1     
HIGHER EDUCATION GOVERNANCE REVISIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ann Millner

5     
House Sponsor: Brad R. Wilson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to higher education governance.
10     Highlighted Provisions:
11          This bill:
12          ▸     renames the Utah College of Applied Technology the Utah System of Technical
13     Colleges;
14          ▸     changes the name of each member college of the Utah System of Technical
15     Colleges from an applied technology college to a technical college;
16          ▸     amends the institutions that comprise the state system of higher education by:
17               •     removing the Utah College of Applied Technology;
18               •     adding the Utah System of Technical Colleges Board of Trustees; and
19                •     adding each technical college;
20          ▸     removes the nonvoting members from the State Board of Regents;
21          ▸     amends the powers and authority of the State Board of Regents;
22          ▸     amends the membership of the State Board of Regents;
23          ▸     requires coordination between state entities involved in education;
24          ▸     amends a list of institutions of higher education that are bodies corporate to:
25               •     remove the Utah College of Applied Technology; and
26               •     add each technical college;
27          ▸     amends the process for the State Board of Regents to appoint a president of an

28     institution of higher education;
29          ▸     amends requirements of the commissioner of technical education;
30          ▸     removes the nonvoting members from the Utah System of Technical Colleges
31     Board of Trustees;
32          ▸     prohibits an individual from serving simultaneously on the Utah System of
33     Technical Colleges Board of Trustees and a technical college board of directors;
34          ▸     provides that the Utah System of Technical Colleges is a continuation of the Utah
35     College of Applied Technology and that each technical college is a continuation of
36     an applied technology college;
37          ▸     describes the primary institutional roles for institutions of higher education;
38          ▸     amends definitions related to the Utah System of Technical Colleges in Title 63G,
39     Chapter 6a, Utah Procurement Code; and
40          ▸     makes technical and conforming changes.
41     Money Appropriated in this Bill:
42          None
43     Other Special Clauses:
44          This bill provides a special effective date.
45     Utah Code Sections Affected:
46     AMENDS:
47          35A-1-206, as last amended by Laws of Utah 2016, Chapters 236, 271, and 296
48          35A-5-402, as last amended by Laws of Utah 2016, Chapter 236
49          35A-5-403, as enacted by Laws of Utah 2015, Chapter 273
50          53A-1-203, as last amended by Laws of Utah 2015, Chapter 415
51          53A-1-402, as last amended by Laws of Utah 2016, Chapter 236
52          53A-1-403.5, as last amended by Laws of Utah 2016, Chapters 144, 188, and 271
53          53A-1a-501.3, as last amended by Laws of Utah 2016, Chapter 236
54          53A-1a-521, as last amended by Laws of Utah 2016, Chapter 236
55          53A-13-101.5, as last amended by Laws of Utah 1998, Chapter 297
56          53A-15-102, as last amended by Laws of Utah 2016, Chapters 236 and 415
57          53A-15-202, as last amended by Laws of Utah 2016, Chapter 236
58          53A-17a-114, as last amended by Laws of Utah 2016, Chapter 236

59          53B-1-101, as last amended by Laws of Utah 1991, Chapter 58
60          53B-1-101.5, as last amended by Laws of Utah 2009, Chapter 346
61          53B-1-102, as last amended by Laws of Utah 2013, Chapter 10
62          53B-1-103, as last amended by Laws of Utah 2016, Chapter 236
63          53B-1-104, as last amended by Laws of Utah 2011, Third Special Session, Chapter 5
64          53B-2-101, as last amended by Laws of Utah 2013, Chapter 10
65          53B-2-103, as last amended by Laws of Utah 1991, Chapter 58
66          53B-2-104, as last amended by Laws of Utah 2016, Chapter 236
67          53B-2-106, as last amended by Laws of Utah 2016, Chapter 236
68          53B-2a-101, as last amended by Laws of Utah 2016, Chapter 236
69          53B-2a-102, as last amended by Laws of Utah 2016, Chapter 236
70          53B-2a-103, as last amended by Laws of Utah 2016, Chapter 236
71          53B-2a-104, as last amended by Laws of Utah 2016, Chapter 236
72          53B-2a-105, as last amended by Laws of Utah 2016, Chapter 236
73          53B-2a-106, as last amended by Laws of Utah 2016, Chapter 236
74          53B-2a-107, as last amended by Laws of Utah 2016, Chapter 236
75          53B-2a-108, as last amended by Laws of Utah 2016, Chapter 236
76          53B-2a-109, as last amended by Laws of Utah 2016, Chapter 236
77          53B-2a-110, as last amended by Laws of Utah 2016, Chapter 236
78          53B-2a-111, as last amended by Laws of Utah 2009, Chapter 346
79          53B-2a-112, as last amended by Laws of Utah 2016, Chapter 236
80          53B-2a-113, as last amended by Laws of Utah 2016, Chapter 236
81          53B-2a-114, as enacted by Laws of Utah 2012, Chapter 181
82          53B-3-102, as last amended by Laws of Utah 2013, Chapter 10
83          53B-6-106, as last amended by Laws of Utah 2016, Chapter 236
84          53B-7-101, as last amended by Laws of Utah 2015, Chapter 361
85          53B-8-101, as last amended by Laws of Utah 2013, Chapters 10, 23, and 465
86          53B-8d-102, as last amended by Laws of Utah 2016, Chapter 236
87          53B-16-101, as enacted by Laws of Utah 1987, Chapter 167
88          53B-16-102, as last amended by Laws of Utah 2016, Chapter 236
89          53B-16-103, as last amended by Laws of Utah 1988, Chapter 137

90          53B-16-107, as last amended by Laws of Utah 2016, Chapter 188
91          53B-16-201, as last amended by Laws of Utah 2010, Chapter 211
92          53B-16-210, as last amended by Laws of Utah 2013, Chapter 310
93          53B-16-401, as enacted by Laws of Utah 1996, Chapter 73
94          53B-17-105, as last amended by Laws of Utah 2016, Chapters 144 and 236
95          53B-21-101, as enacted by Laws of Utah 1987, Chapter 167
96          53B-26-102, as enacted by Laws of Utah 2016, Chapter 338
97          53B-26-103, as enacted by Laws of Utah 2016, Chapter 338
98          58-22-302, as last amended by Laws of Utah 2011, Chapter 367
99          59-12-102, as last amended by Laws of Utah 2016, Third Special Session, Chapter 6
100          59-12-702, as last amended by Laws of Utah 2016, Chapter 344
101          63A-2-402, as renumbered and amended by Laws of Utah 2011, Chapter 207
102          63A-9-101, as last amended by Laws of Utah 2016, Chapters 144 and 236
103          63F-2-102, as last amended by Laws of Utah 2016, Chapter 144
104          63G-2-305, as last amended by Laws of Utah 2015, Chapters 147, 283, and 411
105          63G-6a-103, as last amended by Laws of Utah 2016, Chapters 176, 237, 355 and last
106     amended by Coordination Clause, Laws of Utah 2016, Chapter 355
107          63J-3-103, as last amended by Laws of Utah 2016, Chapter 183
108          63N-12-203, as last amended by Laws of Utah 2016, Chapters 139 and 236
109          63N-12-212, as last amended by Laws of Utah 2016, Chapters 139 and 236
110          63N-12-213, as enacted by Laws of Utah 2016, Chapter 335
111          67-1-12, as last amended by Laws of Utah 2016, Chapter 236
112     ENACTS:
113          53B-1-112, Utah Code Annotated 1953
114          53B-2a-100.5, Utah Code Annotated 1953
115          53B-2a-115, Utah Code Annotated 1953
116     REPEALS AND REENACTS:
117          53B-2-102, as last amended by Laws of Utah 1991, Chapter 58
118     REPEALS:
119          53B-6-101, as last amended by Laws of Utah 2011, Chapter 73
120          53B-6-102, as enacted by Laws of Utah 1987, Chapter 167

121          53B-6-103, as enacted by Laws of Utah 1987, Chapter 167
122          53B-16-106, as enacted by Laws of Utah 2010, Chapter 400
123     

124     Be it enacted by the Legislature of the state of Utah:
125          Section 1. Section 35A-1-206 is amended to read:
126          35A-1-206. State Workforce Development Board -- Appointment -- Membership
127     -- Terms of members -- Compensation.
128          (1) There is created within the department the State Workforce Development Board in
129     accordance with the provisions of the Workforce Innovation and Opportunity Act, 29 U.S.C.
130     Sec. 3101 et seq.
131          (2) The board shall consist of the following 39 members:
132          (a) the governor or the governor's designee;
133          (b) one member of the Senate, appointed by the president of the Senate;
134          (c) one representative of the House of Representatives, appointed by the speaker of the
135     House of Representatives;
136          (d) the executive director or the executive director's designee;
137          (e) the executive director of the Department of Human Services or the executive
138     director's designee;
139          (f) the executive director of the Utah State Office of Rehabilitation or the executive
140     director's designee;
141          (g) the state superintendent of [the State Board of Education] public instruction or the
142     superintendent's designee;
143          (h) the commissioner of higher education or the commissioner's designee;
144          (i) [the commissioner of technical education of] the Utah [College of Applied
145     Technology] System of Technical Colleges commissioner of technical education or the
146     commissioner of technical education's designee;
147          (j) the executive director of the Governor's Office of Economic Development or the
148     executive director's designee;
149          (k) the executive director of the Department of Veterans' and Military Affairs or the
150     executive director's designee; and
151          (l) the following members appointed by the governor:

152          (i) 20 representatives of business in the state, selected among the following:
153          (A) owners of businesses, chief executive or operating officers of businesses, or other
154     business executives or employers with policymaking or hiring authority;
155          (B) representatives of businesses, including small businesses, that provide employment
156     opportunities that include high-quality, work-relevant training and development in in-demand
157     industry sectors or occupations in the state; and
158          (C) representatives of businesses appointed from among individuals nominated by state
159     business organizations or business trade associations;
160          (ii) six representatives of the workforce within the state, which:
161          (A) shall include at least two representatives of labor organizations who have been
162     nominated by state labor federations;
163          (B) shall include at least one representative from a registered apprentice program;
164          (C) may include one or more representatives from a community-based organization
165     that has demonstrated experience and expertise in addressing the employment, training, or
166     educational needs of individuals with barriers to employment; and
167          (D) may include one or more representatives from an organization that has
168     demonstrated experience and expertise in addressing the employment, training, or education
169     needs of eligible youth, including organizations that serve out of school youth; and
170          (iii) two elected officials that represent a city or a county.
171          (3) (a) The governor shall appoint one of the appointed business representatives as
172     chair of the board.
173          (b) The chair shall serve at the pleasure of the governor.
174          (4) (a) The governor shall ensure that members appointed to the board represent
175     diverse geographic areas of the state, including urban, suburban, and rural areas.
176          (b) A member appointed by the governor shall serve a term of four years and may be
177     reappointed to one additional term.
178          (c) A member shall continue to serve until the member's successor has been appointed
179     and qualified.
180          (d) Except as provided in Subsection (4) (e), as terms of board members expire, the
181     governor shall appoint each new member or reappointed member to a four-year term.
182          (e) Notwithstanding the requirements of Subsection (4) (d), the governor shall, at the

183     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
184     board members are staggered so that approximately one half of the board is appointed every
185     two years.
186          (f) When a vacancy occurs in the membership for any reason, the replacement shall be
187     appointed for the unexpired term.
188          (g) The executive director shall terminate the term of any governor-appointed member
189     of the board if the member leaves the position that qualified the member for the appointment.
190          (5) A majority of members constitutes a quorum for the transaction of business.
191          (6) (a) A member of the board who is not a legislator may not receive compensation or
192     benefits for the member's service, but may receive per diem and travel expenses as allowed in:
193          (i) Section 63A-3-106;
194          (ii) Section 63A-3-107; and
195          (iii) rules made by the Division of Finance according to Sections 63A-3-106 and
196     63A-3-107.
197          (b) Compensation and expenses of a member who is a legislator are governed by
198     Section 36-2-2 and Legislative Joint Rules, Title 5, Legislative Compensation and Expenses.
199          (7) The department shall provide staff and administrative support to the board at the
200     direction of the executive director.
201          (8) The board has the duties, responsibilities, and powers described in 29 U.S.C. Sec.
202     3111, including:
203          (a) identifying opportunities to align initiatives in education, training, workforce
204     development, and economic development;
205          (b) developing and implementing the state workforce services plan described in
206     Section 35A-1-207;
207          (c) utilizing strategic partners to ensure the needs of industry are met, including the
208     development of expanded strategies for partnerships for in-demand occupations and
209     understanding and adapting to economic changes;
210          (d) developing strategies for staff training;
211          (e) developing and improving employment centers; and
212          (f) performing other responsibilities within the scope of workforce services as
213     requested by:

214          (i) the Legislature;
215          (ii) the governor; or
216          (iii) the executive director.
217          Section 2. Section 35A-5-402 is amended to read:
218          35A-5-402. Career and Technical Education Board creation -- Membership.
219          (1) There is created the Career and Technical Education Board, within the department,
220     composed of the following members:
221          (a) the state superintendent of public instruction or the state superintendent of public
222     instruction's designee;
223          (b) the commissioner of higher education or the commissioner of higher education's
224     designee;
225          (c) the Utah [College of Applied Technology] System of Technical Colleges
226     commissioner of technical education or the Utah [College of Applied Technology] System of
227     Technical Colleges commissioner of technical education's designee;
228          (d) the executive director of the department or the executive director of the
229     department's designee;
230          (e) the executive director of the Governor's Office of Economic Development or the
231     executive director of the Governor's Office of Economic Development's designee;
232          (f) one member of the governor's staff, appointed by the governor;
233          (g) five private sector members, representing business or industry that employs
234     individuals who hold certificates issued by a CTE program, appointed by the governor;
235          (h) a member of the Senate, appointed by the president of the Senate; and
236          (i) a member of the House of Representatives, appointed by the speaker of the House
237     of Representatives.
238          (2) The CTE Board shall select a chair and vice chair from among the members of the
239     CTE Board.
240          (3) The CTE Board shall meet at least quarterly.
241          (4) Attendance of a simple majority of the members of the CTE Board constitutes a
242     quorum for the transaction of official CTE Board business.
243          (5) Formal action by the CTE Board requires the majority vote of a quorum.
244          (6) A member of the CTE Board:

245          (a) may not receive compensation or benefits for the member's service; and
246          (b) may receive per diem and travel expenses in accordance with:
247          (i) Section 63A-3-106;
248          (ii) Section 63A-3-107; and
249          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
250     63A-3-107.
251          Section 3. Section 35A-5-403 is amended to read:
252          35A-5-403. Career and Technical Education Board -- Duties.
253          (1) The CTE Board shall conduct a comprehensive study of CTE in Utah that includes:
254          (a) an inventory of all CTE programs in Utah, including, for each CTE program:
255          (i) a description of the program;
256          (ii) the number of students the program has the capacity to serve each year;
257          (iii) the number of students the program has served since October 1, 2010, by school
258     year;
259          (iv) the number of certificates the program has issued since October 1, 2010, by school
260     year;
261          (v) a materials and equipment inventory for the program;
262          (vi) the amount of funding dedicated to the program;
263          (vii) the program's geographic location;
264          (viii) employment information for students who have completed the program since
265     October 1, 2010, if practical and feasible; and
266          (ix) the extent to which overlap or duplication exists between the program and other
267     CTE or private programs;
268          (b) a description of CTE funding in the state, including:
269          (i) the total amount of state CTE funding provided to:
270          (A) the public education system;
271          (B) the [higher education system] Utah System of Higher Education; and
272          (C) the Utah [College of Applied Technology] System of Technical Colleges; and
273          (ii) for each CTE program:
274          (A) total CTE funding received; and
275          (B) the cost per student served;

276          (c) an assessment of Utah business and industry needs for employees with skills taught
277     in CTE classes, including:
278          (i) the number of current and anticipated jobs in Utah, by geographic region, and the
279     CTE skills required for the jobs;
280          (ii) the starting and average salary, by geographic region and type of CTE skills, for an
281     individual who has skills taught in a CTE program; and
282          (iii) the extent to which current CTE programs can meet the employment needs of Utah
283     business and industry; and
284          (d) any other information the CTE Board considers relevant to the study.
285          (2) In conducting the comprehensive study described in Subsection (1), the CTE Board
286     shall coordinate with the Office of the Legislative Auditor General and, to the extent possible,
287     use data collected by the Office of the Legislative Auditor General to complete the study.
288          (3) (a) The State Board of Education, the State Board of Regents, and [Utah College of
289     Applied Technology] the Utah System of Technical Colleges Board of Trustees shall:
290          (i) provide data that the department requests for the study; and
291          (ii) coordinate with the department to conduct the study.
292          (b) Notwithstanding the requirements in Subsection (3)(a), the board shall have
293     discretion to gather and report information as part of the comprehensive study of CTE that is
294     readily accessible through current financial and data systems.
295          (4) The CTE Board may:
296          (a) contract with a third party, in accordance with Title 63G, Chapter 6a, Utah
297     Procurement Code, to conduct the comprehensive study described in Subsection (1); and
298          (b) as funding allows, hire staff.
299          (5) Based on the comprehensive study described in Subsection (1), the CTE Board
300     shall make recommendations to the Legislature related to:
301          (a) CTE funding;
302          (b) CTE governance and administration;
303          (c) benchmarks or criteria for a CTE program to demonstrate that the CTE program
304     fills:
305          (i) an educational need for a student;
306          (ii) a school's need to offer a particular CTE program; or

307          (iii) an employment need for a Utah business or industry; and
308          (d) any other CTE related recommendations.
309          (6) (a) On or before November 1, 2015, the CTE Board shall report on the progress of
310     the comprehensive study described in Subsection (1).
311          (b) On or before November 1, 2016, the CTE Board shall report on the final results of
312     the comprehensive study described in Subsection (1); and
313          (c) On or before November 1, 2017, the CTE Board shall report on the
314     recommendations described in Subsection (5).
315          (d) The CTE Board shall make the reports described in this Subsection (6) to:
316          (i) the Education Interim Committee;
317          (ii) the Executive Appropriations Committee;
318          (iii) the governor;
319          (iv) the State Board of Education;
320          (v) the State Board of Regents; and
321          (vi) the Utah [College of Applied Technology] System of Technical Colleges Board of
322     Trustees.
323          Section 4. Section 53A-1-203 is amended to read:
324          53A-1-203. State board meetings -- Quorum requirements.
325          (1) The State Board of Education shall meet at the call of the chairman and at least 11
326     times each year.
327          [(2) The State Board of Education shall, at least quarterly, meet with and receive
328     recommendations from:]
329          [(a) two members of the State Board of Regents, appointed by the chair of the State
330     Board of Regents;]
331          [(b) one member of the Utah College of Applied Technology Board of Trustees,
332     appointed by the chair of the board of trustees; and]
333          [(c) one member of the State Charter School Board, appointed by the chair of the State
334     Charter School Board.]
335          [(3)] (2) A majority of all members is required to validate an act of the [board] State
336     Board of Education.
337          Section 5. Section 53A-1-402 is amended to read:

338          53A-1-402. Board to establish minimum standards for public schools.
339          (1) The State Board of Education shall establish rules and minimum standards for the
340     public schools that are consistent with this title, including rules and minimum standards
341     governing the following:
342          (a) (i) the qualification and certification of educators and ancillary personnel who
343     provide direct student services;
344          (ii) required school administrative and supervisory services; and
345          (iii) the evaluation of instructional personnel;
346          (b) (i) access to programs;
347          (ii) attendance;
348          (iii) competency levels;
349          (iv) graduation requirements; and
350          (v) discipline and control;
351          (c) (i) school accreditation;
352          (ii) the academic year;
353          (iii) alternative and pilot programs;
354          (iv) curriculum and instruction requirements;
355          (v) school libraries; and
356          (vi) services to:
357          (A) persons with a disability as defined by and covered under:
358          (I) the Americans with Disabilities Act of 1990, 42 U.S.C. 12102;
359          (II) the Rehabilitation Act of 1973, 29 U.S.C. 705(20)(A); and
360          (III) the Individuals with Disabilities Education Act, 20 U.S.C. 1401(3); and
361          (B) other special groups;
362          (d) (i) state reimbursed bus routes;
363          (ii) bus safety and operational requirements; and
364          (iii) other transportation needs; and
365          (e) (i) school productivity and cost effectiveness measures;
366          (ii) federal programs;
367          (iii) school budget formats; and
368          (iv) financial, statistical, and student accounting requirements.

369          (2) The [board] State Board of Education shall determine if:
370          (a) the minimum standards have been met; and
371          (b) required reports are properly submitted.
372          (3) The [board] State Board of Education may apply for, receive, administer, and
373     distribute to eligible applicants funds made available through programs of the federal
374     government.
375          (4) (a) [An applied technology] A technical college [within the Utah College of Applied
376     Technology] listed in Section 53B-2a-105 shall provide competency-based career and technical
377     education courses that fulfill high school graduation requirements, as requested and authorized
378     by the State Board of Education.
379          (b) A school district may grant a high school diploma to a student participating in
380     [courses described under] a course described in Subsection (4)(a) that [are] is provided by [an
381     applied technology college within the Utah College of Applied Technology] a technical college
382     listed in Section 53B-2a-105.
383          Section 6. Section 53A-1-403.5 is amended to read:
384          53A-1-403.5. Education of persons in custody of the Utah Department of
385     Corrections -- Contracting for services -- Recidivism reduction plan -- Collaboration
386     among state agencies.
387          (1) The State Board of Education and the Utah Department of Corrections, subject to
388     legislative appropriation, are responsible for the education of persons in the custody of the Utah
389     Department of Corrections.
390          (2) (a) To fulfill the responsibility under Subsection (1), the State Board of Education
391     and the Utah Department of Corrections shall, where feasible, contract with appropriate private
392     or public agencies to provide educational and related administrative services. Contracts for
393     postsecondary education and training shall be under Subsection (2)(b).
394          (b) (i) The contract under Subsection (2)(a) to provide postsecondary education and
395     training shall be with a community college if the correctional facility is located within the
396     service region of a community college, except under Subsection (2)(b)(ii).
397          (ii) If the community college under Subsection (2)(b)(i) declines to provide the
398     education and training or cannot meet reasonable contractual terms for providing the education
399     and training as specified by the Utah Department of Corrections, postsecondary education and

400     training under Subsection (2)(a) may be procured through other appropriate private or public
401     agencies.
402          (3) (a) As its corrections education program, the State Board of Education and the Utah
403     Department of Corrections shall develop and implement a recidivism reduction plan, including
404     the following components:
405          (i) inmate assessment;
406          (ii) cognitive problem-solving skills;
407          (iii) basic literacy skills;
408          (iv) career skills;
409          (v) job placement;
410          (vi) postrelease tracking and support;
411          (vii) research and evaluation;
412          (viii) family involvement and support; and
413          (ix) multiagency collaboration.
414          (b) The plan shall be developed and implemented through the State Board of Education
415     and the Utah Department of Corrections in collaboration with the following entities:
416          (i) the State Board of Regents;
417          (ii) the [Utah College of Applied Technology] Utah System of Technical Colleges
418     Board of Trustees;
419          (iii) local boards of education;
420          (iv) the Department of Workforce Services;
421          (v) the Department of Human Services;
422          (vi) the Board of Pardons and Parole;
423          (vii) the Utah State Office of Rehabilitation; and
424          (viii) the Governor's Office.
425          (4) By July 1, 2014, and every three years thereafter, the Utah Department of
426     Corrections shall make a report to the State Board of Education and the Law Enforcement and
427     Criminal Justice Interim Committee evaluating the impact of corrections education programs
428     on recidivism.
429          Section 7. Section 53A-1a-501.3 is amended to read:
430          53A-1a-501.3. Definitions.

