy Practice Act;
1642          (h) a nurse midwife licensed under Title 58, Chapter 44a, Nurse Midwife Practice Act;
1643          (i) a mental health professional licensed under Title 58, Chapter 60, Mental Health
1644     Professional Practice Act;
1645          (j) a physician licensed under Title 58, Chapter 67, Utah Medical Practice Act;
1646          (k) an osteopath licensed under Title 58, Chapter 68, Utah Osteopathic Medical
1647     Practice Act;
1648          (l) a dentist or dental hygienist licensed under Title 58, Chapter 69, Dentist and Dental
1649     Hygienist Practice Act; and
1650          (m) a physician assistant licensed under Title 58, Chapter 70a, Physician Assistant Act.
1651          (45) (a) "Heavy beer" means a product that:
1652          (i) contains more than 4% alcohol by volume; and
1653          (ii) is obtained by fermentation, infusion, or decoction of malted grain.
1654          (b) "Heavy beer" is considered liquor for the purposes of this title.
1655          (46) "Hotel" is as defined by the commission by rule.
1656          (47) "Identification card" means an identification card issued under Title 53, Chapter 3,
1657     Part 8, Identification Card Act.
1658          (48) "Industry representative" means an individual who is compensated by salary,
1659     commission, or other means for representing and selling an alcoholic product of a
1660     manufacturer, supplier, or importer of liquor.
1661          (49) "Industry representative sample" means liquor that is placed in the possession of
1662     the department for testing, analysis, and sampling by a local industry representative on the
1663     premises of the department to educate the local industry representative of the quality and
1664     characteristics of the product.
1665          (50) "Interdicted person" means a person to whom the sale, offer for sale, or furnishing
1666     of an alcoholic product is prohibited by:
1667          (a) law; or
1668          (b) court order.
1669          (51) "Intoxicated" means that a person:
1670          (a) is significantly impaired as to the person's mental or physical functions as a result of

1671     the use of:
1672          (i) an alcoholic product;
1673          (ii) a controlled substance;
1674          (iii) a substance having the property of releasing toxic vapors; or
1675          (iv) a combination of Subsections (51)(a)(i) through (iii); and
1676          (b) exhibits plain and easily observed outward manifestations of behavior or physical
1677     signs produced by the overconsumption of an alcoholic product.
1678          (52) "Investigator" means an individual who is:
1679          (a) a department compliance officer; or
1680          (b) a nondepartment enforcement officer.
1681          (53) "Invitee" means the same as that term is [as] defined in Section 32B-8-102.
1682          (54) "License" means:
1683          (a) a retail license;
1684          (b) a license issued in accordance with Chapter 11, Manufacturing and Related
1685     Licenses Act;
1686          (c) a license issued in accordance with Chapter 12, Liquor Warehousing License Act;
1687     or
1688          (d) a license issued in accordance with Chapter 13, Beer Wholesaling License Act.
1689          (55) "Licensee" means a person who holds a license.
1690          (56) "Limited-service restaurant license" means a license issued in accordance with
1691     Chapter 5, Retail License Act, and Chapter 6, Part 3, Limited-Service Restaurant License.
1692          (57) "Limousine" means a motor vehicle licensed by the state or a local authority, other
1693     than a bus or taxicab:
1694          (a) in which the driver and a passenger are separated by a partition, glass, or other
1695     barrier;
1696          (b) that is provided by a business entity to one or more individuals at a fixed charge in
1697     accordance with the business entity's tariff; and
1698          (c) to give the one or more individuals the exclusive use of the limousine and a driver
1699     to travel to one or more specified destinations.
1700          (58) (a) (i) "Liquor" means a liquid that:
1701          (A) is:

1702          (I) alcohol;
1703          (II) an alcoholic, spirituous, vinous, fermented, malt, or other liquid;
1704          (III) a combination of liquids a part of which is spirituous, vinous, or fermented; or
1705          (IV) other drink or drinkable liquid; and
1706          (B) (I) contains at least .5% alcohol by volume; and
1707          (II) is suitable to use for beverage purposes.
1708          (ii) "Liquor" includes:
1709          (A) heavy beer;
1710          (B) wine; and
1711          (C) a flavored malt beverage.
1712          (b) "Liquor" does not include beer.
1713          (59) "Liquor Control Fund" means the enterprise fund created by Section 32B-2-301.
1714          (60) "Liquor warehousing license" means a license that is issued:
1715          (a) in accordance with Chapter 12, Liquor Warehousing License Act; and
1716          (b) to a person, other than a licensed manufacturer, who engages in the importation for
1717     storage, sale, or distribution of liquor regardless of amount.
1718          (61) "Local authority" means:
1719          (a) for premises that are located in an unincorporated area of a county, the governing
1720     body of a county; or
1721          (b) for premises that are located in an incorporated city or a town, the governing body
1722     of the city or town.
1723          (62) "Lounge or bar area" is as defined by rule made by the commission.
1724          (63) "Manufacture" means to distill, brew, rectify, mix, compound, process, ferment, or
1725     otherwise make an alcoholic product for personal use or for sale or distribution to others.
1726          (64) "Member" means an individual who, after paying regular dues, has full privileges
1727     in an equity club licensee or fraternal club licensee.
1728          (65) (a) "Military installation" means a base, air field, camp, post, station, yard, center,
1729     or homeport facility for a ship:
1730          (i) (A) under the control of the United States Department of Defense; or
1731          (B) of the National Guard;
1732          (ii) that is located within the state; and

1733          (iii) including a leased facility.
1734          (b) "Military installation" does not include a facility used primarily for:
1735          (i) civil works;
1736          (ii) a rivers and harbors project; or
1737          (iii) a flood control project.
1738          (66) "Minor" means an individual under the age of 21 years.
1739          (67) "Nondepartment enforcement agency" means an agency that:
1740          (a) (i) is a state agency other than the department; or
1741          (ii) is an agency of a county, city, or town; and
1742          (b) has a responsibility to enforce one or more provisions of this title.
1743          (68) "Nondepartment enforcement officer" means an individual who is:
1744          (a) a peace officer, examiner, or investigator; and
1745          (b) employed by a nondepartment enforcement agency.
1746          (69) (a) "Off-premise beer retailer" means a beer retailer who is:
1747          (i) licensed in accordance with Chapter 7, Part 2, Off-Premise Beer Retailer Local
1748     Authority; and
1749          (ii) engaged in the retail sale of beer to a patron for consumption off the beer retailer's
1750     premises.
1751          (b) "Off-premise beer retailer" does not include an on-premise beer retailer.
1752          (70) "On-premise banquet license" means a license issued in accordance with Chapter
1753     5, Retail License Act, and Chapter 6, Part 6, On-Premise Banquet License.
1754          (71) "On-premise beer retailer" means a beer retailer who is:
1755          (a) authorized to sell, offer for sale, or furnish beer under a license issued in
1756     accordance with Chapter 5, Retail License Act, and Chapter 6, Part 7, On-Premise Beer
1757     Retailer License; and
1758          (b) engaged in the sale of beer to a patron for consumption on the beer retailer's
1759     premises:
1760          (i) regardless of whether the beer retailer sells beer for consumption off the licensed
1761     premises; and
1762          (ii) on and after March 1, 2012, operating:
1763          (A) as a tavern; or

1764          (B) in a manner that meets the requirements of Subsection 32B-6-703(2)(e)(i).
1765          (72) "Opaque" means impenetrable to sight.
1766          (73) "Package agency" means a retail liquor location operated:
1767          (a) under an agreement with the department; and
1768          (b) by a person:
1769          (i) other than the state; and
1770          (ii) who is authorized by the commission in accordance with Chapter 2, Part 6, Package
1771     Agency, to sell packaged liquor for consumption off the premises of the package agency.
1772          (74) "Package agent" means a person who holds a package agency.
1773          (75) "Patron" means an individual to whom food, beverages, or services are sold,
1774     offered for sale, or furnished, or who consumes an alcoholic product including:
1775          (a) a customer;
1776          (b) a member;
1777          (c) a guest;
1778          (d) an attendee of a banquet or event;
1779          (e) an individual who receives room service;
1780          (f) a resident of a resort;
1781          (g) a public customer under a resort spa sublicense, as defined in Section 32B-8-102;
1782     or
1783          (h) an invitee.
1784          (76) "Permittee" means a person issued a permit under:
1785          (a) Chapter 9, Event Permit Act; or
1786          (b) Chapter 10, Special Use Permit Act.
1787          (77) "Person subject to administrative action" means:
1788          (a) a licensee;
1789          (b) a permittee;
1790          (c) a manufacturer;
1791          (d) a supplier;
1792          (e) an importer;
1793          (f) one of the following holding a certificate of approval:
1794          (i) an out-of-state brewer;

1795          (ii) an out-of-state importer of beer, heavy beer, or flavored malt beverages; or
1796          (iii) an out-of-state supplier of beer, heavy beer, or flavored malt beverages; or
1797          (g) staff of:
1798          (i) a person listed in Subsections (77)(a) through (f); or
1799          (ii) a package agent.
1800          (78) "Premises" means a building, enclosure, or room used in connection with the
1801     storage, sale, furnishing, consumption, manufacture, or distribution, of an alcoholic product,
1802     unless otherwise defined in this title or rules made by the commission.
1803          (79) "Prescription" means an order issued by a health care practitioner when:
1804          (a) the health care practitioner is licensed under Title 58, Occupations and Professions,
1805     to prescribe a controlled substance, other drug, or device for medicinal purposes;
1806          (b) the order is made in the course of that health care practitioner's professional
1807     practice; and
1808          (c) the order is made for obtaining an alcoholic product for medicinal purposes only.
1809          (80) (a) "Private event" means a specific social, business, or recreational event:
1810          (i) for which an entire room, area, or hall is leased or rented in advance by an identified
1811     group; and
1812          (ii) that is limited in attendance to people who are specifically designated and their
1813     guests.
1814          (b) "Private event" does not include an event to which the general public is invited,
1815     whether for an admission fee or not.
1816          (81) (a) "Proof of age" means:
1817          (i) an identification card;
1818          (ii) an identification that:
1819          (A) is substantially similar to an identification card;
1820          (B) is issued in accordance with the laws of a state other than Utah in which the
1821     identification is issued;
1822          (C) includes date of birth; and
1823          (D) has a picture affixed;
1824          (iii) a valid driver license certificate that:
1825          (A) includes date of birth;

1826          (B) has a picture affixed; and
1827          (C) is issued:
1828          (I) under Title 53, Chapter 3, Uniform Driver License Act; or
1829          (II) in accordance with the laws of the state in which it is issued;
1830          (iv) a military identification card that:
1831          (A) includes date of birth; and
1832          (B) has a picture affixed; or
1833          (v) a valid passport.
1834          (b) "Proof of age" does not include a driving privilege card issued in accordance with
1835     Section 53-3-207.
1836          (82) (a) "Public building" means a building or permanent structure that is:
1837          (i) owned or leased by:
1838          (A) the state; or
1839          (B) a local government entity; and
1840          (ii) used for:
1841          (A) public education;
1842          (B) transacting public business; or
1843          (C) regularly conducting government activities.
1844          (b) "Public building" does not include a building owned by the state or a local
1845     government entity when the building is used by a person, in whole or in part, for a proprietary
1846     function.
1847          (83) "Public conveyance" means a conveyance [to which] that the public or a portion of
1848     the public has access to and a right to use for transportation, including an airline, railroad, bus,
1849     boat, or other public conveyance.
1850          (84) "Reception center" means a business that:
1851          (a) operates facilities that are at least 5,000 square feet; and
1852          (b) has as its primary purpose the leasing of the facilities described in Subsection
1853     (84)(a) to a third party for the third party's event.
1854          (85) "Reception center license" means a license issued in accordance with Chapter 5,
1855     Retail License Act, and Chapter 6, Part 8, Reception Center License.
1856          (86) (a) "Record" means information that is:

1857          (i) inscribed on a tangible medium; or
1858          (ii) stored in an electronic or other medium and is retrievable in a perceivable form.
1859          (b) "Record" includes:
1860          (i) a book;
1861          (ii) a book of account;
1862          (iii) a paper;
1863          (iv) a contract;
1864          (v) an agreement;
1865          (vi) a document; or
1866          (vii) a recording in any medium.
1867          (87) "Residence" means a person's principal place of abode within Utah.
1868          (88) "Resident," in relation to a resort, means the same as that term is [as] defined in
1869     Section 32B-8-102.
1870          (89) "Resort" means the same as that term is [as] defined in Section 32B-8-102.
1871          (90) "Resort facility" is as defined by the commission by rule.
1872          (91) "Resort license" means a license issued in accordance with Chapter 5, Retail
1873     License Act, and Chapter 8, Resort License Act.
1874          (92) "Restaurant" means a business location:
1875          (a) at which a variety of foods are prepared;
1876          (b) at which complete meals are served to the general public; and
1877          (c) that is engaged primarily in serving meals to the general public.
1878          (93) "Retail license" means one of the following licenses issued under this title:
1879          (a) a full-service restaurant license;
1880          (b) a master full-service restaurant license;
1881          (c) a limited-service restaurant license;
1882          (d) a master limited-service restaurant license;
1883          (e) a club license;
1884          (f) an airport lounge license;
1885          (g) an on-premise banquet license;
1886          (h) an on-premise beer license;
1887          (i) a reception center license; or

1888          (j) a beer-only restaurant license.
1889          (94) "Room service" means furnishing an alcoholic product to a person in a guest room
1890     of a:
1891          (a) hotel; or
1892          (b) resort facility.
1893          [(96)] (95) (a) "School" means a building used primarily for the general education of
1894     minors.
1895          (b) "School" does not include an educational facility.
1896          [(97)] (96) "Sell" or "offer for sale" means a transaction, exchange, or barter whereby,
1897     for consideration, an alcoholic product is either directly or indirectly transferred, solicited,
1898     ordered, delivered for value, or by a means or under a pretext is promised or obtained, whether
1899     done by a person as a principal, proprietor, or as staff, unless otherwise defined in this title or
1900     the rules made by the commission.
1901          [(95)] (97) "Serve" means to place an alcoholic product before an individual.
1902          (98) "Sexually oriented entertainer" means a person who while in a state of seminudity
1903     appears at or performs:
1904          (a) for the entertainment of one or more patrons;
1905          (b) on the premises of:
1906          (i) a social club licensee; or
1907          (ii) a tavern;
1908          (c) on behalf of or at the request of the licensee described in Subsection (98)(b);
1909          (d) on a contractual or voluntary basis; and
1910          (e) whether or not the person is designated as:
1911          (i) an employee;
1912          (ii) an independent contractor;
1913          (iii) an agent of the licensee; or
1914          (iv) a different type of classification.
1915          (99) "Single event permit" means a permit issued in accordance with Chapter 9, Part 3,
1916     Single Event Permit.
1917          (100) "Small brewer" means a brewer who manufactures less than 60,000 barrels of
1918     beer, heavy beer, and flavored malt beverages per year.

1919          (101) "Social club license" means a license issued in accordance with Chapter 5, Retail
1920     License Act, and Chapter 6, Part 4, Club License, that is designated by the commission as a
1921     social club license.
1922          (102) "Special use permit" means a permit issued in accordance with Chapter 10,
1923     Special Use Permit Act.
1924          (103) (a) "Spirituous liquor" means liquor that is distilled.
1925          (b) "Spirituous liquor" includes an alcoholic product defined as a "distilled spirit" by
1926     27 U.S.C. Sec. 211 and 27 C.F.R. Sec. 5.11 through 5.23.
1927          (104) "Sports center" is as defined by the commission by rule.
1928          (105) (a) "Staff" means an individual who engages in activity governed by this title:
1929          (i) on behalf of a business, including a package agent, licensee, permittee, or certificate
1930     holder;
1931          (ii) at the request of the business, including a package agent, licensee, permittee, or
1932     certificate holder; or
1933          (iii) under the authority of the business, including a package agent, licensee, permittee,
1934     or certificate holder.
1935          (b) "Staff" includes:
1936          (i) an officer;
1937          (ii) a director;
1938          (iii) an employee;
1939          (iv) personnel management;
1940          (v) an agent of the licensee, including a managing agent;
1941          (vi) an operator; or
1942          (vii) a representative.
1943          (106) "State of nudity" means:
1944          (a) the appearance of:
1945          (i) the nipple or areola of a female human breast;
1946          (ii) a human genital;
1947          (iii) a human pubic area; or
1948          (iv) a human anus; or
1949          (b) a state of dress that fails to opaquely cover:

1950          (i) the nipple or areola of a female human breast;
1951          (ii) a human genital;
1952          (iii) a human pubic area; or
1953          (iv) a human anus.
1954          (107) "State of seminudity" means a state of dress in which opaque clothing covers no
1955     more than:
1956          (a) the nipple and areola of the female human breast in a shape and color other than the
1957     natural shape and color of the nipple and areola; and
1958          (b) the human genitals, pubic area, and anus:
1959          (i) with no less than the following at its widest point:
1960          (A) four inches coverage width in the front of the human body; and
1961          (B) five inches coverage width in the back of the human body; and
1962          (ii) with coverage that does not taper to less than one inch wide at the narrowest point.
1963          (108) (a) "State store" means a facility for the sale of packaged liquor:
1964          (i) located on premises owned or leased by the state; and
1965          (ii) operated by a state employee.
1966          (b) "State store" does not include:
1967          (i) a package agency;
1968          (ii) a licensee; or
1969          (iii) a permittee.
1970          (109) (a) "Storage area" means an area on licensed premises where the licensee stores
1971     an alcoholic product.
1972          (b) "Store" means to place or maintain in a location an alcoholic product from which a
1973     person draws to prepare an alcoholic product to be furnished to a patron, except as provided in
1974     Subsection 32B-6-205(12)(b)(ii), 32B-6-305(12)(b)(ii), 32B-6-805(15)(b)(ii), or
1975     32B-6-905(12)(b)(ii).
1976          (110) "Sublicense" means the same as that term is [as] defined in Section 32B-8-102.
1977          (111) "Supplier" means a person who sells an alcoholic product to the department.
1978          (112) "Tavern" means an on-premise beer retailer who is:
1979          (a) issued a license by the commission in accordance with Chapter 5, Retail License
1980     Act, and Chapter 6, Part 7, On-Premise Beer Retailer License; and

1981          (b) designated by the commission as a tavern in accordance with Chapter 6, Part 7,
1982     On-Premise Beer Retailer License.
1983          (113) "Temporary beer event permit" means a permit issued in accordance with
1984     Chapter 9, Part 4, Temporary Beer Event Permit.
1985          (114) "Temporary domicile" means the principal place of abode within Utah of a
1986     person who does not have a present intention to continue residency within Utah permanently or
1987     indefinitely.
1988          (115) "Translucent" means a substance that allows light to pass through, but does not
1989     allow an object or person to be seen through the substance.
1990          (116) "Unsaleable liquor merchandise" means a container that:
1991          (a) is unsaleable because the container is:
1992          (i) unlabeled;
1993          (ii) leaky;
1994          (iii) damaged;
1995          (iv) difficult to open; or
1996          (v) partly filled;
1997          (b) (i) has faded labels or defective caps or corks;
1998          (ii) has contents that are:
1999          (A) cloudy;
2000          (B) spoiled; or
2001          (C) chemically determined to be impure; or
2002          (iii) contains:
2003          (A) sediment; or
2004          (B) a foreign substance; or
2005          (c) is otherwise considered by the department as unfit for sale.
2006          (117) (a) "Wine" means an alcoholic product obtained by the fermentation of the
2007     natural sugar content of fruits, plants, honey, or milk, or other like substance, whether or not
2008     another ingredient is added.
2009          (b) "Wine" is considered liquor for purposes of this title, except as otherwise provided
2010     in this title.
2011          (118) "Winery manufacturing license" means a license issued in accordance with

2012     Chapter 11, Part 3, Winery Manufacturing License.
2013          Section 23. Section 32B-4-415 is amended to read:
2014          32B-4-415. Unlawful bringing onto premises for consumption.
2015          (1) Except as provided in Subsection (4), a person may not bring an alcoholic product
2016     for on-premise consumption onto the premises of:
2017          (a) a retail licensee or person required to be licensed under this title as a retail licensee;
2018          (b) an establishment that conducts a business similar to a retail licensee;
2019          (c) an event where an alcoholic product is sold, offered for sale, or furnished under a
2020     single event permit or temporary beer event permit issued under this title; or
2021          (d) an establishment open to the general public.
2022          (2) Except as provided in Subsection (4), the following may not allow a person to bring
2023     onto its premises an alcoholic product for on-premise consumption or allow consumption of an
2024     alcoholic product brought onto its premises in violation of this section:
2025          (a) a retail licensee or a person required to be licensed under this title as a retail
2026     licensee;
2027          (b) an establishment that conducts a business similar to a retail licensee;
2028          (c) a single event permittee or temporary beer event permittee;
2029          (d) an establishment open to the general public; or
2030          (e) staff of a person listed in Subsections (2)(a) through (d).
2031          (3) Except as provided in Subsection (4)(c)(i)(A), a person may not consume an
2032     alcoholic product in a limousine or chartered bus if the limousine or chartered bus drops off a
2033     passenger at a location from which the passenger departs in a private vehicle.
2034          (4) (a) A person may bring bottled wine onto the premises of the following and
2035     consume the wine pursuant to Section 32B-5-307:
2036          (i) a full-service restaurant licensee;
2037          (ii) a limited restaurant licensee;
2038          (iii) a club licensee; or
2039          (iv) a person operating under a resort spa sublicense.
2040          (b) A passenger of a limousine may bring onto, possess, and consume an alcoholic
2041     product [on] in the limousine if:
2042          (i) the travel of the limousine begins and ends at:

2043          (A) the residence of the passenger;
2044          (B) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
2045          (C) the temporary domicile of the passenger; and
2046          (ii) the driver of the limousine is separated from the passengers by partition or other
2047     means approved by the department.
2048          (c) A passenger of a chartered bus may bring onto, possess, and consume an alcoholic
2049     product on the chartered bus:
2050          (i) (A) but may consume only during travel to a specified destination of the chartered
2051     bus and not during travel back to the place where the travel begins; or
2052          (B) if the travel of the chartered bus begins and ends at:
2053          (I) the residence of the passenger;
2054          (II) the hotel of the passenger, if the passenger is a registered guest of the hotel; or
2055          (III) the temporary domicile of the passenger; and
2056          (ii) if the chartered bus has a nondrinking designee other than the driver traveling on
2057     the chartered bus to monitor consumption.
2058          (5) A person may bring onto any premises, possess, and consume an alcoholic product
2059     at a private event.
2060          (6) The restrictions of Subsections (2) and (3) apply to a resort licensee or person
2061     operating under a sublicense in relationship to:
2062          (a) the boundary of a resort building; or
2063          (b) a sublicense premises.
2064          Section 24. Section 32B-6-404 is amended to read:
2065          32B-6-404. Types of club license.
2066          (1) To obtain an equity club license, in addition to meeting the other requirements of
2067     this part, a person shall:
2068          (a) whether incorporated or unincorporated:
2069          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2070     purpose;
2071          (ii) have members;
2072          (iii) limit access to its licensed premises to a member or a guest of the member; and
2073          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold

2074     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2075          (b) own, maintain, or operate a substantial recreational facility in conjunction with a
2076     club house such as:
2077          (i) a golf course; or
2078          (ii) a tennis facility;
2079          (c) have at least 50% of the total membership having:
2080          (i) full voting rights; and
2081          (ii) an equal share of the equity of the club; and
2082          (d) if there is more than one class of membership, have at least one class of
2083     membership that entitles each member in that class to:
2084          (i) full voting rights; and
2085          (ii) an equal share of the equity of the club.
2086          (2) To obtain a fraternal club license, in addition to meeting the other requirements of
2087     this part, a person shall:
2088          (a) whether incorporated or unincorporated:
2089          (i) be organized and operated solely for a social, recreational, patriotic, or fraternal
2090     purpose;
2091          (ii) have members;
2092          (iii) limit access to its licensed premises to a member or a guest of the member; and
2093          (iv) desire to maintain premises upon which an alcoholic product may be stored, sold
2094     to, offered for sale to, furnished to, and consumed by a member or a guest of a member;
2095          (b) have no capital stock;
2096          (c) exist solely for:
2097          (i) the benefit of its members and their beneficiaries; and
2098          (ii) a lawful social, intellectual, educational, charitable, benevolent, moral, fraternal,
2099     patriotic, or religious purpose for the benefit of its members or the public, carried on through
2100     voluntary activity of its members in their local lodges;
2101          (d) have a representative form of government;
2102          (e) have a lodge system in which:
2103          (i) there is a supreme governing body;
2104          (ii) subordinate to the supreme governing body are local lodges, however designated,

2105     into which individuals are admitted as members in accordance with the laws of the fraternal;
2106          (iii) the local lodges are required by the laws of the fraternal to hold regular meetings at
2107     least monthly; and
2108          (iv) the local lodges regularly engage in one or more programs involving member
2109     participation to implement the purposes of Subsection (2)(c); and
2110          (f) own or lease a building or space in a building used for lodge activities.
2111          (3) To obtain a dining club license, in addition to meeting the other requirements of
2112     this part, a person shall:
2113          (a) maintain at least the following percentages of its total club business from the sale of
2114     food, not including mix for alcoholic products, or service charges:
2115          (i) for a dining club license that is issued as an original license on or after July 1, 2011,
2116     60%; and
2117          (ii) for a dining club license that is issued on or before June 30, 2011:
2118          (A) 50% on or before June 30, 2012; and
2119          (B) 60% on and after July 1, 2012; and
2120          (b) obtain a determination by the commission that the person will operate as a dining
2121     club licensee, as part of which the commission may consider:
2122          (i) the square footage and seating capacity of the premises;
2123          (ii) what portion of the square footage and seating capacity will be used for a dining
2124     area in comparison to the portion that will be used as a lounge or bar area;
2125          (iii) whether full meals including appetizers, main courses, and desserts are served;
2126          (iv) whether the person will maintain adequate on-premise culinary facilities to prepare
2127     full meals, except a person who is located on the premise of a hotel or resort facility may use
2128     the culinary facilities of the hotel or resort facility;
2129          (v) whether the entertainment provided at the club is suitable for minors; and
2130          (vi) the club management's ability to manage and operate a dining club license
2131     including:
2132          (A) management experience;
2133          (B) past dining club licensee or restaurant management experience; and
2134          (C) the type of management scheme used by the dining club license.
2135          (4) To obtain a social club license, a person is required to meet the requirements of this

2136     part except those listed in Subsection (1), (2), or (3).
2137          (5) (a) At the time that the commission issues a club license, the commission shall
2138     designate the type of club license for which the person qualifies.
2139          (b) If requested by a club licensee, the commission may approve a change in the type of
2140     club license in accordance with rules made by the commission.
2141          (6) To the extent not prohibited by law, this part does not prevent a dining club
2142     licensee or social club licensee from restricting access to the club's licensed premises on the
2143     basis of an individual:
2144          (a) paying a fee; or
2145          (b) agreeing to being on a list of individuals who have access to the club's licensed
2146     premises.
2147          Section 25. Section 34-19-5 is amended to read:
2148          34-19-5. Injunctive relief -- When available -- Necessary findings -- Procedure.
2149          (1) No court, nor any judge or judges of a court, shall have jurisdiction to issue a
2150     temporary or permanent injunction in any case involving or growing out of a labor dispute, as
2151     defined in Section 34-19-11, except after hearing the testimony of witnesses in open court, with
2152     opportunity for cross-examination, in support of the allegations of a complaint made under oath
2153     and testimony in opposition to it, if offered, and except after findings of all of the facts
2154     described in Subsection (2) by the court, or a judge or judges.
2155          (2) The findings required by Subsection (1) are all of the following:
2156          (a) that unlawful acts have been threatened or committed and will be executed or
2157     continued unless restrained;
2158          (b) that substantial and irreparable injury to property or property rights of the
2159     complainant will follow unless the relief requested is granted;
2160          (c) that as to each item of relief granted greater injury will be inflicted upon
2161     complainant by the denial of it than will be inflicted upon defendants by the granting of it;
2162          (d) that no item of relief granted is relief that a court or judge of it has no jurisdiction to
2163     restrain or enjoin under Section 34-19-2;
2164          (e) that the complainant has no adequate remedy at law; and
2165          (f) that the public officers charged with the duty to protect complainant's property have
2166     failed or are unable to furnish adequate protection.