431          As used in this part:
432          (1) "Asset" means property of all kinds, real and personal, tangible and intangible, and
433     includes:
434          (a) cash;
435          (b) stock or other investments;
436          (c) real property;
437          (d) equipment and supplies;
438          (e) an ownership interest;
439          (f) a license;
440          (g) a cause of action; and
441          (h) any similar property.
442          (2) "Board of trustees of a higher education institution" or "board of trustees" means:
443          (a) the board of trustees of:
444          (i) the University of Utah;
445          (ii) Utah State University;
446          (iii) Weber State University;
447          (iv) Southern Utah University;
448          (v) Snow College;
449          (vi) Dixie State University;
450          (vii) Utah Valley University; or
451          (viii) Salt Lake Community College; or
452          (b) the board of directors of [an applied technology college within the Utah College of
453     Applied Technology] a technical college described in Section 53B-2a-108.
454          (3) "Charter agreement" or "charter" means an agreement made in accordance with
455     Section 53A-1a-508[,] that authorizes the operation of a charter school.
456          (4) "Charter school authorizer" or "authorizer" means the State Charter School Board, a
457     local school board, or a board of trustees of a higher education institution that authorizes the
458     establishment of a charter school.
459          (5) "Governing board" means the board that operates a charter school.
460          Section 8. Section 53A-1a-521 is amended to read:
461          53A-1a-521. Charter schools authorized by a board of trustees of a higher

462     education institution -- Application process -- Board of trustees responsibilities.
463          (1) Subject to the approval of the State Board of Education and except as provided in
464     Subsection (8), an applicant identified in Section 53A-1a-504 may enter into an agreement with
465     a board of trustees of a higher education institution authorizing the applicant to establish and
466     operate a charter school.
467          (2) (a) An applicant applying for authorization from a board of trustees to establish and
468     operate a charter school shall provide a copy of the application to the State Charter School
469     Board and the local school board of the school district in which the proposed charter school
470     [shall] will be located either before or at the same time the applicant files the application with
471     the board of trustees.
472          (b) The State Charter School Board and the local school board may review the
473     application and offer suggestions or recommendations to the applicant or the board of trustees
474     before acting on the application.
475          (c) The board of trustees shall give due consideration to suggestions or
476     recommendations made by the State Charter School Board or the local school board under
477     Subsection (2)(b).
478          (3) (a) If a board of trustees approves an application to establish and operate a charter
479     school, the board of trustees shall submit the application to the State Board of Education.
480          (b) The State Board of Education shall, by majority vote, within 60 days of receipt of
481     the application, approve or deny an application approved by a board of trustees.
482          (c) The State Board of Education's action under Subsection (3)(b) is final action subject
483     to judicial review.
484          (4) The State Board of Education shall make a rule providing a timeline for the
485     opening of a charter school following the approval of a charter school application by a board of
486     trustees.
487          (5) After approval of a charter school application, the applicant and the board of
488     trustees shall set forth the terms and conditions for the operation of the charter school in a
489     written charter agreement.
490          (6) (a) The school's charter may include a provision that the charter school pay an
491     annual fee for the board of trustees' costs in providing oversight of, and technical support to,
492     the charter school in accordance with Subsection (7).

493          (b) In the first two years that a charter school is in operation, an annual fee described in
494     Subsection (6)(a) may not exceed the product of 3% of the revenue the charter school receives
495     from the state in the current fiscal year.
496          (c) Beginning with the third year that a charter school is in operation, an annual fee
497     described in Subsection (6)(a) may not exceed the product of 1% of the revenue a charter
498     school receives from the state in the current fiscal year.
499          (d) An annual fee described in Subsection (6)(a) shall be:
500          (i) paid to the board of trustees' higher education institution; and
501          (ii) expended as directed by the board of trustees.
502          (7) A board of trustees shall:
503          (a) annually review and evaluate the performance of charter schools authorized by the
504     board of trustees and hold the schools accountable for their performance;
505          (b) monitor charter schools authorized by the board of trustees for compliance with
506     federal and state laws, rules, and regulations; and
507          (c) provide technical support to charter schools authorized by the board of trustees to
508     assist them in understanding and performing their charter obligations.
509          (8) (a) In addition to complying with the requirements of this section, a technical
510     college board of directors [of an applied technology college within the Utah College of Applied
511     Technology] described in Section 53B-2a-108 shall obtain the approval of the Utah [College of
512     Applied Technology] System of Technical Colleges Board of Trustees before entering into an
513     agreement to establish and operate a charter school.
514          (b) If a technical college board of directors [of an applied technology college within the
515     Utah College of Applied Technology] approves an application to establish and operate a
516     charter school, the [applied technology] technical college board of directors shall submit the
517     application to the [Utah College of Applied Technology] Utah System of Technical Colleges
518     Board of Trustees.
519          (c) The Utah [College of Applied Technology] System of Technical Colleges Board of
520     Trustees shall, by majority vote, within 60 days of receipt of [the] an application described in
521     Subsection (8)(b), approve or deny the application [approved by the applied technology college
522     board of directors].
523          (d) The Utah [College of Applied Technology] System of Technical Colleges Board of

524     Trustees may deny an application approved by [an applied technology] a technical college
525     board of directors if the proposed charter school does not accomplish a purpose of charter
526     schools as provided in Section 53A-1a-503.
527          (e) A charter school application may not be denied on the basis that the establishment
528     of the charter school will have any or all of the following impacts on a public school, including
529     another charter school:
530          (i) an enrollment decline;
531          (ii) a decrease in funding; or
532          (iii) a modification of programs or services.
533          (9) (a) Subject to the requirements of this part, [an applied technology] a technical
534     college board of directors may establish:
535          (i) procedures for submitting applications to establish and operate a charter school;
536     [and] or
537          (ii) criteria for approval of an application to establish and operate a charter school.
538          (b) The Utah [College of Applied Technology] System of Technical Colleges Board of
539     Trustees may not establish policy governing the procedures or criteria described in Subsection
540     (9)(a).
541          (10) Before [an applied technology] a technical college board of directors accepts a
542     charter school application, the [applied technology] technical college board of directors shall,
543     in accordance with State Board of Education rules, establish and make public:
544          (a) application requirements, in accordance with Section 53A-1a-504;
545          (b) the application process, including timelines, in accordance with this section; and
546          (c) minimum academic, financial, and enrollment standards.
547          Section 9. Section 53A-13-101.5 is amended to read:
548          53A-13-101.5. Teaching of American sign language.
549          (1) The Legislature recognizes that American sign language is a fully developed,
550     autonomous, natural language with distinct grammar, syntax, and art forms.
551          (2) American sign language shall be accorded equal status with other linguistic systems
552     in the state's public and higher education systems.
553          (3) The State Board of Education, in consultation with the state's school districts and
554     members of the deaf and hard of hearing community, shall develop and implement policies and

555     procedures for the teaching of American sign language in the state's public education system at
556     least at the middle school or high school level.
557          (4) A student may count credit received for completion of a course in American sign
558     language at the middle school or high school level [towards] toward the satisfaction of a
559     foreign language requirement in the public education system under rules made by the State
560     Board of Education.
561          (5) The State Board of Regents, in consultation with the state's public institutions of
562     higher education and members of the state's deaf and hard of hearing community, shall develop
563     and implement policies and procedures for offering instruction in American sign language in
564     the state's system of higher education [consistent with the master plan for higher education
565     under Section 53B-6-101].
566          (6) The Joint Liaison Committee, in consultation with members of the state's deaf and
567     hard of hearing community, shall review any policies and procedures developed under this
568     section and make recommendations to either or both boards regarding the policies.
569          Section 10. Section 53A-15-102 is amended to read:
570          53A-15-102. Early graduation incentives -- Incentive to school district -- Partial
571     tuition scholarship for student -- Payments.
572          (1) Any secondary public school student who has completed all required courses or
573     demonstrated mastery of required skills and competencies may, with the approval of the
574     student, the student's parent or guardian, and an authorized local school official, graduate at any
575     time.
576          (2) Each public high school shall receive an amount equal to 1/2 of the scholarship
577     awarded to each student who graduates from the school at or prior to the conclusion of [the
578     eleventh] grade 11, or a proportionately lesser amount for any student who graduates after the
579     conclusion of [the eleventh] grade 11 but prior to the conclusion of [the twelfth] grade 12.
580          (3) (a) A student who graduates from high school at or prior to the conclusion of [the
581     eleventh] grade 11 shall receive a centennial scholarship in the lesser amount of full tuition for
582     one year or $1,000 to be used for full time enrollment at a Utah public college, university,
583     community college, [applied technology] technical college [within the Utah College of Applied
584     Technology] described in Section 53B-2a-105, or any other institution in the state of Utah,
585     accredited by the Northwest Association of Schools and Colleges that offers postsecondary

586     courses of the student's choice upon verification that the student has registered at the institution
587     during the fiscal year following graduation from high school.
588          (b) In the case of a student who graduates after the conclusion of [the eleventh] grade
589     11 but prior to the conclusion of [the twelfth] grade 12, the student shall receive a centennial
590     scholarship of a proportionately lesser amount.
591          (4) (a) The payments authorized in Subsections (2) and (3)(a) shall be made during the
592     fiscal year that follows the student's graduation.
593          (b) The payments authorized in Subsection (3)(b) may be made during the fiscal year in
594     which the student graduates or the fiscal year following the student's graduation.
595          (5) (a) The State Board of Education shall administer the payment program authorized
596     in Subsections (2), (3), and (4).
597          (b) The Legislature shall make an annual appropriation from the Education Fund to the
598     State Board of Education for the costs associated with the Centennial Scholarship Program
599     based on the projected number of students who will graduate before the conclusion of [the
600     twelfth] grade 12 in any given year.
601          Section 11. Section 53A-15-202 is amended to read:
602          53A-15-202. Powers of the board.
603          The State Board of Education:
604          (1) shall establish minimum standards for career and technical education programs in
605     the public education system;
606          (2) may apply for, receive, administer, and distribute funds made available through
607     programs of federal and state governments to promote and aid career and technical education;
608          (3) shall cooperate with federal and state governments to administer programs [which]
609     that promote and maintain career and technical education;
610          (4) shall cooperate with the Utah [College of Applied Technology] System of
611     Technical Colleges Board of Trustees, Salt Lake Community College's School of Applied
612     Technology, Snow College, and Utah State University Eastern to ensure that students in the
613     public education system have access to career and technical education at Utah [College of
614     Applied Technology applied technology] System of Technical Colleges technical colleges, Salt
615     Lake Community College's School of Applied Technology, Snow College, and Utah State
616     University Eastern;

617          (5) shall require that before a minor student may participate in clinical experiences as
618     part of a health care occupation program at a high school or other institution to which the
619     student has been referred, the student's parent or legal guardian has:
620          (a) been first given written notice through appropriate disclosure when registering and
621     prior to participation that the program contains a clinical experience segment in which the
622     student will observe and perform specific health care procedures that may include personal
623     care, patient bathing, and bathroom assistance; and
624          (b) provided specific written consent for the student's participation in the program and
625     clinical experience; and
626          (6) shall, after consulting with school districts, charter schools, the Utah [College of
627     Applied Technology] System of Technical Colleges Board of Trustees, Salt Lake Community
628     College's School of Applied Technology, Snow College, and Utah State University Eastern,
629     prepare and submit an annual report to the governor and to the Legislature's Education Interim
630     Committee by October 31 of each year detailing:
631          (a) how the career and technical education needs of secondary students are being met;
632     and
633          (b) [what] the access secondary students have to programs offered:
634          (i) at [applied technology] technical colleges; and
635          (ii) within the regions served by Salt Lake Community College's School of Applied
636     Technology, Snow College, and Utah State University Eastern.
637          Section 12. Section 53A-17a-114 is amended to read:
638          53A-17a-114. Career and technical education program alternatives.
639          (1) A secondary student may attend [an applied technology college within the Utah
640     College of Applied Technology] a technical college described in Section 53B-2a-105 if the
641     secondary student's career and technical education goals are better achieved by attending [an
642     applied technology] a technical college as determined by:
643          (a) the secondary student; and
644          (b) if the secondary student is a minor, the secondary student's parent or legal guardian.
645          (2) A secondary student served under this section by [an applied technology college
646     within the Utah College of Applied Technology] a technical college described in Section
647     53B-2a-105 shall be counted in the average daily membership of the sending school district or

648     charter school.
649          Section 13. Section 53B-1-101 is amended to read:
650          53B-1-101. Purpose of title.
651          It is the purpose of this title:
652          (1) to provide a high quality, efficient, and economical public system of higher
653     education and technical education through [centralized] strategic direction and [master]
654     planning [which] that:
655          [(a) avoids unnecessary duplication;]
656          (a) provides for the economic vitality of the state;
657          (b) provides for the systematic and orderly development of facilities and quality
658     programs;
659          (c) provides for coordination and consolidation; and
660          (d) [provides for] establishes systematic development of the role or roles of each
661     institution [within the system of higher education consistent with the historical heritage and
662     tradition of each institution] of higher education;
663          [(2) to vest in the State Board of Regents the power to govern the state system of
664     higher education consistent with state law and delegate certain powers to institutional boards of
665     trustees and institutional presidents, and to vest certain powers in institutional boards of
666     trustees and institutional presidents.]
667          (2) to vest in the State Board of Regents and the Utah System of Technical Colleges
668     Board of Trustees power and authority to govern and coordinate, consistent with state law; and
669          (3) to provide for the delegation of certain powers to:
670          (a) institution of higher education boards of trustees;
671          (b) technical college boards of directors; and
672          (c) presidents of higher education institutions and technical colleges.
673          Section 14. Section 53B-1-101.5 is amended to read:
674          53B-1-101.5. Definitions.
675          As used in this title:
676          (1) "Board" means the State Board of Regents established in Section 53B-1-103.
677          (2) "Career and technical education" means organized educational programs offering
678     sequences of courses or skill sets directly related to preparing individuals for paid or unpaid

679     employment in current or emerging occupations that generally do not require a baccalaureate or
680     advanced degree.
681          (3) "Commissioner" means the commissioner of higher education appointed in
682     accordance with Section 53B-1-105.
683          (4) "Technical college" means, except as provided in Section 53B-26-102, a member
684     college of the Utah System of Technical Colleges listed in Section 53B-2a-105.
685          Section 15. Section 53B-1-102 is amended to read:
686          53B-1-102. State system of higher education.
687          (1) The state system of higher education consists of [the following institutions]:
688          (a) the Utah System of Higher Education, which consists of the following institutions:
689          [(a)] (i) the State Board of Regents;
690          [(b)] (ii) the University of Utah;
691          [(c)] (iii) Utah State University;
692          [(d)] (iv) Weber State University;
693          [(e)] (v) Southern Utah University;
694          [(f)] (vi) Snow College;
695          [(g)] (vii) Dixie State University;
696          [(h)] (viii) Utah Valley University; and
697          [(i)] (ix) Salt Lake Community College;
698          [(j) the Utah College of Applied Technology; and]
699          (b) the Utah System of Technical Colleges, which consists of the following
700     institutions:
701          (i) the Utah System of Technical Colleges Board of Trustees;
702          (ii) Bridgerland Technical College;
703          (iii) Davis Technical College;
704          (iv) Dixie Technical College;
705          (v) Mountainland Technical College;
706          (vi) Ogden-Weber Technical College;
707          (vii) Southwest Technical College;
708          (viii) Tooele Technical College; and
709          (ix) Uintah Basin Technical College; and

710          [(k)] (c) other public post-high school educational institutions as the Legislature may
711     designate.
712          (2) A change in the name of an institution within the [system of higher education] Utah
713     System of Higher Education shall not be considered a change in the role or mission of the
714     institution, unless otherwise authorized by the State Board of Regents.
715          (3) It is not the intent of the Legislature to increase the number of research universities
716     in the state beyond the University of Utah and Utah State University.
717          (4) [These institutions are] An institution described in Subsection (1) is empowered to
718     sue and be sued and to contract and be contracted with.
719          Section 16. Section 53B-1-103 is amended to read:
720          53B-1-103. Establishment of State Board of Regents -- Powers, duties, and
721     authority.
722          (1) There is established a State Board of Regents.
723          (2) (a) Except as provided in Subsection (2)(b), the board [is vested with the] shall
724     control, [management] manage, and [supervision of] supervise the institutions of higher
725     education designated in Section 53B-1-102 in a manner consistent with the policy and purpose
726     of this title and the specific powers and responsibilities granted to [it] the board.
727          (b) The board may only exercise powers relating to the [Utah College of Applied
728     Technology and applied technology colleges within the Utah College of Applied Technology]
729     Utah System of Technical Colleges Board of Trustees, the Utah System of Technical Colleges,
730     or a technical college that are specifically provided in this title.
731          (3) The board shall, for the Utah System of Higher Education:
732          (a) provide strategic leadership and link system capacity to the economy and workforce
733     needs;
734          (b) enhance the impact and efficiency of the system;
735          (c) establish measurable goals and metrics and delineate the expected contributions of
736     individual institutions of higher education toward these goals;
737          (d) evaluate presidents based on institutional performance;
738          (e) delegate to presidents the authority to manage the presidents' institutions of higher
739     education;
740          (f) administer statewide functions including system data collection and reporting;

741          (g) establish unified budget, finance, and capital funding priorities and practices; and
742          (h) provide system leadership on issues that have a system-wide impact, including:
743          (i) statewide college access and college preparedness initiatives;
744          (ii) learning opportunities drawn from multiple campuses or online learning options,
745     including new modes of delivery of content at multiple locations;
746          (iii) degree program requirement guidelines including credit hour limits, articulation
747     agreements, and transfer across institutions;
748          (iv) alignment of general education requirements across institutions of higher
749     education;
750          (v) incorporation of evidence-based practices that increase college completion; and
751          (vi) monitoring of workforce needs, with an emphasis on credentials that build upon
752     one another.
753          [(c)] (4) The board shall coordinate and support articulation agreements between the
754     Utah [College of Applied Technology or applied technology colleges within the Utah College
755     of Applied Technology] System of Technical Colleges or a technical college and other
756     institutions of higher education.
757          [(d)] (5) The board shall prepare and submit an annual report detailing [its] the board's
758     progress and recommendations on career and technical education issues and addressing
759     workforce needs to the governor and to the Legislature's Education Interim Committee by
760     October 31 of each year, which shall include information detailing:
761          [(i)] (a) how the career and technical education needs of secondary students are being
762     met by institutions of higher education [other than applied technology colleges within the Utah
763     College of Applied Technology] described in Subsection 53B-1-102(1)(a), including [what] the
764     access secondary students have to programs offered by Salt Lake Community College's School
765     of Applied Technology, Snow College, and Utah State University Eastern;
766          [(ii)] (b) how the emphasis on high demand, high wage, and high skill jobs in business
767     and industry is being provided;
768          [(iii)] (c) performance outcomes, including:
769          [(A)] (i) entered employment;
770          [(B)] (ii) job retention; and
771          [(C)] (iii) earnings; [and]

772          (d) an analysis of workforce needs and efforts to meet workforce needs; and
773          [(iv)] (e) student tuition and fees.
774          [(e)] (6) [Except for the Utah College of Applied Technology, the] The board may
775     modify the name of an institution [under its control and management, as designated in Section
776     53B-1-102,] described in Subsection 53B-1-102(1)(a) to reflect the role and general course of
777     study of the institution.
778          [(f)] (7) The board may not conduct a feasibility study or perform another act relating
779     to merging [any of the following institutions] a technical college with another institution of
780     higher education[:].
781          [(i) Bridgerland Applied Technology College;]
782          [(ii) Ogden-Weber Applied Technology College;]
783          [(iii) Davis Applied Technology College;]
784          [(iv) Tooele Applied Technology College;]
785          [(v) Mountainland Applied Technology College;]
786          [(vi) Uintah Basin Applied Technology College;]
787          [(vii) Southwest Applied Technology College; and]
788          [(viii) Dixie Applied Technology College.]
789          [(3)] (8) This section does not affect the power and authority vested in the State Board
790     of Education to apply for, accept, and manage federal appropriations for the establishment and
791     maintenance of career and technical education.
792          [(4) The board shall conduct a study regarding the feasibility of providing a veterans'
793     walk-in center or services at each state institution of higher education. The study shall include:]
794          [(a) an implementation plan for providing a walk-in center or services at each
795     institution of higher education;]
796          [(b) criteria, based upon the size of the institution, to determine whether the institution
797     should be required to provide a walk-in center or services;]
798          [(c) responsibilities of the walk-in center or services;]
799          [(d) a notification process about the walk-in center or services to veterans upon their
800     application for admission;]
801          [(e) the possibility of staffing a veterans walk-in center or services with veterans,
802     including through work-study positions to be filled by veterans;]

803          [(f) annual reports from each walk-in center and services to the board which includes
804     summary information of veterans served; and]
805          [(g) funding requirements for a veterans walk-in center and services.]
806          [(5) Presentation of the study, including the implementation plan with funding and
807     other recommendations, shall be made to a legislative committee, commission, or task force
808     upon request no later than the October 2014 interim meeting.]
809          Section 17. Section 53B-1-104 is amended to read:
810          53B-1-104. Membership of the board -- Student appointee -- Terms -- Oath --
811     Officers -- Committees -- Bylaws -- Meetings -- Quorum -- Vacancies -- Compensation.
812          [(1) (a) The board shall consist of 19 residents of the state.]
813          [(b) (i) Fifteen members shall be appointed by the governor with the consent of the
814     Senate.]
815          [(ii) (A) One additional member shall be appointed by the governor from nominations
816     of the student body presidents council.]
817          [(B) The student body presidents council shall nominate three qualified, matriculated
818     students enrolled in the state institutions of higher education.]
819          [(C) Student body presidents are not eligible for nomination.]
820          [(iii) All appointments to the board shall be made on a nonpartisan basis.]
821          [(iv) In making appointments to the board, the governor shall select:]
822          [(A) at least two individuals who reside within a county of the fourth, fifth, or sixth
823     class;]
824          [(B) no more than six individuals who reside within a county of the first class;]
825          [(C) the remaining individuals from the state at large with due consideration for
826     geographical representation and diversity of exposure to the various institutions in the Utah
827     System of Higher Education; and]
828          [(D) at least three individuals with personal experience in career and technical
829     education, which could include service on a campus board of directors.]
830          [(c) (i) In addition to the members designated under Subsection (1)(b), two members of
831     the State Board of Education, appointed by the chair of the State Board of Education, shall
832     serve as nonvoting members of the board.]
833          [(ii) A nonvoting State Board of Education member shall continue to serve as a

834     member without a set term until the member is replaced by the chair of the State Board of
835     Education.]
836          [(d) (i) In addition to the members designated under Subsection (1)(b), one member of
837     the Utah College of Applied Technology Board of Trustees, appointed by the chair of the Utah
838     College of Applied Technology Board of Trustees, shall serve as a nonvoting member of the
839     board.]
840          [(ii) A nonvoting Utah College of Applied Technology Board of Trustees member shall
841     continue to serve as a member without a set term until the member is replaced by the chair of
842     the Utah College of Applied Technology Board of Trustees.]
843          [(2) (a) Five members of the board, other than the student member, the State Board of
844     Education members, and the Utah College of Applied Technology Board of Trustees member,
845     shall be appointed during each odd-numbered year to six-year staggered terms which
846     commence on July 1 of the year of appointment.]
847          [(b) (i) The student member shall be appointed for a one-year term and may be
848     reappointed for one additional term.]
849          [(ii) The student member has full voting rights and may vote on selection of a board
850     chair or vice chair, but not serve in either office.]
851          [(c) Board members shall hold office until their successors have been appointed and
852     qualified.]
853          (1) Except as provided in Subsection (2), the board consists of 17 residents of the state
854     appointed by the governor with the consent of the Senate, as follows:
855          (a) eight at large members;
856          (b) eight members, each of whom is:
857          (i) selected from three nominees presented to the governor by a higher education
858     institution board of trustees; and
859          (ii) a current or former member of the institution of higher education board of trustees
860     that nominates the member; and
861          (c) one member, selected from three nominees presented to the governor by the student
862     body presidents of the institutions of higher education, who:
863          (i) is a fully matriculated student enrolled in an institution of higher education; and
864          (ii) is not serving as a student body president at the time of the nomination.