2167          (3) Subject to Subsection (4), the hearing required by Subsection (1) shall be held after
2168     due and personal notice of it has been given, in such manner as the court shall direct, to all
2169     known persons against whom relief is sought, and also to those public officers charged with the
2170     duty to protect complainant's property.
2171          (4) (a) If a complainant shall also allege that unless a temporary restraining order shall
2172     be issued before a hearing may be had, a substantial and irreparable injury to complainant's
2173     property will be unavoidable, a temporary restraining order may be granted upon the expiration
2174     of such reasonable notice of application for the restraining order as the court may direct by
2175     order to show cause, but in no less than 48 hours. This order to show cause shall be served
2176     upon such party or parties as are sought to be restrained and as shall be specified in the order,
2177     and the restraining order shall issue only upon testimony, or in the discretion of the court, upon
2178     affidavits, sufficient, if sustained, to justify the court in issuing a temporary injunction upon a
2179     hearing as provided for in this section.
2180          (b) Such a temporary restraining order shall be effective for no longer than five days,
2181     and at the expiration of said five days shall become void and not subject to renewal or
2182     extension, except that if the hearing for a temporary injunction shall have been begun before
2183     the expiration of the five days, the restraining order may in the court's discretion be continued
2184     until a decision is reached upon the issuance of the temporary injunction.
2185          (5) No temporary restraining order or temporary injunction shall be issued except on
2186     condition that the complainant shall first file an undertaking with adequate security sufficient to
2187     recompense those enjoined for any loss, expense, or damage caused by the improvident or
2188     erroneous issuance of such order or injunction, including all reasonable costs, together with
2189     reasonable attorney fees, and expense against the order or against the granting of any injunctive
2190     relief sought in the same proceeding and subsequently denied by the court. This undertaking
2191     shall be understood to signify an agreement entered into by the complainant and the surety
2192     upon which a decree may be rendered in the same suit or proceeding against such complainant
2193     and surety, the complainant and the surety submitting themselves to the jurisdiction of the court
2194     for that purpose, except that nothing in this Subsection (5) shall deprive any party having a
2195     claim or cause of action under or upon such undertaking from electing to pursue the party's
2196     ordinary remedy by suit at law or in equity.
2197          Section 26. Section 34-20-3 is amended to read:

2198          34-20-3. Labor relations board.
2199          (1) (a) There is created the Labor Relations Board consisting of the following:
2200          (i) the commissioner of the Labor Commission;
2201          (ii) two members appointed by the governor with the consent of the Senate consisting
2202     of:
2203          (A) a representative of employers, [in making this appointment] in the appointment of
2204     whom the governor shall consider nominations from employer organizations; and
2205          (B) a representative of employees, [in making this appointment] in the appointment of
2206     whom the governor shall consider nominations from employee organizations.
2207          (b) (i) Except as provided in Subsection (1)(b)(ii), as terms of members appointed
2208     under Subsection (1)(a)(ii) expire, the governor shall appoint each new member or reappointed
2209     member to a four-year term.
2210          (ii) Notwithstanding the requirements of Subsection (1)(b)(i), the governor shall, at the
2211     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
2212     members appointed under Subsection (1)(a)(ii) are staggered so one member is appointed every
2213     two years.
2214          (c) The commissioner shall serve as chair of the board.
2215          (d) A vacancy occurring on the board for any cause of the members appointed under
2216     Subsection (1)(a)(ii) shall be filled by the governor with the consent of the Senate pursuant to
2217     this section for the unexpired term of the vacating member.
2218          (e) The governor may at any time remove a member appointed under Subsection
2219     (1)(a)(ii) but only for inefficiency, neglect of duty, malfeasance or malfeasance in office, or for
2220     cause upon a hearing.
2221          (f) A member of the board appointed under Subsection (1)(a)(ii) may not hold any
2222     other office in the government of the United States, this state or any other state, or of any
2223     county government or municipal corporation within a state.
2224          (g) A member appointed under Subsection (1)(a)(ii) may not receive compensation or
2225     benefits for the member's service, but may receive per diem and travel expenses in accordance
2226     with:
2227          (i) Section 63A-3-106;
2228          (ii) Section 63A-3-107; and

2229          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
2230     63A-3-107.
2231          (2) A meeting of the board may be called:
2232          (a) by the chair; or
2233          (b) jointly by the members appointed under Subsection (1)(a)(ii).
2234          (3) The chair may provide staff and administrative support as necessary from the Labor
2235     Commission.
2236          (4) A vacancy in the board does not impair the right of the remaining members to
2237     exercise all the powers of the board, and two members of the board shall at all times constitute
2238     a quorum.
2239          (5) The board shall have an official seal which shall be judicially noticed.
2240          Section 27. Section 34-20-8 is amended to read:
2241          34-20-8. Unfair labor practices.
2242          (1) It shall be an unfair labor practice for an employer, individually or in concert with
2243     others:
2244          (a) To interfere with, restrain or coerce employees in the exercise of the rights
2245     guaranteed in Section 34-20-7.
2246          (b) To dominate or interfere with the formation or administration of any labor
2247     organization or contribute financial or other support to it; provided, that subject to rules and
2248     regulations made and published by the board pursuant to Section 34-20-6, an employer is not
2249     prohibited from permitting employees to confer with the employer during working hours
2250     without loss of time or pay.
2251          (c) By discrimination in regard to hire or tenure of employment or any term [of] or
2252     condition of employment to encourage or discourage membership in any labor organization;
2253     provided, that nothing in this act shall preclude an employer from making an agreement with a
2254     labor organization (not established, maintained or assisted by any action defined in this act as
2255     an unfair labor practice) to require as a condition of employment, membership therein, if such
2256     labor organization is the representative of the employees as provided in Subsection 34-20-9(1)
2257     in the appropriate collective bargaining unit covered by such agreement when made.
2258          (d) To refuse to bargain collectively with the representative of a majority of the
2259     employer's employees in any collective bargaining unit; provided, that, when two or more labor

2260     organizations claim to represent a majority of the employees in the bargaining unit, the
2261     employer shall be free to file with the board a petition for investigation of certification of
2262     representatives and during the pendency of the proceedings the employer may not be
2263     considered to have refused to bargain.
2264          (e) To bargain collectively with the representatives of less than a majority of the
2265     employer's employees in a collective bargaining unit.
2266          (f) To discharge or otherwise discriminate against an employee because the employee
2267     has filed charges or given testimony under this chapter.
2268          (2) It shall be an unfair labor practice for an employee individually or in concert with
2269     others:
2270          (a) To coerce or intimidate an employee in the enjoyment of the employee's legal
2271     rights, including those guaranteed in Section 34-20-7, or to intimidate the employee's family,
2272     picket the employee's domicile, or injure the person or property of the employee or the
2273     employee's family.
2274          (b) To coerce, intimidate or induce an employer to interfere with any of the employer's
2275     employees in the enjoyment of their legal rights, including those guaranteed in Section 34-20-7,
2276     or to engage in any practice with regard to the employer's employees which would constitute an
2277     unfair labor practice if undertaken by the employer on the employer's own initiative.
2278          (c) To co-operate in engaging in, promoting, or inducing picketing (not constituting an
2279     exercise of constitutionally guaranteed free speech), boycotting or any other overt concomitant
2280     of a strike unless a majority in a collective bargaining unit of the employees of an employer
2281     against whom such acts are primarily directed have voted by secret ballot to call a strike.
2282          (d) To hinder or prevent, by mass picketing, threats, intimidation, force, or coercion of
2283     any kind the pursuit of any lawful work or employment, or to obstruct or interfere with
2284     entrance to or egress from any place of employment, or to obstruct or interfere with free and
2285     uninterrupted use of public roads, streets, highways, railways, airports, or other ways of travel
2286     or conveyance.
2287          (e) To engage in a secondary boycott; or to hinder or prevent, by threats, intimidation,
2288     force, coercion, or sabotage, the obtaining, use or disposition of materials, equipment, or
2289     services; or to combine or conspire to hinder or prevent the obtaining, use or disposition of
2290     materials, equipment or services, provided, however, that nothing herein shall prevent

2291     sympathetic strikes in support of those in similar occupations working for other employers in
2292     the same craft.
2293          (f) To take unauthorized possession of property of the employer.
2294          (3) It shall be an unfair labor practice for any person to do or cause to be done on
2295     behalf of or in the interest of employers or employees, or in connection with or to influence the
2296     outcome of any controversy as to employment relations, any act prohibited by Subsections (1)
2297     and (2) of this section.
2298          Section 28. Section 34-30-13 is amended to read:
2299          34-30-13. Compliance with federal requirements.
2300          Notwithstanding any other provision in this chapter to the contrary, the governor of the
2301     state of Utah may, in [his] the governor's discretion, elect to suspend the provisions of this
2302     chapter in whole or in part if it becomes necessary to do so in order to comply with
2303     requirements imposed by the government of the United States, in order for the state of Utah to
2304     remain eligible for participation in programs which are financed in whole or in part by the
2305     United States government.
2306          Section 29. Section 34-38-2 is amended to read:
2307          34-38-2. Definitions.
2308          For purposes of this chapter:
2309          (1) "Alcohol" means ethyl alcohol or ethanol.
2310          (2) "Drugs" means a substance recognized as a drug in the United States
2311     Pharmacopoeia, the National Formulary, the Homeopathic Pharmacopoeia, or other drug
2312     compendia, or supplement to any of those compendia.
2313          [(4)] (3) "Employee" means an individual in the service of an employer for
2314     compensation.
2315          [(3)] (4) (a) "Employer" means a person, including a public utility or transit district,
2316     that has one or more workers or operators employed in the same business, or in or about the
2317     same establishment, under any contract of hire, express or implied, oral or written.
2318          (b) "Employer" does not include the federal or state government, or other local political
2319     subdivisions.
2320          (5) "Failed test" means a confirmed drug or alcohol test that indicates that the sample
2321     tested is:

2322          (a) positive;
2323          (b) adulterated; or
2324          (c) substituted.
2325          (6) "Inaccurate test result" means a test result that is treated as a positive test result,
2326     when the sample should not have resulted in a positive test result.
2327          (7) "Licensed physician" means an individual who is licensed:
2328          (a) as a doctor of medicine under Title 58, Chapter 67, Utah Medical Practice Act, or
2329     similar law of another state; or
2330          (b) as an osteopathic physician or surgeon under Title 58, Chapter 68, Utah
2331     Osteopathic Medical Practice Act, or similar law of another state.
2332          (8) "Prospective employee" means an individual who applies to an employer, either in
2333     writing or orally, to become the employer's employee.
2334          (9) "Sample" means urine, blood, breath, saliva, or hair.
2335          Section 30. Section 34-41-102 is amended to read:
2336          34-41-102. Governmental drug-free workplace policies.
2337          (1) Any local governmental entity or state institution of higher education may establish
2338     workplace policies and procedures designed to:
2339          (a) educate, counsel, and increase awareness of the dangers of drugs; and
2340          (b) prohibit and discourage the detrimental use of drugs among its various classes of
2341     employees and volunteers.
2342          (2) A local governmental entity or state institution of higher education may test
2343     employees, volunteers, prospective employees, and prospective volunteers for the presence of
2344     drugs or their metabolites, in accordance with the provisions of this chapter, as a condition of
2345     hiring, continued employment, and voluntary services.
2346          (3) A drug-free workplace policy may include, but does not require, drug testing under
2347     the following circumstances:
2348          (a) preemployment hiring or volunteer selection procedures;
2349          (b) postaccident investigations;
2350          (c) reasonable suspicion situations;
2351          (d) preannounced periodic testing;
2352          (e) rehabilitation programs;

2353          (f) random testing in safety sensitive positions; or
2354          (g) to comply with the federal Drug Free Workplace Act of 1988, 41 U.S.C. [701
2355     through 707] Sec. 8101 et seq., or other federally required drug policies.
2356          (4) This section may not be construed to prohibit local governmental entities or state
2357     institutions of higher education from establishing policies regarding other hazardous or
2358     intoxicating substances.
2359          Section 31. Section 34-45-107 is amended to read:
2360          34-45-107. Exemptions -- Limitations on chapter -- School premises --
2361     Government entities -- Religious organizations -- Single family detached residential units.
2362          (1) (a) School premises, as defined in Subsection 76-3-203.2(1), are exempt from the
2363     provisions of this chapter.
2364          (b) Possession of a firearm on or about school premises is subject to the provisions of
2365     Section 76-10-505.5.
2366          (2) Government entities, including a local authority or state entity, are subject to the
2367     requirements of Title 53, Chapter 5a, Firearm Laws, but are otherwise exempt from the
2368     provisions of this chapter.
2369          (3) Religious organizations, including religious organizations acting as an employer,
2370     are exempt from, and are not subject to the provisions of this chapter.
2371          (4) Owner-occupied single family detached residential units and tenant-occupied single
2372     family detached residential units are exempt from the provisions of this chapter.
2373          (5) A person who is subject to federal law that specifically forbids the presence of a
2374     firearm [from] on property designated for motor vehicle parking, or a person who is subject to
2375     Section 550 of the United States Department of Homeland Security Appropriations Act of
2376     2007, Pub. L. No. 109-295 or regulations enacted in accordance with that section, is exempt
2377     from Section 34-45-103 if:
2378          (a) providing alternative parking or a storage location under Subsection
2379     34-45-103(2)(a) would pose an undue burden on the person; and
2380          (b) the person files a statement with the attorney general citing the federal law that
2381     forbids the presence of a firearm and detailing the reasons why providing alternative parking or
2382     a storage location poses an undue burden.
2383          (6) A person who is subject to Section 550 of the United States Department of

2384     Homeland Security Appropriations Act of 2007, Pub. L. No. 109-295 or regulations enacted in
2385     accordance with that section is exempt from this chapter if:
2386          (a) the person has attempted to provide alternative parking or a storage location in
2387     accordance with Subsection 34-45-103(2)(a);
2388          (b) the secretary of the federal Department of Homeland Security notifies the person
2389     that the provision of alternative parking or a storage location causes the person to be out of
2390     compliance with Section 550 of the United States Department of Homeland Security
2391     Appropriations Act of 2007, Pub. L. No. 109-295 or regulations enacted in accordance with
2392     that section and the person may be subject to punitive measures; and
2393          (c) the person files a detailed statement with the attorney general notifying the attorney
2394     general of the facts under Subsections (6)(a) and (b).
2395          Section 32. Section 34A-2-213 is amended to read:
2396          34A-2-213. Coordination of benefits with health benefit plan -- Timely payment
2397     of claims.
2398          (1) (a) This section applies if:
2399          (i) a health benefit plan paid medical claims under Section 31A-22-619.6; and
2400          (ii) the Labor Commission under 34A-2-801 issued an order or approved the terms of a
2401     settlement agreement under Section [34A-2-801] 34A-2-420, which:
2402          (A) found that the medical claims are compensable under Title 34A, Chapter 2,
2403     Workers' Compensation Act, or Title 34A, Chapter 3, Utah Occupational Disease Act; and
2404          (B) is final under Section 34A-2-801.
2405          (b) For purposes of this section, "workers' compensation carrier" means any of the
2406     entities an employer may use to provide workers' compensation benefits for its employees
2407     under Section 34A-2-201.
2408          (2) (a) The Labor Commission shall provide a health benefit plan with notice that an
2409     application for hearing has been filed in accordance with Subsection 31A-22-619.6(2)(a)(i) if
2410     either the employee or a health care provider requests that the commission send the notice.
2411          (b) The Labor Commission shall prepare and provide notice to an injured employee of
2412     the employee's right to payment by the employee's health benefit plan under Section
2413     31A-22-619.6. The notice provided under this Subsection (2) shall include the process the
2414     employee shall follow to obtain payment from a health benefit plan for a medical claim that is

2415     the subject of an application for hearing under Section 34A-2-801.
2416          (3) (a) The Labor Commission shall, within three business days after the date on which
2417     the order under Section 34A-2-801 or approval of the terms of a settlement agreement under
2418     Section 34A-2-420 is signed by the administrative law judge [under Section 34A-2-801], send
2419     a copy of the order or terms of the settlement agreement to:
2420          (i) a health benefit plan that made payments under Section 31A-22-619.6;
2421          (ii) the workers' compensation carrier; and
2422          (iii) the injured worker.
2423          (b) The workers' compensation carrier shall, within 15 business days after the day on
2424     which the Labor Commission's order under Section 34A-2-801 or settlement agreement under
2425     Section 34A-2-420 is final [under the provisions of Section 34A-2-801], pay:
2426          (i) the health benefit plan, in the amount the plan paid to the health care provider for
2427     medical claims that are compensable under the order or the terms of the settlement agreement,
2428     plus interest accrued at the rate of 8% per annum from the date the health benefit plan paid the
2429     medical claims until the date the workers' compensation carrier reimburses the health benefit
2430     plan, unless, in settlement negotiations, the health benefit plan agreed to waive, in whole or in
2431     part, reimbursement for medical claims paid, interest accrued, or both; and
2432          (ii) the employee, in the amount of:
2433          (A) any co-payments, coinsurance, deductibles, or other out-of-pocket expenses paid or
2434     incurred by the employee; and
2435          (B) interest accrued at the rate of 8% per annum from the date the employee paid the
2436     expenses described in Subsection (3)(b)(ii)(A) until the date the workers' compensation carrier
2437     reimburses the employee.
2438          (4) If the Labor Commission determines that a workers' compensation carrier did not
2439     make the payment required by Subsection (3) within the time period required in Subsection (3),
2440     the commissioner shall:
2441          (a) assess and collect a penalty from the workers' compensation carrier in:
2442          (i) the amount of $500 for failure to pay the amount required by Subsections (3)(b)(i)
2443     and (ii) within the period of time required by Subsections (3)(b)(i) and (ii); and
2444          (ii) an additional amount of $500 for each calendar month:
2445          (A) that accrues after the penalty is assessed under Subsection (4)(a)(i); and

2446          (B) for which the amount required by Subsections (3)(b)(i) and (ii) are not paid;
2447          (b) deposit any penalties collected under this Subsection (4) into the Uninsured
2448     Employers' Fund created in Section 34A-2-704; and
2449          (c) notify the Utah Insurance Department of the workers' compensation carrier's failure
2450     to pay the health benefit plan or the employee in accordance with this section.
2451          (5) The penalty imposed by Subsection (4) is in addition to any action taken or penalty
2452     imposed by the Utah Insurance Department under Title 31A, Insurance Code.
2453          (6) The commission may adopt administrative rules in accordance with Title 63G,
2454     Chapter 3, Utah Administrative Rulemaking Act, to:
2455          (a) establish procedures for:
2456          (i) assessing and collecting penalties under Subsection (4); and
2457          (ii) providing notice as required by this section; and
2458          (b) enforce the provisions of this section.
2459          (7) This section sunsets in accordance with Section 63I-1-234.
2460          Section 33. Section 35A-3-103 is amended to read:
2461          35A-3-103. Department responsibilities.
2462          The department shall:
2463          (1) administer public assistance programs assigned by the Legislature and the
2464     governor;
2465          (2) determine eligibility for public assistance programs in accordance with the
2466     requirements of this chapter;
2467          (3) cooperate with the federal government in the administration of public assistance
2468     programs;
2469          (4) administer state employment services in accordance with Section 35A-3-115;
2470          (5) provide for the compilation of necessary or desirable information, statistics, and
2471     reports;
2472          (6) perform other duties and functions required by law;
2473          (7) monitor the application of eligibility policy;
2474          (8) develop personnel training programs for effective and efficient operation of the
2475     programs administered by the department;
2476          (9) provide refugee resettlement services in accordance with Section [35A-3-116]

2477     35A-3-701;
2478          (10) provide child care assistance for children in accordance with Part 2, Office of
2479     Child Care; and
2480          (11) provide services that enable an applicant or recipient to qualify for affordable
2481     housing in cooperation with:
2482          (a) the Utah Housing Corporation;
2483          (b) the Housing and Community Development Division; and
2484          (c) local housing authorities.
2485          Section 34. Section 35A-8-1705 is amended to read:
2486          35A-8-1705. Navajo Revitalization Fund Board.
2487          (1) There is created within the division the Navajo Revitalization Fund Board
2488     composed of five members as follows:
2489          (a) the governor or the governor's designee;
2490          (b) the two members of the San Juan County commission whose districts include
2491     portions of the Navajo Reservation;
2492          (c) the chair of the Navajo Utah Commission or a member of the commission
2493     designated by the chair of the Navajo Utah Commission; and
2494          (d) beginning July 1, 2008, a president of a Utah Navajo Chapter or an individual
2495     designated by the president under an annual rotation system of Utah Navajo Chapters as
2496     follows:
2497          (i) the president of a Utah Navajo Chapter shall serve for one year;
2498          (ii) the Utah Navajo Chapter is rotated in alphabetical order as provided in Subsection
2499     35A-8-1702(7), except that the rotation will begin on July 1, 2008, with the Dennehotso
2500     Chapter;
2501          (iii) if the president of a Utah Navajo Chapter under Subsection (1)(d)(ii) is the same
2502     individual as the individual listed in Subsection (1)(c):
2503          (A) that Utah Navajo Chapter is skipped as part of that rotation; and
2504          (B) the president of the next Utah Navajo Chapter in the alphabetical rotation shall
2505     serve on the board.
2506          (2) The term of office for a member of the board described in Subsections (1)(a)
2507     through (c) runs concurrently with the term of office for the governor, county commissioner, or

2508     member of the Navajo Utah Commission.
2509          (3) (a) The governor, or the governor's designee, is the chair of the board.
2510          (b) The chair shall call necessary meetings.
2511          (4) A member may not receive compensation or benefits for the member's service, but
2512     may receive per diem and travel expenses in accordance with:
2513          (a) Section 63A-3-106;
2514          (b) Section 63A-3-107; and
2515          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
2516     63A-3-107.
2517          (5) The per diem and travel expenses permitted under Subsection (4) may be included
2518     as costs of administration of the revitalization fund.
2519          (6) Four board members are a quorum.
2520          (7) An affirmative vote of each member of the board present at a meeting when a
2521     quorum is present is required for a board decision related to money in or disbursed from the
2522     revitalization fund.
2523          Section 35. Section 41-6a-1616 is amended to read:
2524          41-6a-1616. High intensity beams -- Red or blue lights -- Flashing lights -- Color
2525     of rear lights and reflectors.
2526          (1) (a) Except as provided under Subsection (1)(b), under the conditions specified
2527     under Subsection 41-6a-1603(1)(a), a lighted lamp or illuminating device on a vehicle, which
2528     projects a beam of light of an intensity greater than 300 candlepower, shall be directed so that
2529     no part of the high intensity portion of the beam will strike the level of the roadway on which
2530     the vehicle stands at a distance of more than 75 feet from the vehicle.
2531          (b) The provisions of Subsection (1)(a) do not apply to head lamps, spot lamps,
2532     auxiliary lamps, flashing turn signals, hazard warning lamps, and school bus warning lamps.
2533          (c) A motor vehicle on a highway may not have more than a total of four lamps lighted
2534     on the front of the vehicle including head lamps, auxiliary lamps, spot lamps, or any other lamp
2535     if the lamp projects a beam of an intensity greater than 300 candlepower.
2536          (2) (a) Except for an authorized emergency vehicle described in Section 41-6a-1601, a
2537     school bus described in Section 41-6a-1302, or a media production vehicle used in accordance
2538     with Section 41-6a-1718, a person may not operate or move any vehicle or equipment on a

2539     highway with a lamp or device capable of displaying a red light that is visible from directly in
2540     front of the center of the vehicle.
2541          (b) Except for a law enforcement vehicle, or a media production vehicle used in
2542     accordance with Section 41-6a-1718, a person may not operate or move any vehicle or
2543     equipment on a highway with a lamp or device capable of displaying a blue light that is visible
2544     from directly in front of the center of the vehicle.
2545          (3) A person may not use flashing lights on a vehicle except for:
2546          (a) taillights of bicycles described in Section 41-6a-1114;
2547          (b) authorized emergency vehicles described in Section 41-6a-1601;
2548          (c) turn signals described in Section 41-6a-1604;
2549          (d) hazard warning lights described in Sections 41-6a-1608 and 41-6a-1611;
2550          (e) school bus flashing lights described in Section 41-6a-1302;
2551          (f) vehicles engaged in highway construction or maintenance described in Section
2552     41-6a-1617;
2553          (g) a media production vehicle used in accordance with Section 41-6a-1718; and
2554          (h) a continuously flashing light system under Section 41-6a-1604.
2555          (4) Except for an authorized emergency vehicle described in Section 41-6a-1601, or a
2556     media production vehicle used in accordance with Section [41-7a-1718] 41-6a-1718, a person
2557     may not use a rotating light on any vehicle.
2558          (5) A violation of this section is an infraction.
2559          Section 36. Section 46-4-503 is amended to read:
2560          46-4-503. Government products and services provided electronically.
2561          (1) Notwithstanding Section 46-4-501, a state governmental agency that administers
2562     one or more of the following transactions shall allow those transactions to be conducted
2563     electronically:
2564          (a) an application for or renewal of a professional or occupational license issued under
2565     Title 58, Occupations and Professions;
2566          (b) the renewal of a drivers license;
2567          (c) an application for a hunting or fishing license;
2568          (d) the filing of:
2569          (i) a return under Title 59, Chapter 10, Individual Income Tax Act, or Title 59, Chapter

2570     12, Sales and Use Tax Act;
2571          (ii) a court document, as defined by the Judicial Council; or
2572          (iii) a document under Title 70A, Uniform Commercial Code;
2573          (e) a registration for:
2574          (i) a product; or
2575          (ii) a brand;
2576          (f) a renewal of a registration of a motor vehicle;
2577          (g) a registration under:
2578          (i) Title 16, Corporations;
2579          (ii) Title 42, Names; or
2580          (iii) Title 48, Partnership - Unincorporated Business [Entity Act] Entities; or
2581          (h) submission of an application for benefits:
2582          (i) under Title 35A, Chapter 3, Employment Support Act;
2583          (ii) under Title 35A, Chapter 4, Employment Security Act; or
2584          (iii) related to accident and health insurance.
2585          (2) The state system of public education, in coordination with the Utah Education and
2586     Telehealth Network, shall make reasonable progress toward making the following services
2587     available electronically:
2588          (a) secure access by parents and students to student grades and progress reports;
2589          (b) email communications with:
2590          (i) teachers;
2591          (ii) parent-teacher associations; and
2592          (iii) school administrators;
2593          (c) access to school calendars and schedules; and
2594          (d) teaching resources that may include:
2595          (i) teaching plans;
2596          (ii) curriculum guides; and
2597          (iii) media resources.
2598          (3) A state governmental agency shall:
2599          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
2600     security and privacy of records that are private or controlled as defined by Title 63G, Chapter 2,

2601     Government Records Access and Management Act;
2602          (b) in addition to those transactions listed in Subsections (1) and (2), determine any
2603     additional services that may be made available to the public through electronic means; and
2604          (c) as part of the agency's information technology plan required by Section 63F-1-204,
2605     report on the progress of compliance with Subsections (1) through (3).
2606          (4) Notwithstanding the other provisions of this part, a state governmental agency is
2607     not required by this part to conduct a transaction electronically if:
2608          (a) conducting the transaction electronically is not required by federal law; and
2609          (b) conducting the transaction electronically is:
2610          (i) impractical;
2611          (ii) unreasonable; or
2612          (iii) not permitted by laws pertaining to privacy or security.
2613          (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
2614     access to diverse services and agencies at one location including virtual colocation.
2615          (b) State agencies that provide services or offer direct assistance to the business
2616     community shall participate in the establishment, maintenance, and enhancement of an
2617     integrated Utah business web portal known as Business.utah.gov. The purpose of the business
2618     web portal is to provide "one-stop shop" assistance to businesses.
2619          (c) State agencies shall partner with other governmental and nonprofit agencies whose
2620     primary mission is to provide services or offer direct assistance to the business community in
2621     Utah in fulfilling the requirements of this section.
2622          (d) The following state entities shall comply with the provisions of this Subsection (5):
2623          (i) Governor's Office of Economic Development, which shall serve as the managing
2624     partner for the website;
2625          (ii) Department of Workforce Services;
2626          (iii) Department of Commerce;
2627          (iv) Tax Commission;
2628          (v) Department of Administrative Services - Division of Purchasing and General
2629     Services, including other state agencies operating under a grant of authority from the division
2630     to procure goods and services in excess of $5,000;
2631          (vi) Department of Agriculture;

2632          (vii) Department of Natural Resources; and
2633          (viii) other state agencies that provide services or offer direct assistance to the business
2634     sector.
2635          (e) The business services available on the business web portal may include:
2636          (i) business life cycle information;
2637          (ii) business searches;
2638          (iii) employment needs and opportunities;
2639          (iv) motor vehicle registration;
2640          (v) permit applications and renewal;
2641          (vi) tax information;
2642          (vii) government procurement bid notifications;
2643          (viii) general business information;
2644          (ix) business directories; and
2645          (x) business news.
2646          Section 37. Section 53-8-210 is amended to read:
2647          53-8-210. Enforcement of inspection requirements.
2648          (1) A person operating a vehicle shall submit the vehicle to a safety inspection when
2649     required to do so by a peace officer.
2650          (2) (a) An owner or driver, upon receiving a notice as provided in Section 53-8-209,
2651     shall within five days secure a safety inspection certificate, which shall be issued in duplicate,
2652     one copy to be retained by the owner or driver and the other copy to be forwarded to the
2653     division.
2654          (b) In lieu of compliance with this subsection, the vehicle may not be operated, except
2655     as provided in Subsection (3).
2656          (3) (a) A person may not operate any vehicle after receiving a notice from a peace
2657     officer that the vehicle is in need of repair or adjustment, except that a peace officer may allow
2658     the vehicle to be driven to the residence or place of business of the owner or driver or to the
2659     nearest garage where repairs are available if driving the vehicle is not excessively dangerous.
2660          (b) The vehicle may not be operated again on the highways until its equipment has
2661     been placed in proper repair and adjustment and otherwise conforms to the requirements of this
2662     part and Title 41, Chapter [6, Traffic Rules and Regulations] 6a, Traffic Code, and a safety

2663     inspection certificate is obtained as promptly as possible.
2664          (4) If repair or adjustment of any vehicle or its equipment is necessary, the owner of
2665     the vehicle may obtain repair or adjustment at any place he may choose.
2666          Section 38. Section 53A-1-301 is amended to read:
2667          53A-1-301. Appointment -- Qualifications -- Duties.
2668          (1) (a) The State Board of Education shall appoint a superintendent of public
2669     instruction, hereinafter called the state superintendent, who is the executive officer of the board
2670     and serves at the pleasure of the board.
2671          (b) The board shall appoint the state superintendent on the basis of outstanding
2672     professional qualifications.
2673          (c) The state superintendent shall administer all programs assigned to the State Board
2674     of Education in accordance with the policies and the standards established by the board.
2675          (2) The State Board of Education shall, with the appointed superintendent, develop a
2676     statewide education strategy focusing on core academics, including the development of:
2677          (a) core standards for Utah public schools and graduation requirements;
2678          (b) a process to select model instructional materials that best correlate to the core
2679     standards for Utah public schools and graduation requirements that are supported by generally
2680     accepted scientific standards of evidence;
2681          (c) professional development programs for teachers, superintendents, and principals;
2682          (d) model remediation programs;
2683          (e) a model method for creating individual student learning targets, and a method of
2684     measuring an individual student's performance toward those targets;
2685          (f) progress-based assessments for ongoing performance evaluations of districts and
2686     schools;
2687          (g) incentives to achieve the desired outcome of individual student progress in core
2688     academics, and which do not create disincentives for setting high goals for the students;
2689          (h) an annual report card for school and district performance, measuring learning and
2690     reporting progress-based assessments;
2691          (i) a systematic method to encourage innovation in schools and school districts as they
2692     strive to achieve improvement in their performance; and
2693          (j) a method for identifying and sharing best demonstrated practices across districts and

2694     schools.
2695          (3) The superintendent shall perform duties assigned by the board, including the
2696     following:
2697          (a) investigating all matters pertaining to the public schools;
2698          (b) adopting and keeping an official seal to authenticate the superintendent's official
2699     acts;
2700          (c) holding and conducting meetings, seminars, and conferences on educational topics;
2701          (d) presenting to the governor and the Legislature each December a report of the public
2702     school system for the preceding year to include:
2703          (i) data on the general condition of the schools with recommendations considered
2704     desirable for specific programs;
2705          (ii) a complete statement of fund balances;
2706          (iii) a complete statement of revenues by fund and source;
2707          (iv) a complete statement of adjusted expenditures by fund, the status of bonded
2708     indebtedness, the cost of new school plants, and school levies;
2709          (v) a complete statement of state funds allocated to each school district and charter
2710     school by source, including supplemental appropriations, and a complete statement of
2711     expenditures by each school district and charter school, including supplemental appropriations,
2712     by function and object as outlined in the [U.S.] United States Department of Education
2713     publication "Financial Accounting for Local and State School Systems";
2714          (vi) a complete statement, by school district and charter school, of the amount of and
2715     percentage increase or decrease in expenditures from the previous year attributed to:
2716          (A) wage increases, with expenditure data for base salary adjustments identified
2717     separately from step and lane expenditures;
2718          (B) medical and dental premium cost adjustments; and
2719          (C) adjustments in the number of teachers and other staff;
2720          (vii) a statement that includes data on:
2721          (A) fall enrollments;
2722          (B) average membership;
2723          (C) high school graduates;
2724          (D) licensed and classified employees, including data reported by school districts on

2725     educator ratings pursuant to Section [53A-8a-405] 53A-8a-410;
2726          (E) pupil-teacher ratios;
2727          (F) average class sizes calculated in accordance with State Board of Education rules
2728     adopted under Subsection 53A-3-602.5(4);
2729          (G) average salaries;
2730          (H) applicable private school data; and
2731          (I) data from standardized norm-referenced tests in grades 5, 8, and 11 on each school
2732     and district;
2733          (viii) statistical information regarding incidents of delinquent activity in the schools or
2734     at school-related activities with separate categories for:
2735          (A) alcohol and drug abuse;
2736          (B) weapon possession;
2737          (C) assaults; and
2738          (D) arson;
2739          (ix) information about:
2740          (A) the development and implementation of the strategy of focusing on core
2741     academics;
2742          (B) the development and implementation of competency-based education and
2743     progress-based assessments; and
2744          (C) the results being achieved under Subsections (3)(d)(ix)(A) and (B), as measured by
2745     individual progress-based assessments and a comparison of Utah students' progress with the
2746     progress of students in other states using standardized norm-referenced tests as benchmarks;
2747     and
2748          (x) other statistical and financial information about the school system which the state
2749     superintendent considers pertinent;
2750          (e) collecting and organizing education data into an automated decision support system
2751     to facilitate school district and school improvement planning, accountability reporting,
2752     performance recognition, and the evaluation of educational policy and program effectiveness to
2753     include:
2754          (i) data that are:
2755          (A) comparable across schools and school districts;

2756          (B) appropriate for use in longitudinal studies; and
2757          (C) comprehensive with regard to the data elements required under applicable state or
2758     federal law or state board rule;
2759          (ii) features that enable users, most particularly school administrators, teachers, and
2760     parents, to:
2761          (A) retrieve school and school district level data electronically;
2762          (B) interpret the data visually; and
2763          (C) draw conclusions that are statistically valid; and
2764          (iii) procedures for the collection and management of education data that:
2765          (A) require the state superintendent of public instruction to:
2766          (I) collaborate with school districts in designing and implementing uniform data
2767     standards and definitions;
2768          (II) undertake or sponsor research to implement improved methods for analyzing
2769     education data;
2770          (III) provide for data security to prevent unauthorized access to or contamination of the
2771     data; and
2772          (IV) protect the confidentiality of data under state and federal privacy laws; and
2773          (B) require all school districts and schools to comply with the data collection and
2774     management procedures established under Subsection (3)(e);
2775          (f) administering and implementing federal educational programs in accordance with
2776     Title 53A, Chapter 1, Part 9, Implementing Federal or National Education Programs Act; and
2777          (g) with the approval of the board, preparing and submitting to the governor a budget
2778     for the board to be included in the budget that the governor submits to the Legislature.
2779          (4) The state superintendent shall distribute funds deposited in the Autism Awareness
2780     Restricted Account created in Section 53A-1-304 in accordance with the requirements of
2781     Section 53A-1-304.
2782          (5) Upon leaving office, the state superintendent shall deliver to the state
2783     superintendent's successor all books, records, documents, maps, reports, papers, and other
2784     articles pertaining to the state superintendent's office.
2785          (6) (a) For the purpose of Subsection (3)(d)(vii):
2786          (i) the pupil-teacher ratio for a school shall be calculated by dividing the number of

2787     students enrolled in a school by the number of full-time equivalent teachers assigned to the
2788     school, including regular classroom teachers, school-based specialists, and special education
2789     teachers;
2790          (ii) the pupil-teacher ratio for a school district shall be the median pupil-teacher ratio of
2791     the schools within a school district;
2792          (iii) the pupil-teacher ratio for charter schools aggregated shall be the median
2793     pupil-teacher ratio of charter schools in the state; and
2794          (iv) the pupil-teacher ratio for the state's public schools aggregated shall be the median
2795     pupil-teacher ratio of public schools in the state.
2796          (b) The printed copy of the report required by Subsection (3)(d) shall:
2797          (i) include the pupil-teacher ratio for:
2798          (A) each school district;
2799          (B) the charter schools aggregated; and
2800          (C) the state's public schools aggregated; and
2801          (ii) indicate the Internet website where pupil-teacher ratios for each school in the state
2802     may be accessed.
2803          Section 39. Section 53A-15-1504 is amended to read:
2804          53A-15-1504. Background checks for licensed educators.
2805          The State Board of Education shall:
2806          (1) require a license applicant to submit to a criminal background check and ongoing
2807     monitoring as a condition for licensing;
2808          (2) collect the following from an applicant:
2809          (a) personal identifying information;
2810          (b) a fee described in Subsection 53-10-108(15); and
2811          (c) consent, on a form specified by the State Board of Education, for:
2812          (i) an initial background check upon submission of the application;
2813          (ii) retention of personal identifying information for ongoing monitoring through
2814     registration with the systems described in Section 53A-15-1505; and
2815          (iii) disclosure of any criminal history information to the individual's employing LEA
2816     or qualifying private school;
2817          (3) submit an applicant's personal identifying information, including fingerprints, to the

2818     bureau for:
2819          (a) an initial background check; and
2820          (b) ongoing monitoring through registration with the systems described in Section
2821     53A-15-1505 if the results of the initial background check do not contain disqualifying
2822     criminal history information as determined by the State Board of Education in accordance with
2823     Section 53A-15-1506;
2824          (4) identify the appropriate privacy risk mitigation strategy that will be used to ensure
2825     that the [board] State Board of Education only receives notifications for individuals with whom
2826     the State Board of Education maintains an authorizing relationship;
2827          (5) notify the employing LEA or qualifying private school upon receipt of any criminal
2828     history information reported on a licensed educator employed by the LEA or qualifying private
2829     school; and
2830          (6) (a) collect the information described in Subsection (2) from individuals who were
2831     licensed prior to July 1, 2015, by the individual's next license renewal date; and
2832          (b) submit the information to the bureau for ongoing monitoring through registration
2833     with the systems described in Section 53A-15-1505.
2834          Section 40. Section 53A-15-1508 is amended to read:
2835          53A-15-1508. Update criminal background check rules and policies.
2836          On or before September 1, 2015:
2837          (1) the [board] State Board of Education shall update the [board's] State Board of
2838     Education's criminal background check rules consistent with this part; and
2839          (2) an LEA shall update the LEA's criminal background check policies consistent with
2840     this part.
2841          Section 41. Section 53A-15-1509 is amended to read:
2842          53A-15-1509. Training provided to authorized entities.
2843          The [board] State Board of Education shall collaborate with the bureau to provide
2844     training to authorized entities on the provisions of this part.
2845          Section 42. Section 57-8-8.1 is amended to read:
2846          57-8-8.1. Equal treatment by rules required -- Limits on rules.
2847          (1) (a) Except as provided in Subsection (1)(b), a rule shall treat similarly situated unit
2848     owners similarly.

2849          (b) Notwithstanding Subsection (1)(a), a rule may:
2850          (i) vary according to the level and type of service that the association of unit owners
2851     provides to unit owners; and
2852          (ii) differ between residential and nonresidential uses.
2853          (2) (a) If a unit owner owns a rental unit and is in compliance with the association of
2854     unit owners' governing documents and any rule that the association of unit owners adopts under
2855     Subsection (4), a rule may not treat the unit owner differently because the unit owner owns a
2856     rental unit.
2857          (b) Notwithstanding Subsection (2)(a), a rule may:
2858          (i) limit or prohibit a rental unit owner from using the common areas for purposes other
2859     than attending an association meeting or managing the rental unit;
2860          (ii) if the rental unit owner retains the right to use the association of unit owners'
2861     common areas, even occasionally, charge a rental unit owner a fee to use the common areas; or
2862          (iii) include a provision in the association of unit owners' governing documents that:
2863          (A) requires each tenant of a rental unit to abide by the terms of the governing
2864     documents; and
2865          (B) holds the tenant and the rental unit owner jointly and severally liable for a violation
2866     of a provision of the governing documents.
2867          (3) (a) A rule may not interfere with the freedom of a unit owner to determine the
2868     composition of the unit owner's household.
2869          (b) Notwithstanding Subsection (3)(a), an association of unit owners may:
2870          (i) require that all occupants of a dwelling be members of a single housekeeping unit;
2871     or
2872          (ii) limit the total number of occupants permitted in each residential dwelling on the
2873     basis of the residential dwelling's:
2874          (A) size and facilities; and
2875          (B) fair use of the common areas.
2876          (4) Unless contrary to a declaration, a rule may require a minimum lease term.
2877          (5) Unless otherwise provided in the declaration, an association of unit owners may by
2878     rule:
2879          (a) regulate the use, maintenance, repair, replacement, and modification of common

2880     areas;
2881          (b) impose and receive any payment, fee, or charge for:
2882          (i) the use, rental, or operation of the common areas, except limited common areas; and
2883          (ii) a service provided to a unit owner;
2884          (c) impose a charge for a late payment of an assessment; or
2885          (d) provide for the indemnification of the association of unit owners' officers and
2886     [board] management committee consistent with Title 16, Chapter 6a, Utah Revised Nonprofit
2887     Corporation Act.
2888          (6) A rule shall be reasonable.
2889          (7) A declaration, or an amendment to a declaration, may vary any of the requirements
2890     of Subsections (1) through (5), except Subsection (1)(b)(ii).
2891          (8) This section applies to an association of unit owners regardless of when the
2892     association of unit owners is created.
2893          Section 43. Section 57-16a-202 is amended to read:
2894          57-16a-202. Helpline administration.
2895          (1) A helpline is created to assist a resident, a mobile home owner, or a park owner
2896     with disputes related to the act.
2897          (2) The University of Utah S.J. Quinney College of Law shall administer the helpline
2898     in accordance with the provisions of this chapter.
2899          (3) In administering the helpline, the S.J. Quinney College of Law shall:
2900          (a) establish a phone number for the [hotline] helpline; and
2901          (b) create a law clinic that consists of:
2902          (i) a helpline administrator who is employed by the S.J. Quinney College of Law and is
2903     an active member of the Utah State Bar;
2904          (ii) one or more supervised students; and
2905          (iii) if necessary, one or more assisting attorneys.
2906          (4) The helpline administrator, a supervised student, or an assisting attorney shall:
2907          (a) receive and respond to calls made through the helpline;
2908          (b) inform a helpline caller of the rights, responsibilities, and remedies described in the
2909     act;
2910          (c) receive complaints from a helpline caller that allege a violation of the act;

2911          (d) create a record of each call that includes:
2912          (i) whether the caller is a resident, a mobile home owner, or a park owner;
2913          (ii) the subject of the call, including whether the call alleges a violation of the act;
2914          (iii) if the call alleges a violation of the act, information regarding whether the
2915     respondent was contacted;
2916          (iv) the services provided to the caller, if any; and
2917          (v) the outcome of the dispute, if known; and
2918          (e) maintain a record described in Subsection (4)(d) for at least one year after the day
2919     on which the record is created.
2920          (5) The helpline administrator shall, beginning in 2016, on or before November 30 of
2921     each year, submit to the Political Subdivisions Interim Committee a report that, for the 12
2922     months before the day on which the helpline administrator submits the report, states:
2923          (a) the number of calls that the helpline administrator, a supervised student, or an
2924     assisting attorney received through the helpline;
2925          (b) a brief summary of each call, including:
2926          (i) whether a resident, a mobile home owner, or a park owner made the call;
2927          (ii) the subject of the call;
2928          (iii) the nature of any service provided to the caller; and
2929          (iv) the outcome of the matter, if known; and
2930          (c) any recommendations regarding changes to the helpline or the act.
2931          Section 44. Section 58-37-8 is amended to read:
2932          58-37-8. Prohibited acts -- Penalties.
2933          (1) Prohibited acts A -- Penalties:
2934          (a) Except as authorized by this chapter, it is unlawful for any person to knowingly and
2935     intentionally:
2936          (i) produce, manufacture, or dispense, or to possess with intent to produce,
2937     manufacture, or dispense, a controlled or counterfeit substance;
2938          (ii) distribute a controlled or counterfeit substance, or to agree, consent, offer, or
2939     arrange to distribute a controlled or counterfeit substance;
2940          (iii) possess a controlled or counterfeit substance with intent to distribute; or
2941          (iv) engage in a continuing criminal enterprise where:

2942          (A) the person participates, directs, or engages in conduct [which] that results in any
2943     violation of any provision of Title 58, Chapters 37, Utah Controlled Substances Act, 37a, Utah
2944     Drug Paraphernalia Act, 37b, Imitation Controlled Substances Act, 37c, Utah Controlled
2945     Substance Precursor Act, or 37d, Clandestine Drug Lab Act, that is a felony; and
2946          (B) the violation is a part of a continuing series of two or more violations of Title 58,
2947     Chapters 37, Utah Controlled Substances Act, 37a, Utah Drug Paraphernalia Act, 37b,
2948     Imitation Controlled Substances Act, 37c, Utah Controlled Substance Precursor Act, or 37d,
2949     Clandestine Drug Lab Act, on separate occasions that are undertaken in concert with five or
2950     more persons with respect to whom the person occupies a position of organizer, supervisor, or
2951     any other position of management.
2952          (b) Any person convicted of violating Subsection (1)(a) with respect to:
2953          (i) a substance or a counterfeit of a substance classified in Schedule I or II, a controlled
2954     substance analog, or gammahydroxybutyric acid as listed in Schedule III is guilty of a second
2955     degree felony, punishable by imprisonment for not more than 15 years, and upon a second or
2956     subsequent conviction is guilty of a first degree felony;
2957          (ii) a substance or a counterfeit of a substance classified in Schedule III or IV, or
2958     marijuana, or a substance listed in Section 58-37-4.2 is guilty of a third degree felony, and
2959     upon a second or subsequent conviction is guilty of a second degree felony; or
2960          (iii) a substance or a counterfeit of a substance classified in Schedule V is guilty of a
2961     class A misdemeanor and upon a second or subsequent conviction is guilty of a third degree
2962     felony.
2963          (c) Any person who has been convicted of a violation of Subsection (1)(a)(ii) or (iii)
2964     may be sentenced to imprisonment for an indeterminate term as provided by law, but if the trier
2965     of fact finds a firearm as defined in Section 76-10-501 was used, carried, or possessed on his
2966     person or in his immediate possession during the commission or in furtherance of the offense,
2967     the court shall additionally sentence the person convicted for a term of one year to run
2968     consecutively and not concurrently; and the court may additionally sentence the person
2969     convicted for an indeterminate term not to exceed five years to run consecutively and not
2970     concurrently.
2971          (d) Any person convicted of violating Subsection (1)(a)(iv) is guilty of a first degree
2972     felony punishable by imprisonment for an indeterminate term of not less than seven years and

2973     which may be for life. Imposition or execution of the sentence may not be suspended, and the
2974     person is not eligible for probation.
2975          (2) Prohibited acts B -- Penalties:
2976          (a) It is unlawful:
2977          (i) for any person knowingly and intentionally to possess or use a controlled substance
2978     analog or a controlled substance, unless it was obtained under a valid prescription or order,
2979     directly from a practitioner while acting in the course of the person's professional practice, or as
2980     otherwise authorized by this chapter;
2981          (ii) for any owner, tenant, licensee, or person in control of any building, room,
2982     tenement, vehicle, boat, aircraft, or other place knowingly and intentionally to permit them to
2983     be occupied by persons unlawfully possessing, using, or distributing controlled substances in
2984     any of those locations; or
2985          (iii) for any person knowingly and intentionally to possess an altered or forged
2986     prescription or written order for a controlled substance.
2987          (b) Any person convicted of violating Subsection (2)(a)(i) with respect to:
2988          (i) marijuana, if the amount is 100 pounds or more, is guilty of a second degree felony;
2989     or
2990          (ii) a substance classified in Schedule I or II, or a controlled substance analog, is guilty
2991     of a class A misdemeanor on a first or second conviction, and on a third or subsequent
2992     conviction is guilty of a third degree felony.
2993          (c) Upon a person's conviction of a violation of this Subsection (2) subsequent to a
2994     conviction under Subsection (1)(a), that person shall be sentenced to a one degree greater
2995     penalty than provided in this Subsection (2).
2996          (d) Any person who violates Subsection (2)(a)(i) with respect to all other controlled
2997     substances not included in Subsection (2)(b)(i) or (ii), including a substance listed in Section
2998     58-37-4.2, or marijuana, is guilty of a class B misdemeanor. Upon a third conviction the
2999     person is guilty of a class A misdemeanor, and upon a fourth or subsequent conviction the
3000     person is guilty of a third degree felony.
3001          (e) Any person convicted of violating Subsection (2)(a)(i) while inside the exterior
3002     boundaries of property occupied by any correctional facility as defined in Section 64-13-1 or
3003     any public jail or other place of confinement shall be sentenced to a penalty one degree greater

3004     than provided in Subsection (2)(b), and if the conviction is with respect to controlled
3005     substances as listed in:
3006          (i) Subsection (2)(b), the person may be sentenced to imprisonment for an
3007     indeterminate term as provided by law, and:
3008          (A) the court shall additionally sentence the person convicted to a term of one year to
3009     run consecutively and not concurrently; and
3010          (B) the court may additionally sentence the person convicted for an indeterminate term
3011     not to exceed five years to run consecutively and not concurrently; and
3012          (ii) Subsection (2)(d), the person may be sentenced to imprisonment for an
3013     indeterminate term as provided by law, and the court shall additionally sentence the person
3014     convicted to a term of six months to run consecutively and not concurrently.
3015          (f) Any person convicted of violating Subsection (2)(a)(ii) or(iii) is:
3016          (i) on a first conviction, guilty of a class B misdemeanor;
3017          (ii) on a second conviction, guilty of a class A misdemeanor; and
3018          (iii) on a third or subsequent conviction, guilty of a third degree felony.
3019          (g) A person is subject to the penalties under Subsection (2)(h) who, in an offense not
3020     amounting to a violation of Section 76-5-207:
3021          (i) violates Subsection (2)(a)(i) by knowingly and intentionally having in the person's
3022     body any measurable amount of a controlled substance; and
3023          (ii) operates a motor vehicle as defined in Section 76-5-207 in a negligent manner,
3024     causing serious bodily injury as defined in Section 76-1-601 or the death of another.
3025          (h) A person who violates Subsection (2)(g) by having in the person's body:
3026          (i) a controlled substance classified under Schedule I, other than those described in
3027     Subsection (2)(h)(ii), or a controlled substance classified under Schedule II is guilty of a second
3028     degree felony;
3029          (ii) marijuana, tetrahydrocannabinols, or equivalents described in Subsection
3030     58-37-4(2)(a)(iii)(S) or (AA), or a substance listed in Section 58-37-4.2 is guilty of a third
3031     degree felony; or
3032          (iii) any controlled substance classified under Schedules III, IV, or V is guilty of a class
3033     A misdemeanor.
3034          (i) A person is guilty of a separate offense for each victim suffering serious bodily

3035     injury or death as a result of the person's negligent driving in violation of Subsection
3036     58-37-8(2)(g) whether or not the injuries arise from the same episode of driving.
3037          (3) Prohibited acts C -- Penalties:
3038          (a) It is unlawful for any person knowingly and intentionally:
3039          (i) to use in the course of the manufacture or distribution of a controlled substance a
3040     license number which is fictitious, revoked, suspended, or issued to another person or, for the
3041     purpose of obtaining a controlled substance, to assume the title of, or represent oneself to be, a
3042     manufacturer, wholesaler, apothecary, physician, dentist, veterinarian, or other authorized
3043     person;
3044          (ii) to acquire or obtain possession of, to procure or attempt to procure the
3045     administration of, to obtain a prescription for, to prescribe or dispense to any person known to
3046     be attempting to acquire or obtain possession of, or to procure the administration of any
3047     controlled substance by misrepresentation or failure by the person to disclose receiving any
3048     controlled substance from another source, fraud, forgery, deception, subterfuge, alteration of a
3049     prescription or written order for a controlled substance, or the use of a false name or address;
3050          (iii) to make any false or forged prescription or written order for a controlled substance,
3051     or to utter the same, or to alter any prescription or written order issued or written under the
3052     terms of this chapter; or
3053          (iv) to make, distribute, or possess any punch, die, plate, stone, or other thing designed
3054     to print, imprint, or reproduce the trademark, trade name, or other identifying mark, imprint, or
3055     device of another or any likeness of any of the foregoing upon any drug or container or labeling
3056     so as to render any drug a counterfeit controlled substance.
3057          (b) (i) A first or second conviction under Subsection (3)(a)(i), (ii), or (iii) is a class A
3058     misdemeanor.
3059          (ii) A third or subsequent conviction under Subsection (3)(a)(i), (ii), or (iii) is a third
3060     degree felony.
3061          (c) A violation of Subsection (3)(a)(iv) is a third degree felony.
3062          (4) Prohibited acts D -- Penalties:
3063          (a) Notwithstanding other provisions of this section, a person not authorized under this
3064     chapter who commits any act that is unlawful under Subsection (1)(a), Section 58-37a-5, or
3065     Section 58-37b-4 is upon conviction subject to the penalties and classifications under this

3066     Subsection (4) if the trier of fact finds the act is committed:
3067          (i) in a public or private elementary or secondary school or on the grounds of any of
3068     those schools during the hours of 6 a.m. through 10 p.m.;
3069          (ii) in a public or private vocational school or postsecondary institution or on the
3070     grounds of any of those schools or institutions during the hours of 6 a.m. through 10 p.m.;
3071          (iii) in or on the grounds of a preschool or child-care facility during the preschool's or
3072     facility's hours of operation;
3073          (iv) in a public park, amusement park, arcade, or recreation center when the public or
3074     amusement park, arcade, or recreation center is open to the public;
3075          (v) in or on the grounds of a house of worship as defined in Section 76-10-501;
3076          (vi) in or on the grounds of a library when the library is open to the public;
3077          (vii) within any area that is within 100 feet of any structure, facility, or grounds
3078     included in Subsections (4)(a)(i), (ii), (iii), (iv), (v), and (vi);
3079          (viii) in the presence of a person younger than 18 years of age, regardless of where the
3080     act occurs; or
3081          (ix) for the purpose of facilitating, arranging, or causing the transport, delivery, or
3082     distribution of a substance in violation of this section to an inmate or on the grounds of any
3083     correctional facility as defined in Section 76-8-311.3.
3084          (b) (i) A person convicted under this Subsection (4) is guilty of a first degree felony
3085     and shall be imprisoned for a term of not less than five years if the penalty that would
3086     otherwise have been established but for this Subsection (4) would have been a first degree
3087     felony.
3088          (ii) Imposition or execution of the sentence may not be suspended, and the person is
3089     not eligible for probation.
3090          (c) If the classification that would otherwise have been established would have been
3091     less than a first degree felony but for this Subsection (4), a person convicted under this
3092     Subsection (4) is guilty of one degree more than the maximum penalty prescribed for that
3093     offense. This Subsection (4)(c) does not apply to a violation of Subsection (2)(g).
3094          (d) (i) If the violation is of Subsection (4)(a)(ix):
3095          (A) the person may be sentenced to imprisonment for an indeterminate term as
3096     provided by law, and the court shall additionally sentence the person convicted for a term of

3097     one year to run consecutively and not concurrently; and
3098          (B) the court may additionally sentence the person convicted for an indeterminate term
3099     not to exceed five years to run consecutively and not concurrently; and
3100          (ii) the penalties under this Subsection (4)(d) apply also to any person who, acting with
3101     the mental state required for the commission of an offense, directly or indirectly solicits,
3102     requests, commands, coerces, encourages, or intentionally aids another person to commit a
3103     violation of Subsection (4)(a)(ix).
3104          (e) It is not a defense to a prosecution under this Subsection (4) that the actor
3105     mistakenly believed the individual to be 18 years of age or older at the time of the offense or
3106     was unaware of the individual's true age; nor that the actor mistakenly believed that the
3107     location where the act occurred was not as described in Subsection (4)(a) or was unaware that
3108     the location where the act occurred was as described in Subsection (4)(a).
3109          (5) Any violation of this chapter for which no penalty is specified is a class B
3110     misdemeanor.
3111          (6) (a) For purposes of penalty enhancement under Subsections (1) and (2), a plea of
3112     guilty or no contest to a violation or attempted violation of this section or a plea [which] that is
3113     held in abeyance under Title 77, Chapter 2a, Pleas in Abeyance, is the equivalent of a
3114     conviction, even if the charge has been subsequently reduced or dismissed in accordance with
3115     the plea in abeyance agreement.
3116          (b) A prior conviction used for a penalty enhancement under Subsection (2) shall be a
3117     conviction that is:
3118          (i) from a separate criminal episode than the current charge; and
3119          (ii) from a conviction that is separate from any other conviction used to enhance the
3120     current charge.
3121          (7) A person may be charged and sentenced for a violation of this section,
3122     notwithstanding a charge and sentence for a violation of any other section of this chapter.
3123          (8) (a) Any penalty imposed for violation of this section is in addition to, and not in
3124     lieu of, any civil or administrative penalty or sanction authorized by law.
3125          (b) Where violation of this chapter violates a federal law or the law of another state,
3126     conviction or acquittal under federal law or the law of another state for the same act is a bar to
3127     prosecution in this state.

3128          (9) In any prosecution for a violation of this chapter, evidence or proof [which] that
3129     shows a person or persons produced, manufactured, possessed, distributed, or dispensed a
3130     controlled substance or substances, is prima facie evidence that the person or persons did so
3131     with knowledge of the character of the substance or substances.
3132          (10) This section does not prohibit a veterinarian, in good faith and in the course of the
3133     veterinarian's professional practice only and not for humans, from prescribing, dispensing, or
3134     administering controlled substances or from causing the substances to be administered by an
3135     assistant or orderly under the veterinarian's direction and supervision.
3136          (11) Civil or criminal liability may not be imposed under this section on:
3137          (a) any person registered under this chapter who manufactures, distributes, or possesses
3138     an imitation controlled substance for use as a placebo or investigational new drug by a
3139     registered practitioner in the ordinary course of professional practice or research; or
3140          (b) any law enforcement officer acting in the course and legitimate scope of the
3141     officer's employment.
3142          (12) (a) Civil or criminal liability may not be imposed under this section on any Indian,
3143     as defined in Subsection 58-37-2(1)(v), who uses, possesses, or transports peyote for bona fide
3144     traditional ceremonial purposes in connection with the practice of a traditional Indian religion
3145     as defined in Subsection 58-37-2(1)(w).
3146          (b) In a prosecution alleging violation of this section regarding peyote as defined in
3147     Subsection 58-37-4(2)(a)(iii)(V), it is an affirmative defense that the peyote was used,
3148     possessed, or transported by an Indian for bona fide traditional ceremonial purposes in
3149     connection with the practice of a traditional Indian religion.
3150          (c) (i) The defendant shall provide written notice of intent to claim an affirmative
3151     defense under this Subsection (12) as soon as practicable, but not later than 10 days prior to
3152     trial.
3153          (ii) The notice shall include the specific claims of the affirmative defense.
3154          (iii) The court may waive the notice requirement in the interest of justice for good
3155     cause shown, if the prosecutor is not unfairly prejudiced by the lack of timely notice.
3156          (d) The defendant shall establish the affirmative defense under this Subsection (12) by
3157     a preponderance of the evidence. If the defense is established, it is a complete defense to the
3158     charges.

3159          (13) (a) It is an affirmative defense that the person produced, possessed, or
3160     administered a controlled substance listed in Section 58-37-4.2 if the person:
3161          (i) was engaged in medical research; and
3162          (ii) was a holder of a valid license to possess controlled substances under Section
3163     58-37-6.
3164          (b) It is not a defense under Subsection (13)(a) that the person prescribed or dispensed
3165     a controlled substance listed in Section 58-37-4.2.
3166          (14) It is an affirmative defense that the person possessed, in the person's body, a
3167     controlled substance listed in Section 58-37-4.2 if:
3168          (a) the person was the subject of medical research conducted by a holder of a valid
3169     license to possess controlled substances under Section 58-37-6; and
3170          (b) the substance was administered to the person by the medical researcher.
3171          (15) The application of any increase in penalty under this section to a violation of
3172     Subsection (2)(a)(i) may not result in any greater penalty than a second degree felony. This
3173     Subsection (15) takes precedence over any conflicting provision of this section.
3174          (16) (a) It is an affirmative defense to an allegation of the commission of an offense
3175     listed in Subsection (16)(b) that the person:
3176          (i) reasonably believes that the person or another person is experiencing an overdose
3177     event due to the ingestion, injection, inhalation, or other introduction into the human body of a
3178     controlled substance or other substance;
3179          (ii) reports in good faith the overdose event to a medical provider, an emergency
3180     medical service provider as defined in Section 26-8a-102, a law enforcement officer, a 911
3181     emergency call system, or an emergency dispatch system, or the person is the subject of a
3182     report made under this Subsection (16);
3183          (iii) provides in the report under Subsection (16)(a)(ii) a functional description of the
3184     actual location of the overdose event that facilitates responding to the person experiencing the
3185     overdose event;
3186          (iv) remains at the location of the person experiencing the overdose event until a
3187     responding law enforcement officer or emergency medical service provider arrives, or remains
3188     at the medical care facility where the person experiencing an overdose event is located until a
3189     responding law enforcement officer arrives;

3190          (v) cooperates with the responding medical provider, emergency medical service
3191     provider, and law enforcement officer, including providing information regarding the person
3192     experiencing the overdose event and any substances the person may have injected, inhaled, or
3193     otherwise introduced into the person's body; and
3194          (vi) is alleged to have committed the offense in the same course of events from which
3195     the reported overdose arose.
3196          (b) The offenses referred to in Subsection (16)(a) are:
3197          (i) the possession or use of less than 16 ounces of marijuana;
3198          (ii) the possession or use of a scheduled or listed controlled substance other than
3199     marijuana; and
3200          (iii) any violation of Chapter 37a, Utah Drug Paraphernalia Act, or Chapter 37b,
3201     Imitation Controlled Substances Act.
3202          (c) As used in this Subsection (16) and in Section 76-3-203.11, "good faith" does not
3203     include seeking medical assistance under this section during the course of a law enforcement
3204     agency's execution of a search warrant, execution of an arrest warrant, or other lawful search.
3205          (17) If any provision of this chapter, or the application of any provision to any person
3206     or circumstances, is held invalid, the remainder of this chapter shall be given effect without the
3207     invalid provision or application.
3208          (18) A legislative body of a political subdivision may not enact an ordinance that is
3209     less restrictive than any provision of this chapter.
3210          (19) (a) If a minor who is under 18 years of age is found by a court to have violated this
3211     section and the violation is the minor's first violation of this section, the court may:
3212          (i) order the minor to complete a screening as defined in Section 41-6a-501;
3213          (ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the
3214     screening indicates an assessment to be appropriate; and
3215          (iii) order the minor to complete an educational series as defined in Section 41-6a-501
3216     or substance abuse treatment as indicated by an assessment.
3217          (b) If a minor who is under 18 years of age is found by a court to have violated this
3218     section and the violation is the minor's second or subsequent violation of this section, the court
3219     shall:
3220          (i) order the minor to complete a screening as defined in Section 41-6a-501;

3221          (ii) order the minor to complete an assessment as defined in Section 41-6a-501 if the
3222     screening indicates an assessment to be appropriate; and
3223          (iii) order the minor to complete an educational series as defined in Section 41-6a-501
3224     or substance abuse treatment as indicated by an assessment.
3225          Section 45. Section 58-69-801 is amended to read:
3226          58-69-801. Dental hygienist -- Limitations on practice.
3227          A dental hygienist licensed under this chapter may only practice dental hygiene:
3228          (1) in an accredited dental or dental hygienist school to teach and demonstrate the
3229     practice of dental hygiene;
3230          (2) for a public health agency;
3231          (3) under the supervision of a dentist, for an employee leasing company or temporary
3232     personnel service company providing employees to a dentist or other person lawfully providing
3233     dental services:
3234          (a) under the indirect supervision of a dentist licensed under this chapter at any time
3235     the dental hygienist is administering an anesthetic or analgesia as permitted under this chapter
3236     or division rules made under this chapter;
3237          (b) under the general supervision of a dentist licensed under this chapter within the
3238     office of the supervising dentist and upon patients of record of the supervising dentist; and
3239          (c) under the general supervision of a dentist licensed under this chapter, and the
3240     practice is conducted outside of the office of the supervising dentist, if:
3241          (i) the dental hygiene work performed is authorized by the supervising dentist as a part
3242     of and in accordance with the supervising dentist's current treatment plan for the patient;
3243          (ii) no anesthetic or analgesia is used;
3244          (iii) the supervising dentist has determined the patient's general health and oral health
3245     are so that the dental hygiene work can be performed under general supervision and with an
3246     acceptable level of risk or injury as determined by the supervising dentist;
3247          (iv) the supervising dentist accepts responsibility for the dental hygiene work
3248     performed under general supervision; and
3249          (v) (A) the dental hygienist's work is performed on a patient who is homebound or
3250     within a hospital, nursing home, or public health agency or institution; and
3251          (B) the patient is the supervising dentist's patient of record and the dentist has

3252     examined the patient within six months prior to the patient's receiving treatment from a dental
3253     hygienist under this Subsection (3); [and] or
3254          (4) under a written agreement with a dentist who is licensed under this chapter and who
3255     is a Utah resident if:
3256          (a) the dental hygienist practices in a public health setting;
3257          (b) the dentist is available in person, by phone, or by electronic communication;
3258          (c) the agreement provides that the dental hygienist shall refer a patient with a dental
3259     need beyond the dental hygienist's scope of practice to a licensed dentist; and
3260          (d) the dental hygienist obtains from each patient an informed consent form that
3261     provides that treatment by a dental hygienist is not a substitute for a dental examination by a
3262     dentist.
3263          Section 46. Section 58-85-104 is amended to read:
3264          58-85-104. Standard of care -- Medical practitioners not liable -- No private right
3265     of action.
3266          (1) It is not a breach of the applicable standard of care for a physician, other licensed
3267     health care provider, or hospital to treat an eligible patient with an investigational drug or
3268     investigational device under this chapter.
3269          (2) A physician, other licensed health care provider, or hospital that treats an eligible
3270     patient with an investigational drug or investigational device under this chapter may not, for
3271     any harm done to the eligible patient by the investigational drug or device, be subject to:
3272          (a) civil liability;
3273          (b) criminal liability; or
3274          (c) licensure sanctions under:
3275          (i) for a physician:
3276          (A) Title 58, Chapter 67, Utah Medical Practice Act; or
3277          (B) Title 58, Chapter 68, Utah Osteopathic Medical Practice Act;
3278          (ii) for the other licensed health care provider, the act governing the other licensed
3279     health care provider's license; or
3280          (iii) for the hospital, Title 26, Chapter 21, Health Care Facility Licensing and
3281     Inspection Act.
3282          (3) This chapter does not:

3283          (a) require a manufacturer of an investigational drug or investigational device to agree
3284     to make an investigational drug or investigational device available to an eligible patient or an
3285     eligible patient's physician;
3286          (b) require a physician to agree to:
3287          (i) administer an investigational drug to an eligible patient under this chapter; or
3288          (ii) treat an eligible patient with an investigational device under this chapter; or
3289          (c) create a private right of action for an eligible patient:
3290          (i) against a physician or hospital, for the physician's or hospital's refusal to:
3291          (A) administer an investigational drug to an eligible patient under this chapter; or
3292          (B) treat an eligible patient with an investigational device under this chapter; or
3293          (ii) against a manufacturer, for the manufacturer's refusal to provide an eligible patient
3294     with an investigational drug or an investigational device under this chapter.
3295          Section 47. Section 59-12-103 is amended to read:
3296          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
3297     tax revenues.
3298          (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
3299     charged for the following transactions:
3300          (a) retail sales of tangible personal property made within the state;
3301          (b) amounts paid for:
3302          (i) telecommunications service, other than mobile telecommunications service, that
3303     originates and terminates within the boundaries of this state;
3304          (ii) mobile telecommunications service that originates and terminates within the
3305     boundaries of one state only to the extent permitted by the Mobile Telecommunications
3306     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
3307          (iii) an ancillary service associated with a:
3308          (A) telecommunications service described in Subsection (1)(b)(i); or
3309          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
3310          (c) sales of the following for commercial use:
3311          (i) gas;
3312          (ii) electricity;
3313          (iii) heat;

3314          (iv) coal;
3315          (v) fuel oil; or
3316          (vi) other fuels;
3317          (d) sales of the following for residential use:
3318          (i) gas;
3319          (ii) electricity;
3320          (iii) heat;
3321          (iv) coal;
3322          (v) fuel oil; or
3323          (vi) other fuels;
3324          (e) sales of prepared food;
3325          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
3326     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
3327     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
3328     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
3329     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
3330     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
3331     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
3332     horseback rides, sports activities, or any other amusement, entertainment, recreation,
3333     exhibition, cultural, or athletic activity;
3334          (g) amounts paid or charged for services for repairs or renovations of tangible personal
3335     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
3336          (i) the tangible personal property; and
3337          (ii) parts used in the repairs or renovations of the tangible personal property described
3338     in Subsection (1)(g)(i), regardless of whether:
3339          (A) any parts are actually used in the repairs or renovations of that tangible personal
3340     property; or
3341          (B) the particular parts used in the repairs or renovations of that tangible personal
3342     property are exempt from a tax under this chapter;
3343          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
3344     assisted cleaning or washing of tangible personal property;