865          (2) (a) (i) An individual appointed to the board on or before May 8, 2017, may serve on
866     the board, even if the individual does not fulfill a requirement for the composition of the board
867     described in Subsection (1).
868          (ii) The governor may reappoint a member described in Subsection (2)(a)(i) when the
869     member's term expires.
870          (b) An individual appointed to the board on or before May 8, 2017, who is a current or
871     former member of an institution of higher education board of trustees is the board member for
872     the institution of higher education described in Subsection (1)(b).
873          (c) (i) Subject to Subsection (2)(c)(ii), as positions on the board become vacant, the
874     governor shall ensure that newly appointed members move the board toward the composition
875     described in Subsection (1).
876          (ii) In appointing a new member to the board, the governor shall first appoint a member
877     described in Subsection (1)(b) until the eight positions described in Subsection (1)(b) are filled.
878          (3) (a) All appointments to the board shall be made on a nonpartisan basis.
879          (b) In making appointments to the board, the governor shall consider:
880          (i) geographic representation of members;
881          (ii) diversity;
882          (iii) experience in higher education governance;
883          (iv) experience in economic development; and
884          (v) exposure to institutions of higher education.
885          (c) An individual may not serve simultaneously on the State Board of Regents and an
886     institution of higher education board of trustees.
887          (4) (a) Except as provided in Subsection (4)(b), members of the board shall be
888     appointed to six-year staggered terms, which begin on July 1 of the year of appointment.
889          (b) A student member described in Subsection (1)(c) shall be appointed to a one-year
890     term.
891          [(3)] (5) (a) [Each] A member of the board shall take the official oath of office before
892     entering upon the duties of office.
893          (b) The oath shall be filed with the Division of Archives and Records Services.
894          [(4)] (6) The board shall elect a chair and vice chair from [its] among the board's
895     members who shall serve terms of two years and until their successors are chosen and

896     qualified.
897          [(5)] (7) (a) The board shall appoint a secretary from the staff of [its] the board's chief
898     executive to serve at [its] the board's discretion.
899          (b) The secretary [shall be] is a full-time employee who receives a salary set by the
900     board.
901          (c) The secretary shall record and maintain a record of all board meetings and perform
902     other duties as the board directs.
903          [(6) The board shall appoint a treasurer who serves at the discretion of the board.]
904          [(7)] (8) (a) The board may establish advisory committees.
905          (b) The powers and authority of the board are nondelegable, except as specifically
906     provided for in this title.
907          (c) All matters requiring board determination shall be addressed in a properly convened
908     meeting of the board or [its] the board's executive committee.
909          [(8)] (9) The board shall enact bylaws for [its] the board's own government not
910     inconsistent with the constitution or the laws of this state.
911          [(9)] (10) (a) The board shall meet regularly upon [its] the board's own determination.
912          (b) The board may also meet, in full or executive session, at the request of [its] the
913     chair, [its] the executive officer, or five members of the board.
914          [(10)] (11) A quorum of the voting members of the board is required to conduct [its]
915     the board's business and consists of nine members.
916          [(11)] (12) (a) A vacancy in the board occurring before the expiration of a voting
917     member's full term shall be immediately filled by appointment by the governor with the
918     consent of the Senate.
919          (b) [The appointee] An individual appointed under Subsection (12)(a) serves for the
920     remainder of the unexpired term.
921          [(12)] (13) A board member may not receive compensation or benefits for the
922     member's service, but may receive per diem and travel expenses in accordance with:
923          (a) Section 63A-3-106;
924          (b) Section 63A-3-107; and
925          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
926     63A-3-107.

927          Section 18. Section 53B-1-112 is enacted to read:
928          53B-1-112. Coordination for education.
929          (1) At least quarterly, in order to coordinate education services, individuals who have
930     responsibilities related to Utah's education system shall meet, including:
931          (a) the state superintendent of public instruction described in Section 53A-1-301;
932          (b) the commissioner;
933          (c) the commissioner of technical education described in Section 53B-2a-102;
934          (d) the executive director of the Department of Workforce Services described in
935     Section 35A-1-201;
936          (e) the executive director of the Governor's Office of Economic Development
937     described in Section 63N-1-202;
938          (f) the chair of the State Board of Education;
939          (g) the chair of the State Board of Regents;
940          (h) the chair of the Utah System of Technical Colleges Board of Trustees described in
941     Section 53B-2a-103; and
942          (i) the chairs of the Education Interim Committee.
943          (2) A meeting described in this section is not subject to Title 52, Chapter 4, Open and
944     Public Meetings Act.
945          Section 19. Section 53B-2-101 is amended to read:
946          53B-2-101. Institutions of higher education -- Corporate bodies -- Powers.
947          (1) The following institutions of higher education are bodies politic and corporate with
948     perpetual succession and with all rights, immunities, and franchises necessary to function as
949     such:
950          (a) the University of Utah;
951          (b) Utah State University;
952          (c) Weber State University;
953          (d) Southern Utah University;
954          (e) Snow College;
955          (f) Dixie State University;
956          (g) Utah Valley University;
957          (h) Salt Lake Community College; [and]

958          [(i) the Utah College of Applied Technology.]
959          (i) Bridgerland Technical College;
960          (j) Davis Technical College;
961          (k) Dixie Technical College;
962          (l) Mountainland Technical College;
963          (m) Ogden-Weber Technical College;
964          (n) Southwest Technical College;
965          (o) Tooele Technical College; and
966          (p) Uintah Basin Technical College.
967          (2) (a) [Each] An institution of higher education may have and use a corporate seal and
968     may, subject to Section 53B-20-103, take, hold, lease, sell, and convey real and personal
969     property as the interest of the institution requires.
970          (b) [Each] An institution of higher education is vested with all the property, franchises,
971     and endowments of, and is subject to, all the contracts, obligations, and liabilities of [its] the
972     institution's respective predecessor.
973          (c) (i) [Each] An institution of higher education may enter into business relationships
974     or dealings with private seed or venture capital entities or partnerships consistent with Utah
975     Constitution Article VI, Section 29, Subsection (2).
976          (ii) A business dealing or relationship entered into under Subsection (2)(c)(i) does not
977     preclude the private entity or partnership from participating in or receiving benefits from a
978     venture capital program authorized or sanctioned by the laws of this state, unless otherwise
979     precluded by the specific law that authorizes or sanctions the program.
980          [(iii) Subsections (2)(c)(i) and (ii) also apply to the Utah College of Applied
981     Technology created in Title 53B, Chapter 2a, Utah College of Applied Technology.]
982          Section 20. Section 53B-2-102 is repealed and reenacted to read:
983          53B-2-102. Board to appoint president for each institution.
984          (1) As used in this section:
985          (a) "Institution of higher education" means an institution that is part of the Utah System
986     of Higher Education described in Subsection 53B-1-102(1)(a).
987          (b) "Search committee" means a committee that selects finalists for a position as an
988     institution of higher education president.

989          (2) The board shall appoint a president for each institution of higher education.
990          (3) An institution of higher education president serves at the pleasure of the board.
991          (4) (a) To appoint an institution of higher education president, the board shall establish
992     a search committee that includes representatives of faculty, staff, students, the institution of
993     higher education board of trustees, alumni, the outgoing institution of higher education
994     president's executive council or cabinet, and the board.
995          (b) A search committee shall be cochaired by a member of the board and the institution
996     of higher education board of trustees.
997          (c) A search committee described in Subsection (4)(a) shall forward three to five
998     finalists to the board to consider for a position as an institution of higher education president.
999          (d) A search committee may not forward an individual to the board as a finalist unless
1000     two-thirds of the search committee members, as verified by the commissioner, find the
1001     individual to be qualified and likely to succeed as an institution of higher education president.
1002          (5) (a) The board shall select an institution of higher education president from among
1003     the finalists presented by a search committee.
1004          (b) If the board is not satisfied with the finalists forwarded by a search committee, the
1005     board may direct the search committee to resume the search process until the search committee
1006     has forwarded three finalists with which the board is satisfied.
1007          (6) The board, through the commissioner, shall create a comprehensive, active
1008     recruiting plan to ensure a strong, diverse pool of potential candidates for institution of higher
1009     education presidents.
1010          (7) (a) Except as provided in Subsection (7)(b), a record or information gathered or
1011     generated during the search process, including a candidate's application and the search
1012     committee's deliberations, is confidential and is a protected record under Section 63G-2-305.
1013          (b) Application materials for a publicly named finalist described in Section (5)(a) are
1014     not protected records under Section 63G-2-305.
1015          Section 21. Section 53B-2-103 is amended to read:
1016          53B-2-103. Boards of trustees -- Powers and duties.
1017          (1) Each college [and] or university has a board of trustees [which] that may act [in] on
1018     behalf of [its institution] the college or university in performing duties, responsibilities, and
1019     functions as may be specifically authorized to the board of trustees by the State Board of

1020     Regents.
1021          (2) A board of trustees has the following powers and duties:
1022          (a) [facilitates] to facilitate communication between the institution and the community;
1023          (b) [assists] to assist in planning, implementing, and executing fund raising and
1024     development projects aimed at supplementing institutional appropriations;
1025          (c) [perpetuates and strengthens] to perpetuate and strengthen alumni and community
1026     identification with the [institution's] college or university's tradition and goals; [and]
1027          (d) [selects] to select recipients of honorary degrees[.]; and
1028          (e) to approve changes to the institution of higher education's programs, in accordance
1029     with Section 53B-16-102.
1030          Section 22. Section 53B-2-104 is amended to read:
1031          53B-2-104. Memberships of board of trustees -- Terms -- Vacancies -- Oath --
1032     Officers -- Bylaws -- Quorum -- Committees -- Compensation -- Applicability to technical
1033     colleges.
1034          (1) (a) [The] Except as provided in Subsection (10), the board of trustees of an
1035     institution of higher education consists of the following:
1036          (i) except as provided in Subsection 53B-18-1201(3)(b), eight [persons] individuals
1037     appointed by the governor [and approved by] with the consent of the Senate; and
1038          (ii) two ex officio members who are the president of the institution's alumni
1039     association, and the president of the associated students of the institution.
1040          (b) The appointed members of the boards of trustees for Utah Valley University and
1041     Salt Lake Community College shall be representative of the interests of business, industry, and
1042     labor.
1043          (2) (a) The governor shall appoint four members of each board of trustees during each
1044     odd-numbered year to four-year terms commencing on July 1 of the year of appointment.
1045          (b) An appointed member holds office until a successor is appointed and qualified.
1046          (c) The ex officio members serve for the same period as they serve as presidents and
1047     until their successors have qualified.
1048          (3) When a vacancy occurs in the membership of a board of trustees for any reason, the
1049     replacement shall be appointed for the unexpired term.
1050          (4) (a) Each member of a board of trustees shall take the official oath of office prior to

1051     assuming the office.
1052          (b) The oath shall be filed with the Division of Archives and Records Services.
1053          (5) [Each] A board of trustees shall elect a chair and vice chair, who serve for two
1054     years and until their successors are elected and qualified.
1055          (6) (a) [Each] A board of trustees may enact bylaws for [its] the board of trustees' own
1056     government, including [provision] provisions for regular meetings.
1057          (b) (i) [The] A board of trustees may provide for an executive committee in [its] the
1058     board of trustees' bylaws.
1059          (ii) If established, [the] an executive committee shall have full authority of the board of
1060     trustees to act upon routine matters during the interim between board of trustees meetings.
1061          (iii) [The] An executive committee may act on nonroutine matters only under
1062     extraordinary and emergency circumstances.
1063          (iv) [The] An executive committee shall report [its] the executive committee's
1064     activities to the board of trustees at [its] the board of trustees' next regular meeting following
1065     the action.
1066          (c) Copies of [the] a board of trustees' bylaws shall be filed with the board.
1067          (7) A quorum is required to conduct business and consists of six members.
1068          (8) A board of trustees may establish advisory committees.
1069          (9) A member may not receive compensation or benefits for the member's service, but
1070     may receive per diem and travel expenses in accordance with:
1071          (a) Section 63A-3-106;
1072          (b) Section 63A-3-107; and
1073          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1074     63A-3-107.
1075          (10) This section does not apply to a technical college board of directors [of an applied
1076     technology college within the Utah College of Applied Technology] described in Section
1077     53B-2a-108.
1078          Section 23. Section 53B-2-106 is amended to read:
1079          53B-2-106. Duties and responsibilities of the president of an institution of higher
1080     education -- Approval by board of trustees -- Applicability to a technical college
1081     president.

1082          (1) (a) [The] Except as provided in Subsection (5), the president of each institution of
1083     higher education described in Section 53B-2-101 may exercise grants of power and authority as
1084     delegated by the board, as well as the necessary and proper exercise of powers and authority
1085     not specifically denied to the institution[, its] of higher education or the institution of higher
1086     education's administration, faculty, or students by the board or by law, to [assure] ensure the
1087     effective and efficient administration and operation of the institution of higher education
1088     consistent with the statewide master plan for higher education.
1089          (b) The president of each institution of higher education may, after consultation with
1090     the [institution's] institution of higher education's board of trustees, exercise powers relating to
1091     the [institution's] institution of higher education's employees, including faculty and persons
1092     under contract with the institution of higher education, by implementing [any of the following]:
1093          (i) furloughs;
1094          (ii) reductions in force;
1095          (iii) benefit adjustments;
1096          (iv) program reductions or discontinuance;
1097          (v) early retirement incentives that provide cost savings to the institution[; and] of
1098     higher education; or
1099          (vi) other measures that provide cost savings to the institution of higher education.
1100          (2) Except as provided by the board, the president of each institution of higher
1101     education, with the approval of the [institution's] institution of higher education's board of
1102     trustees, may:
1103          (a) (i) appoint a secretary, a treasurer, administrative officers, deans, faculty members,
1104     and other professional personnel, prescribe their duties, and determine their salaries;
1105          (ii) appoint support personnel, prescribe their duties, and determine their salaries from
1106     the [institution's] institution of higher education's position classification plan, which may:
1107          (A) be based upon similarity of duties and responsibilities within the institution of
1108     higher education; and
1109          (B) as funds permit, provide salary and benefits comparable with private enterprise;
1110          (iii) adopt policies for:
1111          (A) employee sick leave use and accrual; and
1112          (B) service recognition for employees with more than 15 years of employment with the

1113     institution of higher education; and
1114          (iv) subject to the authority of, the policy established by, and the approval of the board
1115     [of regents], and recognizing the status of the institutions within the state system of higher
1116     education as bodies politic and corporate, appoint attorneys to provide legal advice to the
1117     [institution's] institution of higher education's administration and to coordinate legal affairs
1118     within the institution of higher education. The board [of regents] shall coordinate activities of
1119     attorneys at the institutions of higher education. The institutions of higher education shall
1120     provide an annual report to the board [of regents] on the activities of appointed attorneys.
1121     These appointed attorneys may not conduct litigation, settle claims covered by the State Risk
1122     Management Fund, or issue formal legal opinions, but shall, in all respects, cooperate with the
1123     Office of the Attorney General in providing legal representation to the institution of higher
1124     education;
1125          (b) provide for the constitution, government, and organization of the faculty and
1126     administration, and enact implementing rules, including the establishment of a prescribed
1127     system of tenure;
1128          (c) authorize the faculty to determine the general initiation and direction of instruction
1129     and of the examination, admission, and classification of students. In recognition of the diverse
1130     nature and traditions of the various institutions governed by the board, the systems of faculty
1131     government need not be identical but should be designed to further faculty identification with
1132     and involvement in the institution's pursuit of achievement and excellence and in fulfillment of
1133     the institution's role as established in the statewide master plan for higher education; and
1134          (d) enact rules for administration and operation of the institution which are consistent
1135     with the prescribed role established by the board, rules enacted by the board, or the laws of the
1136     state. The rules may provide for administrative, faculty, student, and joint committees with
1137     jurisdiction over specified institutional matters, for student government and student affairs
1138     organization, for the establishment of institutional standards in furtherance of the ideals of
1139     higher education fostered and subscribed to by the institution[, its] of higher education, the
1140     institution of higher education's administration, faculty, and students, and for the holding of
1141     classes on legal holidays, other than Sunday.
1142          (3) Compensation costs and related office expenses for appointed attorneys shall be
1143     funded within existing budgets.

1144          (4) The State Board of Regents shall establish guidelines relating to the roles and
1145     relationships between institutional presidents and boards of trustees, including those matters
1146     which must be approved by a board of trustees before implementation by the president.
1147          (5) This section does not apply to a technical college president [of an applied
1148     technology college within the Utah College of Applied Technology].
1149          Section 24. Section 53B-2a-100.5 is enacted to read:
1150     
CHAPTER 2a. UTAH SYSTEM OF TECHNICAL COLLEGES

1151          53B-2a-100.5. Title.
1152          This chapter is known as "Utah System of Technical Colleges."
1153          Section 25. Section 53B-2a-101 is amended to read:
1154          53B-2a-101. Definitions.
1155          As used in this chapter:
1156          [(1) "Applied technology college" means a member college of the Utah College of
1157     Applied Technology.]
1158          [(2)] (1) "Board of trustees" means the Utah [College of Applied Technology] System
1159     of Technical Colleges Board of Trustees.
1160          [(3)] (2) "Commissioner of technical education" means the Utah [College of Applied
1161     Technology] System of Technical Colleges commissioner of technical education.
1162          [(4)] (3) "Competency-based" means mastery of subject matter or skill level, as
1163     demonstrated through business and industry approved standards and assessments, achieved
1164     through participation in a hands-on learning environment, and which is tied to observable,
1165     measurable performance objectives.
1166          [(5)] (4) "Member" means a member of the board of trustees.
1167          [(6)] (5) "Open-entry, open-exit" means:
1168          (a) a method of instructional delivery that allows for flexible scheduling in response to
1169     individual student needs or requirements and demonstrated competency when knowledge and
1170     skills have been mastered;
1171          (b) students have the flexibility to begin or end study at any time, progress through
1172     course material at their own pace, and demonstrate competency when knowledge and skills
1173     have been mastered; and
1174          (c) if competency is demonstrated in a program of study, a credential, certificate, or

1175     diploma may be awarded.
1176          Section 26. Section 53B-2a-102 is amended to read:
1177          53B-2a-102. Commissioner of technical education -- Appointment -- Duties.
1178          (1) (a) The board of trustees, upon approval from the governor and with the consent of
1179     the Senate, shall appoint a commissioner of technical education to serve as the board of
1180     trustees' chief executive officer.
1181          (b) The commissioner of technical education shall:
1182          (i) have an appropriate and relevant educational background, including, at a minimum,
1183     a master's degree; and
1184          (ii) have extensive experience in career and technical education.
1185          (c) The commissioner of technical education shall serve at the board of trustees'
1186     discretion and may be terminated by:
1187          (i) the board of trustees; or
1188          (ii) the governor, after consultation with the board of trustees.
1189          (d) If the board of trustees intends to appoint an interim or acting commissioner of
1190     technical education during a leave of absence of the commissioner of technical education, the
1191     board of trustees shall appoint the interim or acting commissioner of technical education with
1192     the consent of the Senate.
1193          (e) The name of each final candidate for commissioner of technical education shall be
1194     publicly disclosed.
1195          (2) The board of trustees shall:
1196          (a) set the salary of the commissioner of technical education;
1197          (b) prescribe the duties and functions of the commissioner of technical education; and
1198          (c) select a commissioner of technical education on the basis of outstanding
1199     professional qualifications.
1200          (3) The commissioner of technical education is responsible to the board of trustees to:
1201          (a) ensure that the policies and programs of the board of trustees are properly executed;
1202          (b) furnish information about the Utah [College of Applied Technology] System of
1203     Technical Colleges and make recommendations regarding the information to the board of
1204     trustees;
1205          (c) provide state-level leadership in an activity affecting [an applied technology] a

1206     technical college; and
1207          (d) perform other duties as assigned by the board of trustees in carrying out the board
1208     of trustees' duties and responsibilities.
1209          Section 27. Section 53B-2a-103 is amended to read:
1210          53B-2a-103. Utah System of Technical Colleges Board of Trustees -- Membership
1211     -- Terms -- Vacancies -- Oath -- Officers -- Quorum -- Committees -- Compensation.
1212          (1) There is created the Utah [College of Applied Technology] System of Technical
1213     Colleges Board of Trustees.
1214          (2) Except as provided in Subsections (3) and (4), the board of trustees is composed of
1215     the following members:
1216          [(a) one member of the State Board of Education appointed by the chair of the State
1217     Board of Education, to serve as a nonvoting member;]
1218          [(b) one member of the State Board of Regents appointed by the chair of the State
1219     Board of Regents, to serve as a nonvoting member;]
1220          [(c)] (a) one member, representing business and industry employers from each [applied
1221     technology] technical college board of directors, appointed by a majority vote of the business
1222     and industry employer members of the [applied technology] technical college board of
1223     directors;
1224          [(d)] (b) one member representing business and industry employers from the Snow
1225     College Economic Development and Workforce Preparation Advisory Committee appointed by
1226     a majority of the business and industry employer members of the advisory committee;
1227          [(e)] (c) one member representing business and industry employers from the Utah State
1228     University Eastern career and technical education advisory committee appointed by a majority
1229     of the business and industry employer members of the advisory committee;
1230          [(f)] (d) one member representing business and industry employers from the Salt Lake
1231     Community College School of Applied Technology Board of Directors appointed by a majority
1232     of the business and industry employer members of the board of directors;
1233          [(g)] (e) one business or industry employer representative appointed by the governor
1234     with the consent of the Senate from nominations submitted by the speaker of the House of
1235     Representatives and president of the Senate;
1236          [(h)] (f) one representative of union craft, trade, or apprenticeship programs that