3345          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
3346     accommodations and services that are regularly rented for less than 30 consecutive days;
3347          (j) amounts paid or charged for laundry or dry cleaning services;
3348          (k) amounts paid or charged for leases or rentals of tangible personal property if within
3349     this state the tangible personal property is:
3350          (i) stored;
3351          (ii) used; or
3352          (iii) otherwise consumed;
3353          (l) amounts paid or charged for tangible personal property if within this state the
3354     tangible personal property is:
3355          (i) stored;
3356          (ii) used; or
3357          (iii) consumed; and
3358          (m) amounts paid or charged for a sale:
3359          (i) (A) of a product transferred electronically; or
3360          (B) of a repair or renovation of a product transferred electronically; and
3361          (ii) regardless of whether the sale provides:
3362          (A) a right of permanent use of the product; or
3363          (B) a right to use the product that is less than a permanent use, including a right:
3364          (I) for a definite or specified length of time; and
3365          (II) that terminates upon the occurrence of a condition.
3366          (2) (a) Except as provided in Subsections (2)(b) through (e), a state tax and a local tax
3367     is imposed on a transaction described in Subsection (1) equal to the sum of:
3368          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
3369          (A) 4.70%; and
3370          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
3371     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
3372     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
3373     State Sales and Use Tax Act; and
3374          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
3375     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211

3376     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
3377     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
3378          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3379     transaction under this chapter other than this part.
3380          (b) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
3381     on a transaction described in Subsection (1)(d) equal to the sum of:
3382          (i) a state tax imposed on the transaction at a tax rate of 2%; and
3383          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3384     transaction under this chapter other than this part.
3385          (c) Except as provided in Subsection (2)(d) or (e), a state tax and a local tax is imposed
3386     on amounts paid or charged for food and food ingredients equal to the sum of:
3387          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
3388     a tax rate of 1.75%; and
3389          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
3390     amounts paid or charged for food and food ingredients under this chapter other than this part.
3391          (d) (i) For a bundled transaction that is attributable to food and food ingredients and
3392     tangible personal property other than food and food ingredients, a state tax and a local tax is
3393     imposed on the entire bundled transaction equal to the sum of:
3394          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
3395          (I) the tax rate described in Subsection (2)(a)(i)(A); and
3396          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
3397     Sales and Use Tax Act, if the location of the transaction as determined under Sections
3398     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
3399     Additional State Sales and Use Tax Act; and
3400          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
3401     Sales and Use Tax Act, if the location of the transaction as determined under Sections
3402     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
3403     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
3404          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
3405     described in Subsection (2)(a)(ii).
3406          (ii) If an optional computer software maintenance contract is a bundled transaction that

3407     consists of taxable and nontaxable products that are not separately itemized on an invoice or
3408     similar billing document, the purchase of the optional computer software maintenance contract
3409     is 40% taxable under this chapter and 60% nontaxable under this chapter.
3410          (iii) Subject to Subsection (2)(d)(iv), for a bundled transaction other than a bundled
3411     transaction described in Subsection (2)(d)(i) or (ii):
3412          (A) if the sales price of the bundled transaction is attributable to tangible personal
3413     property, a product, or a service that is subject to taxation under this chapter and tangible
3414     personal property, a product, or service that is not subject to taxation under this chapter, the
3415     entire bundled transaction is subject to taxation under this chapter unless:
3416          (I) the seller is able to identify by reasonable and verifiable standards the tangible
3417     personal property, product, or service that is not subject to taxation under this chapter from the
3418     books and records the seller keeps in the seller's regular course of business; or
3419          (II) state or federal law provides otherwise; or
3420          (B) if the sales price of a bundled transaction is attributable to two or more items of
3421     tangible personal property, products, or services that are subject to taxation under this chapter
3422     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
3423     higher tax rate unless:
3424          (I) the seller is able to identify by reasonable and verifiable standards the tangible
3425     personal property, product, or service that is subject to taxation under this chapter at the lower
3426     tax rate from the books and records the seller keeps in the seller's regular course of business; or
3427          (II) state or federal law provides otherwise.
3428          (iv) For purposes of Subsection (2)(d)(iii), books and records that a seller keeps in the
3429     seller's regular course of business includes books and records the seller keeps in the regular
3430     course of business for nontax purposes.
3431          (e) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(e)(ii)
3432     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
3433     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
3434     of tangible personal property, other property, a product, or a service that is not subject to
3435     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
3436     the seller, at the time of the transaction:
3437          (A) separately states the portion of the transaction that is not subject to taxation under

3438     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
3439          (B) is able to identify by reasonable and verifiable standards, from the books and
3440     records the seller keeps in the seller's regular course of business, the portion of the transaction
3441     that is not subject to taxation under this chapter.
3442          (ii) A purchaser and a seller may correct the taxability of a transaction if:
3443          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
3444     the transaction that is not subject to taxation under this chapter was not separately stated on an
3445     invoice, bill of sale, or similar document provided to the purchaser because of an error or
3446     ignorance of the law; and
3447          (B) the seller is able to identify by reasonable and verifiable standards, from the books
3448     and records the seller keeps in the seller's regular course of business, the portion of the
3449     transaction that is not subject to taxation under this chapter.
3450          (iii) For purposes of Subsections (2)(e)(i) and (ii), books and records that a seller keeps
3451     in the seller's regular course of business includes books and records the seller keeps in the
3452     regular course of business for nontax purposes.
3453          (f) (i) If the sales price of a transaction is attributable to two or more items of tangible
3454     personal property, products, or services that are subject to taxation under this chapter at
3455     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
3456     unless the seller, at the time of the transaction:
3457          (A) separately states the items subject to taxation under this chapter at each of the
3458     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
3459          (B) is able to identify by reasonable and verifiable standards the tangible personal
3460     property, product, or service that is subject to taxation under this chapter at the lower tax rate
3461     from the books and records the seller keeps in the seller's regular course of business.
3462          (ii) For purposes of Subsection (2)(f)(i), books and records that a seller keeps in the
3463     seller's regular course of business includes books and records the seller keeps in the regular
3464     course of business for nontax purposes.
3465          (g) Subject to Subsections (2)(h) and (i), a tax rate repeal or tax rate change for a tax
3466     rate imposed under the following shall take effect on the first day of a calendar quarter:
3467          (i) Subsection (2)(a)(i)(A);
3468          (ii) Subsection (2)(b)(i);

3469          (iii) Subsection (2)(c)(i); or
3470          (iv) Subsection (2)(d)(i)(A)(I).
3471          (h) (i) A tax rate increase takes effect on the first day of the first billing period that
3472     begins on or after the effective date of the tax rate increase if the billing period for the
3473     transaction begins before the effective date of a tax rate increase imposed under:
3474          (A) Subsection (2)(a)(i)(A);
3475          (B) Subsection (2)(b)(i);
3476          (C) Subsection (2)(c)(i); or
3477          (D) Subsection (2)(d)(i)(A)(I).
3478          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
3479     statement for the billing period is rendered on or after the effective date of the repeal of the tax
3480     or the tax rate decrease imposed under:
3481          (A) Subsection (2)(a)(i)(A);
3482          (B) Subsection (2)(b)(i);
3483          (C) Subsection (2)(c)(i); or
3484          (D) Subsection (2)(d)(i)(A)(I).
3485          (i) (i) For a tax rate described in Subsection (2)(i)(ii), if a tax due on a catalogue sale is
3486     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
3487     change in a tax rate takes effect:
3488          (A) on the first day of a calendar quarter; and
3489          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
3490          (ii) Subsection (2)(i)(i) applies to the tax rates described in the following:
3491          (A) Subsection (2)(a)(i)(A);
3492          (B) Subsection (2)(b)(i);
3493          (C) Subsection (2)(c)(i); or
3494          (D) Subsection (2)(d)(i)(A)(I).
3495          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
3496     the commission may by rule define the term "catalogue sale."
3497          (3) (a) The following state taxes shall be deposited into the General Fund:
3498          (i) the tax imposed by Subsection (2)(a)(i)(A);
3499          (ii) the tax imposed by Subsection (2)(b)(i);

3500          (iii) the tax imposed by Subsection (2)(c)(i); or
3501          (iv) the tax imposed by Subsection (2)(d)(i)(A)(I).
3502          (b) The following local taxes shall be distributed to a county, city, or town as provided
3503     in this chapter:
3504          (i) the tax imposed by Subsection (2)(a)(ii);
3505          (ii) the tax imposed by Subsection (2)(b)(ii);
3506          (iii) the tax imposed by Subsection (2)(c)(ii); and
3507          (iv) the tax imposed by Subsection (2)(d)(i)(B).
3508          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
3509     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
3510     through (g):
3511          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
3512          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
3513          (B) for the fiscal year; or
3514          (ii) $17,500,000.
3515          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
3516     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
3517     Department of Natural Resources to:
3518          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
3519     protect sensitive plant and animal species; or
3520          (B) award grants, up to the amount authorized by the Legislature in an appropriations
3521     act, to political subdivisions of the state to implement the measures described in Subsections
3522     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
3523          (ii) Money transferred to the Department of Natural Resources under Subsection
3524     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
3525     person to list or attempt to have listed a species as threatened or endangered under the
3526     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
3527          (iii) At the end of each fiscal year:
3528          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
3529     Conservation and Development Fund created in Section 73-10-24;
3530          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan

3531     Program Subaccount created in Section 73-10c-5; and
3532          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
3533     Program Subaccount created in Section 73-10c-5.
3534          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
3535     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
3536     created in Section 4-18-106.
3537          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
3538     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
3539     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
3540     water rights.
3541          (ii) At the end of each fiscal year:
3542          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
3543     Conservation and Development Fund created in Section 73-10-24;
3544          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
3545     Program Subaccount created in Section 73-10c-5; and
3546          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
3547     Program Subaccount created in Section 73-10c-5.
3548          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
3549     in Subsection (4)(a) shall be deposited [in] into the Water Resources Conservation and
3550     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
3551          (ii) In addition to the uses allowed of the Water Resources Conservation and
3552     Development Fund under Section 73-10-24, the Water Resources Conservation and
3553     Development Fund may also be used to:
3554          (A) conduct hydrologic and geotechnical investigations by the Division of Water
3555     Resources in a cooperative effort with other state, federal, or local entities[,] for the purpose of
3556     quantifying surface and ground water resources and describing the hydrologic systems of an
3557     area in sufficient detail so as to enable local and state resource managers to plan for and
3558     accommodate growth in water use without jeopardizing the resource;
3559          (B) fund state required dam safety improvements; and
3560          (C) protect the state's interest in interstate water compact allocations, including the
3561     hiring of technical and legal staff.

3562          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
3563     in Subsection (4)(a) shall be deposited [in] into the Utah Wastewater Loan Program
3564     Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater
3565     projects.
3566          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
3567     in Subsection (4)(a) shall be deposited [in] into the Drinking Water Loan Program Subaccount
3568     created in Section 73-10c-5 for use by the Division of Drinking Water to:
3569          (i) provide for the installation and repair of collection, treatment, storage, and
3570     distribution facilities for any public water system, as defined in Section 19-4-102;
3571          (ii) develop underground sources of water, including springs and wells; and
3572          (iii) develop surface water sources.
3573          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
3574     2006, the difference between the following amounts shall be expended as provided in this
3575     Subsection (5), if that difference is greater than $1:
3576          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
3577     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
3578          (ii) $17,500,000.
3579          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
3580          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
3581     credits; and
3582          (B) expended by the Department of Natural Resources for watershed rehabilitation or
3583     restoration.
3584          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
3585     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
3586     created in Section 73-10-24.
3587          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
3588     remaining difference described in Subsection (5)(a) shall be:
3589          (A) transferred each fiscal year to the Division of Water Resources as dedicated
3590     credits; and
3591          (B) expended by the Division of Water Resources for cloud-seeding projects
3592     authorized by Title 73, Chapter 15, Modification of Weather.

3593          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
3594     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
3595     created in Section 73-10-24.
3596          (d) After making the transfers required by Subsections (5)(b) and (c), 94% of the
3597     remaining difference described in Subsection (5)(a) shall be deposited into the Water
3598     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
3599     Division of Water Resources for:
3600          (i) preconstruction costs:
3601          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
3602     26, Bear River Development Act; and
3603          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
3604     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
3605          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
3606     Chapter 26, Bear River Development Act;
3607          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
3608     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
3609          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
3610     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
3611          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
3612     Subsection (5)(f), 6% of the remaining difference described in Subsection (5)(a) shall be
3613     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
3614     incurred for employing additional technical staff for the administration of water rights.
3615          (f) At the end of each fiscal year, any unexpended dedicated credits described in
3616     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
3617     Fund created in Section 73-10-24.
3618          (6) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
3619     2003, and for taxes listed under Subsection (3)(a), the amount of revenue generated by a 1/16%
3620     tax rate on the transactions described in Subsection (1) for the fiscal year shall be deposited [in]
3621     into the Transportation Fund created by Section 72-2-102.
3622          (7) Notwithstanding Subsection (3)(a), beginning on July 1, 2012, the Division of
3623     Finance shall deposit into the Transportation Investment Fund of 2005 created in Section

3624     72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
3625     by a 1/64% tax rate on the taxable transactions under Subsection (1).
3626          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
3627     Subsection (7), and subject to Subsection (8)(b), for a fiscal year beginning on or after July 1,
3628     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
3629     created by Section 72-2-124:
3630          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
3631     the revenues collected from the following taxes, which represents a portion of the
3632     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
3633     on vehicles and vehicle-related products:
3634          (A) the tax imposed by Subsection (2)(a)(i)(A);
3635          (B) the tax imposed by Subsection (2)(b)(i);
3636          (C) the tax imposed by Subsection (2)(c)(i); and
3637          (D) the tax imposed by Subsection (2)(d)(i)(A)(I); plus
3638          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
3639     current fiscal year from the sales and use taxes described in Subsections (8)(a)(i)(A) through
3640     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
3641     (8)(a)(i)(A) through (D) in the 2010-11 fiscal year.
3642          (b) (i) Subject to Subsections (8)(b)(ii) and (iii), in any fiscal year that the portion of
3643     the sales and use taxes deposited under Subsection (8)(a) represents an amount that is a total
3644     lower percentage of the sales and use taxes described in Subsections (8)(a)(i)(A) through (D)
3645     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
3646     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
3647     (8)(a) equal to the product of:
3648          (A) the total percentage of sales and use taxes deposited under Subsection (8)(a) in the
3649     previous fiscal year; and
3650          (B) the total sales and use tax revenue generated by the taxes described in Subsections
3651     (8)(a)(i)(A) through (D) in the current fiscal year.
3652          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
3653     Subsection (8)(a) would exceed 17% of the revenues collected from the sales and use taxes
3654     described in Subsections (8)(a)(i)(A) through (D) in the current fiscal year, the Division of

3655     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
3656     Subsections (8)(a)(i)(A) through (D) for the current fiscal year under Subsection (8)(a).
3657          (iii) In all subsequent fiscal years after a year in which 17% of the revenues collected
3658     from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) was deposited
3659     under Subsection (8)(a), the Division of Finance shall annually deposit 17% of the revenues
3660     collected from the sales and use taxes described in Subsections (8)(a)(i)(A) through (D) in the
3661     current fiscal year under Subsection (8)(a).
3662          (9) Notwithstanding Subsection (3)(a), and in addition to the amounts deposited under
3663     Subsections (7) and (8), for a fiscal year beginning on or after July 1, 2012, the Division of
3664     Finance shall annually deposit $90,000,000 of the revenues generated by the taxes listed under
3665     Subsection (3)(a) into the Transportation Investment Fund of 2005 created by Section
3666     72-2-124.
3667          (10) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
3668     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
3669     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
3670          (11) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (11)(b),
3671     and in addition to any amounts deposited under Subsections (7), (8), and (9), beginning on July
3672     1, 2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005
3673     created by Section 72-2-124 the amount of tax revenue generated by a .025% tax rate on the
3674     transactions described in Subsection (1).
3675          (b) For purposes of Subsection (11)(a), the Division of Finance may not deposit into
3676     the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
3677     charged for food and food ingredients, except for tax revenue generated by a bundled
3678     transaction attributable to food and food ingredients and tangible personal property other than
3679     food and food ingredients described in Subsection (2)(d).
3680          (12) (a) Notwithstanding Subsection (3)(a), and except as provided in Subsection
3681     (12)(b), beginning on January 1, 2009, the Division of Finance shall deposit into the
3682     Transportation Fund created by Section 72-2-102 the amount of tax revenue generated by a
3683     .025% tax rate on the transactions described in Subsection (1) to be expended to address
3684     chokepoints in construction management.
3685          (b) For purposes of Subsection (12)(a), the Division of Finance may not deposit into

3686     the Transportation Fund any tax revenue generated by amounts paid or charged for food and
3687     food ingredients, except for tax revenue generated by a bundled transaction attributable to food
3688     and food ingredients and tangible personal property other than food and food ingredients
3689     described in Subsection (2)(d).
3690          (13) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
3691     fiscal year during which the Division of Finance receives notice under Subsection
3692     63N-2-510[(3)](2) that construction on a qualified hotel, as defined in Section 63N-2-502, has
3693     begun, the Division of Finance shall, for two consecutive fiscal years, annually deposit
3694     $1,900,000 of the revenue generated by the taxes listed under Subsection (3)(a) into the Hotel
3695     Impact Mitigation Fund, created in Section 63N-2-512.
3696          (14) Notwithstanding Subsections (4) through (13), an amount required to be expended
3697     or deposited in accordance with Subsections (4) through (13) may not include an amount the
3698     Division of Finance deposits in accordance with Section 59-12-103.2.
3699          Section 48. Section 59-12-2218 is amended to read:
3700          59-12-2218. County, city, or town option sales and use tax for airports, highways,
3701     and systems for public transit -- Base -- Rate -- Administration of sales and use tax --
3702     Voter approval exception.
3703          (1) Subject to the other provisions of this part, the following may impose a sales and
3704     use tax under this section:
3705          (a) if, on April 1, 2009, a county legislative body of a county of the second class
3706     imposes a sales and use tax under this section, the county legislative body of the county of the
3707     second class may impose the sales and use tax on the transactions:
3708          (i) described in Subsection 59-12-103(1); and
3709          (ii) within the county, including the cities and towns within the county; or
3710          (b) if, on April 1, 2009, a county legislative body of a county of the second class does
3711     not impose a sales and use tax under this section:
3712          (i) a city legislative body of a city within the county of the second class may impose a
3713     sales and use tax under this section on the transactions described in Subsection 59-12-103(1)
3714     within that city;
3715          (ii) a town legislative body of a town within the county of the second class may impose
3716     a sales and use tax under this section on the transactions described in Subsection 59-12-103(1)

3717     within that town; and
3718          (iii) the county legislative body of the county of the second class may impose a sales
3719     and use tax on the transactions described in Subsection 59-12-103(1):
3720          (A) within the county, including the cities and towns within the county, if on the date
3721     the county legislative body provides the notice described in Section 59-12-2209 to the
3722     commission stating that the county will enact a sales and use tax under this section, no city or
3723     town within that county imposes a sales and use tax under this section or has provided the
3724     notice described in Section 59-12-2209 to the commission stating that the city or town will
3725     enact a sales and use tax under this section; or
3726          (B) within the county, except for within a city or town within that county, if, on the
3727     date the county legislative body provides the notice described in Section 59-12-2209 to the
3728     commission stating that the county will enact a sales and use tax under this section, that city or
3729     town imposes a sales and use tax under this section or has provided the notice described in
3730     Section 59-12-2209 to the commission stating that the city or town will enact a sales and use
3731     tax under this section.
3732          (2) For purposes of Subsection (1) and subject to the other provisions of this section, a
3733     county, city, or town legislative body that imposes a sales and use tax under this section may
3734     impose the tax at a rate of:
3735          (a) .10%; or
3736          (b) .25%.
3737          (3) A sales and use tax imposed at a rate described in Subsection (2)(a) shall be
3738     expended as determined by the county, city, or town legislative body as follows:
3739          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
3740     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
3741     Section 72-2-121.2;
3742          (b) expended for a project or service relating to an airport facility for the portion of the
3743     project or service that is performed within the county, city, or town within which the tax is
3744     imposed:
3745          (i) for a county legislative body that imposes the sales and use tax, if that airport
3746     facility is part of the regional transportation plan of the area metropolitan planning organization
3747     if a metropolitan planning organization exists for the area; or

3748          (ii) for a city or town legislative body that imposes the sales and use tax, if:
3749          (A) that city or town owns or operates the airport facility; and
3750          (B) an airline is headquartered in that city or town; or
3751          (c) deposited or expended for a combination of Subsections (3)(a) and (b).
3752          (4) Subject to Subsections (5) through (7), a sales and use tax imposed at a rate
3753     described in Subsection (2)(b) shall be expended as determined by the county, city, or town
3754     legislative body as follows:
3755          (a) deposited as provided in Subsection (9)(b) into the County of the Second Class
3756     State Highway Projects Fund created by Section 72-2-121.2 and expended as provided in
3757     Section 72-2-121.2;
3758          (b) expended for:
3759          (i) a state highway designated under Title 72, Chapter 4, Part 1, State Highways;
3760          (ii) a local highway that is a principal arterial highway, minor arterial highway, major
3761     collector highway, or minor collector road; or
3762          (iii) a combination of Subsections (4)(b)(i) and (ii);
3763          (c) expended for a project or service relating to a system for public transit for the
3764     portion of the project or service that is performed within the county, city, or town within which
3765     the sales and use tax is imposed;
3766          (d) expended for a project or service relating to an airport facility for the portion of the
3767     project or service that is performed within the county, city, or town within which the sales and
3768     use tax is imposed:
3769          (i) for a county legislative body that imposes the sales and use tax, if that airport
3770     facility is part of the regional transportation plan of the area metropolitan planning organization
3771     if a metropolitan planning organization exists for the area; or
3772          (ii) for a city or town legislative body that imposes the sales and use tax, if:
3773          (A) that city or town owns or operates the airport facility; and
3774          (B) an airline is headquartered in that city or town;
3775          (e) expended for:
3776          (i) a class B road, as defined in Section 72-3-103;
3777          (ii) a class C road, as defined in Section 72-3-104; or
3778          (iii) a combination of Subsections (4)(e)(i) and (ii);

3779          (f) expended for traffic and pedestrian safety, including:
3780          (i) for a class B road, as defined in Section 72-3-103, or class C road, as defined in
3781     Section 72-3-104, for:
3782          (A) a sidewalk;
3783          (B) curb and gutter;
3784          (C) a safety feature;
3785          (D) a traffic sign;
3786          (E) a traffic signal;
3787          (F) street lighting; or
3788          (G) a combination of Subsections (4)(f)(i)(A) through (F);
3789          (ii) the construction of an active transportation facility that:
3790          (A) is for nonmotorized vehicles and multimodal transportation; and
3791          (B) connects an origin with a destination; or
3792          (iii) a combination of Subsections (4)(f)(i) and (ii); or
3793          (g) deposited or expended for a combination of Subsections (4)(a) through (f).
3794          (5) A county, city, or town legislative body may not expend revenue collected within a
3795     county, city, or town from a tax under this [part] section for a purpose described in Subsections
3796     (4)(b) through (f) unless the purpose is recommended by:
3797          (a) for a county that is part of a metropolitan planning organization, the metropolitan
3798     planning organization of which the county is a part; or
3799          (b) for a county that is not part of a metropolitan planning organization, the council of
3800     governments of which the county is a part.
3801          (6) (a) (i) Except as provided in Subsection (6)(b), a county, city, or town that imposes
3802     a tax described in Subsection (2)(b) shall deposit the revenue collected from a tax rate of .05%
3803     as provided in Subsection (9)(b)(i) into the Local Transportation Corridor Preservation Fund
3804     created by Section 72-2-117.5.
3805          (ii) Revenue deposited in accordance with Subsection (6)(a)(i) shall be expended and
3806     distributed in accordance with Section 72-2-117.5.
3807          (b) A county, city, or town is not required to make the deposit required by Subsection
3808     (6)(a)(i) if the county, city, or town:
3809          (i) imposed a tax described in Subsection (2)(b) on July 1, 2010; or