1237     prepare workers for employment in career and technical education fields, appointed by the
1238     governor with the consent of the Senate;
1239          [(i)] (g) one representative of non-union craft, trade, or apprenticeship programs that
1240     prepare workers for employment in career and technical education fields, appointed by the
1241     governor with the consent of the Senate; and
1242          [(j)] (h) the executive director of the Governor's Office of Economic Development or
1243     the executive director's designee.
1244          (3) (a) Beginning on July 1, 2019, the board of trustees is composed of 15 [voting]
1245     members appointed by the governor with the consent of the Senate, as follows:
1246          (i) one member [representing each applied technology college,] selected from at least
1247     two nominees presented to the governor by the board of directors of each [applied technology
1248     college] technical college, for a total of eight members; and
1249          (ii) one member [representing] who is employed in and represents each of the
1250     following sectors:
1251          (A) information technology;
1252          (B) manufacturing;
1253          (C) life sciences;
1254          (D) health care;
1255          (E) transportation;
1256          (F) union craft, trade, or apprenticeship; and
1257          (G) non-union craft, trade, or apprenticeship.
1258          (b) The seven members described in Subsection (3)(a)(ii) shall be selected from the
1259     state at large, subject to the following conditions:
1260          (i) at least four members shall reside in a geographic area served by [an applied
1261     technology college described in Section 53B-2a-105] a technical college; and
1262          (ii) no more than two members may reside in a single geographic area served by [an
1263     applied technology college described in Section 53B-2a-105] a technical college.
1264          [(c) (i) In addition to the 15 voting members described in Subsection (3)(a), one
1265     member of the Board of Regents, appointed by the chair of the Board of Regents, shall serve as
1266     a nonvoting member of the board of trustees.]
1267          [(ii) The nonvoting member from the Board of Regents is not subject to the term limit

1268     described in Subsection (5)(b).]
1269          [(d)] (c) The governor shall make appointments to the board of trustees on a
1270     nonpartisan basis.
1271          (d) An individual may not serve on the board of trustees and a technical college board
1272     of directors simultaneously.
1273          (4) (a) [Except as provided in Subsection (4)(d), to] To transition from the composition
1274     of the board of trustees described in Subsection (2) to the composition described in Subsection
1275     (3), for a member who was appointed to the board of trustees on or before May 10, 2016, the
1276     governor shall appoint a replacement:
1277          (i) when the member's current term expires, for a member who, on May 10, 2016, has
1278     served less than two consecutive full terms on the board of trustees; or
1279          (ii) on May 10, 2016, for a member who, on May 10, 2016, has served two or more
1280     consecutive full terms on the board of trustees.
1281          (b) In replacing a member who was appointed under Subsection (2)[(c)](a), the
1282     governor shall appoint a member [to represent the applied technology] for the technical college
1283     represented by the member whose term expires by:
1284          (i) soliciting the [applied technology] technical college's board of directors to nominate
1285     at least two individuals for the position; and
1286          (ii) selecting from the nominees presented.
1287          (c) In replacing a member who was appointed under Subsections (2)[(d)](b) through
1288     (2)[(j)](h), the governor shall appoint a new member at large, ensuring representation from the
1289     sectors described in Subsection (3)(a)(ii).
1290          [(d) (i) A member appointed under Subsection (2)(a) shall remain on the board of
1291     trustees until June 30, 2019.]
1292          [(ii) A member appointed under Subsection (2)(b) may remain on the board following
1293     the transition to the board composition described in Subsection (3).]
1294          [(e)] (d) In making an appointment under this Subsection (4), the governor:
1295          (i) shall appoint a member on a nonpartisan basis; and
1296          (ii) may not reappoint the member who is being replaced if the member has served on
1297     the board of trustees for at least two consecutive full terms.
1298          (5) (a) (i) Except as provided under Subsection (5)(a)(ii), a member shall be appointed

1299     commencing on July 1 of each odd-numbered year to a four-year term.
1300          (ii) The governor shall ensure that member terms are staggered so that approximately
1301     one-half of the members' terms expire in any odd-numbered year.
1302          (b) A member may not hold office for more than two consecutive full terms.
1303          (6) When a vacancy occurs on the board of trustees for any reason, the governor shall
1304     appoint a replacement for the unexpired term.
1305          (7) (a) Each member shall take the official oath of office prior to assuming the office.
1306          (b) The oath shall be filed with the Division of Archives and Records Services.
1307          (8) (a) The board of trustees shall elect a chair and vice chair, who serve for two years
1308     and until their successors are elected and qualified.
1309          (b) A member may not serve more than two consecutive terms as the chair or vice
1310     chair.
1311          (9) (a) The board of trustees shall enact bylaws for the board of trustees' own
1312     government, including provisions for regular meetings.
1313          (b) (i) The board of trustees shall provide for an executive committee in the board of
1314     trustees' bylaws.
1315          (ii) The executive committee shall have full authority of the board of trustees to act
1316     upon routine matters during the interim between board of trustees meetings.
1317          (iii) The executive committee may act on nonroutine matters only under extraordinary
1318     and emergency circumstances.
1319          (iv) The executive committee shall report [its] the executive committee's activities to
1320     the board of trustees at the board of trustees' next regular meeting following the executive
1321     committee's [action] activities.
1322          (10) A quorum shall be required to conduct business which shall consist of a majority
1323     of [voting] board of trustee members.
1324          (11) The board of trustees may establish advisory committees.
1325          (12) A member may not receive compensation or benefits for the member's service, but
1326     may receive per diem and travel expenses in accordance with:
1327          (a) Section 63A-3-106;
1328          (b) Section 63A-3-107; and
1329          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and

1330     63A-3-107.
1331          Section 28. Section 53B-2a-104 is amended to read:
1332          53B-2a-104. Utah System of Technical Colleges Board of Trustees -- Powers and
1333     duties.
1334          (1) The [Utah College of Applied Technology Board of Trustees] board of trustees is
1335     vested with the control, management, and supervision of [applied technology colleges within
1336     the Utah College of Applied Technology] technical colleges in a manner consistent with the
1337     policy and purpose of this title and the specific powers and responsibilities granted to the board
1338     of trustees.
1339          (2) The board of trustees shall:
1340          (a) ensure that [an applied technology] a technical college complies with the
1341     requirements in Section 53B-2a-106;
1342          (b) appoint the commissioner of technical education in accordance with Section
1343     53B-2a-102;
1344          (c) advise the commissioner of technical education and the State Board of Regents on
1345     issues related to career and technical education, including articulation with institutions of
1346     higher education and public education;
1347          (d) ensure that a secondary student in the public education system has access to career
1348     and technical education through [an applied technology] a technical college in the secondary
1349     student's service region;
1350          (e) in consultation with the State Board of Education, the State Board of Regents, and
1351     [applied technology] technical college presidents, develop strategies for providing career and
1352     technical education in rural areas, considering distances between rural career and technical
1353     education providers;
1354          (f) receive budget requests from each [applied technology] technical college, compile
1355     and prioritize the requests, and submit the request to:
1356          (i) the Legislature; and
1357          (ii) the Governor's Office of Management and Budget;
1358          (g) receive funding requests pertaining to capital facilities and land purchases from
1359     each [applied technology] technical college, ensure that the requests comply with Section
1360     53B-2a-112, prioritize the requests, and submit the prioritized requests to the State Building

1361     Board;
1362          (h) in conjunction with the commissioner of technical education, establish benchmarks,
1363     provide oversight, evaluate program performance, and obtain independent audits to ensure that
1364     [an applied technology] a technical college follows the noncredit career and technical education
1365     mission described in this part;
1366          (i) approve programs for the Utah [College of Applied Technology] System of
1367     Technical Colleges;
1368          (j) approve the tuition rates for [applied technology] technical colleges [within the Utah
1369     College of Applied Technology];
1370          (k) prepare and submit an annual report detailing the board of trustees' progress and
1371     recommendations on career and technical education issues to the governor and to the
1372     Legislature's Education Interim Committee by October 31 of each year, which shall include
1373     information detailing:
1374          (i) how the career and technical education needs of secondary students are being met,
1375     including what access secondary students have to programs offered at [applied technology]
1376     technical colleges;
1377          (ii) how the emphasis on high demand, high wage, and high skill jobs in business and
1378     industry described in Section 53B-2a-106 is being provided;
1379          (iii) performance outcomes, including:
1380          (A) entered employment;
1381          (B) job retention; and
1382          (C) earnings; and
1383          (iv) student tuition and fees; and
1384          (l) collaborate with the State Board of Regents, the State Board of Education, [the state
1385     system of public education, the state system of higher education,] the Department of Workforce
1386     Services, and the Governor's Office of Economic Development on the delivery of career and
1387     technical education.
1388          (3) The board of trustees, the commissioner of technical education, or [an applied
1389     technology] a technical college[,] president[,] or board of directors may not conduct a
1390     feasibility study or perform another act relating to offering a degree or awarding credit.
1391          Section 29. Section 53B-2a-105 is amended to read:

1392          53B-2a-105. Utah System of Technical Colleges -- Composition.
1393          The Utah [College of Applied Technology] System of Technical Colleges is composed
1394     of the following [applied technology] technical colleges:
1395          (1) Bridgerland [Applied Technology] Technical College, which serves the geographic
1396     area encompassing:
1397          (a) the Box Elder School District;
1398          (b) the Cache School District;
1399          (c) the Logan School District; and
1400          (d) the Rich School District;
1401          (2) Ogden-Weber [Applied Technology] Technical College, which serves the
1402     geographic area encompassing:
1403          (a) the Ogden City School District; and
1404          (b) the Weber School District;
1405          (3) Davis [Applied Technology] Technical College, which serves the geographic area
1406     encompassing:
1407          (a) the Davis School District; and
1408          (b) the Morgan School District;
1409          (4) Tooele [Applied Technology] Technical College, which serves the geographic area
1410     encompassing the Tooele County School District;
1411          (5) Mountainland [Applied Technology] Technical College, which serves the
1412     geographic area encompassing:
1413          (a) the Alpine School District;
1414          (b) the Nebo School District;
1415          (c) the Provo School District;
1416          (d) the South Summit School District;
1417          (e) the North Summit School District;
1418          (f) the Wasatch School District; and
1419          (g) the Park City School District;
1420          (6) Uintah Basin [Applied Technology] Technical College, which serves the
1421     geographic area encompassing:
1422          (a) the Daggett School District;

1423          (b) the Duchesne School District; and
1424          (c) the Uintah School District;
1425          (7) Southwest [Applied Technology] Technical College, which serves the geographic
1426     area encompassing:
1427          (a) the Beaver School District;
1428          (b) the Garfield School District;
1429          (c) the Iron School District; and
1430          (d) the Kane School District; and
1431          (8) Dixie [Applied Technology] Technical College, which serves the geographic area
1432     encompassing the Washington School District.
1433          Section 30. Section 53B-2a-106 is amended to read:
1434          53B-2a-106. Technical colleges -- Duties.
1435          (1) Each [applied technology] technical college [within the Utah College of Applied
1436     Technology] shall, within the geographic area served by the [applied technology] technical
1437     college:
1438          (a) offer a noncredit [post-secondary] postsecondary and secondary career and
1439     technical education curriculum;
1440          (b) offer that curriculum at:
1441          (i) low cost to adult students, as approved by the board of trustees; and
1442          (ii) no tuition to secondary students;
1443          (c) provide career and technical education that will result in:
1444          (i) appropriate licensing, certification, or other evidence of completion of training; and
1445          (ii) qualification for specific employment, with an emphasis on high demand, high
1446     wage, and high skill jobs in business and industry;
1447          (d) develop cooperative agreements with school districts, charter schools, other higher
1448     education institutions, businesses, industries, and community and private agencies to maximize
1449     the availability of instructional facilities within the geographic area served by the [applied
1450     technology] technical college; and
1451          (e) after consulting with school districts and charter schools within the geographic area
1452     served by the [applied technology] technical college:
1453          (i) ensure that secondary students in the public education system have access to career

1454     and technical education at the [applied technology] technical college; and
1455          (ii) prepare and submit an annual report to the board of trustees detailing:
1456          (A) how the career and technical education needs of secondary students within the
1457     region are being met;
1458          (B) what access secondary students within the region have to programs offered at the
1459     [applied technology] technical college;
1460          (C) how the emphasis on high demand, high wage, high skill jobs in business and
1461     industry described in Subsection (1)(c)(ii) is being provided; and
1462          (D) student tuition and fees.
1463          (2) [An applied technology] A technical college may offer:
1464          (a) a competency-based high school diploma approved by the State Board of Education
1465     in accordance with Section 53A-1-402;
1466          (b) noncredit, basic instruction in areas such as reading, language arts, and
1467     mathematics that are necessary for student success in a chosen career and technical education
1468     or job-related program;
1469          (c) noncredit courses of interest when similar offerings to the community are limited
1470     and courses are financially self-supporting; and
1471          (d) secondary school level courses through the Statewide Online Education Program in
1472     accordance with Section 53A-15-1205.
1473          (3) Except as provided in Subsection (2)(d), [an applied technology] a technical college
1474     may not:
1475          (a) offer courses other than noncredit career and technical education or the noncredit,
1476     basic instruction described in Subsections (2)(b) and (c);
1477          (b) offer a degree;
1478          (c) offer career and technical education or basic instruction outside the geographic area
1479     served by the [applied technology] technical college without a cooperative agreement between
1480     an affected institution, except as provided in Subsection (6);
1481          (d) provide tenure or academic rank for its instructors; or
1482          (e) participate in intercollegiate athletics.
1483          (4) The mission of [an applied technology] a technical college is limited to noncredit
1484     career and technical education and may not expand to include credit-based academic programs

1485     typically offered by community colleges or other institutions of higher education.
1486          (5) [An applied technology] A technical college shall be recognized as a member
1487     [applied technology college] of the Utah [College of Applied Technology] System of Technical
1488     Colleges, and regional affiliation shall be retained and recognized through local designations
1489     such as "Bridgerland [Applied Technology] Technical College: A member [applied
1490     technology] technical college of the Utah [College of Applied Technology] System of
1491     Technical Colleges."
1492          (6) (a) [An applied technology] A technical college may offer career and technical
1493     education or basic instruction outside the geographic area served by the [applied technology]
1494     technical college without a cooperative agreement, as required in Subsection (3)(c), if:
1495          (i) the career and technical education or basic instruction is specifically requested by:
1496          (A) an employer; or
1497          (B) a craft, trade, or apprenticeship program;
1498          (ii) the [applied technology] technical college notifies the affected institution about the
1499     request; and
1500          (iii) the affected institution is given an opportunity to make a proposal, prior to any
1501     contract being finalized or training being initiated by the [applied technology] technical
1502     college, to the employer, craft, trade, or apprenticeship program about offering the requested
1503     career and technical education or basic instruction, provided that the proposal shall be
1504     presented no later than one business week from the delivery of the notice described under
1505     Subsection (6)(a)(ii).
1506          (b) The requirements under Subsection (6)(a)(iii) do not apply if there is a prior
1507     training relationship.
1508          Section 31. Section 53B-2a-107 is amended to read:
1509          53B-2a-107. Technical college presidents -- Appointments -- Duties.
1510          (1) (a) The board of trustees shall, after consultation with [an applied technology] a
1511     technical college board of directors, appoint [an applied technology college] a president for [an
1512     applied technology] the technical college.
1513          (b) The board of trustees shall establish a policy for appointing [an applied technology]
1514     a technical college president that:
1515          (i) requires the board of trustees to create a search committee that:

1516          (A) [shall include] includes an equal number of board of [trustee] trustees members
1517     and members from the [applied technology] technical college board of directors; and
1518          (B) may include [applied technology] technical college faculty, students, or other
1519     individuals;
1520          (ii) requires the search committee to seek nominations, interview candidates, and
1521     forward qualified candidates to the board of trustees for consideration;
1522          (iii) provides for at least two members of the [applied technology] technical college
1523     board of directors to participate in board of trustees' interviews of finalists; and
1524          (iv) provides for the board of trustees to vote to appoint [an applied technology] a
1525     technical college president in a meeting that complies with Title 52, Chapter 4, Open and
1526     Public Meetings Act.
1527          (2) (a) [An applied technology] A technical college president shall serve as the chief
1528     [administrative] executive officer of the technical college [campus].
1529          (b) [An applied technology] A technical college president does not need to have a
1530     doctorate degree, but shall have extensive experience in career and technical education.
1531          (c) [An applied technology] A technical college president is subject to regular review
1532     and evaluation administered by the board of trustees, in cooperation with the [applied
1533     technology] technical college board of directors, through a process approved by the board of
1534     trustees.
1535          (d) [An applied technology] A technical college president serves at the discretion of the
1536     board of trustees, in cooperation with the [applied technology] technical college board of
1537     directors.
1538          (e) The board of trustees, in cooperation with [an applied technology] a technical
1539     college board of directors, shall set the compensation for [an applied technology college
1540     president] the technical college president using market survey information.
1541          (3) [An applied technology] A technical college president shall:
1542          (a) serve as the executive officer of the [applied technology] technical college board of
1543     directors;
1544          (b) administer the day-to-day operations of the [applied technology] technical college;
1545          (c) consult with the [applied technology] technical college board of directors; and
1546          (d) administer human resource policies and employee compensation plans in

1547     accordance with the requirements of the board of trustees.
1548          Section 32. Section 53B-2a-108 is amended to read:
1549          53B-2a-108. Technical college boards of directors -- Membership --
1550     Appointments.
1551          [An applied technology college shall have an applied technology college board of
1552     directors appointed as follows:]
1553          (1) The Bridgerland [Applied Technology] Technical College Board of Directors [shall
1554     be] is composed of the following 12 members:
1555          (a) one elected local school board member appointed by the board of education for the
1556     Box Elder School District;
1557          (b) one elected local school board member appointed by the board of education for the
1558     Cache School District;
1559          (c) one elected local school board member appointed by the board of education for the
1560     Logan School District;
1561          (d) one elected local school board member appointed by the board of education for the
1562     Rich School District;
1563          (e) one member of the Utah State University board of trustees; and
1564          (f) seven representatives of business or industry employers within the region appointed
1565     jointly by the members appointed under Subsections (1)(a) through (e)[;].
1566          (2) The Ogden-Weber [Applied Technology] Technical College Board of Directors
1567     [shall be] is composed of the following 10 members:
1568          (a) one elected local school board member appointed by the board of education for the
1569     Ogden City School District;
1570          (b) one elected local school board member appointed by the board of education for the
1571     Weber School District;
1572          (c) one member of the Weber State University board of trustees; and
1573          (d) seven representatives of business or industry employers within the region appointed
1574     jointly by the members appointed under Subsections (2)(a) through (c)[;].
1575          (3) The Davis [Applied Technology] Technical College Board of Directors [shall be] is
1576     composed of the following 10 members:
1577          (a) one elected local school board member appointed by the board of education for the

1578     Davis School District;
1579          (b) one elected local school board member appointed by the board of education for the
1580     Morgan School District;
1581          (c) one member of the Weber State University board of trustees; and
1582          (d) seven representatives of business or industry employers within the region appointed
1583     jointly by the members appointed under Subsections (3)(a) through (c)[;].
1584          (4) The Tooele [Applied Technology] Technical College Board of Directors [shall be]
1585     is composed of the following 12 members:
1586          (a) one elected local school board member appointed by the board of education for the
1587     Tooele County School District;
1588          (b) one member of the Utah State University board of trustees; and
1589          (c) 10 representatives of business or industry employers within the region appointed
1590     jointly by the members appointed under Subsections (4)(a) and (b)[;].
1591          (5) The Mountainland [Applied Technology] Technical College Board of Directors
1592     [shall be] is composed of the following 18 members:
1593          (a) one elected local school board member appointed by the board of education for the
1594     Alpine School District;
1595          (b) one elected local school board member appointed by the board of education for the
1596     Nebo School District;
1597          (c) one elected local school board member appointed by the board of education for the
1598     Provo School District;
1599          (d) one elected local school board member appointed by the board of education for the
1600     South Summit School District;
1601          (e) one elected local school board member appointed by the board of education for the
1602     North Summit School District;
1603          (f) one elected local school board member appointed by the board of education for the
1604     Wasatch School District;
1605          (g) one elected local school board member appointed by the board of education for the
1606     Park City School District;
1607          (h) one member of the Utah Valley University board of trustees; and
1608          (i) 10 representatives of business or industry employers within the region appointed

1609     jointly by the members appointed under Subsections (5)(a) through (h)[;].
1610          (6) The Uintah Basin [Applied Technology] Technical College Board of Directors
1611     [shall be] is composed of the following 10 members:
1612          (a) one elected local school board member appointed by the board of education for the
1613     Daggett School District;
1614          (b) one elected local school board member appointed by the board of education for the
1615     Duchesne School District;
1616          (c) one elected local school board member appointed by the board of education for the
1617     Uintah School District;
1618          (d) one member of the Utah State University board of trustees; and
1619          (e) six representatives of business or industry employers within the region appointed
1620     jointly by the members appointed under Subsections (6)(a) through (d)[;].
1621          (7) The Southwest [Applied Technology] Technical College Board of Directors [shall
1622     be] is composed of the following 12 members:
1623          (a) one elected local school board member appointed by the board of education for the
1624     Beaver School District;
1625          (b) one elected local school board member appointed by the board of education for the
1626     Garfield School District;
1627          (c) one elected local school board member appointed by the board of education for the
1628     Iron School District;
1629          (d) one elected local school board member appointed by the board of education for the
1630     Kane School District;
1631          (e) one member of the Southern Utah University board of trustees; and
1632          (f) seven representatives of business or industry employers within the region appointed
1633     jointly by the members appointed under Subsections (7)(a) through (e)[;].
1634          (8) The Dixie [Applied Technology] Technical College Board of Directors [shall be] is
1635     composed of the following 10 members:
1636          (a) one elected local school board member appointed by the board of education for the
1637     Washington School District;
1638          (b) one member of the Dixie State University board of trustees; and
1639          (c) eight representatives of business or industry employers within the region appointed

1640     jointly by the members appointed under Subsections (8)(a) and (b)[; and].
1641          (9) The representatives of business or industry employers [shall be] on a technical
1642     college board of directors are:
1643          (a) appointed jointly by the designated members of a technical college board of
1644     directors from a list of names provided by local organizations or associations whose members
1645     employ workers with career and technical education;
1646          (b) individuals recognized for their knowledge and expertise;
1647          (c) individuals who represent current and emerging business and industry sectors of the
1648     state; and
1649          (d) appointed on a nonpartisan basis.
1650          Section 33. Section 53B-2a-109 is amended to read:
1651          53B-2a-109. Technical college boards of directors -- Terms -- Quorum -- Chair --
1652     Compensation.
1653          (1) (a) At the first meeting of [an applied technology] a technical college board of
1654     directors after July 1, 2009:
1655          (i) the representatives from the local school boards shall divide up their positions so
1656     that approximately half of them serve for two-year terms and half serve for four-year terms;
1657     and
1658          (ii) the representatives from business and industry employers shall divide up their
1659     positions so that approximately half of them serve for two-year terms and half serve for
1660     four-year terms.
1661          (b) Except as provided in Subsection (1)(a), individuals appointed to [an applied
1662     technology] a technical college board of directors shall serve four-year terms.
1663          (2) The original appointing authority shall fill any vacancies that occur on [an applied
1664     technology] a technical college board of directors.
1665          (3) A majority of [an applied technology] a technical college board of directors is a
1666     quorum.
1667          (4) [An applied technology] A technical college board of directors shall elect a chair
1668     from [its] the technical college board of directors' membership.
1669          (5) A member of [an applied technology] a technical college board of directors may not
1670     receive compensation or benefits for the [member's] member of the technical college board of