3810          (ii) has continuously imposed a tax described in Subsection (2)(b):
3811          (A) beginning after July 1, 2010; and
3812          (B) for a five-year period.
3813          (7) (a) Subject to the other provisions of this Subsection (7), a city or town within
3814     which a sales and use tax is imposed at the tax rate described in Subsection (2)(b) may:
3815          (i) expend the revenues in accordance with Subsection (4); or
3816          (ii) expend the revenues in accordance with Subsections (7)(b) through (d) if:
3817          (A) that city or town owns or operates an airport facility; and
3818          (B) an airline is headquartered in that city or town.
3819          (b) (i) A city or town legislative body of a city or town within which a sales and use tax
3820     is imposed at the tax rate described in Subsection (2)(b) may expend the revenues collected
3821     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
3822     .25% for a purpose described in Subsection (7)(b)(ii) if:
3823          (A) that city or town owns or operates an airport facility; and
3824          (B) an airline is headquartered in that city or town.
3825          (ii) A city or town described in Subsection (7)(b)(i) may expend the revenues collected
3826     from a tax rate of greater than .10% but not to exceed the revenues collected from a tax rate of
3827     .25% for:
3828          (A) a project or service relating to the airport facility; and
3829          (B) the portion of the project or service that is performed within the city or town
3830     imposing the sales and use tax.
3831          (c) If a city or town legislative body described in Subsection (7)(b)(i) determines to
3832     expend the revenues collected from a tax rate of greater than .10% but not to exceed the
3833     revenues collected from a tax rate of .25% for a project or service relating to an airport facility
3834     as allowed by Subsection (7)(b), any remaining revenue that is collected from the sales and use
3835     tax imposed at the tax rate described in Subsection (2)(b) that is not expended for the project or
3836     service relating to an airport facility as allowed by Subsection (7)(b) shall be expended as
3837     follows:
3838          (i) 75% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
3839     into the County of the Second Class State Highway Projects Fund created by Section
3840     72-2-121.2 and expended as provided in Section 72-2-121.2; and

3841          (ii) 25% of the remaining revenues shall be deposited as provided in Subsection (9)(c)
3842     into the Local Transportation Corridor Preservation Fund created by Section 72-2-117.5 and
3843     expended and distributed in accordance with Section 72-2-117.5.
3844          (d) A city or town legislative body that expends the revenues collected from a sales and
3845     use tax imposed at the tax rate described in Subsection (2)(b) in accordance with Subsections
3846     (7)(b) and (c):
3847          (i) shall, on or before the date the city or town legislative body provides the notice
3848     described in Section 59-12-2209 to the commission stating that the city or town will enact a
3849     sales and use tax under this section:
3850          (A) determine the tax rate, the percentage of which is greater than .10% but does not
3851     exceed .25%, the collections from which the city or town legislative body will expend for a
3852     project or service relating to an airport facility as allowed by Subsection (7)(b); and
3853          (B) notify the commission in writing of the tax rate the city or town legislative body
3854     determines in accordance with Subsection (7)(d)(i)(A);
3855          (ii) shall, on or before the April 1 immediately following the date the city or town
3856     legislative body provides the notice described in Subsection (7)(d)(i) to the commission:
3857          (A) determine the tax rate, the percentage of which is greater than .10% but does not
3858     exceed .25%, the collections from which the city or town legislative body will expend for a
3859     project or service relating to an airport facility as allowed by Subsection (7)(b); and
3860          (B) notify the commission in writing of the tax rate the city or town legislative body
3861     determines in accordance with Subsection (7)(d)(ii)(A);
3862          (iii) shall, on or before April 1 of each year after the April 1 described in Subsection
3863     (7)(d)(ii):
3864          (A) determine the tax rate, the percentage of which is greater than .10% but does not
3865     exceed .25%, the collections from which the city or town legislative body will expend for a
3866     project or service relating to an airport facility as allowed by Subsection (7)(b); and
3867          (B) notify the commission in writing of the tax rate the city or town legislative body
3868     determines in accordance with Subsection (7)(d)(iii)(A); and
3869          (iv) may not change the tax rate the city or town legislative body determines in
3870     accordance with Subsections (7)(d)(i) through (iii) more frequently than as prescribed by
3871     Subsections (7)(d)(i) through (iii).

3872          (8) Before a city or town legislative body may impose a sales and use tax under this
3873     section, the city or town legislative body shall provide a copy of the notice described in Section
3874     59-12-2209 that the city or town legislative body provides to the commission:
3875          (a) to the county legislative body within which the city or town is located; and
3876          (b) at the same time as the city or town legislative body provides the notice to the
3877     commission.
3878          (9) (a) Subject to Subsections (9)(b) through (e) and Section 59-12-2207, the
3879     commission shall transmit revenues collected within a county, city, or town from a tax under
3880     this part that will be expended for a purpose described in Subsection (3)(b) or Subsections
3881     (4)(b) through (f) to the county, city, or town legislative body in accordance with Section
3882     59-12-2206.
3883          (b) Except as provided in Subsection (9)(c) and subject to Section 59-12-2207, the
3884     commission shall deposit revenues collected within a county, city, or town from a sales and use
3885     tax under this section that:
3886          (i) are required to be expended for a purpose described in Subsection (6)(a) into the
3887     Local Transportation Corridor Preservation Fund created by Section 72-2-117.5; or
3888          (ii) a county, city, or town legislative body determines to expend for a purpose
3889     described in Subsection (3)(a) or (4)(a) into the County of the Second Class State Highway
3890     Projects Fund created by Section 72-2-121.2 if the county, city, or town legislative body
3891     provides written notice to the commission requesting the deposit.
3892          (c) Subject to Subsection (9)(d) or (e), if a city or town legislative body provides notice
3893     to the commission in accordance with Subsection (7)(d), the commission shall:
3894          (i) transmit the revenues collected from the tax rate stated on the notice to the city or
3895     town legislative body monthly by electronic funds transfer; and
3896          (ii) deposit any remaining revenues described in Subsection (7)(c) in accordance with
3897     Subsection (7)(c).
3898          (d) (i) If a city or town legislative body provides the notice described in Subsection
3899     (7)(d)(i) to the commission, the commission shall transmit or deposit the revenues collected
3900     from the sales and use tax:
3901          (A) in accordance with Subsection (9)(c);
3902          (B) beginning on the date the city or town legislative body enacts the sales and use tax;

3903     and
3904          (C) ending on the earlier of the June 30 immediately following the date the city or town
3905     legislative body provides the notice described in Subsection (7)(d)(ii) to the commission or the
3906     date the city or town legislative body repeals the sales and use tax.
3907          (ii) If a city or town legislative body provides the notice described in Subsection
3908     (7)(d)(ii) or (iii) to the commission, the commission shall transmit or deposit the revenues
3909     collected from the sales and use tax:
3910          (A) in accordance with Subsection (9)(c);
3911          (B) beginning on the July 1 immediately following the date the city or town legislative
3912     body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission; and
3913          (C) ending on the earlier of the June 30 of the year after the date the city or town
3914     legislative body provides the notice described in Subsection (7)(d)(ii) or (iii) to the commission
3915     or the date the city or town legislative body repeals the sales and use tax.
3916          (e) (i) If a city or town legislative body that is required to provide the notice described
3917     in Subsection (7)(d)(i) does not provide the notice described in Subsection (7)(d)(i) to the
3918     commission on or before the date required by Subsection (7)(d) for providing the notice, the
3919     commission shall transmit, transfer, or deposit the revenues collected from the sales and use
3920     tax within the city or town in accordance with Subsections (9)(a) and (b).
3921          (ii) If a city or town legislative body that is required to provide the notice described in
3922     Subsection (7)(d)(ii) or (iii) does not provide the notice described in Subsection (7)(d)(ii) or
3923     (iii) to the commission on or before the date required by Subsection (7)(d) for providing the
3924     notice, the commission shall transmit or deposit the revenues collected from the sales and use
3925     tax within the city or town in accordance with:
3926          (A) Subsection (9)(c); and
3927          (B) the most recent notice the commission received from the city or town legislative
3928     body under Subsection (7)(d).
3929          Section 49. Section 59-22-202 is amended to read:
3930          59-22-202. Definitions.
3931          As used in this part:
3932          (1) "Adjusted for inflation" means increased in accordance with the formula for
3933     inflation adjustment set forth in Exhibit C to the Master Settlement Agreement.

3934          (2) "Affiliate" means a person who directly or indirectly owns or controls, is owned or
3935     controlled by, or is under common ownership or control with, another person. Solely for
3936     purposes of this definition, the terms "owns," "is owned" and "ownership" mean ownership of
3937     an equity interest, or the equivalent thereof, of 10% or more, and the term "person" means an
3938     individual, partnership, committee, association, corporation, or any other organization or group
3939     of persons.
3940          (3) "Allocable share" means Allocable Share as that term is defined in the Master
3941     Settlement Agreement.
3942          (4) "Cigarette" means any product that contains nicotine, is intended to be burned or
3943     heated under ordinary conditions of use, and consists of or contains:
3944          (a) any roll of tobacco wrapped in paper or in any substance not containing tobacco; or
3945          (b) tobacco, in any form, that is functional in the product, which, because of its
3946     appearance, the type of tobacco used in the filler, or its packaging and labeling, is likely to be
3947     offered to, or purchased by, consumers as a cigarette; or
3948          (c) any roll of tobacco wrapped in any substance containing tobacco [which] that,
3949     because of its appearance, the type of tobacco used in the filler, or its packaging and labeling, is
3950     likely to be offered to, or purchased by, consumers as a cigarette described in clause (a) of this
3951     definition. The term "cigarette" includes "roll-your-own" (i.e., any tobacco [which] that,
3952     because of its appearance, type, packaging, or labeling is suitable for use and likely to be
3953     offered to, or purchased by, consumers as tobacco for making cigarettes). For purposes of this
3954     definition of "cigarette," 0.09 ounces of "roll-your-own" tobacco shall constitute one individual
3955     "cigarette."
3956          (5) "Master Settlement Agreement" means the settlement agreement (and related
3957     documents) entered into on November 23, 1998, by the State and leading United States tobacco
3958     product manufacturers.
3959          (6) "Qualified escrow fund" means an escrow arrangement with a federally or State
3960     chartered financial institution having no affiliation with any tobacco product manufacturer and
3961     having assets of at least $1,000,000,000 where such arrangement requires that such financial
3962     institution hold the escrowed funds' principal for the benefit of releasing parties and prohibits
3963     the tobacco product manufacturer placing the funds into escrow from using, accessing, or
3964     directing the use of the funds' principal except as consistent with Subsection 59-22-203(2).

3965          (7) "Released claims" means Released Claims as that term is defined in the Master
3966     Settlement Agreement.
3967          (8) "Releasing parties" means Releasing Parties as that term is defined in the Master
3968     Settlement Agreement.
3969          (9) (a) "Tobacco product manufacturer" means an entity that after the date of enactment
3970     of this Act directly (and not exclusively through any affiliate):
3971          (i) manufactures cigarettes anywhere that such manufacturer intends to be sold in the
3972     United States, including cigarettes intended to be sold in the United States through an importer
3973     (except where such importer is an original participating manufacturer (as that term is defined in
3974     the Master Settlement Agreement) that will be responsible for the payments under the Master
3975     Settlement Agreement with respect to such cigarettes as a result of the provisions of Subsection
3976     II(mm) of the Master Settlement Agreement and that pays the taxes specified in Subsection
3977     II(z) of the Master Settlement Agreement, and provided that the manufacturer of such
3978     cigarettes does not market or advertise such cigarettes in the United States);
3979          (ii) is the first purchaser anywhere for resale in the United States of cigarettes
3980     manufactured anywhere that the manufacturer does not intend to be sold in the United States;
3981     or
3982          (iii) becomes a successor of an entity described in Subsection (9)(a)(i) or (ii).
3983          (b) "Tobacco product manufacturer" shall not include an affiliate of a tobacco product
3984     manufacturer unless such affiliate itself falls within any Subsection (9)(a)(i) through (iii).
3985          (10) "Units sold" means the number of individual cigarettes sold in the State by the
3986     applicable tobacco product manufacturer (whether directly or through a distributor, retailer or
3987     similar intermediary or intermediaries) during the year in question, as measured by excise taxes
3988     collected by the State on packs (or "roll-your-own" tobacco containers). The State Tax
3989     Commission shall promulgate such regulations as are necessary to ascertain the amount of
3990     State excise tax paid on the cigarettes of such tobacco product manufacturer for each year.
3991          Section 50. Section 62A-2-121 is amended to read:
3992          62A-2-121. Access to abuse and neglect information.
3993          (1) For purposes of this section:
3994          (a) "Direct service worker" means the same as that term is defined in Section
3995     62A-5-101.

3996          (b) "Personal care attendant" means the same as that term is defined in Section
3997     62A-3-101.
3998          (2) With respect to a licensee, [a certified local inspector applicant,] a direct service
3999     worker, or a personal care attendant, the department may access only the Licensing Information
4000     System of the Division of Child and Family Services created by Section 62A-4a-1006 and
4001     juvenile court records under Subsection 78A-6-323(6), for the purpose of:
4002          (a) (i) determining whether a person associated with a licensee, with direct access to
4003     children:
4004          (A) is listed in the Licensing Information System; or
4005          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4006     neglect under Subsections 78A-6-323(1) and (2); and
4007          (ii) informing a licensee that a person associated with the licensee:
4008          (A) is listed in the Licensing Information System; or
4009          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4010     neglect under Subsections 78A-6-323(1) and (2);
4011          [(b) (i) determining whether a certified local inspector applicant:]
4012          [(A) is listed in the Licensing Information System; or]
4013          [(B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4014     neglect under Subsections 78A-6-323(1) and (2); and]
4015          [(ii) informing a local government that a certified local inspector applicant:]
4016          [(A) is listed in the Licensing Information System; or]
4017          [(B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4018     neglect under Subsections 78A-6-323(1) and (2);]
4019          [(c)] (b) (i) determining whether a direct service worker:
4020          (A) is listed in the Licensing Information System; or
4021          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4022     neglect under Subsections 78A-6-323(1) and (2); and
4023          (ii) informing a direct service worker or the direct service worker's employer that the
4024     direct service worker:
4025          (A) is listed in the Licensing Information System; or
4026          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or

4027     neglect under Subsections 78A-6-323(1) and (2); or
4028          [(d)] (c) (i) determining whether a personal care attendant:
4029          (A) is listed in the Licensing Information System; or
4030          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4031     neglect under Subsections 78A-6-323(1) and (2); and
4032          (ii) informing a person described in Subsections 62A-3-101(9)(a)(i) through (iv) that a
4033     personal care attendant:
4034          (A) is listed in the Licensing Information System; or
4035          (B) has a substantiated finding by a juvenile court of a severe type of child abuse or
4036     neglect under Subsections 78A-6-323(1) and (2).
4037          (3) Notwithstanding Subsection (2), the department may access the Division of Child
4038     and Family Services' Management Information System under Section 62A-4a-1003:
4039          (a) for the purpose of licensing and monitoring foster parents;
4040          (b) for the purposes described in Subsection 62A-4a-1003(1)(d); and
4041          (c) for the purpose described in Section 62A-1-118.
4042          (4) The department shall receive and process personal identifying information under
4043     Subsection 62A-2-120(1) for the purposes described in Subsection (2).
4044          (5) The department shall adopt rules under Title 63G, Chapter 3, Utah Administrative
4045     Rulemaking Act, consistent with this chapter, defining the circumstances under which a person
4046     may have direct access or provide services to children when:
4047          (a) the person is listed in the Licensing Information System of the Division of Child
4048     and Family Services created by Section 62A-4a-1006; or
4049          (b) juvenile court records show that a court made a substantiated finding under Section
4050     78A-6-323, that the person committed a severe type of child abuse or neglect.
4051          Section 51. Section 62A-2-122 is amended to read:
4052          62A-2-122. Access to vulnerable adult abuse and neglect information.
4053          (1) For purposes of this section:
4054          (a) "Direct service worker" means the same as that term is defined in Section
4055     62A-5-101.
4056          (b) "Personal care attendant" means the same as that term is defined in Section
4057     62A-3-101.

4058          (2) With respect to a licensee, [a certified local inspector applicant,] a direct service
4059     worker, or a personal care attendant, the department may access the database created by Section
4060     62A-3-311.1 for the purpose of:
4061          (a) (i) determining whether a person associated with a licensee, with direct access to
4062     vulnerable adults, has a supported or substantiated finding of:
4063          (A) abuse;
4064          (B) neglect; or
4065          (C) exploitation; and
4066          (ii) informing a licensee that a person associated with the licensee has a supported or
4067     substantiated finding of:
4068          (A) abuse;
4069          (B) neglect; or
4070          (C) exploitation;
4071          [(b) (i) determining whether a certified local inspector applicant has a supported or
4072     substantiated finding of:]
4073          [(A) abuse;]
4074          [(B) neglect; or]
4075          [(C) exploitation; and]
4076          [(ii) informing a local government that a certified local inspector applicant has a
4077     supported or substantiated finding of:]
4078          [(A) abuse;]
4079          [(B) neglect; or]
4080          [(C) exploitation;]
4081          [(c)] (b) (i) determining whether a direct service worker has a supported or
4082     substantiated finding of:
4083          (A) abuse;
4084          (B) neglect; or
4085          (C) exploitation; and
4086          (ii) informing a direct service worker or the direct service worker's employer that the
4087     direct service worker has a supported or substantiated finding of:
4088          (A) abuse;

4089          (B) neglect; or
4090          (C) exploitation; or
4091          [(d)] (c) (i) determining whether a personal care attendant has a supported or
4092     substantiated finding of:
4093          (A) abuse;
4094          (B) neglect; or
4095          (C) exploitation; and
4096          (ii) informing a person described in Subsections 62A-3-101(9)(a)(i) through (iv) that a
4097     personal care attendant has a supported or substantiated finding of:
4098          (A) abuse;
4099          (B) neglect; or
4100          (C) exploitation.
4101          (3) The department shall receive and process personal identifying information under
4102     Subsection 62A-2-120(1) for the purposes described in Subsection (2).
4103          (4) The department shall adopt rules under Title 63G, Chapter 3, Utah Administrative
4104     Rulemaking Act, consistent with this chapter and Title 62A, Chapter 3, Part 3, Abuse, Neglect,
4105     or Exploitation of a Vulnerable Adult, defining the circumstances under which a person may
4106     have direct access or provide services to vulnerable adults when the person is listed in the
4107     statewide database of the Division of Aging and Adult Services created by Section
4108     62A-3-311.1 as having a supported or substantiated finding of abuse, neglect, or exploitation.
4109          Section 52. Section 63A-5-208 is amended to read:
4110          63A-5-208. Definitions -- Certain public construction bids to list subcontractors --
4111     Changing subcontractors -- Bidders as subcontractors -- Dispute resolution process --
4112     Penalties.
4113          (1) As used in this section:
4114          (a) "First-tier subcontractor" means a subcontractor who contracts directly with the
4115     prime contractor.
4116          (b) (i) "Subcontractor" means any person or entity under contract with a contractor or
4117     another subcontractor to provide services or labor for the construction, installation, or repair of
4118     an improvement to real property.
4119          [(c)] (ii) "Subcontractor" includes a trade contractor or specialty contractor.

4120          [(d)] (iii) "Subcontractor" does not include suppliers who provide only materials,
4121     equipment, or supplies to a contractor or subcontractor.
4122          (2) The director shall apply the provisions of this section to achieve fair and
4123     competitive bidding and to discourage bid-shopping by contractors.
4124          (3) (a) (i) (A) On each public construction project, the director shall require the
4125     apparent lowest three bidders to submit a list of their first-tier subcontractors indicating each
4126     subcontractor's name, bid amount, and other information required by rule.
4127          (B) Other bidders who are not one of the apparent lowest three bidders may also
4128     submit a list of their first-tier subcontractors containing the information required by this
4129     Subsection (3).
4130          (C) The director may not consider any bid submitted by a bidder if the bidder fails to
4131     submit a subcontractor list meeting the requirements of this section.
4132          (ii) On projects where the contractor's total bid is less than $500,000, subcontractors
4133     whose bid is less than $20,000 need not be listed.
4134          (iii) On projects where the contractor's total bid is $500,000 or more, subcontractors
4135     whose bid is less than $35,000 need not be listed.
4136          (b) (i) The bidders shall submit this list within 24 hours after the bid opening time, not
4137     including Saturdays, Sundays, and state holidays.
4138          (ii) This list does not limit the director's right to authorize a change in the listing of any
4139     subcontractor.
4140          (c) The bidders shall verify that all subcontractors listed as part of their bids are
4141     licensed as required by state law.
4142          (d) Twenty-four hours after the bid opening, the contractor may change the contractor's
4143     subcontractors only after:
4144          (i) receiving permission from the director; and
4145          (ii) establishing that:
4146          (A) the change is in the best interest of the state; and
4147          (B) the contractor establishes reasons for the change that meet the standards established
4148     by the State Building Board.
4149          (e) If the director approves any changes in subcontractors that result in a net lower
4150     contract price for subcontracted work, the total of the prime contract may be reduced to reflect

4151     the changes.
4152          (4) (a) A bidder may list himself as a subcontractor when the bidder is currently
4153     licensed to perform the portion of the work for which the bidder lists himself as a subcontractor
4154     and:
4155          (i) the bidder intends to perform the work of a subcontractor himself; or
4156          (ii) the bidder intends to obtain a subcontractor to perform the work at a later date
4157     because the bidder was unable to:
4158          (A) obtain a bid from a qualified subcontractor; or
4159          (B) obtain a bid from a qualified subcontractor at a cost that the bidder considers to be
4160     reasonable.
4161          (b) (i) When the bidder intends to perform the work of a subcontractor himself, the
4162     director may, by written request, require that the bidder provide the director with information
4163     indicating the bidder's:
4164          (A) previous experience in the type of work to be performed; and
4165          (B) qualifications for performing the work.
4166          (ii) The bidder must respond in writing within five business days of receiving the
4167     director's written request.
4168          (iii) If the bidder's submitted information causes the director to reasonably believe that
4169     self-performance of the portion of the work by the bidder is likely to yield a substandard
4170     finished product, the director shall:
4171          (A) require the bidder to use a subcontractor for the portion of the work in question and
4172     obtain the subcontractor bid under the supervision of the director; or
4173          (B) reject the bidder's bid.
4174          (c) (i) When the bidder intends to obtain a subcontractor to perform the work at a later
4175     date, the bidder shall provide documentation with the subcontractor list describing:
4176          (A) the bidder's efforts to obtain a bid of a qualified subcontractor at a reasonable cost;
4177     and
4178          (B) why the bidder was unable to obtain a qualified subcontractor bid.
4179          (ii) If the bidder who intends to obtain a subcontractor to perform the work at a later
4180     date is awarded a contract, the director shall supervise the bidder's efforts to obtain a qualified
4181     subcontractor bid.

4182          (iii) The director may not adjust the amount of the contract awarded in order to reflect
4183     the actual amount of the subcontractor's bid.
4184          (5) The division may not disclose any subcontractor bid amounts obtained under this
4185     section until the division has awarded the project to a contractor.
4186          (6) (a) The director shall, in consultation with the State Building Board, prepare draft
4187     rules establishing a process for resolving disputes involved with contracts under the division's
4188     procurement authority.
4189          [(b) The draft rules shall be presented to the Government Operations Interim
4190     Committee for review, comment, and recommendations before August 31, 2004.]
4191          [(c)] (b) The director shall consider, and the rules may include:
4192          (i) requirements regarding preliminary resolution efforts between the parties directly
4193     involved with the dispute;
4194          (ii) requirements for the filing of claims, including notification, timeframes, and
4195     documentation;
4196          (iii) identification of the types of costs eligible for allocation and a method for
4197     allocating costs among the parties to the dispute;
4198          (iv) required time periods, not to exceed 60 days, for the resolution of the claim;
4199          (v) provision for an independent hearing officer, panel, or arbitrator to extend the time
4200     period for resolution of the claim by not to exceed 60 additional days for good cause;
4201          (vi) provision for the extension of required time periods if the claimant agrees;
4202          (vii) requirements that decisions be issued in writing;
4203          (viii) provisions for administrative appeals of the decision;
4204          (ix) provisions for the timely payment of claims after resolution of the dispute,
4205     including any appeals;
4206          (x) a requirement that the final determination resulting from the dispute resolution
4207     process provided for in the rules is a final agency action subject to judicial review as provided
4208     in Sections 63G-4-401 and 63G-4-402;
4209          (xi) a requirement that a claim or dispute that does not include a monetary claim
4210     against the division or its agents is not limited to the dispute resolution process provided for in
4211     this Subsection (6);
4212          (xii) requirements for claims and disputes to be eligible for this dispute resolution

4213     process;
4214          (xiii) the use of an independent hearing officer, panel, arbitration, or mediation; and
4215          (xiv) the circumstances under which a subcontractor may file a claim directly with the
4216     division.
4217          [(d)] (c) Persons pursuing claims under the process required by this Subsection (6):
4218          (i) are bound by the decision reached under this process unless the decision is properly
4219     appealed; and
4220          (ii) may not pursue claims or disputes under the dispute resolution process established
4221     in Title 63G, Chapter 6a, Utah Procurement Code.
4222          (7) In addition to all other reasons allowed by law or rule, the director may reject all
4223     bids if none of the bidders whose bid is within the budget of the project submit a subcontractor
4224     list that meets the requirements of this section.
4225          (8) Any violation of this section, or any fraudulent misrepresentation by a contractor,
4226     subcontractor, or supplier, may be grounds for:
4227          (a) the contractor, subcontractor, or supplier to be suspended or debarred by the
4228     director; or
4229          (b) the contractor or subcontractor to be disciplined by the Division of Professional and
4230     Occupational Licensing.
4231          Section 53. Section 63A-13-204 is amended to read:
4232          63A-13-204. Selection and review of claims.
4233          (1) (a) The office shall periodically select and review a representative sample of claims
4234     submitted for reimbursement under the state Medicaid program to determine whether fraud,
4235     waste, or abuse occurred.
4236          (b) The office shall limit its review for waste and abuse under Subsection (1)(a) to 36
4237     months prior to the date of the inception of the investigation or 72 months if there is a credible
4238     allegation of fraud. In the event the office or the fraud unit determines that there is fraud as
4239     defined in Section 63A-13-102, then the statute of limitations defined in Subsection
4240     26-20-15(1) shall apply.
4241          (2) The office may directly contact the recipient of record for a Medicaid reimbursed
4242     service to determine whether the service for which reimbursement was claimed was actually
4243     provided to the recipient of record.