1671     director's service, but may receive per diem and travel expenses in accordance with:
1672          (a) Section 63A-3-106;
1673          (b) Section 63A-3-107; and
1674          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
1675     63A-3-107.
1676          (6) (a) [An applied technology] A technical college board of directors may enact
1677     bylaws for the [applied technology college's] technical college board of directors' own
1678     government, including [provision] provisions for regular meetings, that are in accordance with
1679     the policies of the board of trustees.
1680          (b) (i) [An applied technology] A technical college board of directors may provide for
1681     an executive committee in the [applied technology] technical college board of directors'
1682     bylaws.
1683          (ii) If established, an executive committee shall have the full authority of the [applied
1684     technology] technical college board of directors to act upon routine matters during the interim
1685     between board of directors' meetings.
1686          (iii) An executive committee may act on nonroutine matters only under extraordinary
1687     and emergency circumstances.
1688          (iv) An executive committee shall report the executive committee's activities to the
1689     [applied technology] technical college board of directors at the [applied technology] technical
1690     college board of directors' next regular meeting following the [action] activities.
1691          (7) [An applied technology] A technical college board of directors may establish
1692     advisory committees.
1693          Section 34. Section 53B-2a-110 is amended to read:
1694          53B-2a-110. Technical college board of directors' powers and duties.
1695          (1) [An applied technology] A technical college board of directors shall:
1696          (a) assist the [applied technology] technical college president in preparing a budget
1697     request for the [applied technology] technical college's annual operations to the board of
1698     trustees;
1699          (b) after consulting with the board of trustees, other higher education institutions,
1700     school districts, and charter schools within the [applied technology] technical college's region,
1701     prepare a comprehensive strategic plan for delivering career and technical education within the

1702     region;
1703          (c) consult with business, industry, the Department of Workforce Services, the
1704     Governor's Office of Economic Development, and the Governor's Office of Management and
1705     Budget on an ongoing basis to determine what workers and skills are needed for employment
1706     in Utah businesses and industries;
1707          (d) develop programs based upon the information gathered in accordance with
1708     Subsection (1)(c), including expedited program approval and termination procedures to meet
1709     market needs;
1710          (e) adopt an annual budget and fund balances;
1711          (f) develop policies for the operation of career and technical education facilities under
1712     the [applied technology] technical college board of directors' jurisdiction;
1713          (g) establish human resources and compensation policies for all employees in
1714     accordance with policies of the board of trustees;
1715          (h) approve credentials for employees and assign employees to duties in accordance
1716     with board of trustees policies and accreditation guidelines;
1717          (i) conduct annual program evaluations;
1718          (j) appoint program advisory committees and other advisory groups to provide counsel,
1719     support, and recommendations for updating and improving the effectiveness of training
1720     programs and services;
1721          (k) approve regulations, both regular and emergency, to be issued and executed by the
1722     [applied technology] technical college president;
1723          (l) coordinate with local school boards, school districts, and charter schools to meet the
1724     career and technical education needs of secondary students; and
1725          (m) develop policies and procedures for the admission, classification, instruction, and
1726     examination of students in accordance with the policies and accreditation guidelines of the
1727     board of trustees and the State Board of Education.
1728          (2) A policy described in Subsection (1)(g) does not apply to [an applied technology]
1729     compensation for a technical college president.
1730          (3) [An applied technology] A technical college board of directors may not exercise
1731     jurisdiction over career and technical education provided by a school district or charter school
1732     or provided by a higher education institution independently of [an applied technology] the

1733     technical college.
1734          (4) If a program advisory committee or other advisory group submits a printed
1735     recommendation to [an applied technology] a technical college board of directors, the [applied
1736     technology] technical college board of directors shall acknowledge the recommendation with a
1737     printed response that explains the [applied technology] technical college board of directors'
1738     action regarding the recommendation and the reasons for the action.
1739          Section 35. Section 53B-2a-111 is amended to read:
1740          53B-2a-111. Board of Trustees -- Consultation with State Board of Regents.
1741          The [Utah College of Applied Technology Board of Trustees] board of trustees shall
1742     consult with the State Board of Regents to coordinate the delivery of career and technical
1743     education.
1744          Section 36. Section 53B-2a-112 is amended to read:
1745          53B-2a-112. Technical colleges -- Relationships with other public and higher
1746     education institutions -- Agreements -- Priorities -- New capital facilities.
1747          (1) As used in this section, "higher education institution" means, for each [applied
1748     technology] technical college, the higher education institution designated in Section
1749     53B-2a-108 that has a representative on the [applied technology] technical college's board of
1750     directors.
1751          (2) [An applied technology] A technical college shall avoid any unnecessary
1752     duplication of career and technical education instructional facilities, programs, administration,
1753     and staff between the [applied technology] technical college and other public and higher
1754     education institutions.
1755          (3) [An applied technology] A technical college may enter into agreements:
1756          (a) with other higher education institutions to cultivate cooperative relationships;
1757          (b) with other public and higher education institutions to enhance career and technical
1758     education within its region; or
1759          (c) to comply with Subsection (2).
1760          (4) Before [an applied technology] a technical college develops new instructional
1761     facilities, the [applied technology] technical college shall give priority to:
1762          (a) maintaining the [applied technology] technical college's existing instructional
1763     facilities for both secondary and adult students;

1764          (b) coordinating with the president of a higher education institution and entering into
1765     any necessary agreements to provide career and technical education to both secondary and adult
1766     students that:
1767          (i) maintain and support existing higher education career and technical education
1768     programs; and
1769          (ii) maximize the use of existing higher education facilities; and
1770          (c) developing cooperative agreements with school districts, charter schools, other
1771     higher education institutions, businesses, industries, and community and private agencies to
1772     maximize the availability of career and technical education instructional facilities for both
1773     secondary and adult students.
1774          (5) (a) Before submitting a funding request pertaining to new capital facilities and land
1775     purchases to the board of trustees, [an applied technology] a technical college shall:
1776          (i) ensure that all available instructional facilities are maximized in accordance with
1777     Subsections (4)(a) through (c); and
1778          (ii) coordinate the request with the president of a higher education institution, if
1779     applicable.
1780          (b) The State Building Board shall make a finding that the requirements of this section
1781     are met before the State Building Board may consider a funding request from the board of
1782     trustees pertaining to new capital facilities and land purchases.
1783          (c) [An applied technology] A technical college may not construct, approve the
1784     construction of, plan for the design or construction of, or consent to the construction of a career
1785     and technical education facility without approval of the Legislature.
1786          (6) Before acquiring new fiscal and administrative support structures, [an applied
1787     technology] a technical college shall:
1788          (a) review the use of existing public or higher education administrative and accounting
1789     systems, financial record systems, and student and financial aid systems for the delivery of
1790     career and technical education in the region;
1791          (b) determine whether it is feasible to use those existing systems; and
1792          (c) with the approval of the [applied technology] technical college board of directors
1793     and the board of trustees, use those existing systems.
1794          Section 37. Section 53B-2a-113 is amended to read:

1795          53B-2a-113. Technical colleges -- Leasing authority -- Lease-purchase agreements
1796     -- Report.
1797          (1) In accordance with Subsection 53B-2a-112(2), [an applied technology] a technical
1798     college may enter into a lease with other higher education institutions, school districts, charter
1799     schools, state agencies, or business and industry for a term of:
1800          (a) one year or less with the approval of the [applied technology] technical college
1801     board of directors; [and] or
1802          (b) more than one year with the approval of the board of trustees and:
1803          (i) the approval of funding for the lease by the Legislature prior to [an applied
1804     technology] a technical college entering into the lease; or
1805          (ii) the lease agreement includes language that allows termination of the lease without
1806     penalty.
1807          (2) (a) In accordance with Subsection 53B-2a-112(2), [an applied technology] a
1808     technical college may enter into a lease-purchase agreement if:
1809          (i) there is a long-term benefit to the state;
1810          (ii) the project is included in both the [applied technology] technical college and Utah
1811     [College of Applied Technology] System of Technical Colleges master plans;
1812          (iii) the lease-purchase agreement includes language that allows termination of the
1813     lease;
1814          (iv) the lease-purchase agreement is approved by the [applied technology] technical
1815     college board of directors and the board of trustees; and
1816          (v) the lease-purchase agreement is:
1817          (A) reviewed by the Division of Facilities Construction and Management;
1818          (B) reviewed by the State Building Board; and
1819          (C) approved by the Legislature.
1820          (b) An approval under Subsection (2)(a) shall include a recognition of:
1821          (i) all parties, dates, and elements of the agreement;
1822          (ii) the equity or collateral component that creates the benefit; and
1823          (iii) the options dealing with the sale and division of equity.
1824          (3) (a) Each [applied technology] technical college shall provide an annual lease report
1825     to the board of trustees that details each of the [applied technology] technical college's leases,

1826     annual costs, location, square footage, and recommendations for lease continuation.
1827          (b) The board of trustees shall compile and distribute an annual combined lease report
1828     for all [applied technology] technical colleges to the Division of Facilities Construction and
1829     Management and to others upon request.
1830          (4) The board of trustees shall use the annual combined lease report in determining
1831     planning, utilization, and budget requests.
1832          Section 38. Section 53B-2a-114 is amended to read:
1833          53B-2a-114. Educational program on the use of information technology.
1834          (1) The Utah [College of Applied Technology] System of Technical Colleges shall
1835     offer an educational program on the use of information technology as provided in this section.
1836          (2) An educational program on the use of information technology shall:
1837          (a) provide instruction on skills and competencies essential for the workplace and
1838     requested by employers;
1839          (b) include the following components:
1840          (i) a curriculum;
1841          (ii) online access to the curriculum;
1842          (iii) instructional software for classroom and student use;
1843          (iv) certification of skills and competencies most frequently requested by employers;
1844          (v) professional development for faculty; and
1845          (vi) deployment and program support, including integration with existing curriculum
1846     standards; and
1847          (c) be made available to students, faculty, and staff of [the Utah College of Applied
1848     Technology] technical colleges.
1849          Section 39. Section 53B-2a-115 is enacted to read:
1850          53B-2a-115. Utah System of Technical Colleges -- Institutional name changes.
1851          (1) Beginning July 1, 2017:
1852          (a) the Utah College of Applied Technology shall be known as the Utah System of
1853     Technical Colleges;
1854          (b) Bridgerland Applied Technology College shall be known as Bridgerland Technical
1855     College;
1856          (c) Ogden-Weber Applied Technology College shall be known as Ogden-Weber

1857     Technical College;
1858          (d) Davis Applied Technology College shall be known as Davis Technical College;
1859          (e) Tooele Applied Technology College shall be known as Tooele Technical College;
1860          (f) Mountainland Applied Technology College shall be known as Mountainland
1861     Technical College;
1862          (g) Uintah Basin Applied Technology College shall be known as Uintah Basin
1863     Technical College;
1864          (h) Southwest Applied Technology College shall be known as Southwest Technical
1865     College; and
1866          (i) Dixie Applied Technology College shall be known as Dixie Technical College.
1867          (2) (a) As described in Subsection (1), the Utah System of Technical Colleges is a
1868     continuation of the Utah College of Applied Technology and each technical college is a
1869     continuation of the applied technology college that preceded the technical college.
1870          (b) An institution described in Subsection (1):
1871          (i) possess all rights, title, privileges, powers, immunities, franchises, endowments,
1872     property, and claims of the institution that preceded the institution; and
1873          (ii) shall fulfill and perform all obligations of the institution that proceeded the
1874     institution, including obligations relating to outstanding bonds and notes.
1875          Section 40. Section 53B-3-102 is amended to read:
1876          53B-3-102. State institution of higher education defined.
1877          (1) As used in this chapter, "state institution of higher education" means [the
1878     University of Utah, Utah State University, Southern Utah University, Weber State University,
1879     Snow College, Dixie State University, Utah Valley University, Salt Lake Community College,
1880     and] an institution described in Section 53B-2-101 or any other university or college [which
1881     may be] that is established and maintained by the state.
1882          [(2) It includes any]
1883          (2) A state institution of higher education includes:
1884          (a) a branch or affiliated institution [and any]; or
1885          (b) a campus or facilities owned, operated, or controlled by the governing board of the
1886     [university or college] state institution of higher education.
1887          Section 41. Section 53B-6-106 is amended to read:

1888          53B-6-106. Jobs Now and Economic Development Initiatives.
1889          (1) (a) The Utah [College of Applied Technology] System of Technical Colleges Board
1890     of Trustees shall develop, establish, and maintain a Jobs Now Initiative, to promote workforce
1891     preparation programs that meet critical needs and shortages throughout the state.
1892          (b) The State Board of Regents shall develop, establish, and maintain economic
1893     development initiatives within the system of higher education.
1894          (2) The initiatives specified in Subsection (1) shall provide support for technical
1895     training expansion that trains skilled potential employees within a period not to exceed 12
1896     months for technical jobs in critical needs occupations and other innovative economic
1897     development policy initiatives.
1898          (3) (a) Subject to future budget constraints, the Legislature shall provide an annual
1899     appropriation to the Utah [College of Applied Technology] System of Technical Colleges to
1900     fund the Jobs Now Initiative established in Subsection (1)(a).
1901          (b) (i) The Utah [College of Applied Technology] System of Technical Colleges Board
1902     of Trustees shall allocate the appropriation for the Jobs Now Initiative to [applied technology
1903     colleges within the Utah College of Applied Technology] technical colleges.
1904          (ii) [An applied technology] A technical college shall use money received under
1905     Subsection (3)(b)(i) for technical training expansion referred to in Subsection (2).
1906          (c) Subject to future budget constraints, the Legislature shall provide an annual
1907     appropriation to the State Board of Regents to fund economic development initiatives
1908     established pursuant Subsection (1)(b).
1909          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1910          (i) the Utah [College of Applied Technology] System of Technical Colleges Board of
1911     Trustees shall make rules to implement the Jobs Now Initiative; and
1912          (ii) the board shall make rules to implement economic development initiatives.
1913          Section 42. Section 53B-7-101 is amended to read:
1914          53B-7-101. Combined requests for appropriations -- Board review of operating
1915     budgets -- Submission of budgets -- Recommendations -- Hearing request --
1916     Appropriation formulas -- Allocations -- Dedicated credits -- Financial affairs.
1917          (1) As used in this section:
1918          (a) (i) "Higher education institution" or "institution" means an institution of higher

1919     education listed in Section 53B-1-102.
1920          (ii) "Higher education institution" or "institution" does not include:
1921          (A) the Utah [College of Applied Technology.] System of Technical Colleges Board of
1922     Trustees; or
1923          (B) a technical college.
1924          (b) "Research university" means the University of Utah or Utah State University.
1925          (2) (a) The board shall recommend a combined appropriation for the operating budgets
1926     of higher education institutions for inclusion in a state appropriations act.
1927          (b) The board's combined budget recommendation shall include:
1928          (i) employee compensation;
1929          (ii) mandatory costs, including building operations and maintenance, fuel, and power;
1930          [(iii) mission based funding described in Subsection (3);]
1931          [(iv)] (iii) performance funding described in Subsection [(4)] (3);
1932          [(v)] (iv) statewide and institutional priorities, including scholarships, financial aid,
1933     and technology infrastructure; and
1934          [(vi)] (v) unfunded historic growth.
1935          (c) The board's recommendations shall be available for presentation to the governor
1936     and to the Legislature at least 30 days [prior to] before the convening of the Legislature, and
1937     shall include schedules showing the recommended amounts for each institution, including
1938     separately funded programs or divisions.
1939          (d) The recommended appropriations shall be determined by the board only after it has
1940     reviewed the proposed institutional operating budgets, and has consulted with the various
1941     institutions and board staff in order to make appropriate adjustments.
1942          [(3) (a) The board shall establish mission based funding.]
1943          [(b) Mission based funding shall include:]
1944          [(i) enrollment growth; and]
1945          [(ii) up to three strategic priorities.]
1946          [(c) The strategic priorities described in Subsection (3)(b)(ii) shall be:]
1947          [(i) approved by the board; and]
1948          [(ii) designed to improve the availability, effectiveness, or quality of higher education
1949     in the state.]

1950          [(d) Concurrent with recommending mission based funding, the board shall also
1951     recommend to the Legislature ways to address funding any inequities for institutions as
1952     compared to institutions with similar missions.]
1953          [(4)] (3) (a) The board shall establish performance funding.
1954          (b) Performance funding shall include metrics approved by the board, including:
1955          (i) degrees and certificates granted;
1956          (ii) services provided to traditionally underserved populations;
1957          (iii) responsiveness to workforce needs;
1958          (iv) institutional efficiency; and
1959          (v) for a research university, graduate research metrics.
1960          (c) The board shall:
1961          (i) award performance funding appropriated by the Legislature to institutions based on
1962     the institution's success in meeting the metrics described in Subsection [(4)] (3)(b); and
1963          (ii) reallocate funding that is not awarded to an institution under Subsection [(4)]
1964     (3)(c)(i) for distribution to other institutions that meet the metrics described in Subsection [(4)]
1965     (3)(b).
1966          [(5)] (4) (a) Institutional operating budgets shall be submitted to the board at least 90
1967     days [prior to] before the convening of the Legislature in accordance with procedures
1968     established by the board.
1969          (b) Funding requests pertaining to capital facilities and land purchases shall be
1970     submitted in accordance with procedures prescribed by the State Building Board.
1971          [(6)] (5) (a) The budget recommendations of the board shall be accompanied by full
1972     explanations and supporting data.
1973          (b) The appropriations recommended by the board shall be made with the dual
1974     objective of:
1975          (i) justifying for higher educational institutions appropriations consistent with their
1976     needs, and consistent with the financial ability of the state; and
1977          (ii) determining an equitable distribution of funds among the respective institutions in
1978     accordance with the aims and objectives of the statewide master plan for higher education.
1979          [(7)] (6) (a) The board shall request a hearing with the governor on the recommended
1980     appropriations.

1981          (b) After the governor delivers his budget message to the Legislature, the board shall
1982     request hearings on the recommended appropriations with the appropriate committees of the
1983     Legislature.
1984          (c) If either the total amount of the state appropriations or its allocation among the
1985     institutions as proposed by the Legislature or [its] the Legislature's committees is substantially
1986     different from the recommendations of the board, the board may request further hearings with
1987     the Legislature or [its] the Legislature's appropriate committees to reconsider both the total
1988     amount and the allocation.
1989          [(8)] (7) The board may devise, establish, periodically review, and revise formulas for
1990     [its] the board's use and for the use of the governor and the committees of the Legislature in
1991     making appropriation recommendations.
1992          [(9)] (8) (a) The board shall recommend to each session of the Legislature the
1993     minimum tuitions, resident and nonresident, for each institution which it considers necessary to
1994     implement the budget recommendations.
1995          (b) The board may fix the tuition, fees, and charges for each institution at levels [it] the
1996     board finds necessary to meet budget requirements.
1997          [(10)] (9) (a) Money allocated to each institution by legislative appropriation may be
1998     budgeted in accordance with institutional work programs approved by the board, provided that
1999     the expenditures funded by appropriations for each institution are kept within the
2000     appropriations for the applicable period.
2001          (b) [A] Each year, a president of an institution of higher education shall[: (i)] establish
2002     initiatives for the president's institution [each year] of higher education that are[: (A) aligned
2003     with the strategic priorities described in Subsection (3); and (B)] consistent with the
2004     [institution's] institution of higher education's mission and role[; and].
2005          [(ii) allocate the institution's mission based funding to the initiatives.]
2006          [(11)] (10) The dedicated credits, including revenues derived from tuitions, fees,
2007     federal grants, and proceeds from sales received by the institutions of higher education are
2008     appropriated to the respective institutions of higher education and used in accordance with
2009     institutional work programs.
2010          [(12)] (11) [Each] An institution of higher education may do [its] the institution's own
2011     purchasing, issue [its] the institution's own payrolls, and handle [its] the institution's own

2012     financial affairs under the general supervision of the board.
2013          [(13)] (12) (a) If the Legislature appropriates money in accordance with this section,
2014     [it] the money shall be distributed to the board and higher education institutions to fund the
2015     items described in Subsection (2)(b).
2016          (b) During each general session of the Legislature following a fiscal year in which the
2017     Legislature provides an appropriation for [mission based funding or] performance funding, the
2018     board and institutions of higher education shall report to the Legislature's Higher Education
2019     Appropriations Subcommittee on the use of the previous year's [mission based funding and]
2020     performance funding[, including performance outcomes relating to the strategic initiatives
2021     approved by the board].
2022          Section 43. Section 53B-8-101 is amended to read:
2023          53B-8-101. Waiver of tuition.
2024          (1) (a) The president of [each institution] an institution of higher education described
2025     in Section 53B-2-101 may waive all or part of the tuition in behalf of meritorious or
2026     impecunious resident students to an amount not exceeding 10% of the total amount of tuition
2027     which, in the absence of the waivers, would have been collected from all Utah resident students
2028     at the institution of higher education.
2029          (b) Two and a half percent of the waivers designated in Subsection (1)(a) shall be set
2030     aside for members of the Utah National Guard. Waivers shall be preserved by the student at
2031     least 60 days before the beginning of an academic term.
2032          (2) (a) A president of an institution of higher education listed in Subsections
2033     53B-2-101(1)(a) through (h) may waive all or part of the nonresident portion of tuition for a
2034     meritorious nonresident undergraduate student.
2035          (b) In determining which students are meritorious for purposes of granting a tuition
2036     waiver under Subsection (2)(a), a president shall consider students who are performing above
2037     the average at the institution of higher education, including having an admissions index higher
2038     than the average for the institution, if an admissions index is used.
2039          (c) A president may continue to waive the nonresident portion of tuition for a student
2040     described in Subsection (2)(a) for as long as the student is enrolled at the institution of higher
2041     education.
2042          (d) In addition to waiving the nonresident portion of tuition for a meritorious

2043     nonresident student under Subsection (2)(a), a president may waive the resident portion of
2044     tuition after the meritorious nonresident student completes a year of full-time study at the
2045     institution of higher education.
2046          (3) [Upon recommendation of the board, a president shall grant additional full or
2047     partial tuition waivers to] To encourage students to enroll for instruction in occupations critical
2048     to the state for which trained personnel are in short supply[.], a president of an institution of
2049     higher education shall grant additional full or partial tuition waivers upon recommendation of:
2050          (a) the board, for an institution of higher education described in Subsection (1)(a); or
2051          (b) the Utah System of Technical Colleges Board of Trustees, for a technical college.
2052          (4) A president may waive all or part of the difference between resident and
2053     nonresident tuition in the case of:
2054          (a) meritorious graduate students; or
2055          (b) nonresident summer school students.
2056          (5) (a) The board shall submit an annual budget appropriation [requests] request for
2057     each institution[, which] of higher education described in Subsections 53B-2-101(1)(a) through
2058     (h).
2059          (b) The Utah System of Technical Colleges Board of Trustees shall submit an annual
2060     budget appropriation request for each technical college.
2061          (c) A request described in Subsection (5)(a) or (b) shall include requests for funds
2062     sufficient in amount to equal the estimated loss of dedicated credits that would be realized if all
2063     of the tuition waivers authorized by Subsection (2) were granted.
2064          Section 44. Section 53B-8d-102 is amended to read:
2065          53B-8d-102. Definitions.
2066          As used in this chapter:
2067          (1) "Division" means the Division of Child and Family Services.
2068          (2) "Long-term foster care" means an individual who remains in the custody of the
2069     division, whether or not the individual resides:
2070          (a) with licensed foster parents; or
2071          (b) in independent living arrangements under the supervision of the division.
2072          (3) "State institution of higher education" means:
2073          (a) an institution designated in Section 53B-1-102; [and] or