4244          (3) The office shall:
4245          (a) generate statistics from the sample described in Subsection (1) to determine the
4246     type of fraud, waste, or abuse that is most advantageous to focus on in future audits or
4247     investigations;
4248          (b) ensure that the office, or any entity that contracts with the office to conduct audits:
4249          (i) has on staff or contracts with a medical or dental professional who is experienced in
4250     the treatment, billing, and coding procedures used by the type of provider being audited; and
4251          (ii) uses the services of the appropriate professional described in Subsection (3)(b)(i) if
4252     the provider [who] that is the subject of the audit disputes the findings of the audit;
4253          (c) ensure that a finding of overpayment or underpayment to a provider is not based on
4254     extrapolation, unless:
4255          (i) there is a determination that the level of payment error involving the provider
4256     exceeds a 10% error rate:
4257          (A) for a sample of claims for a particular service code; and
4258          (B) over a three year period of time;
4259          (ii) documented education intervention has failed to correct the level of payment error;
4260     and
4261          (iii) the value of the claims for the provider, in aggregate, exceeds $200,000 in
4262     reimbursement for a particular service code on an annual basis; and
4263          (d) require that any entity with which the office contracts, for the purpose of
4264     conducting an audit of a service provider, shall be paid on a flat fee basis for identifying both
4265     overpayments and underpayments.
4266          (4) (a) If the office, or a contractor on behalf of the department:
4267          (i) intends to implement the use of extrapolation as a method of auditing claims, the
4268     department shall, prior to adopting the extrapolation method of auditing, report its intent to use
4269     extrapolation to:
4270          (A) the Social Services Appropriations Subcommittee; and
4271          (B) the Executive Appropriations Committee pursuant to Section 63A-13-502; and
4272          (ii) determines Subsections [(2)] (3)(c)(i) through (iii) are applicable to a provider, the
4273     office or the contractor may use extrapolation only for the service code associated with the
4274     findings under Subsections [(2)] (3)(c)(i) through (iii).

4275          (b) (i) If extrapolation is used under this section, a provider may, at the provider's
4276     option, appeal the results of the audit based on:
4277          (A) each individual claim; or
4278          (B) the extrapolation sample.
4279          (ii) Nothing in this section limits a provider's right to appeal the audit under [Title 63G,
4280     Administrative Code,] Title 63G, Chapter 4, Administrative Procedures Act, the Medicaid
4281     program and its manual or rules, or other laws or rules that may provide remedies to providers.
4282          Section 54. Section 63E-1-203 is amended to read:
4283          63E-1-203. Exemptions from committee activities.
4284          Notwithstanding the other provisions of this Part 2, Retirement and Independent
4285     Entities Committee, and Subsection 63E-1-102(4), the following independent entities are
4286     exempt from the study by the committee under Section 63E-1-202:
4287          (1) the Workers' Compensation Fund created in Title 31A, Chapter 33, Workers'
4288     Compensation Fund; and
4289          (2) the Utah Housing Corporation created in Section 63H-8-201.
4290          Section 55. Section 63G-2-202 is amended to read:
4291          63G-2-202. Access to private, controlled, and protected documents.
4292          (1) Upon request, and except as provided in Subsection (11)(a), a governmental entity
4293     shall disclose a private record to:
4294          (a) the subject of the record;
4295          (b) the parent or legal guardian of an unemancipated minor who is the subject of the
4296     record;
4297          (c) the legal guardian of a legally incapacitated individual who is the subject of the
4298     record;
4299          (d) any other individual who:
4300          (i) has a power of attorney from the subject of the record;
4301          (ii) submits a notarized release from the subject of the record or the individual's legal
4302     representative dated no more than 90 days before the date the request is made; or
4303          (iii) if the record is a medical record described in Subsection 63G-2-302(1)(b), is a
4304     health care provider, as defined in Section 26-33a-102, if releasing the record or information in
4305     the record is consistent with normal professional practice and medical ethics; or

4306          (e) any person to whom the record must be provided pursuant to:
4307          (i) court order as provided in Subsection (7); or
4308          (ii) a legislative subpoena as provided in Title 36, Chapter 14, Legislative Subpoena
4309     Powers.
4310          (2) (a) Upon request, a governmental entity shall disclose a controlled record to:
4311          (i) a physician, psychologist, certified social worker, insurance provider or producer, or
4312     a government public health agency upon submission of:
4313          (A) a release from the subject of the record that is dated no more than 90 days prior to
4314     the date the request is made; and
4315          (B) a signed acknowledgment of the terms of disclosure of controlled information as
4316     provided by Subsection (2)(b); and
4317          (ii) any person to whom the record must be disclosed pursuant to:
4318          (A) a court order as provided in Subsection (7); or
4319          (B) a legislative subpoena as provided in Title 36, Chapter 14, Legislative Subpoena
4320     Powers.
4321          (b) A person who receives a record from a governmental entity in accordance with
4322     Subsection (2)(a)(i) may not disclose controlled information from that record to any person,
4323     including the subject of the record.
4324          (3) If there is more than one subject of a private or controlled record, the portion of the
4325     record that pertains to another subject shall be segregated from the portion that the requester is
4326     entitled to inspect.
4327          (4) Upon request, and except as provided in Subsection (10) or (11)(b), a governmental
4328     entity shall disclose a protected record to:
4329          (a) the person [who] that submitted the record;
4330          (b) any other individual who:
4331          (i) has a power of attorney from all persons, governmental entities, or political
4332     subdivisions whose interests were sought to be protected by the protected classification; or
4333          (ii) submits a notarized release from all persons, governmental entities, or political
4334     subdivisions whose interests were sought to be protected by the protected classification or from
4335     their legal representatives dated no more than 90 days prior to the date the request is made;
4336          (c) any person to whom the record must be provided pursuant to:

4337          (i) a court order as provided in Subsection (7); or
4338          (ii) a legislative subpoena as provided in Title 36, Chapter 14, Legislative Subpoena
4339     Powers; or
4340          (d) the owner of a mobile home park, subject to the conditions of Subsection
4341     41-1a-116(5).
4342          (5) A governmental entity may disclose a private, controlled, or protected record to
4343     another governmental entity, political subdivision, [another] state, the United States, or a
4344     foreign government only as provided by Section 63G-2-206.
4345          (6) Before releasing a private, controlled, or protected record, the governmental entity
4346     shall obtain evidence of the requester's identity.
4347          (7) A governmental entity shall disclose a record pursuant to the terms of a court order
4348     signed by a judge from a court of competent jurisdiction, provided that:
4349          (a) the record deals with a matter in controversy over which the court has jurisdiction;
4350          (b) the court has considered the merits of the request for access to the record;
4351          (c) the court has considered and, where appropriate, limited the requester's use and
4352     further disclosure of the record in order to protect:
4353          (i) privacy interests in the case of private or controlled records;
4354          (ii) business confidentiality interests in the case of records protected under Subsection
4355     63G-2-305(1), (2), (40)(a)(ii), or (40)(a)(vi); and
4356          (iii) privacy interests or the public interest in the case of other protected records;
4357          (d) to the extent the record is properly classified private, controlled, or protected, the
4358     interests favoring access, considering limitations thereon, are greater than or equal to the
4359     interests favoring restriction of access; and
4360          (e) where access is restricted by a rule, statute, or regulation referred to in Subsection
4361     63G-2-201(3)(b), the court has authority independent of this chapter to order disclosure.
4362          (8) (a) Except as provided in Subsection (8)(d), a governmental entity may disclose or
4363     authorize disclosure of private or controlled records for research purposes if the governmental
4364     entity:
4365          (i) determines that the research purpose cannot reasonably be accomplished without
4366     use or disclosure of the information to the researcher in individually identifiable form;
4367          (ii) determines that:

4368          (A) the proposed research is bona fide; and
4369          (B) the value of the research is greater than or equal to the infringement upon personal
4370     privacy;
4371          (iii) (A) requires the researcher to assure the integrity, confidentiality, and security of
4372     the records; and
4373          (B) requires the removal or destruction of the individual identifiers associated with the
4374     records as soon as the purpose of the research project has been accomplished;
4375          (iv) prohibits the researcher from:
4376          (A) disclosing the record in individually identifiable form, except as provided in
4377     Subsection (8)(b); or
4378          (B) using the record for purposes other than the research approved by the governmental
4379     entity; and
4380          (v) secures from the researcher a written statement of the researcher's understanding of
4381     and agreement to the conditions of this Subsection (8) and the researcher's understanding that
4382     violation of the terms of this Subsection (8) may subject the researcher to criminal prosecution
4383     under Section 63G-2-801.
4384          (b) A researcher may disclose a record in individually identifiable form if the record is
4385     disclosed for the purpose of auditing or evaluating the research program and no subsequent use
4386     or disclosure of the record in individually identifiable form will be made by the auditor or
4387     evaluator except as provided by this section.
4388          (c) A governmental entity may require indemnification as a condition of permitting
4389     research under this Subsection (8).
4390          (d) A governmental entity may not disclose or authorize disclosure of a private record
4391     for research purposes as described in this Subsection (8) if the private record is a record
4392     described in Subsection 63G-2-302(1)(u).
4393          (9) (a) Under Subsections 63G-2-201(5)(b) and 63G-2-401(6), a governmental entity
4394     may disclose to persons other than those specified in this section records that are:
4395          (i) private under Section 63G-2-302; or
4396          (ii) protected under Section 63G-2-305, subject to Section 63G-2-309 if a claim for
4397     business confidentiality has been made under Section 63G-2-309.
4398          (b) Under Subsection 63G-2-403(11)(b), the records committee may require the

4399     disclosure to persons other than those specified in this section of records that are:
4400          (i) private under Section 63G-2-302;
4401          (ii) controlled under Section 63G-2-304; or
4402          (iii) protected under Section 63G-2-305, subject to Section 63G-2-309 if a claim for
4403     business confidentiality has been made under Section 63G-2-309.
4404          (c) Under Subsection 63G-2-404[(8)](7), the court may require the disclosure of
4405     records that are private under Section 63G-2-302, controlled under Section 63G-2-304, or
4406     protected under Section 63G-2-305 to persons other than those specified in this section.
4407          (10) A record contained in the Management Information System, created in Section
4408     62A-4a-1003, that is found to be unsubstantiated, unsupported, or without merit may not be
4409     disclosed to any person except the person who is alleged in the report to be a perpetrator of
4410     abuse, neglect, or dependency.
4411          (11) (a) A private record described in Subsection 63G-2-302(2)(f) may only be
4412     disclosed as provided in Subsection (1)(e).
4413          (b) A protected record described in Subsection 63G-2-305(43) may only be disclosed
4414     as provided in Subsection (4)(c) or Section 62A-3-312.
4415          (12) (a) A private, protected, or controlled record described in Section 62A-16-301
4416     shall be disclosed as required under:
4417          (i) Subsections 62A-16-301(1)(b), (2), and (4)(c); and
4418          (ii) Subsections 62A-16-302(1) and (6).
4419          (b) A record disclosed under Subsection (12)(a) shall retain its character as private,
4420     protected, or controlled.
4421          Section 56. Section 63G-6a-408 is amended to read:
4422          63G-6a-408. Small purchases.
4423          (1) As used in this section:
4424          (a) "Annual cumulative threshold" means the maximum total annual amount,
4425     established by the applicable rulemaking authority under Subsection (2)[(a)](b)(i)(A), that a
4426     procurement unit may expend to obtain procurement items from the same source under this
4427     section.
4428          (b) "Individual procurement threshold" means the maximum amount, established by
4429     the applicable rulemaking authority under Subsection (2)[(a)(ii)](b)(i)(B), for which a

4430     procurement unit may purchase a procurement item under this section.
4431          (c) "Single procurement aggregate threshold" means the maximum total amount,
4432     established by the applicable rulemaking authority under Subsection (2)[(a)(iii)](b)(i)(C), that a
4433     procurement unit may expend to obtain multiple procurement items from one source at one
4434     time under this section.
4435          (2) (a) The applicable rulemaking authority may make rules governing small purchases
4436     of any procurement item, including construction, job order contracting, design professional
4437     services, other professional services, information technology, and goods.
4438          (b) Rules under Subsection (2)(a) may include provisions:
4439          (i) establishing expenditure thresholds, including:
4440          (A) an annual cumulative threshold;
4441          (B) an individual procurement threshold; and
4442          (C) a single procurement aggregate threshold;
4443          (ii) establishing procurement requirements relating to the thresholds described in
4444     Subsection (2)(b)(i); and
4445          (iii) providing for the use of electronic, telephone, or written quotes.
4446          (3) Expenditures made under this section by a procurement unit may not exceed a
4447     threshold established by the applicable rulemaking authority, unless the chief procurement
4448     officer or the head of a procurement unit with independent procurement authority gives written
4449     authorization to exceed the threshold that includes the reasons for exceeding the threshold.
4450          (4) Except as provided in Subsection (5), an executive branch procurement unit may
4451     not obtain a procurement item through a small purchase standard procurement process if the
4452     procurement item may be obtained through a state cooperative contract or a contract awarded
4453     by the chief procurement officer under Subsection 63G-6a-2105(1).
4454          (5) Subsection (4) does not apply if:
4455          (a) the procurement item is obtained for an unanticipated, urgent or unanticipated,
4456     emergency condition, including:
4457          (i) an item needed to avoid stopping a public construction project;
4458          (ii) an immediate repair to a facility or equipment; or
4459          (iii) another emergency condition; or
4460          (b) the chief procurement officer or the head of a procurement unit that is an executive

4461     branch procurement unit with independent procurement authority:
4462          (i) determines in writing that it is in the best interest of the procurement unit to obtain
4463     an individual procurement item outside of the state contract, comparing:
4464          (A) the contract terms and conditions applicable to the procurement item under the
4465     state contract with the contract terms and conditions applicable to the procurement item if the
4466     procurement item is obtained outside of the state contract;
4467          (B) the maintenance and service applicable to the procurement item under the state
4468     contract with the maintenance and service applicable to the procurement item if the
4469     procurement item is obtained outside of the state contract;
4470          (C) the warranties applicable to the procurement item under the state contract with the
4471     warranties applicable to the procurement item if the procurement item is obtained outside of
4472     the state contract;
4473          (D) the quality of the procurement item under the state contract with the quality of the
4474     procurement item if the procurement item is obtained outside of the state contract; and
4475          (E) the cost of the procurement item under the state contract with the cost of the
4476     procurement item if the procurement item is obtained outside of the state contract;
4477          (ii) for a procurement item that, if defective in its manufacture, installation, or
4478     performance, may result in serious physical injury, death, or substantial property damage,
4479     determines in writing that the terms and conditions, relating to liability for injury, death, or
4480     property damage, available from the source other than the contractor who holds the state
4481     contract, are similar to, or better than, the terms and conditions available under the state
4482     contract; and
4483          (iii) grants an exception, in writing, to the requirement described in Subsection (4).
4484          (6) Except as otherwise expressly provided in this section, a procurement unit:
4485          (a) may not use the small purchase standard procurement process described in this
4486     section for ongoing, continuous, and regularly scheduled procurements that exceed the annual
4487     cumulative threshold; and
4488          (b) shall make its ongoing, continuous, and regularly scheduled procurements that
4489     exceed the annual cumulative threshold through a contract awarded through another standard
4490     procurement process described in this chapter or an applicable exception to another standard
4491     procurement process, described in Part 8, Exceptions to Procurement Requirements.

4492          (7) This section does not prohibit regularly scheduled payments for a procurement item
4493     obtained under another provision of this chapter.
4494          (8) (a) It is unlawful for a person to intentionally or knowingly divide a procurement
4495     into one or more smaller procurements with the intent to make a procurement:
4496          (i) qualify as a small purchase, if, before dividing the procurement, it would not have
4497     qualified as a small purchase; or
4498          (ii) meet a threshold established by rule made by the applicable rulemaking authority,
4499     if, before dividing the procurement, it would not have met the threshold.
4500          (b) A person who engages in the conduct made unlawful under Subsection (8)(a) is
4501     guilty of:
4502          (i) a second degree felony, if the value of the procurement before being divided is
4503     $1,000,000 or more;
4504          (ii) a third degree felony, if the value of the procurement before being divided is
4505     $250,000 or more but less than $1,000,000;
4506          (iii) a class A misdemeanor, if the value of the procurement before being divided is
4507     $100,000 or more but less than $250,000; or
4508          (iv) a class B misdemeanor, if the value of the procurement before being divided is less
4509     than $100,000.
4510          (9) A division of a procurement that is prohibited under Subsection (8) includes doing
4511     any of the following with the intent or knowledge described in Subsection (8):
4512          (a) making two or more separate purchases;
4513          (b) dividing an invoice or purchase order into two or more invoices or purchase orders;
4514     or
4515          (c) making smaller purchases over a period of time.
4516          (10) A person who violates Subsection (8) is subject to the criminal penalties described
4517     in Section 63G-6a-2405.
4518          (11) The Division of Finance within the Department of Administrative Services may
4519     conduct an audit of an executive branch procurement unit to verify compliance with the
4520     requirements of this section.
4521          (12) An executive branch procurement unit may not make a small purchase after
4522     January 1, 2014, unless the chief procurement officer certifies that the person responsible for

4523     procurements in the procurement unit has satisfactorily completed training on this section and
4524     the rules made under this section.
4525          Section 57. Section 63G-6a-2105 is amended to read:
4526          63G-6a-2105. Cooperative procurements -- Contracts with federal government --
4527     Regional solicitations.
4528          (1) The chief procurement officer may, in accordance with the requirements of this
4529     chapter, enter into a cooperative procurement, and a contract that is awarded as a result of a
4530     cooperative procurement, with:
4531          (a) another state;
4532          (b) a cooperative purchasing organization; or
4533          (c) a public entity inside or outside the state.
4534          (2) A public entity, nonprofit organization, or, as permitted under federal law, an
4535     agency of the federal government, may obtain a procurement item from a state cooperative
4536     contract or a contract awarded by the chief procurement officer under Subsection (1), without
4537     signing a participating addendum if the solicitation issued by the chief procurement officer to
4538     obtain the contract includes a statement indicating that the resulting contract will be issued for
4539     the benefit of public entities and, as applicable, nonprofit organizations and agencies of the
4540     federal government.
4541          (3) Except as provided in Section 63G-6a-408, or as otherwise provided in this chapter,
4542     an executive branch procurement unit may not obtain a procurement item from a source other
4543     than a state cooperative contract or a contract awarded by the chief procurement officer under
4544     Subsection (1), if the procurement item is available under a state cooperative contract or a
4545     contract awarded by the chief procurement officer under Subsection (1).
4546          (4) A Utah procurement unit may:
4547          (a) contract with the federal government without going through a standard procurement
4548     process or an exception to a standard procurement process, described in Part 8, Exceptions to
4549     Procurement Requirements, if the procurement item obtained under the contract is provided:
4550          (i) directly by the federal government and not by a person contracting with the federal
4551     government; or
4552          (ii) by a person under contract with the federal government that obtained the contract in
4553     a manner that substantially complies with the provisions of this chapter;

4554          (b) participate in, sponsor, conduct, or administer a cooperative procurement with
4555     another Utah procurement unit or another public entity in Utah, if:
4556          (i) each party unit involved in the cooperative procurement enters into an agreement
4557     describing the rights and duties of each party;
4558          (ii) the procurement is conducted, and the contract awarded, in accordance with the
4559     requirements of this chapter;
4560          (iii) the solicitation:
4561          (A) clearly indicates that the procurement is a cooperative procurement; and
4562          (B) identifies each party that may purchase under the resulting contract; and
4563          (iv) each party involved in the cooperative procurement signs a participating addendum
4564     describing its rights and obligations in relation to the resulting contract; or
4565          (c) purchase under, or otherwise participate in, an agreement or contract of a
4566     cooperative purchasing organization, if:
4567          (i) each party involved in the cooperative procurement enters into an agreement
4568     describing the rights and duties of each party;
4569          (ii) the procurement was conducted in accordance with the requirements of this
4570     chapter;
4571          (iii) the solicitation:
4572          (A) clearly indicates that the procurement is a cooperative procurement; and
4573          (B) identifies each party that may purchase under the resulting contract; and
4574          (iv) each party involved in the cooperative procurement signs a participating addendum
4575     describing its rights and obligations in relation to the resulting contract.
4576          (5) A procurement unit may not obtain a procurement item under a contract that results
4577     from a cooperative procurement described in Subsection (4), if the procurement unit:
4578          (a) is not identified under Subsection (4)(b)(iii)(B) or (4)(c)(iii)(B); or
4579          (b) does not sign a participating addendum to the contract as required by this section.
4580          (6) A procurement unit, other than a legislative procurement unit or a judicial
4581     procurement unit, may not obtain a procurement item under a contract held by the United
4582     States General Services Administration, unless, based upon documentation provided by the
4583     procurement unit, the director of the state Division of Purchasing and General Services
4584     determines in writing that the United States General Services Administration procured the

4585     contract in a manner that substantially complies with the provisions of this chapter.
4586          (7) (a) As used in this Subsection (7), "regional solicitation" means a solicitation issued
4587     by the chief procurement officer for the procurement of a procurement item within a specified
4588     geographical region of the state.
4589          (b) In addition to any other duty or authority under this section, the chief procurement
4590     officer shall:
4591          (i) after considering board recommendations, develop a plan for issuing regional
4592     solicitations; and
4593          [(ii) present the plan to the Government Operations Interim Committee by September
4594     1, 2014; and]
4595          [(iii)] (ii) after developing a plan, issue regional solicitations for procurement items in
4596     accordance with the plan and this chapter.
4597          (c) A plan under Subsection (7)(b) shall:
4598          (i) define the proposed regional boundaries for regional solicitations;
4599          (ii) specify the types of procurement items for which a regional solicitation may be
4600     issued; and
4601          (iii) identify the regional solicitations that the chief procurement officer plans to issue.
4602          (d) A regional solicitation shall require that a person responding to the solicitation offer
4603     similar warranties and submit to similar obligations as are standard under other state
4604     cooperative contracts.
4605          (e) A procurement item that is available under a state cooperative contract may not be
4606     provided under a contract pursuant to a regional solicitation until after the expiration of the
4607     state cooperative contract.
4608          Section 58. Section 63H-7a-603 is amended to read:
4609          63H-7a-603. Financial officer -- Duties.
4610          (1) The executive director shall appoint a financial officer for the Administrative
4611     Services Division with the approval of the board. The financial officer shall be responsible for
4612     accounting for the authority, including:
4613          (a) safekeeping and investment of public funds of the authority, including the funds
4614     expended from the restricted accounts created in Sections 69-2-5.5, 69-2-5.6, 69-2-5.7, and
4615     69-2-5.8;

4616          (b) the proper collection, deposit, disbursement, and management of the public funds
4617     of the authority in accordance with Title 51, Chapter 7, State Money Management Act;
4618          (c) [have] having authority to sign all bills payable, notes, checks, drafts, warrants, or
4619     other negotiable instruments in the absence of the executive director and the executive
4620     director's designated employee;
4621          (d) [provide] providing to the board and the executive director a statement of the
4622     condition of the finances of the authority, at least annually and at such other times as shall be
4623     requested by the board; and
4624          (e) [perform] performing all other duties incident to the financial officer.
4625          (2) The financial officer shall:
4626          (a) be bonded in an amount established by the State Money Management Council; and
4627          (b) file written reports with the State Money Management Council pursuant to Section
4628     51-7-15.
4629          Section 59. Section 63I-1-220 is amended to read:
4630          63I-1-220. Repeal dates, Title 20A.
4631          On January 1, 2017:
4632          (1) Subsection 20A-1-102(54) is repealed.
4633          (2) Subsection 20A-2-102.5(1) the language that states "20A-4-108, or" is repealed.
4634          (3) Subsection 20A-2-201(3) the language that states "Except as provided in
4635     Subsection 20A-4-108(5)," is repealed.
4636          (4) Subsection 20A-2-202(3)(a) the language that states "Except as provided in
4637     Subsection 20A-4-108(6)," is repealed.
4638          (5) Subsection 20A-2-204(5)(a) the language that states "Except as provided in
4639     Subsection 20A-4-108(7)," is repealed.
4640          (6) Subsection 20A-2-205(7)(a) the language that states "Except as provided in
4641     Subsection 20A-4-108(8)," is repealed.
4642          (7) Subsection 20A-2-206(8)[(b)](c) the language that states "Except as provided in
4643     Subsection 20A-4-108(9)," is repealed.
4644          (8) Subsection 20A-2-307(2)(a) is repealed.
4645          (9) Subsection 20A-4-107(2)(b) the language that states "Except as provided in
4646     Subsection 20A-4-108(10)," is repealed.