2074          (b) a public institution that offers postsecondary education in consideration of the
2075     payment of tuition or fees for the attainment of educational or vocational objectives leading to
2076     a degree or certificate, including:
2077          (i) a business school;
2078          (ii) a technical school;
2079          [(iii) an applied technology college within the Utah College of Applied Technology;]
2080          [(iv)] (iii) a trade school; or
2081          [(v)] (iv) an institution offering related apprenticeship programs.
2082          (4) "Tuition" means tuition at the rate for residents of the state.
2083          (5) "Ward of the state" means an individual:
2084          (a) who is:
2085          (i) at least 17 years of age; and
2086          (ii) not older than 26 years of age;
2087          (b) who had a permanency goal in the individual's child and family plan, as described
2088     in Sections 62A-4a-205 and 78A-6-314, of long-term foster care while in the custody of the
2089     division; and
2090          (c) for whom the custody of the division was not terminated as a result of adoption.
2091          Section 45. Section 53B-16-101 is amended to read:
2092          53B-16-101. Establishment of institutional roles and general courses of study.
2093          (1) Except as institutional roles are specifically assigned by the Legislature, the board:
2094          (a) may establish and define the roles of the various institutions of higher education
2095     under [its] the board's control and management; and
2096           (b) shall, within each institution of higher education's primary role, prescribe the
2097     general course of study to be offered at [each] the institution[.] of higher education, including
2098     for:
2099          (i) research universities, which provide undergraduate, graduate, and research programs
2100     and include:
2101          (A) the University of Utah; and
2102          (B) Utah State University;
2103          (ii) regional universities, which provide career and technical education, undergraduate
2104     associate and baccalaureate programs and select master's degree programs to fill regional

2105     demands and include:
2106          (A) Weber State University;
2107          (B) Southern Utah University;
2108          (C) Dixie State University; and
2109          (D) Utah Valley University; and
2110          (iii) comprehensive community colleges, which provide associate programs and
2111     include:
2112          (A) Salt Lake Community College; and
2113          (B) Snow College.
2114          (2) Except for the University of Utah, each institution of higher education described in
2115     Subsection (1)(b) has career and technical education included in the institution of higher
2116     education's primary role.
2117          [(2) In establishing and defining institutional roles, the board shall consider the
2118     traditional roles of the separate institutions.]
2119          Section 46. Section 53B-16-102 is amended to read:
2120          53B-16-102. Changes in curriculum -- Substantial alterations in institutional
2121     operations -- Periodic review of programs -- Career and technical education curriculum
2122     changes.
2123          (1) As used in this section, "institution of higher education" means the same as that
2124     term is defined in Section 53B-7-101.
2125          [(1)] (2) Under procedures and policies approved by the board and developed in
2126     consultation with each institution of higher education, each institution of higher education may
2127     make such changes in [its] the institution of higher education curriculum as necessary to better
2128     effectuate the [institutional role previously approved by the board] institution of higher
2129     education's primary role.
2130          [(2)] (3) Notice of a change in the curriculum shall in all cases be promptly submitted
2131     to the board.
2132          (4) (a) Without the approval of the board, an institution of higher education may not:
2133          (i) establish a branch, extension center, college, or professional school; or
2134          (ii) outside of the institution of higher education's primary role described in Section
2135     53B-16-101, establish a new program of instruction or research, a new public service, or a new

2136     degree, diploma, or certificate.
2137          (b) An institution of higher education may, with the approval of the institution of
2138     higher education's board of trustees, establish a new program of instruction or research, a new
2139     public service, or a new degree, diploma, or certificate that is within the institution of higher
2140     education's primary role described in Section 53B-16-101.
2141          [(3)] (5) The board shall establish procedures and [policies for considering institutional
2142     proposals for substantial alterations in the scope of existing institutional operations] guidelines
2143     for institutional boards of trustees to consider an institutional proposal for a change described
2144     in Subsection (4)(b).
2145          [(4) Alterations shall not be made without prior approval of the state board.]
2146          [(5) For purposes of this section, "substantial alteration" means the establishment of a
2147     branch, extension center, college, professional school, division, institute, department, or a new
2148     program in instruction, research, or public services or a new degree, diploma, or certificate.]
2149          (6) The board [shall] may conduct periodic reviews of all programs of instruction,
2150     research, and public service at each institution of higher education, including those funded by
2151     gifts, grants, and contracts, and may [require] recommend the modification or termination of
2152     [any] a program.
2153          (7) [Prior to requiring] Before recommending modification or termination of a
2154     program, the board shall give the institution of higher education adequate opportunity for a
2155     hearing before the board.
2156          (8) In making decisions related to career and technical education curriculum changes,
2157     the board shall [request] coordinate on behalf of the boards of trustees of higher education
2158     institutions a review of the proposed changes by the State Board of Education and the Utah
2159     [College of Applied Technology] System of Technical Colleges Board of Trustees to ensure an
2160     orderly and systematic career and technical education curriculum that eliminates overlap and
2161     duplication of course work with [the] high schools [and applied technology colleges within the
2162     Utah College of Applied Technology] or technical colleges.
2163          Section 47. Section 53B-16-103 is amended to read:
2164          53B-16-103. Granting of degrees, diplomas, or certification -- Board approval --
2165     Termination of previous approval.
2166          (1) (a) An institution of higher education may not issue a degree, diploma, or certificate

2167     outside of the institution of higher education's primary role, as described in Section
2168     53B-16-101, unless [it first] the institution of higher education receives approval from the
2169     board of the adequacy of the study for which the degree, diploma, or certificate is offered.
2170          (b) A student shall demonstrate a reasonable understanding of the history, principles,
2171     form of government, and economic system of the United States [prior to] before receiving a
2172     bachelor's degree or teaching credential.
2173          (2) Degrees, diplomas, and certificates issued prior to the effective date of this chapter
2174     do not require board approval.
2175          (3) The board may terminate the granting of previously approved degrees, diplomas,
2176     and certificates if they are inconsistent with the primary role prescribed by the board for the
2177     affected institution of higher education.
2178          Section 48. Section 53B-16-107 is amended to read:
2179          53B-16-107. Credit for military service and training -- Notification --
2180     Transferability -- Reporting.
2181          (1) As used in this section, "credit" includes proof of equivalent noncredit course
2182     completion awarded by [the Utah College of Applied Technology] a technical college.
2183          (2) An institution of higher education listed in Section 53B-2-101 shall provide written
2184     notification to each student applying for admission that the student is required to meet with a
2185     college counselor in order to receive credit for military service and training as recommended by
2186     a postsecondary accreditation agency or association designated by the [State Board of Regents]
2187     board or the Utah [College of Applied Technology] System of Technical Colleges Board of
2188     Trustees if:
2189          (a) credit for military service and training is requested by the student; and
2190          (b) the student has met with an advisor at an institution of higher education listed in
2191     Section 53B-2-101 at which the student intends to enroll to discuss applicability of credit to
2192     program requirements, possible financial aid implications, and other factors that may impact
2193     attainment of the student's educational goals.
2194          (3) Upon transfer within the state system of higher education, a student may present a
2195     transcript to the receiving institution of higher education for evaluation and to determine the
2196     applicability of credit to the student's program of study, and the receiving institution of higher
2197     education shall evaluate the credit to be transferred pursuant to Subsection (2).

2198          (4) The [State Board of Regents] board and the Utah [College of Applied Technology]
2199     System of Technical Colleges Board of Trustees shall annually report the number of credits
2200     awarded under this section by each institution of higher education to the Utah Department of
2201     Veterans' Affairs.
2202          Section 49. Section 53B-16-201 is amended to read:
2203          53B-16-201. Degrees and certificates that may be conferred.
2204          (1) Utah State University, Snow College, and Salt Lake Community College may
2205     confer certificates of completion and degrees [as determined by the State Board of Regents]
2206     within each institution's primary role, as described in Section 53B-16-101.
2207          (2) The board shall develop evaluative criteria as a means of carefully monitoring the
2208     impact of degree programs on the vocational mission of the [colleges] institutions of higher
2209     education described in Subsection (1).
2210          Section 50. Section 53B-16-210 is amended to read:
2211          53B-16-210. Salt Lake Community College -- School of Applied Technology
2212     Board of Directors -- Membership -- Duties.
2213          (1) Salt Lake Community College's School of Applied Technology shall have a board
2214     of directors composed of the following 14 members:
2215          (a) one elected local school board member appointed by the board of education for the
2216     Salt Lake City School District;
2217          (b) one elected local school board member appointed by the board of education for the
2218     Granite School District;
2219          (c) one elected local school board member appointed by the board of education for the
2220     Canyons School District;
2221          (d) one elected local school board member appointed by the board of education for the
2222     Jordan School District;
2223          (e) one elected local school board member appointed by the board of education for the
2224     Murray School District;
2225          (f) one member of the Salt Lake Community College board of trustees, appointed by
2226     the chair of the board of trustees;
2227          (g) one representative of groups who advocate for or provide services to populations of
2228     disadvantaged students, appointed by the president of Salt Lake Community College, in

2229     consultation with the School of Applied Technology's Board of Directors; and
2230          (h) seven representatives of business or industry employers within the region,
2231     appointed by the president of Salt Lake Community College, in consultation with the School of
2232     Applied Technology's Board of Directors, from names provided by business and industry
2233     associations representing sectors that employ workers with career and technical education.
2234          (2) The School of Applied Technology's Board of Directors shall:
2235          (a) consult on an ongoing basis with:
2236          (i) Salt Lake Community College;
2237          (ii) school districts and charter schools within its region;
2238          (iii) business and industry;
2239          (iv) craft, trade, and apprenticeship programs;
2240          (v) the Department of Workforce Services;
2241          (vi) the Governor's Office of Economic Development; and
2242          (vii) the Governor's Office of Management and Budget;
2243          (b) prepare a comprehensive strategic plan for delivering career and technical
2244     education within Salt Lake County;
2245          (c) make recommendations regarding what skills are needed for employment in
2246     businesses and industries;
2247          (d) recommend the development of programs based upon the information gathered in
2248     accordance with Subsection (2)(a), including expedited program approval and termination
2249     procedures to meet market needs;
2250          (e) conduct annual program evaluations;
2251          (f) jointly appoint School of Applied Technology program advisory committees and
2252     other School of Applied Technology program advisory groups with the dean of the School of
2253     Applied Technology to provide counsel, support, and recommendations for updating and
2254     improving the effectiveness of noncredit career and technical education programs and services;
2255          (g) coordinate with local school boards, school districts, and charter schools to protect
2256     and enhance the noncredit career and technical education needs of secondary students;
2257          (h) adopt an annual budget and fund balances for the School of Applied Technology;
2258          (i) develop policies and procedures for the operation of the School of Applied
2259     Technology facilities under its jurisdiction;

2260          (j) recommend credentials for employees and the assignment of employees to duties in
2261     accordance with:
2262          (i) State Board of Regents and Salt Lake Community College policies;
2263          (ii) the Council on Occupational Education accreditation guidelines; and
2264          (iii) the Northwest Commission on Colleges and Universities accreditation guidelines;
2265          (k) develop policies and procedures for the admission, classification, instruction, and
2266     examination of students in accordance with the policies and accreditation guidelines of the
2267     Council on Occupational Education, the Northwest Commission on Colleges and Universities,
2268     the State Board of Regents, Salt Lake Community College Board of Trustees, and the State
2269     Board of Education; and
2270          (l) communicate regularly with the president of Salt Lake Community College
2271     regarding career and technical education issues.
2272          (3) If a program advisory committee or other advisory group submits a written
2273     recommendation to the School of Applied Technology's Board of Directors, the board of
2274     directors shall acknowledge the recommendation with a printed response that explains the
2275     board of directors' action regarding the recommendation and the reasons for the action.
2276          (4) (a) If the School of Applied Technology Board of Directors has specific
2277     recommendations to the Salt Lake Community College president, the recommendations shall
2278     be in a written form.
2279          (b) Recommendations described under Subsection (4)(a) may include:
2280          (i) additions, deletions, or expansions of noncredit career and technical education
2281     programs at Salt Lake Community College;
2282          (ii) updates and improvements in the effectiveness of School of Applied Technology
2283     noncredit career and technical education programs and services, including expedited program
2284     approval and termination of procedures, consistent with State Board of Regents policy;
2285          (iii) responsibilities described under Subsection (2); and
2286          (iv) other recommendations relating to the noncredit career and technical education
2287     mission of Salt Lake Community College.
2288          (c) If the president of Salt Lake Community College rejects a specific recommendation
2289     of the board of directors, the president shall:
2290          (i) notify the board of directors in writing within 10 working days of the rejection and

2291     the reasons for the rejection; and
2292          (ii) provide the board of directors an opportunity to modify [its] the board of directors'
2293     specific recommendation and resubmit [it] the recommendation to the president.
2294          (5) The president of Salt Lake Community College and the chair of the School of
2295     Applied Technology's Board of Directors shall annually meet with the Utah [College of
2296     Applied Technology] System of Technical Colleges Board of Trustees to provide:
2297          (a) the information described in Subsection 53B-16-209(4)(g); and
2298          (b) a report on the implementation of specific recommendations described in
2299     Subsection (4).
2300          (6) The Salt Lake Community College School of Applied Technology shall provide
2301     staff support for the School of Applied Technology's Board of Directors.
2302          Section 51. Section 53B-16-401 is amended to read:
2303          53B-16-401. Definitions.
2304          As used in this part:
2305          (1) "Cooperating employer" means a public or private entity which, as part of a work
2306     experience and career exploration program offered through an institution of higher education,
2307     provides interns with training and work experience in activities related to the entity's ongoing
2308     business activities.
2309          (2) "Institution of higher education" means any component of the state system of higher
2310     education as defined under Section 53B-1-102 [which] that is authorized by the [State Board of
2311     Regents] board or the Utah System of Technical Colleges Board of Trustees to offer internship
2312     programs, and any private institution of higher education which offers internship programs
2313     under this part.
2314          (3) "Intern" means a student enrolled in a work experience and career exploration
2315     program under Section 53B-16-402 [which] that is sponsored by an institution of higher
2316     education, involving both classroom instruction and work experience with a cooperating
2317     employer, for which the student receives no compensation.
2318          (4) "Internship" means the work experience segment of an intern's work experience and
2319     career exploration program sponsored by an institution of higher education, performed under
2320     the direct supervision of a cooperating employer.
2321          Section 52. Section 53B-17-105 is amended to read:

2322          53B-17-105. Utah Education and Telehealth Network.
2323          (1) There is created the Utah Education and Telehealth Network, or UETN.
2324          (2) UETN shall:
2325          (a) coordinate and support the telecommunications needs of public and higher
2326     education, public libraries, and entities affiliated with the state systems of public and higher
2327     education as approved by the Utah Education and Telehealth Network Board, including the
2328     statewide development and implementation of a network for education, which utilizes satellite,
2329     microwave, fiber-optic, broadcast, and other transmission media;
2330          (b) coordinate the various telecommunications technology initiatives of public and
2331     higher education;
2332          (c) provide high-quality, cost-effective Internet access and appropriate interface
2333     equipment for schools and school systems;
2334          (d) procure, install, and maintain telecommunication services and equipment on behalf
2335     of public and higher education;
2336          (e) develop or implement other programs or services for the delivery of distance
2337     learning and telehealth services as directed by law;
2338          (f) apply for state and federal funding on behalf of:
2339          (i) public and higher education; and
2340          (ii) telehealth services;
2341          (g) in consultation with health care providers from a variety of health care systems,
2342     explore and encourage the development of telehealth services as a means of reducing health
2343     care costs and increasing health care quality and access, with emphasis on assisting rural health
2344     care providers and special populations; and
2345          (h) in consultation with the Utah Department of Health, advise the governor and the
2346     Legislature on:
2347          (i) the role of telehealth in the state;
2348          (ii) the policy issues related to telehealth;
2349          (iii) the changing telehealth needs and resources in the state; and
2350          (iv) state budgetary matters related to telehealth.
2351          (3) In performing the duties under Subsection (2), UETN shall:
2352          (a) provide services to schools, school districts, and the public and higher education

2353     systems through an open and competitive bidding process;
2354          (b) work with the private sector to deliver high-quality, cost-effective services;
2355          (c) avoid duplicating facilities, equipment, or services of private providers or public
2356     telecommunications service, as defined under Section 54-8b-2;
2357          (d) utilize statewide economic development criteria in the design and implementation
2358     of the educational telecommunications infrastructure; and
2359          (e) assure that public service entities, such as educators, public service providers, and
2360     public broadcasters, are provided access to the telecommunications infrastructure developed in
2361     the state.
2362          (4) The University of Utah shall provide administrative support for UETN.
2363          (5) (a) The Utah Education and Telehealth Network Board, which is the governing
2364     board for UETN, is created.
2365          (b) The Utah Education and Telehealth Network Board shall have 13 members as
2366     follows:
2367          (i) four members representing the state system of higher education appointed by the
2368     commissioner of higher education;
2369          (ii) four members representing the state system of public education appointed by the
2370     State Board of Education;
2371          (iii) one member representing [applied technology] technical colleges appointed by the
2372     Utah [College of Applied Technology] System of Technical Colleges commissioner of
2373     technical education;
2374          (iv) one member representing the state library appointed by the state librarian;
2375          (v) two members representing hospitals as follows:
2376          (A) the members may not be employed by the same hospital system;
2377          (B) one member shall represent a rural hospital;
2378          (C) one member shall represent an urban hospital; and
2379          (D) the chief administrator or the administrator's designee for each hospital licensed in
2380     this state shall select the two hospital representatives; and
2381          (vi) one member representing the office of the governor, appointed by the governor.
2382          (c) When a vacancy occurs in the membership for any reason, the replacement shall be
2383     appointed for the unexpired term.

2384          (d) (i) The board shall elect a chair.
2385          (ii) The chair shall set the agenda for the board meetings.
2386          (6) A member of the board may not receive compensation or benefits for the member's
2387     service, but may receive per diem and travel expenses in accordance with:
2388          (a) Section 63A-3-106;
2389          (b) Section 63A-3-107; and
2390          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
2391     63A-3-107.
2392          (7) The board:
2393          (a) shall hire an executive director for UETN who may hire staff for UETN as
2394     permitted by the budget;
2395          (b) may terminate the executive director's employment or assignment;
2396          (c) shall determine the executive director's salary;
2397          (d) shall annually conduct a performance evaluation of the executive director;
2398          (e) shall establish policies the board determines are necessary for the operation of
2399     UETN and the administration of UETN's duties; and
2400          (f) shall advise UETN in:
2401          (i) the development and operation of a coordinated, statewide, multi-option
2402     telecommunications system to assist in the delivery of educational services and telehealth
2403     services throughout the state; and
2404          (ii) acquiring, producing, and distributing instructional content.
2405          (8) The executive director of UETN shall be an at-will employee.
2406          (9) UETN shall locate and maintain educational and telehealth telecommunication
2407     infrastructure throughout the state.
2408          (10) Educational institutions shall manage site operations under policy established by
2409     UETN.
2410          (11) Subject to future budget constraints, the Legislature shall provide an annual
2411     appropriation to operate UETN.
2412          (12) If the network operated by the Department of Technology Services is not
2413     available, UETN may provide network connections to the central administration of counties
2414     and municipalities for the sole purpose of transferring data to a secure facility for backup and

2415     disaster recovery.
2416          Section 53. Section 53B-21-101 is amended to read:
2417          53B-21-101. Financing of projects or buildings -- Issuance of bonds -- Sale price
2418     determined by board -- Payment of bonds -- Bonds exempt from income taxation.
2419          (1) In order to pay all or part of the cost of the acquisition, purchase, construction,
2420     improvement, remodeling, addition to, extension, equipment, and furnishing of any project or
2421     building, including the acquisition of all necessary land, the board, on behalf of the institution
2422     for which this is to be done, may do the following: (a) borrow money on the credit of the
2423     income and revenues to be derived from the operation of the building, the imposition of student
2424     building fees, land grant interest, and net profits from proprietary activities, or from sources
2425     other than by appropriations by the Legislature to issuing institutions and, in anticipation of the
2426     collection of this income and revenues, issue negotiable bonds of the institution in an amount
2427     as the board determines is necessary for these purposes; and (b) provide for the payment of
2428     these bonds and the rights of their holders as provided in this chapter.
2429          (2) Bonds may: (a) be issued in one or more series; (b) bear any date or dates; (c)
2430     mature at any time or times not exceeding 40 years from their date; (d) be in any
2431     denominations; (e) be in any form, either coupon or registered; (f) carry registration and
2432     conversion privileges; (g) be executed in any manner; (h) be payable in any medium of
2433     payment at any place; (i) be subject to any terms of redemption with or without premium; and
2434     (j) bear interest at any rate or rates as provided by resolution adopted by the board at or [prior
2435     to] before the sale of the bonds.
2436          (3) The bonds may be sold in a manner, at the lowest obtainable rate or rates of
2437     interest, and at a price or prices as determined by the board. These determinations are
2438     conclusive.
2439          (4) The board may authorize one issue of bonds for the acquisition, purchase,
2440     construction, improvement, remodeling, adding to, extending, furnishing, or equipping of more
2441     than one building, including the acquisition of all necessary land, and may make the bonds
2442     payable from the combined revenues of all the buildings as well as from student building fees,
2443     land grant interest, net profits from proprietary activities, and from sources other than those
2444     derived from appropriations from the Legislature.
2445          (5) The bonds issued under this chapter have all of the qualities and incidents of

2446     negotiable paper and are not subject to state or local income taxation.
2447          (6) This section does not apply to a technical college.
2448          Section 54. Section 53B-26-102 is amended to read:
2449          53B-26-102. Definitions.
2450          As used in this chapter:
2451          [(1) "College of applied technology" means:]
2452          [(a) a college described in Section 53B-2a-105;]
2453          [(b) the School of Applied Technology at Salt Lake Community College established
2454     under Section 53B-16-209;]
2455          [(c) Utah State University Eastern established under Section 53B-18-1201; or]
2456          [(d) the Snow College Richfield campus established under Section 53B-16-205.]
2457          [(2)] (1) "CTE" means career and technical education.
2458          [(3)] (2) "CTE region" means an economic service area created in Section 35A-2-101.
2459          [(4)] (3) "Eligible partnership" means a partnership:
2460          (a) between at least two of the following:
2461          (i) a [college of applied technology] technical college;
2462          (ii) a school district or charter school; or
2463          (iii) an institution of higher education; and
2464          (b) that provides educational services within the same CTE region.
2465          [(5)] (4) "Employer" means a private employer, public employer, industry association,
2466     the military, or a union.
2467          [(6)] (5) "Industry advisory group" means:
2468          (a) a group of at least five employers that represent the strategic industry cluster that a
2469     proposal submitted under Section 53B-26-103 is responsive to; and
2470          (b) a representative of the Governor's Office of Economic Development, appointed by
2471     the executive director of the Governor's Office of Economic Development.
2472          [(7)] (6) "Institution of higher education" means the University of Utah, Utah State
2473     University, Southern Utah University, Weber State University, Snow College, Dixie State
2474     University, Utah Valley University, [and] or Salt Lake Community College.
2475          [(8)] (7) "Stackable sequence of credentials" means a sequence of credentials that:
2476          (a) an individual can build upon to access an advanced job or higher wage;

2477          (b) is part of a career pathway system;
2478          (c) provides a pathway culminating in the equivalent of an associate's or bachelor's
2479     degree;
2480          (d) facilitates multiple exit and entry points; and
2481          (e) recognizes sub-goals or momentum points.
2482          (8) "Technical college" means:
2483          (a) a college described in Section 53B-2a-105;
2484          (b) the School of Applied Technology at Salt Lake Community College established
2485     under Section 53B-16-209;
2486          (c) Utah State University Eastern established under Section 53B-18-1201; or
2487          (d) the Snow College Richfield campus established under Section 53B-16-205.
2488          Section 55. Section 53B-26-103 is amended to read:
2489          53B-26-103. GOED reporting requirement -- Proposals -- Funding.
2490          (1) The Governor's Office of Economic Development shall publish, on a biannual
2491     basis, a report detailing the high demand technical jobs projected to support economic growth
2492     in high need strategic industry clusters, including:
2493          (a) aerospace and defense;
2494          (b) energy and natural resources;
2495          (c) financial services;
2496          (d) life sciences;
2497          (e) outdoor products;
2498          (f) software development and information technology; or
2499          (g) any other strategic industry cluster designated by the Governor's Office of
2500     Economic Development.
2501          (2) To receive funding under this section, an eligible partnership shall submit a
2502     proposal containing the elements described in Subsection (3) to the Legislature:
2503          (a) on or before July 1, 2016, for fiscal year 2017; or
2504          (b) on or before January 5 for fiscal year 2018 and any succeeding fiscal year.
2505          (3) The proposal shall include:
2506          (a) a program of study that:
2507          (i) is responsive to the workforce needs of the CTE region in a high need strategic

2508     industry cluster as identified by the Governor's Office of Economic Development under
2509     Subsection (1);
2510          (ii) leads to the attainment of a stackable sequence of credentials; and
2511          (iii) includes a non-duplicative progression of courses that include both academic and
2512     CTE content;
2513          (b) expected student enrollment, attainment rates, and job placement rates;
2514          (c) evidence of input and support for the proposal from an industry advisory group;
2515          (d) evidence of an official action in support of the proposal from:
2516          (i) the Utah [College of Applied Technology] System of Technical Colleges Board of
2517     Trustees, if the eligible partnership includes a technical college [described in Section
2518     53B-2a-105]; or
2519          (ii) the Board of Regents, if the eligible partnership includes:
2520          (A) an institution of higher education; or
2521          (B) a college described in Subsection 53B-26-102[(1)](8)(b), (c), or (d); and
2522          (e) a funding request, including justification for the request.
2523          (4) The Legislature shall:
2524          (a) review a proposal submitted under this section using the following criteria:
2525          (i) the proposal contains the elements described in Subsection (3);
2526          (ii) support for the proposal is widespread within the CTE region; and
2527          (iii) the proposal expands the capacity to meet regional workforce needs;
2528          (b) determine the extent to which to fund the proposal; and
2529          (c) fund the proposal through the appropriations process.
2530          Section 56. Section 58-22-302 is amended to read:
2531          58-22-302. Qualifications for licensure.
2532          (1) Each applicant for licensure as a professional engineer shall:
2533          (a) submit an application in a form prescribed by the division;
2534          (b) pay a fee determined by the department under Section 63J-1-504;
2535          (c) provide satisfactory evidence of good moral character;
2536          (d) (i) have graduated and received a bachelors or masters degree from an engineering
2537     program meeting criteria established by rule by the division in collaboration with the board; or
2538          (ii) have completed the Transportation Engineering Technology and Fundamental

2539     Engineering College Program [prior to] before July 1, 1998, under the direction of the Utah
2540     Department of Transportation and as certified by the Utah Department of Transportation;
2541          (e) have successfully completed a program of qualifying experience established by rule
2542     by the division in collaboration with the board;
2543          (f) have successfully passed examinations established by rule by the division in
2544     collaboration with the board; and
2545          (g) meet with the board or representative of the division upon request for the purpose
2546     of evaluating the applicant's qualification for licensure.
2547          (2) Each applicant for licensure as a professional structural engineer shall:
2548          (a) submit an application in a form prescribed by the division;
2549          (b) pay a fee determined by the department under Section 63J-1-504;
2550          (c) provide satisfactory evidence of good moral character;
2551          (d) have graduated and received an earned bachelors or masters degree from an
2552     engineering program meeting criteria established by rule by the division in collaboration with
2553     the board;
2554          (e) have successfully completed three years of licensed professional engineering
2555     experience established by rule by the division in collaboration with the board, except that prior
2556     to January 1, 2009, an applicant for licensure may submit a signed affidavit in a form
2557     prescribed by the division stating that the applicant is currently engaged in the practice of
2558     structural engineering;
2559          (f) have successfully passed examinations established by rule by the division in
2560     collaboration with the board, except that prior to January 1, 2009, an applicant for licensure
2561     may submit a signed affidavit in a form prescribed by the division stating that the applicant is
2562     currently engaged in the practice of structural engineering; and
2563          (g) meet with the board or representative of the division upon request for the purpose
2564     of evaluating the applicant's qualification for licensure.
2565          (3) Each applicant for licensure as a professional land surveyor shall:
2566          (a) submit an application in a form prescribed by the division;
2567          (b) pay a fee determined by the department under Section 63J-1-504;
2568          (c) provide satisfactory evidence of good moral character;
2569          (d) (i) have graduated and received an associates, bachelors, or masters degree from a

2570     land surveying program, or an equivalent land surveying program, such as a program offered by
2571     [the Utah College of Applied Technology] a technical college described in Section
2572     53B-2a-105, as approved by the State Board of Regents, established by rule by the division in
2573     collaboration with the board, and have successfully completed a program of qualifying
2574     experience in land surveying established by rule by the division in collaboration with the board;
2575     or
2576          (ii) have successfully completed a program of qualifying experience in land surveying
2577     prior to January 1, 2007, in accordance with rules established by the division in collaboration
2578     with the board;
2579          (e) have successfully passed examinations established by rule by the division in
2580     collaboration with the board; and
2581          (f) meet with the board or representative of the division upon request for the purpose of
2582     evaluating the applicant's qualification for licensure.
2583          (4) Each applicant for licensure by endorsement shall:
2584          (a) submit an application in a form prescribed by the division;
2585          (b) pay a fee determined by the department under Section 63J-1-504;
2586          (c) provide satisfactory evidence of good moral character;
2587          (d) submit satisfactory evidence of:
2588          (i) current licensure in good standing in a jurisdiction recognized by rule by the
2589     division in collaboration with the board;
2590          (ii) having successfully passed an examination established by rule by the division in
2591     collaboration with the board; and
2592          (iii) full-time employment as a principal for at least five of the last seven years
2593     immediately preceding the date of the application as a:
2594          (A) licensed professional engineer for licensure as a professional engineer;
2595          (B) licensed professional structural engineer for licensure as a structural engineer; or
2596          (C) licensed professional land surveyor for licensure as a professional land surveyor;
2597     and
2598          (e) meet with the board or representative of the division upon request for the purpose
2599     of evaluating the applicant's qualifications for license.
2600          (5) The rules made to implement this section shall be in accordance with Title 63G,

2601     Chapter 3, Utah Administrative Rulemaking Act.
2602          Section 57. Section 59-12-102 is amended to read:
2603          59-12-102. Definitions.
2604          As used in this chapter:
2605          (1) "800 service" means a telecommunications service that:
2606          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
2607          (b) is typically marketed:
2608          (i) under the name 800 toll-free calling;
2609          (ii) under the name 855 toll-free calling;
2610          (iii) under the name 866 toll-free calling;
2611          (iv) under the name 877 toll-free calling;
2612          (v) under the name 888 toll-free calling; or
2613          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
2614     Federal Communications Commission.
2615          (2) (a) "900 service" means an inbound toll telecommunications service that:
2616          (i) a subscriber purchases;
2617          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
2618     the subscriber's:
2619          (A) prerecorded announcement; or
2620          (B) live service; and
2621          (iii) is typically marketed:
2622          (A) under the name 900 service; or
2623          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
2624     Communications Commission.
2625          (b) "900 service" does not include a charge for:
2626          (i) a collection service a seller of a telecommunications service provides to a
2627     subscriber; or
2628          (ii) the following a subscriber sells to the subscriber's customer:
2629          (A) a product; or
2630          (B) a service.
2631          (3) (a) "Admission or user fees" includes season passes.

2632          (b) "Admission or user fees" does not include annual membership dues to private
2633     organizations.
2634          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
2635     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
2636     Agreement after November 12, 2002.
2637          (5) "Agreement combined tax rate" means the sum of the tax rates:
2638          (a) listed under Subsection (6); and
2639          (b) that are imposed within a local taxing jurisdiction.
2640          (6) "Agreement sales and use tax" means a tax imposed under:
2641          (a) Subsection 59-12-103(2)(a)(i)(A);
2642          (b) Subsection 59-12-103(2)(b)(i);
2643          (c) Subsection 59-12-103(2)(c)(i);
2644          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
2645          (e) Section 59-12-204;
2646          (f) Section 59-12-401;
2647          (g) Section 59-12-402;
2648          (h) Section 59-12-402.1;
2649          (i) Section 59-12-703;
2650          (j) Section 59-12-802;
2651          (k) Section 59-12-804;
2652          (l) Section 59-12-1102;
2653          (m) Section 59-12-1302;
2654          (n) Section 59-12-1402;
2655          (o) Section 59-12-1802;
2656          (p) Section 59-12-2003;
2657          (q) Section 59-12-2103;
2658          (r) Section 59-12-2213;
2659          (s) Section 59-12-2214;
2660          (t) Section 59-12-2215;
2661          (u) Section 59-12-2216;
2662          (v) Section 59-12-2217; or

2663          (w) Section 59-12-2218.
2664          (7) "Aircraft" is as defined in Section 72-10-102.
2665          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
2666          (a) except for:
2667          (i) an airline as defined in Section 59-2-102; or
2668          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
2669     includes a corporation that is qualified to do business but is not otherwise doing business in the
2670     state, of an airline; and
2671          (b) that has the workers, expertise, and facilities to perform the following, regardless of
2672     whether the business entity performs the following in this state:
2673          (i) check, diagnose, overhaul, and repair:
2674          (A) an onboard system of a fixed wing turbine powered aircraft; and
2675          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
2676          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
2677     engine;
2678          (iii) perform at least the following maintenance on a fixed wing turbine powered
2679     aircraft:
2680          (A) an inspection;
2681          (B) a repair, including a structural repair or modification;
2682          (C) changing landing gear; and
2683          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
2684          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
2685     completely apply new paint to the fixed wing turbine powered aircraft; and
2686          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
2687     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
2688     authority that certifies the fixed wing turbine powered aircraft.
2689          (9) "Alcoholic beverage" means a beverage that:
2690          (a) is suitable for human consumption; and
2691          (b) contains .5% or more alcohol by volume.
2692          (10) "Alternative energy" means:
2693          (a) biomass energy;

2694          (b) geothermal energy;
2695          (c) hydroelectric energy;
2696          (d) solar energy;
2697          (e) wind energy; or
2698          (f) energy that is derived from:
2699          (i) coal-to-liquids;
2700          (ii) nuclear fuel;
2701          (iii) oil-impregnated diatomaceous earth;
2702          (iv) oil sands;
2703          (v) oil shale;
2704          (vi) petroleum coke; or
2705          (vii) waste heat from:
2706          (A) an industrial facility; or
2707          (B) a power station in which an electric generator is driven through a process in which
2708     water is heated, turns into steam, and spins a steam turbine.
2709          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
2710     facility" means a facility that:
2711          (i) uses alternative energy to produce electricity; and
2712          (ii) has a production capacity of two megawatts or greater.
2713          (b) A facility is an alternative energy electricity production facility regardless of
2714     whether the facility is:
2715          (i) connected to an electric grid; or
2716          (ii) located on the premises of an electricity consumer.
2717          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
2718     provision of telecommunications service.
2719          (b) "Ancillary service" includes:
2720          (i) a conference bridging service;
2721          (ii) a detailed communications billing service;
2722          (iii) directory assistance;
2723          (iv) a vertical service; or
2724          (v) a voice mail service.

2725          (13) "Area agency on aging" is as defined in Section 62A-3-101.
2726          (14) "Assisted amusement device" means an amusement device, skill device, or ride
2727     device that is started and stopped by an individual:
2728          (a) who is not the purchaser or renter of the right to use or operate the amusement
2729     device, skill device, or ride device; and
2730          (b) at the direction of the seller of the right to use the amusement device, skill device,
2731     or ride device.
2732          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
2733     washing of tangible personal property if the cleaning or washing labor is primarily performed
2734     by an individual:
2735          (a) who is not the purchaser of the cleaning or washing of the tangible personal
2736     property; and
2737          (b) at the direction of the seller of the cleaning or washing of the tangible personal
2738     property.
2739          (16) "Authorized carrier" means:
2740          (a) in the case of vehicles operated over public highways, the holder of credentials
2741     indicating that the vehicle is or will be operated pursuant to both the International Registration
2742     Plan and the International Fuel Tax Agreement;
2743          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
2744     certificate or air carrier's operating certificate; or
2745          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
2746     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
2747     stock in more than one state.
2748          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
2749     following that is used as the primary source of energy to produce fuel or electricity:
2750          (i) material from a plant or tree; or
2751          (ii) other organic matter that is available on a renewable basis, including:
2752          (A) slash and brush from forests and woodlands;
2753          (B) animal waste;
2754          (C) waste vegetable oil;
2755          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of

2756     wastewater residuals, or through the conversion of a waste material through a nonincineration,
2757     thermal conversion process;
2758          (E) aquatic plants; and
2759          (F) agricultural products.
2760          (b) "Biomass energy" does not include:
2761          (i) black liquor; or
2762          (ii) treated woods.
2763          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
2764     property, products, or services if the tangible personal property, products, or services are:
2765          (i) distinct and identifiable; and
2766          (ii) sold for one nonitemized price.
2767          (b) "Bundled transaction" does not include:
2768          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
2769     the basis of the selection by the purchaser of the items of tangible personal property included in
2770     the transaction;
2771          (ii) the sale of real property;
2772          (iii) the sale of services to real property;
2773          (iv) the retail sale of tangible personal property and a service if:
2774          (A) the tangible personal property:
2775          (I) is essential to the use of the service; and
2776          (II) is provided exclusively in connection with the service; and
2777          (B) the service is the true object of the transaction;
2778          (v) the retail sale of two services if:
2779          (A) one service is provided that is essential to the use or receipt of a second service;
2780          (B) the first service is provided exclusively in connection with the second service; and
2781          (C) the second service is the true object of the transaction;
2782          (vi) a transaction that includes tangible personal property or a product subject to
2783     taxation under this chapter and tangible personal property or a product that is not subject to
2784     taxation under this chapter if the:
2785          (A) seller's purchase price of the tangible personal property or product subject to
2786     taxation under this chapter is de minimis; or

2787          (B) seller's sales price of the tangible personal property or product subject to taxation
2788     under this chapter is de minimis; and
2789          (vii) the retail sale of tangible personal property that is not subject to taxation under
2790     this chapter and tangible personal property that is subject to taxation under this chapter if:
2791          (A) that retail sale includes:
2792          (I) food and food ingredients;
2793          (II) a drug;
2794          (III) durable medical equipment;
2795          (IV) mobility enhancing equipment;
2796          (V) an over-the-counter drug;
2797          (VI) a prosthetic device; or
2798          (VII) a medical supply; and
2799          (B) subject to Subsection (18)(f):
2800          (I) the seller's purchase price of the tangible personal property subject to taxation under
2801     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
2802          (II) the seller's sales price of the tangible personal property subject to taxation under
2803     this chapter is 50% or less of the seller's total sales price of that retail sale.
2804          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
2805     service that is distinct and identifiable does not include:
2806          (A) packaging that:
2807          (I) accompanies the sale of the tangible personal property, product, or service; and
2808          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
2809     service;
2810          (B) tangible personal property, a product, or a service provided free of charge with the
2811     purchase of another item of tangible personal property, a product, or a service; or
2812          (C) an item of tangible personal property, a product, or a service included in the
2813     definition of "purchase price."
2814          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
2815     product, or a service is provided free of charge with the purchase of another item of tangible
2816     personal property, a product, or a service if the sales price of the purchased item of tangible
2817     personal property, product, or service does not vary depending on the inclusion of the tangible

2818     personal property, product, or service provided free of charge.
2819          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
2820     does not include a price that is separately identified by tangible personal property, product, or
2821     service on the following, regardless of whether the following is in paper format or electronic
2822     format:
2823          (A) a binding sales document; or
2824          (B) another supporting sales-related document that is available to a purchaser.
2825          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
2826     supporting sales-related document that is available to a purchaser includes:
2827          (A) a bill of sale;
2828          (B) a contract;
2829          (C) an invoice;
2830          (D) a lease agreement;
2831          (E) a periodic notice of rates and services;
2832          (F) a price list;
2833          (G) a rate card;
2834          (H) a receipt; or
2835          (I) a service agreement.
2836          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
2837     property or a product subject to taxation under this chapter is de minimis if:
2838          (A) the seller's purchase price of the tangible personal property or product is 10% or
2839     less of the seller's total purchase price of the bundled transaction; or
2840          (B) the seller's sales price of the tangible personal property or product is 10% or less of
2841     the seller's total sales price of the bundled transaction.
2842          (ii) For purposes of Subsection (18)(b)(vi), a seller:
2843          (A) shall use the seller's purchase price or the seller's sales price to determine if the
2844     purchase price or sales price of the tangible personal property or product subject to taxation
2845     under this chapter is de minimis; and
2846          (B) may not use a combination of the seller's purchase price and the seller's sales price
2847     to determine if the purchase price or sales price of the tangible personal property or product
2848     subject to taxation under this chapter is de minimis.

2849          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
2850     contract to determine if the sales price of tangible personal property or a product is de minimis.
2851          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
2852     the seller's purchase price and the seller's sales price to determine if tangible personal property
2853     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
2854     price of that retail sale.
2855          (19) "Certified automated system" means software certified by the governing board of
2856     the agreement that:
2857          (a) calculates the agreement sales and use tax imposed within a local taxing
2858     jurisdiction:
2859          (i) on a transaction; and
2860          (ii) in the states that are members of the agreement;
2861          (b) determines the amount of agreement sales and use tax to remit to a state that is a
2862     member of the agreement; and
2863          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
2864          (20) "Certified service provider" means an agent certified:
2865          (a) by the governing board of the agreement; and
2866          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
2867     use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
2868     own purchases.
2869          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
2870     suitable for general use.
2871          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
2872     commission shall make rules:
2873          (i) listing the items that constitute "clothing"; and
2874          (ii) that are consistent with the list of items that constitute "clothing" under the
2875     agreement.
2876          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
2877          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
2878     fuels that does not constitute industrial use under Subsection (56) or residential use under
2879     Subsection (106).

2880          (24) (a) "Common carrier" means a person engaged in or transacting the business of
2881     transporting passengers, freight, merchandise, or other property for hire within this state.
2882          (b) (i) "Common carrier" does not include a person who, at the time the person is
2883     traveling to or from that person's place of employment, transports a passenger to or from the
2884     passenger's place of employment.
2885          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,
2886     Utah Administrative Rulemaking Act, the commission may make rules defining what
2887     constitutes a person's place of employment.
2888          (c) "Common carrier" does not include a person that provides transportation network
2889     services, as defined in Section 13-51-102.
2890          (25) "Component part" includes:
2891          (a) poultry, dairy, and other livestock feed, and their components;
2892          (b) baling ties and twine used in the baling of hay and straw;
2893          (c) fuel used for providing temperature control of orchards and commercial
2894     greenhouses doing a majority of their business in wholesale sales, and for providing power for
2895     off-highway type farm machinery; and
2896          (d) feed, seeds, and seedlings.
2897          (26) "Computer" means an electronic device that accepts information:
2898          (a) (i) in digital form; or
2899          (ii) in a form similar to digital form; and
2900          (b) manipulates that information for a result based on a sequence of instructions.
2901          (27) "Computer software" means a set of coded instructions designed to cause:
2902          (a) a computer to perform a task; or
2903          (b) automatic data processing equipment to perform a task.
2904          (28) "Computer software maintenance contract" means a contract that obligates a seller
2905     of computer software to provide a customer with:
2906          (a) future updates or upgrades to computer software;
2907          (b) support services with respect to computer software; or
2908          (c) a combination of Subsections (28)(a) and (b).
2909          (29) (a) "Conference bridging service" means an ancillary service that links two or
2910     more participants of an audio conference call or video conference call.

2911          (b) "Conference bridging service" may include providing a telephone number as part of
2912     the ancillary service described in Subsection (29)(a).
2913          (c) "Conference bridging service" does not include a telecommunications service used
2914     to reach the ancillary service described in Subsection (29)(a).
2915          (30) "Construction materials" means any tangible personal property that will be
2916     converted into real property.
2917          (31) "Delivered electronically" means delivered to a purchaser by means other than
2918     tangible storage media.
2919          (32) (a) "Delivery charge" means a charge:
2920          (i) by a seller of:
2921          (A) tangible personal property;
2922          (B) a product transferred electronically; or
2923          (C) services; and
2924          (ii) for preparation and delivery of the tangible personal property, product transferred
2925     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
2926     purchaser.
2927          (b) "Delivery charge" includes a charge for the following:
2928          (i) transportation;
2929          (ii) shipping;
2930          (iii) postage;
2931          (iv) handling;
2932          (v) crating; or
2933          (vi) packing.
2934          (33) "Detailed telecommunications billing service" means an ancillary service of
2935     separately stating information pertaining to individual calls on a customer's billing statement.
2936          (34) "Dietary supplement" means a product, other than tobacco, that:
2937          (a) is intended to supplement the diet;
2938          (b) contains one or more of the following dietary ingredients:
2939          (i) a vitamin;
2940          (ii) a mineral;
2941          (iii) an herb or other botanical;

2942          (iv) an amino acid;
2943          (v) a dietary substance for use by humans to supplement the diet by increasing the total
2944     dietary intake; or
2945          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
2946     described in Subsections (34)(b)(i) through (v);
2947          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:
2948          (A) tablet form;
2949          (B) capsule form;
2950          (C) powder form;
2951          (D) softgel form;
2952          (E) gelcap form; or
2953          (F) liquid form; or
2954          (ii) if the product is not intended for ingestion in a form described in Subsections
2955     (34)(c)(i)(A) through (F), is not represented:
2956          (A) as conventional food; and
2957          (B) for use as a sole item of:
2958          (I) a meal; or
2959          (II) the diet; and
2960          (d) is required to be labeled as a dietary supplement:
2961          (i) identifiable by the "Supplemental Facts" box found on the label; and
2962          (ii) as required by 21 C.F.R. Sec. 101.36.
2963          (35) "Digital audio-visual work" means a series of related images which, when shown
2964     in succession, imparts an impression of motion, together with accompanying sounds, if any.
2965          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
2966     musical, spoken, or other sounds.
2967          (b) "Digital audio work" includes a ringtone.
2968          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
2969     sense as a book.
2970          (38) (a) "Direct mail" means printed material delivered or distributed by United States
2971     mail or other delivery service:
2972          (i) to:

2973          (A) a mass audience; or
2974          (B) addressees on a mailing list provided:
2975          (I) by a purchaser of the mailing list; or
2976          (II) at the discretion of the purchaser of the mailing list; and
2977          (ii) if the cost of the printed material is not billed directly to the recipients.
2978          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a
2979     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
2980          (c) "Direct mail" does not include multiple items of printed material delivered to a
2981     single address.
2982          (39) "Directory assistance" means an ancillary service of providing:
2983          (a) address information; or
2984          (b) telephone number information.
2985          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
2986     or supplies that:
2987          (i) cannot withstand repeated use; and
2988          (ii) are purchased by, for, or on behalf of a person other than:
2989          (A) a health care facility as defined in Section 26-21-2;
2990          (B) a health care provider as defined in Section 78B-3-403;
2991          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
2992          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
2993          (b) "Disposable home medical equipment or supplies" does not include:
2994          (i) a drug;
2995          (ii) durable medical equipment;
2996          (iii) a hearing aid;
2997          (iv) a hearing aid accessory;
2998          (v) mobility enhancing equipment; or
2999          (vi) tangible personal property used to correct impaired vision, including:
3000          (A) eyeglasses; or
3001          (B) contact lenses.
3002          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3003     commission may by rule define what constitutes medical equipment or supplies.