4647          (10) Subsection 20A-4-107(3) the language that states "or if the voter is, in accordance
4648     with the pilot project, registered to vote under Subsection 20A-4-108(10)," is repealed.
4649          (11) Subsection 20A-4-107(4) the language that states "Except as provided in
4650     Subsection 20A-4-108(12)," is repealed.
4651          (12) Section 20A-4-108 is repealed.
4652          Section 60. Section 63I-2-217 is amended to read:
4653          63I-2-217. Repeal dates -- Title 17.
4654          [(1) Subsection 17-8-7(2), the language that states "Sections 17-19-1 to 17-19-28 and"
4655     and ", as applicable," is repealed January 1, 2015.]
4656          [(2) Section 17-15-30 is repealed July 1, 2015.]
4657          [(3) Title 17, Chapter 19, County Auditor, is repealed January 1, 2015.]
4658          [(4) Subsection 17-24-1(4)(b), the language that states ", as applicable, Sections
4659     17-19-1, 17-19-3, and 17-19-5 or" is repealed January 1, 2015.]
4660          [(5) Subsection 17-24-4(2), the language that states ", as applicable, Subsection
4661     17-19-3(3)(b) or" is repealed January 1, 2015.]
4662          [(6)] (1) Subsection 17-27a-102(1)(b), the language that states "or a designated
4663     mountainous planning district" is repealed June 1, 2016.
4664          [(7)] (2) (a) Subsection 17-27a-103(15)(b) is repealed June 1, 2016.
4665          (b) Subsection 17-27a-103(34) is repealed June 1, 2016.
4666          [(8)] (3) Subsection 17-27a-210(2)(a), the language that states "or the mountainous
4667     planning district area" is repealed June 1, 2016.
4668          [(9)] (4) (a) Subsection 17-27a-301(1)(b)(iii) is repealed June 1, 2016.
4669          (b) Subsection 17-27a-301(1)(c) is repealed June 1, 2016.
4670          (c) Subsection 17-27a-301(2)(a), the language that states "described in Subsection
4671     (1)(a) or (c)" is repealed June 1, 2016.
4672          [(10)] (5) Subsection 17-27a-302(1), the language that states ", or mountainous
4673     planning district" and "or the mountainous planning district," is repealed June 1, 2016.
4674          [(11)] (6) Subsection 17-27a-305(1)(a), the language that states "a mountainous
4675     planning district or" and ", as applicable" is repealed June 1, 2016.
4676          [(12)] (7) (a) Subsection 17-27a-401(1)(b)(ii) is repealed June 1, 2016.
4677          (b) Subsection 17-27a-401(6) is repealed June 1, 2016.

4678          [(13)] (8) (a) Subsection 17-27a-403(1)(b)(ii) is repealed June 1, 2016.
4679          (b) Subsection 17-27a-403(1)(c)(iii) is repealed June 1, 2016.
4680          (c) Subsection (2)(a)(iii), the language that states "or the mountainous planning
4681     district" is repealed June 1, 2016.
4682          (d) Subsection 17-27a-403(2)(c)(i), the language that states "or mountainous planning
4683     district" is repealed June 1, 2016.
4684          [(14)] (9) Subsection 17-27a-502(1)(d)(i)(B) is repealed June 1, 2016.
4685          [(15)] (10) Subsection 17-27a-505.5(2)(a)(iii) is repealed June 1, 2016.
4686          [(16)] (11) Subsection 17-27a-602(1)(b), the language that states "or, in the case of a
4687     mountainous planning district, the mountainous planning district" is repealed June 1, 2016.
4688          [(17)] (12) Subsection 17-27a-604(1)(b)(i)(B) is repealed June 1, 2016.
4689          [(18)] (13) Subsection 17-27a-605(1), the language that states "or mountainous
4690     planning district land" is repealed June 1, 2016.
4691          [(19)] (14) Title 17, Chapter 27a, Part 9, Mountainous Planning District, is repealed
4692     June 1, 2016.
4693          [(20) (a) Subsection 17-36-3(5)(a), the language that states "for a county of the second,
4694     third, fourth, fifth, or sixth class, the county auditor, county clerk, or county executive as
4695     provided in Subsection 17-19-19(1); or" is repealed January 1, 2015.]
4696          [(b) Subsection 17-36-3(5)(b), the language that states "for a county of the first class,"
4697     is repealed January 1, 2015.]
4698          [(c) Subsection 17-36-3(7), the language that states "17-19-3," and ", or 17-24-4, as
4699     applicable" is repealed January 1, 2015.]
4700          [(21) Subsection 17-36-9(1)(a)(iii), the language that states "17-36-10.1, as applicable,
4701     or" is repealed January 1, 2015.]
4702          [(22) Subsection 17-36-10(1), the language that states the following is repealed January
4703     1, 2015:]
4704          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4705     or sixth class is not subject to the provisions of this section; and]
4706          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4707     class is subject to the provisions of this section.".]
4708          [(23) Section 17-36-10.1 is repealed January 1, 2015.]

4709          [(24) Subsection 17-36-11(1), the language that states the following is repealed January
4710     1, 2015:]
4711          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4712     or sixth class is not subject to the provisions of this section; and]
4713          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4714     class is subject to the provisions of this section.".]
4715          [(25) Section 17-36-11.1 is repealed January 1, 2015.]
4716          [(26) Subsection 17-36-15(1), the language that states the following is repealed January
4717     1, 2015:]
4718          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4719     or sixth class is not subject to the provisions of this section; and]
4720          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4721     class is subject to the provisions of this section.".]
4722          [(27) Section 17-36-15.1 is repealed January 1, 2015.]
4723          [(28) Subsection 17-36-20(1), the language that states the following is repealed January
4724     1, 2015:]
4725          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4726     or sixth class is not subject to the provisions of this section; and]
4727          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4728     class is subject to the provisions of this section.".]
4729          [(29) Section 17-36-20.1 is repealed January 1, 2015.]
4730          [(30) Subsection 17-36-32(4), the language that states "or 17-36-20.1, as applicable,
4731     and" is repealed January 1, 2015.]
4732          [(31) Subsection 17-36-43(1), the language that states the following is repealed January
4733     1, 2015:]
4734          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4735     or sixth class is not subject to the provisions of this section; and]
4736          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4737     class is subject to the provisions of this section.".]
4738          [(32) Section 17-36-43.1 is repealed January 1, 2015.]
4739          [(33) Section 17-36-44, the language that states "or 17-36-43.1, as applicable" is

4740     repealed January 1, 2015.]
4741          [(34) Subsection 17-50-401(1), the language that states the following is repealed
4742     January 1, 2015:]
4743          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4744     or sixth class is not subject to the provisions of this section; and]
4745          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4746     class is subject to the provisions of this section.".]
4747          [(35) Section 17-50-401.1 is repealed January 1, 2015.]
4748          [(36) Subsection 17-52-101(2), the language that states "or 17-52-401.1, as applicable"
4749     is repealed January 1, 2015.]
4750          [(37) Subsection 17-52-401(1), the language that states the following is repealed
4751     January 1, 2015:]
4752          ["(1) (a) On or before December 31, 2014, a county of the second, third, fourth, fifth,
4753     or sixth class is not subject to the provisions of this section; and]
4754          [(b) on or after January 1, 2015, a county of the second, third, fourth, fifth, or sixth
4755     class is subject to the provisions of this section.".]
4756          [(38) Section 17-52-401.1 is repealed January 1, 2015.]
4757          [(39) Subsection 17-52-403(1)(a), the language that states "or 17-52-401.1(2)(c), as
4758     applicable" is repealed January 1, 2015.]
4759          [(40) On January 1, 2015, when making the changes in this section, the Office of
4760     Legislative Research and General Counsel shall:]
4761          [(a) in addition to its authority under Subsection 36-12-12(3), make corrections
4762     necessary to ensure that sections and subsections identified in this section are complete
4763     sentences and accurately reflect the office's perception of the Legislature's intent; and]
4764          [(b) identify the text of the affected sections and subsections based upon the section
4765     and subsection numbers used in Laws of Utah 2012, Chapter 17.]
4766          [(41)] (15) On June 1, 2016, when making the changes in this section, the Office of
4767     Legislative Research and General Counsel shall:
4768          (a) in addition to its authority under Subsection 36-12-12(3), make corrections
4769     necessary to ensure that sections and subsections identified in this section are complete
4770     sentences and accurately reflect the office's perception of the Legislature's intent; and

4771          (b) identify the text of the affected sections and subsections based upon the section and
4772     subsection numbers used in Laws of Utah 2015, Chapter 465.
4773          Section 61. Section 63I-2-220 is amended to read:
4774          63I-2-220. Repeal dates, Title 20A.
4775          [(1) Section 20A-3-704 is repealed January 1, 2016.]
4776          [(2) Section 20A-5-410 is repealed January 1, 2016.]
4777          [(3) (a) Subsection 20A-7-101(1)(a)(i), the language that states "of the first class" and
4778     "; or" is repealed January 1, 2015.]
4779          [(b) Subsection 20A-7-101(1)(a)(ii), the language that states "for a county not
4780     described in Subsection (1)(a)(i), a person designated as budget officer in Section 17-19-19" is
4781     repealed January 1, 2015.]
4782          [(4) Section 20A-9-403.1 is repealed on January 1, 2015.]
4783          Section 62. Section 63I-2-277 is amended to read:
4784          63I-2-277. Repeal dates, Title 77.
4785          [Subsection 77-32-304.5(2)(d)(i), the language that states "or 17-50-401.1, as
4786     applicable" is repealed January 1, 2015.]
4787          Section 63. Section 63M-4-602 is amended to read:
4788          63M-4-602. Definitions.
4789          As used in this part:
4790          (1) "Applicant" means a person that conducts business in the state and that applies for a
4791     tax credit under this part.
4792          (2) "Fuel standard compliance project" means a project designed to retrofit a fuel
4793     refinery in order to make the refinery capable of producing fuel that complies with the United
4794     States Environmental Protection Agency's Tier 3 gasoline sulfur standard described in 40
4795     C.F.R. Sec. 79.54.
4796          (3) "High cost infrastructure project" means a project:
4797          (a) (i) [a project] that expands or creates new industrial, mining, manufacturing, or
4798     agriculture activity in the state, not including a retail business; or
4799          (ii) that includes new investment of at least $50,000,000 in an existing industrial,
4800     mining, manufacturing, or agriculture entity, by the entity;
4801          (b) that requires or is directly facilitated by infrastructure construction; and

4802          (c) for which the cost of infrastructure construction to the entity creating the project is
4803     greater than:
4804          (i) 10% of the total cost of the project; or
4805          (ii) $10,000,000.
4806          (4) "Infrastructure" means:
4807          (a) an energy delivery project as defined in Section 63H-2-102;
4808          (b) a railroad as defined in Section 54-2-1;
4809          (c) a fuel standard compliance project;
4810          (d) a road improvement project;
4811          (e) a water self-supply project;
4812          (f) a water removal system project; or
4813          (g) a project that is designed to:
4814          (i) increase the capacity for water delivery to a water user in the state; or
4815          (ii) increase the capability of an existing water delivery system or related facility to
4816     deliver water to a water user in the state.
4817          (5) (a) "Infrastructure cost-burdened entity" means an applicant that enters into an
4818     agreement with the office that qualifies the applicant to receive a tax credit as provided in this
4819     part.
4820          (b) "Infrastructure cost-burdened entity" includes a pass-through entity taxpayer, as
4821     defined in Section 59-10-1402, of a person described in Subsection (5)(a).
4822          (6) "Infrastructure-related revenue" means an amount of tax revenue, for an entity
4823     creating a high cost infrastructure project, in a taxable year, that is directly attributable to a high
4824     cost infrastructure project, under:
4825          (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
4826          (b) Title 59, Chapter 10, Individual Income Tax Act; and
4827          (c) Title 59, Chapter 12, Sales and Use Tax Act.
4828          (7) "Office" means the Office of Energy Development created in Section 63M-4-401.
4829          (8) "Tax credit" means a tax credit under Section 59-7-619 or 59-10-1034.
4830          (9) "Tax credit certificate" means a certificate issued by the office to an infrastructure
4831     cost-burdened entity that:
4832          (a) lists the name of the infrastructure cost-burdened entity;

4833          (b) lists the infrastructure cost-burdened entity's taxpayer identification number;
4834          (c) lists, for a taxable year, the amount of the tax credit authorized for the infrastructure
4835     cost-burdened entity under this part; and
4836          (d) includes other information as determined by the office.
4837          Section 64. Section 67-1a-14 is amended to read:
4838          67-1a-14. Study of signing a petition online -- Report.
4839          (1) As used in this section, "petition" means a petition to:
4840          (a) qualify a ballot proposition for the ballot under Title 20A, Chapter 7, Issues
4841     Submitted to the Voters;
4842          (b) organize and register a political party under Title 20A, Chapter 8, Political Party
4843     Formation and Procedures; or
4844          (c) qualify a candidate for the ballot under Title 20A, Chapter 9, Candidate
4845     Qualifications and Nominating Procedures.
4846          (2) The lieutenant governor, in consultation with a county clerk and municipal clerk,
4847     shall study a way that a registered voter may sign a petition on the Internet and receive
4848     information about the petition on the Internet.
4849          (3) The study shall evaluate:
4850          (a) how to sign a petition on the Internet using a holographic signature that is in an
4851     electronic format maintained by a government agency;
4852          (b) the security, development, ownership, management, format, and content of a secure
4853     Internet portal or website on which a registered voter may sign a petition;
4854          (c) the security measures necessary to:
4855          (i) verify the identity of a registered voter who signs a petition on the Internet; and
4856          (ii) insure the integrity of a signature;
4857          (d) changes to the process of collecting, verifying, and certifying a signature, if the
4858     signature is collected on the Internet;
4859          (e) whether verification is necessary for signatures collected on the Internet;
4860          (f) which election official should be responsible for the certification of signatures
4861     collected on the Internet;
4862          (g) whether signatures on a petition should be public information;
4863          (h) the removal process of a signature collected on the Internet;

4864          (i) what percentage of signatures should be collected on the Internet or in person,
4865     statewide or by Senate district;
4866          (j) what information regarding the petition should be available on the secure Internet
4867     portal or website, including who may submit the information and by what deadline information
4868     should be submitted;
4869          (k) the time the lieutenant governor, county clerk, or municipal clerk may spend
4870     certifying a petition if a registered voter is allowed to sign a petition on the Internet;
4871          (l) the processes, if any, that exists in other states to allow a registered voter to sign a
4872     petition on the Internet; and
4873          (m) any other issue related to allowing a registered voter to sign a petition on the
4874     Internet.
4875          [(4) The lieutenant governor shall submit a copy of the study and recommendations, if
4876     any, that result from the study to the Government Operations Interim Committee on or before
4877     September 18, 2013.]
4878          Section 65. Section 67-19-13.5 is amended to read:
4879          67-19-13.5. Department provides payroll services to executive branch agencies --
4880     Report.
4881          (1) As used in this section:
4882          (a) (i) "Executive branch entity" means a department, division, agency, board, or office
4883     within the executive branch of state government that employs a person who is paid through the
4884     central payroll system developed by the Division of Finance as of December 31, 2011.
4885          (ii) "Executive branch entity" does not include:
4886          (A) the Office of the Attorney General;
4887          (B) the Office of the State Treasurer;
4888          (C) the Office of the State Auditor;
4889          (D) the Department of Transportation;
4890          (E) the Department of Technology Services;
4891          (F) the Department of Public Safety;
4892          (G) the Department of Natural Resources; or
4893          (H) the Utah Schools for the Deaf and the Blind.
4894          (b) (i) "Payroll services" means using the central payroll system as directed by the

4895     Division of Finance to:
4896          (A) enter and validate payroll reimbursements, which include reimbursements for
4897     mileage, a service award, and other wage types;
4898          (B) calculate, process, and validate a retirement;
4899          (C) enter a leave adjustment; and
4900          (D) certify payroll by ensuring an entry complies with a rule or policy adopted by the
4901     department or the Division of Finance.
4902          (ii) "Payroll services" does not mean:
4903          (A) a function related to payroll that is performed by an employee of the Division of
4904     Finance;
4905          (B) a function related to payroll that is performed by an executive branch agency on
4906     behalf of a person who is not an employee of the executive branch agency;
4907          (C) the entry of time worked by an executive branch agency employee into the central
4908     payroll system; or
4909          (D) approval or verification by a supervisor or designee of the entry of time worked.
4910          (2) The department shall provide payroll services to all executive branch entities.
4911          (3) After September 19, 2012, an executive branch entity, other than the department or
4912     the Division of Finance, may not create a full-time equivalent position or part-time position, or
4913     request an appropriation to fund a full-time equivalent position or part-time position for the
4914     purpose of providing payroll services to the entity.
4915          [(4) The Department of Transportation, the Department of Technology Services, and
4916     the Department of Natural Resources shall report on the inability to transfer payroll services to
4917     the department or the progress of transferring payroll services to the department:]
4918          [(a) to the Government Operations Interim Committee before October 30, 2012; and]
4919          [(b) to the Infrastructure and General Government Appropriations Subcommittee on or
4920     before February 11, 2013.]
4921          Section 66. Section 70A-2-311 is amended to read:
4922          70A-2-311. Options and cooperation respecting performance.
4923          (1) An agreement for sale which is otherwise sufficiently definite (Subsection (3) of
4924     Section 70A-2-204) to be a contract is not made invalid by the fact that it leaves particulars of
4925     performance to be specified by one of the parties. Any such specification must be made in good

4926     faith and within limits set by commercial reasonableness.
4927          (2) Unless otherwise agreed, specifications relating to assortment of the goods are at
4928     the buyer's option, and except as otherwise provided in Subsections 70A-2-319(1)(c) and (3)
4929     [of Section 70A-2-319], specifications or arrangements relating to shipment are at the seller's
4930     option.
4931          (3) Where such specification would materially affect the other party's performance but
4932     is not seasonably made or where one party's cooperation is necessary to the agreed performance
4933     of the other but is not seasonably forthcoming, the other party in addition to all other remedies:
4934          (a) is excused for any resulting delay in his own performance; and
4935          (b) may also either proceed to perform in any reasonable manner or after the time for a
4936     material part of his own performance treat the failure to specify or to cooperate as a breach by
4937     failure to deliver or accept the goods.
4938          Section 67. Section 73-2-22 is amended to read:
4939          73-2-22. Emergency flood powers -- Action to enforce orders -- Access rights to
4940     private and public property -- Injunctive relief against state engineer's decisions --
4941     Judicial review provisions not applicable.
4942          (1) Whenever the state engineer, with approval of the chair of the Emergency
4943     Management Administration Council created in Section 53-2a-105, makes a written finding
4944     that any reservoir or stream has reached or will reach during the current water year a level far
4945     enough above average and in excess of capacity that public safety is or is likely to be
4946     endangered or that substantial property damage is occurring or is likely to occur, [he] the state
4947     engineer shall have emergency powers until the danger to the public and property is abated.
4948          (2) Emergency powers shall consist of the authority to control stream flow and
4949     reservoir storage or release.
4950          (3) The state engineer must protect existing water rights to the maximum extent
4951     possible when exercising emergency powers.
4952          (4) Any action taken by the state engineer under this section shall be by written order.
4953          (5) If any person refuses or neglects to comply with any order of the state engineer
4954     issued pursuant to his emergency powers, the state engineer may bring action in the name of
4955     the state in the district court to enforce them.
4956          (6) In carrying out [his] the state engineer's emergency powers, the state engineer shall

4957     have rights of access to private and public property.
4958          (7) Any person affected by a decision of the state engineer made under [his] the state
4959     engineer's emergency powers shall have the right to seek injunctive relief, including temporary
4960     restraining orders and temporary injunctions in any district court of the county where that
4961     person resides.
4962          (8) No order of the state engineer shall be enjoined or set aside unless shown by clear
4963     and convincing evidence that an emergency does not in fact exist or that the order of the state
4964     engineer is arbitrary or capricious.
4965          (9) The provisions of Sections 73-3-14 and 73-3-15 shall not be applicable to any order
4966     of the state engineer issued pursuant to this section.
4967          Section 68. Section 73-22-3 is amended to read:
4968          73-22-3. Definitions.
4969          As used in this chapter:
4970          (1) "Correlative rights" mean the rights of each geothermal owner in a geothermal area
4971     to produce without waste his just and equitable share of the geothermal resource underlying the
4972     geothermal area.
4973          (2) "Division" means the Division of Water Rights, Department of Natural Resources.
4974          (3) "Geothermal area" means the general land area which is underlain or reasonably
4975     appears to be underlain by geothermal resources.
4976          (4) "Geothermal fluid" means water and steam at temperatures greater than 120 degrees
4977     centigrade naturally present in a geothermal system.
4978          (5) (a) "Geothermal resource" means:
4979          (i) the natural heat of the earth at temperatures greater than 120 degrees centigrade; and
4980          (ii) the energy, in whatever form, including pressure, present in, resulting from, created
4981     by, or which may be extracted from that natural heat, directly or through a material medium.
4982          (b) "Geothermal resource" does not include geothermal fluids.
4983          (6) "Geothermal system" means any strata, pool, reservoir, or other geologic formation
4984     containing geothermal resources.
4985          (7) "Material medium" means geothermal fluids, or water and other substances
4986     artificially introduced into a geothermal system to serve as a heat transfer medium.
4987          (8) "Operator" means any person drilling, maintaining, operating, producing, or in

4988     control of any well.
4989          (9) "Owner" means a person who has the right to drill into, produce, and make use of
4990     the geothermal resource.
4991          (10) "Person" means any individual, business entity (corporate or otherwise), or
4992     political subdivision of this or any other state.
4993          (11) (a) "Waste" means any inefficient, excessive, or improper production, use, or
4994     dissipation of geothermal resources.
4995          (b) Wasteful practices include[, but are not limited to]:
4996          [(a)] (i) transporting or storage methods that cause or tend to cause unnecessary surface
4997     loss of geothermal resources; or
4998          [(b)] (ii) locating, spacing, constructing, equipping, operating, producing, or venting of
4999     any well in a manner that results or tends to result in unnecessary surface loss or in reducing
5000     the ultimate economic recovery of geothermal resources.
5001          (12) "Well" means any well drilled, converted, or reactivated for the discovery, testing,
5002     production, or subsurface injection of geothermal resources.
5003          Section 69. Section 78B-14-613 is amended to read:
5004          78B-14-613. Jurisdiction to modify child support order of another state when
5005     individual parties reside in this state.
5006          (1) If all of the parties who are individuals reside in this state and the child does not
5007     reside in the issuing state, a tribunal of this state has jurisdiction to enforce and to modify the
5008     issuing state's child support order in a proceeding to register that order.
5009          (2) A tribunal of this state exercising jurisdiction under this section shall apply the
5010     provisions of [Parts] this part, Part 1, General Provisions, and Part 2, Jurisdiction, [this part,]
5011     and the procedural and substantive law of this state to the proceeding for enforcement or
5012     modification. [Parts] Part 3, Civil Provisions of General Application, Part 4, Establishment of
5013     Support Order or Determination of Parentage, Part 5, Enforcement of Support Order Without
5014     Registration, Part 7, Support Proceedings Under Convention, and Part 8, Rendition, do not
5015     apply.






Legislative Review Note
Office of Legislative Research and General Counsel