3004          (41) "Drilling equipment manufacturer" means a facility:
3005          (a) located in the state;
3006          (b) with respect to which 51% or more of the manufacturing activities of the facility
3007     consist of manufacturing component parts of drilling equipment;
3008          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
3009     manufacturing process; and
3010          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
3011     manufacturing process.
3012          (42) (a) "Drug" means a compound, substance, or preparation, or a component of a
3013     compound, substance, or preparation that is:
3014          (i) recognized in:
3015          (A) the official United States Pharmacopoeia;
3016          (B) the official Homeopathic Pharmacopoeia of the United States;
3017          (C) the official National Formulary; or
3018          (D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
3019          (ii) intended for use in the:
3020          (A) diagnosis of disease;
3021          (B) cure of disease;
3022          (C) mitigation of disease;
3023          (D) treatment of disease; or
3024          (E) prevention of disease; or
3025          (iii) intended to affect:
3026          (A) the structure of the body; or
3027          (B) any function of the body.
3028          (b) "Drug" does not include:
3029          (i) food and food ingredients;
3030          (ii) a dietary supplement;
3031          (iii) an alcoholic beverage; or
3032          (iv) a prosthetic device.
3033          (43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
3034     equipment that:

3035          (i) can withstand repeated use;
3036          (ii) is primarily and customarily used to serve a medical purpose;
3037          (iii) generally is not useful to a person in the absence of illness or injury; and
3038          (iv) is not worn in or on the body.
3039          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
3040     equipment described in Subsection (43)(a).
3041          (c) "Durable medical equipment" does not include mobility enhancing equipment.
3042          (44) "Electronic" means:
3043          (a) relating to technology; and
3044          (b) having:
3045          (i) electrical capabilities;
3046          (ii) digital capabilities;
3047          (iii) magnetic capabilities;
3048          (iv) wireless capabilities;
3049          (v) optical capabilities;
3050          (vi) electromagnetic capabilities; or
3051          (vii) capabilities similar to Subsections (44)(b)(i) through (vi).
3052          (45) "Electronic financial payment service" means an establishment:
3053          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
3054     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
3055     federal Executive Office of the President, Office of Management and Budget; and
3056          (b) that performs electronic financial payment services.
3057          (46) "Employee" is as defined in Section 59-10-401.
3058          (47) "Fixed guideway" means a public transit facility that uses and occupies:
3059          (a) rail for the use of public transit; or
3060          (b) a separate right-of-way for the use of public transit.
3061          (48) "Fixed wing turbine powered aircraft" means an aircraft that:
3062          (a) is powered by turbine engines;
3063          (b) operates on jet fuel; and
3064          (c) has wings that are permanently attached to the fuselage of the aircraft.
3065          (49) "Fixed wireless service" means a telecommunications service that provides radio

3066     communication between fixed points.
3067          (50) (a) "Food and food ingredients" means substances:
3068          (i) regardless of whether the substances are in:
3069          (A) liquid form;
3070          (B) concentrated form;
3071          (C) solid form;
3072          (D) frozen form;
3073          (E) dried form; or
3074          (F) dehydrated form; and
3075          (ii) that are:
3076          (A) sold for:
3077          (I) ingestion by humans; or
3078          (II) chewing by humans; and
3079          (B) consumed for the substance's:
3080          (I) taste; or
3081          (II) nutritional value.
3082          (b) "Food and food ingredients" includes an item described in Subsection (91)(b)(iii).
3083          (c) "Food and food ingredients" does not include:
3084          (i) an alcoholic beverage;
3085          (ii) tobacco; or
3086          (iii) prepared food.
3087          (51) (a) "Fundraising sales" means sales:
3088          (i) (A) made by a school; or
3089          (B) made by a school student;
3090          (ii) that are for the purpose of raising funds for the school to purchase equipment,
3091     materials, or provide transportation; and
3092          (iii) that are part of an officially sanctioned school activity.
3093          (b) For purposes of Subsection (51)(a)(iii), "officially sanctioned school activity"
3094     means a school activity:
3095          (i) that is conducted in accordance with a formal policy adopted by the school or school
3096     district governing the authorization and supervision of fundraising activities;

3097          (ii) that does not directly or indirectly compensate an individual teacher or other
3098     educational personnel by direct payment, commissions, or payment in kind; and
3099          (iii) the net or gross revenues from which are deposited in a dedicated account
3100     controlled by the school or school district.
3101          (52) "Geothermal energy" means energy contained in heat that continuously flows
3102     outward from the earth that is used as the sole source of energy to produce electricity.
3103          (53) "Governing board of the agreement" means the governing board of the agreement
3104     that is:
3105          (a) authorized to administer the agreement; and
3106          (b) established in accordance with the agreement.
3107          (54) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
3108          (i) the executive branch of the state, including all departments, institutions, boards,
3109     divisions, bureaus, offices, commissions, and committees;
3110          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
3111     Office of the Court Administrator, and similar administrative units in the judicial branch;
3112          (iii) the legislative branch of the state, including the House of Representatives, the
3113     Senate, the Legislative Printing Office, the Office of Legislative Research and General
3114     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
3115     Analyst;
3116          (iv) the National Guard;
3117          (v) an independent entity as defined in Section 63E-1-102; or
3118          (vi) a political subdivision as defined in Section 17B-1-102.
3119          (b) "Governmental entity" does not include the state systems of public and higher
3120     education, including:
3121          [(i) an applied technology college within the Utah College of Applied Technology;]
3122          [(ii)] (i) a school;
3123          [(iii)] (ii) the State Board of Education;
3124          [(iv)] (iii) the State Board of Regents; or
3125          [(v)] (iv) an institution of higher education described in Section 53B-1-102.
3126          (55) "Hydroelectric energy" means water used as the sole source of energy to produce
3127     electricity.

3128          (56) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
3129     other fuels:
3130          (a) in mining or extraction of minerals;
3131          (b) in agricultural operations to produce an agricultural product up to the time of
3132     harvest or placing the agricultural product into a storage facility, including:
3133          (i) commercial greenhouses;
3134          (ii) irrigation pumps;
3135          (iii) farm machinery;
3136          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
3137     under Title 41, Chapter 1a, Part 2, Registration; and
3138          (v) other farming activities;
3139          (c) in manufacturing tangible personal property at an establishment described in SIC
3140     Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
3141     Executive Office of the President, Office of Management and Budget;
3142          (d) by a scrap recycler if:
3143          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
3144     one or more of the following items into prepared grades of processed materials for use in new
3145     products:
3146          (A) iron;
3147          (B) steel;
3148          (C) nonferrous metal;
3149          (D) paper;
3150          (E) glass;
3151          (F) plastic;
3152          (G) textile; or
3153          (H) rubber; and
3154          (ii) the new products under Subsection (56)(d)(i) would otherwise be made with
3155     nonrecycled materials; or
3156          (e) in producing a form of energy or steam described in Subsection 54-2-1(2)(a) by a
3157     cogeneration facility as defined in Section 54-2-1.
3158          (57) (a) Except as provided in Subsection (57)(b), "installation charge" means a charge

3159     for installing:
3160          (i) tangible personal property; or
3161          (ii) a product transferred electronically.
3162          (b) "Installation charge" does not include a charge for:
3163          (i) repairs or renovations of:
3164          (A) tangible personal property; or
3165          (B) a product transferred electronically; or
3166          (ii) attaching tangible personal property or a product transferred electronically:
3167          (A) to other tangible personal property; and
3168          (B) as part of a manufacturing or fabrication process.
3169          (58) "Institution of higher education" means an institution of higher education listed in
3170     Section 53B-2-101.
3171          (59) (a) "Lease" or "rental" means a transfer of possession or control of tangible
3172     personal property or a product transferred electronically for:
3173          (i) (A) a fixed term; or
3174          (B) an indeterminate term; and
3175          (ii) consideration.
3176          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
3177     amount of consideration may be increased or decreased by reference to the amount realized
3178     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
3179     Code.
3180          (c) "Lease" or "rental" does not include:
3181          (i) a transfer of possession or control of property under a security agreement or
3182     deferred payment plan that requires the transfer of title upon completion of the required
3183     payments;
3184          (ii) a transfer of possession or control of property under an agreement that requires the
3185     transfer of title:
3186          (A) upon completion of required payments; and
3187          (B) if the payment of an option price does not exceed the greater of:
3188          (I) $100; or
3189          (II) 1% of the total required payments; or

3190          (iii) providing tangible personal property along with an operator for a fixed period of
3191     time or an indeterminate period of time if the operator is necessary for equipment to perform as
3192     designed.
3193          (d) For purposes of Subsection (59)(c)(iii), an operator is necessary for equipment to
3194     perform as designed if the operator's duties exceed the:
3195          (i) set-up of tangible personal property;
3196          (ii) maintenance of tangible personal property; or
3197          (iii) inspection of tangible personal property.
3198          (60) "Life science establishment" means an establishment in this state that is classified
3199     under the following NAICS codes of the 2007 North American Industry Classification System
3200     of the federal Executive Office of the President, Office of Management and Budget:
3201          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
3202          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
3203     Manufacturing; or
3204          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
3205          (61) "Life science research and development facility" means a facility owned, leased,
3206     or rented by a life science establishment if research and development is performed in 51% or
3207     more of the total area of the facility.
3208          (62) "Load and leave" means delivery to a purchaser by use of a tangible storage media
3209     if the tangible storage media is not physically transferred to the purchaser.
3210          (63) "Local taxing jurisdiction" means a:
3211          (a) county that is authorized to impose an agreement sales and use tax;
3212          (b) city that is authorized to impose an agreement sales and use tax; or
3213          (c) town that is authorized to impose an agreement sales and use tax.
3214          (64) "Manufactured home" is as defined in Section 15A-1-302.
3215          (65) "Manufacturing facility" means:
3216          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
3217     Industrial Classification Manual of the federal Executive Office of the President, Office of
3218     Management and Budget;
3219          (b) a scrap recycler if:
3220          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process

3221     one or more of the following items into prepared grades of processed materials for use in new
3222     products:
3223          (A) iron;
3224          (B) steel;
3225          (C) nonferrous metal;
3226          (D) paper;
3227          (E) glass;
3228          (F) plastic;
3229          (G) textile; or
3230          (H) rubber; and
3231          (ii) the new products under Subsection (65)(b)(i) would otherwise be made with
3232     nonrecycled materials; or
3233          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
3234     placed in service on or after May 1, 2006.
3235          (66) "Member of the immediate family of the producer" means a person who is related
3236     to a producer described in Subsection 59-12-104(20)(a) as a:
3237          (a) child or stepchild, regardless of whether the child or stepchild is:
3238          (i) an adopted child or adopted stepchild; or
3239          (ii) a foster child or foster stepchild;
3240          (b) grandchild or stepgrandchild;
3241          (c) grandparent or stepgrandparent;
3242          (d) nephew or stepnephew;
3243          (e) niece or stepniece;
3244          (f) parent or stepparent;
3245          (g) sibling or stepsibling;
3246          (h) spouse;
3247          (i) person who is the spouse of a person described in Subsections (66)(a) through (g);
3248     or
3249          (j) person similar to a person described in Subsections (66)(a) through (i) as
3250     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
3251     Administrative Rulemaking Act.

3252          (67) "Mobile home" is as defined in Section 15A-1-302.
3253          (68) "Mobile telecommunications service" is as defined in the Mobile
3254     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
3255          (69) (a) "Mobile wireless service" means a telecommunications service, regardless of
3256     the technology used, if:
3257          (i) the origination point of the conveyance, routing, or transmission is not fixed;
3258          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
3259          (iii) the origination point described in Subsection (69)(a)(i) and the termination point
3260     described in Subsection (69)(a)(ii) are not fixed.
3261          (b) "Mobile wireless service" includes a telecommunications service that is provided
3262     by a commercial mobile radio service provider.
3263          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3264     commission may by rule define "commercial mobile radio service provider."
3265          (70) (a) Except as provided in Subsection (70)(c), "mobility enhancing equipment"
3266     means equipment that is:
3267          (i) primarily and customarily used to provide or increase the ability to move from one
3268     place to another;
3269          (ii) appropriate for use in a:
3270          (A) home; or
3271          (B) motor vehicle; and
3272          (iii) not generally used by persons with normal mobility.
3273          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
3274     the equipment described in Subsection (70)(a).
3275          (c) "Mobility enhancing equipment" does not include:
3276          (i) a motor vehicle;
3277          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
3278     vehicle manufacturer;
3279          (iii) durable medical equipment; or
3280          (iv) a prosthetic device.
3281          (71) "Model 1 seller" means a seller registered under the agreement that has selected a
3282     certified service provider as the seller's agent to perform all of the seller's sales and use tax

3283     functions for agreement sales and use taxes other than the seller's obligation under Section
3284     59-12-124 to remit a tax on the seller's own purchases.
3285          (72) "Model 2 seller" means a seller registered under the agreement that:
3286          (a) except as provided in Subsection (72)(b), has selected a certified automated system
3287     to perform the seller's sales tax functions for agreement sales and use taxes; and
3288          (b) retains responsibility for remitting all of the sales tax:
3289          (i) collected by the seller; and
3290          (ii) to the appropriate local taxing jurisdiction.
3291          (73) (a) Subject to Subsection (73)(b), "model 3 seller" means a seller registered under
3292     the agreement that has:
3293          (i) sales in at least five states that are members of the agreement;
3294          (ii) total annual sales revenues of at least $500,000,000;
3295          (iii) a proprietary system that calculates the amount of tax:
3296          (A) for an agreement sales and use tax; and
3297          (B) due to each local taxing jurisdiction; and
3298          (iv) entered into a performance agreement with the governing board of the agreement.
3299          (b) For purposes of Subsection (73)(a), "model 3 seller" includes an affiliated group of
3300     sellers using the same proprietary system.
3301          (74) "Model 4 seller" means a seller that is registered under the agreement and is not a
3302     model 1 seller, model 2 seller, or model 3 seller.
3303          (75) "Modular home" means a modular unit as defined in Section 15A-1-302.
3304          (76) "Motor vehicle" is as defined in Section 41-1a-102.
3305          (77) "Oil sands" means impregnated bituminous sands that:
3306          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
3307     other hydrocarbons, or otherwise treated;
3308          (b) yield mixtures of liquid hydrocarbon; and
3309          (c) require further processing other than mechanical blending before becoming finished
3310     petroleum products.
3311          (78) "Oil shale" means a group of fine black to dark brown shales containing kerogen
3312     material that yields petroleum upon heating and distillation.
3313          (79) "Optional computer software maintenance contract" means a computer software

3314     maintenance contract that a customer is not obligated to purchase as a condition to the retail
3315     sale of computer software.
3316          (80) (a) "Other fuels" means products that burn independently to produce heat or
3317     energy.
3318          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
3319     personal property.
3320          (81) (a) "Paging service" means a telecommunications service that provides
3321     transmission of a coded radio signal for the purpose of activating a specific pager.
3322          (b) For purposes of Subsection (81)(a), the transmission of a coded radio signal
3323     includes a transmission by message or sound.
3324          (82) "Pawnbroker" is as defined in Section 13-32a-102.
3325          (83) "Pawn transaction" is as defined in Section 13-32a-102.
3326          (84) (a) "Permanently attached to real property" means that for tangible personal
3327     property attached to real property:
3328          (i) the attachment of the tangible personal property to the real property:
3329          (A) is essential to the use of the tangible personal property; and
3330          (B) suggests that the tangible personal property will remain attached to the real
3331     property in the same place over the useful life of the tangible personal property; or
3332          (ii) if the tangible personal property is detached from the real property, the detachment
3333     would:
3334          (A) cause substantial damage to the tangible personal property; or
3335          (B) require substantial alteration or repair of the real property to which the tangible
3336     personal property is attached.
3337          (b) "Permanently attached to real property" includes:
3338          (i) the attachment of an accessory to the tangible personal property if the accessory is:
3339          (A) essential to the operation of the tangible personal property; and
3340          (B) attached only to facilitate the operation of the tangible personal property;
3341          (ii) a temporary detachment of tangible personal property from real property for a
3342     repair or renovation if the repair or renovation is performed where the tangible personal
3343     property and real property are located; or
3344          (iii) property attached to oil, gas, or water pipelines, except for the property listed in

3345     Subsection (84)(c)(iii) or (iv).
3346          (c) "Permanently attached to real property" does not include:
3347          (i) the attachment of portable or movable tangible personal property to real property if
3348     that portable or movable tangible personal property is attached to real property only for:
3349          (A) convenience;
3350          (B) stability; or
3351          (C) for an obvious temporary purpose;
3352          (ii) the detachment of tangible personal property from real property except for the
3353     detachment described in Subsection (84)(b)(ii);
3354          (iii) an attachment of the following tangible personal property to real property if the
3355     attachment to real property is only through a line that supplies water, electricity, gas,
3356     telecommunications, cable, or supplies a similar item as determined by the commission by rule
3357     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
3358          (A) a computer;
3359          (B) a telephone;
3360          (C) a television; or
3361          (D) tangible personal property similar to Subsections (84)(c)(iii)(A) through (C) as
3362     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
3363     Administrative Rulemaking Act; or
3364          (iv) an item listed in Subsection (125)(c).
3365          (85) "Person" includes any individual, firm, partnership, joint venture, association,
3366     corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
3367     municipality, district, or other local governmental entity of the state, or any group or
3368     combination acting as a unit.
3369          (86) "Place of primary use":
3370          (a) for telecommunications service other than mobile telecommunications service,
3371     means the street address representative of where the customer's use of the telecommunications
3372     service primarily occurs, which shall be:
3373          (i) the residential street address of the customer; or
3374          (ii) the primary business street address of the customer; or
3375          (b) for mobile telecommunications service, is as defined in the Mobile

3376     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
3377          (87) (a) "Postpaid calling service" means a telecommunications service a person
3378     obtains by making a payment on a call-by-call basis:
3379          (i) through the use of a:
3380          (A) bank card;
3381          (B) credit card;
3382          (C) debit card; or
3383          (D) travel card; or
3384          (ii) by a charge made to a telephone number that is not associated with the origination
3385     or termination of the telecommunications service.
3386          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
3387     service, that would be a prepaid wireless calling service if the service were exclusively a
3388     telecommunications service.
3389          (88) "Postproduction" means an activity related to the finishing or duplication of a
3390     medium described in Subsection 59-12-104(54)(a).
3391          (89) "Prepaid calling service" means a telecommunications service:
3392          (a) that allows a purchaser access to telecommunications service that is exclusively
3393     telecommunications service;
3394          (b) that:
3395          (i) is paid for in advance; and
3396          (ii) enables the origination of a call using an:
3397          (A) access number; or
3398          (B) authorization code;
3399          (c) that is dialed:
3400          (i) manually; or
3401          (ii) electronically; and
3402          (d) sold in predetermined units or dollars that decline:
3403          (i) by a known amount; and
3404          (ii) with use.
3405          (90) "Prepaid wireless calling service" means a telecommunications service:
3406          (a) that provides the right to utilize:

3407          (i) mobile wireless service; and
3408          (ii) other service that is not a telecommunications service, including:
3409          (A) the download of a product transferred electronically;
3410          (B) a content service; or
3411          (C) an ancillary service;
3412          (b) that:
3413          (i) is paid for in advance; and
3414          (ii) enables the origination of a call using an:
3415          (A) access number; or
3416          (B) authorization code;
3417          (c) that is dialed:
3418          (i) manually; or
3419          (ii) electronically; and
3420          (d) sold in predetermined units or dollars that decline:
3421          (i) by a known amount; and
3422          (ii) with use.
3423          (91) (a) "Prepared food" means:
3424          (i) food:
3425          (A) sold in a heated state; or
3426          (B) heated by a seller;
3427          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
3428     item; or
3429          (iii) except as provided in Subsection (91)(c), food sold with an eating utensil provided
3430     by the seller, including a:
3431          (A) plate;
3432          (B) knife;
3433          (C) fork;
3434          (D) spoon;
3435          (E) glass;
3436          (F) cup;
3437          (G) napkin; or

3438          (H) straw.
3439          (b) "Prepared food" does not include:
3440          (i) food that a seller only:
3441          (A) cuts;
3442          (B) repackages; or
3443          (C) pasteurizes; or
3444          (ii) (A) the following:
3445          (I) raw egg;
3446          (II) raw fish;
3447          (III) raw meat;
3448          (IV) raw poultry; or
3449          (V) a food containing an item described in Subsections (91)(b)(ii)(A)(I) through (IV);
3450     and
3451          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
3452     Food and Drug Administration's Food Code that a consumer cook the items described in
3453     Subsection (91)(b)(ii)(A) to prevent food borne illness; or
3454          (iii) the following if sold without eating utensils provided by the seller:
3455          (A) food and food ingredients sold by a seller if the seller's proper primary
3456     classification under the 2002 North American Industry Classification System of the federal
3457     Executive Office of the President, Office of Management and Budget, is manufacturing in
3458     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
3459     Manufacturing;
3460          (B) food and food ingredients sold in an unheated state:
3461          (I) by weight or volume; and
3462          (II) as a single item; or
3463          (C) a bakery item, including:
3464          (I) a bagel;
3465          (II) a bar;
3466          (III) a biscuit;
3467          (IV) bread;
3468          (V) a bun;

3469          (VI) a cake;
3470          (VII) a cookie;
3471          (VIII) a croissant;
3472          (IX) a danish;
3473          (X) a donut;
3474          (XI) a muffin;
3475          (XII) a pastry;
3476          (XIII) a pie;
3477          (XIV) a roll;
3478          (XV) a tart;
3479          (XVI) a torte; or
3480          (XVII) a tortilla.
3481          (c) An eating utensil provided by the seller does not include the following used to
3482     transport the food:
3483          (i) a container; or
3484          (ii) packaging.
3485          (92) "Prescription" means an order, formula, or recipe that is issued:
3486          (a) (i) orally;
3487          (ii) in writing;
3488          (iii) electronically; or
3489          (iv) by any other manner of transmission; and
3490          (b) by a licensed practitioner authorized by the laws of a state.
3491          (93) (a) Except as provided in Subsection (93)(b)(ii) or (iii), "prewritten computer
3492     software" means computer software that is not designed and developed:
3493          (i) by the author or other creator of the computer software; and
3494          (ii) to the specifications of a specific purchaser.
3495          (b) "Prewritten computer software" includes:
3496          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
3497     software is not designed and developed:
3498          (A) by the author or other creator of the computer software; and
3499          (B) to the specifications of a specific purchaser;

3500          (ii) computer software designed and developed by the author or other creator of the
3501     computer software to the specifications of a specific purchaser if the computer software is sold
3502     to a person other than the purchaser; or
3503          (iii) except as provided in Subsection (93)(c), prewritten computer software or a
3504     prewritten portion of prewritten computer software:
3505          (A) that is modified or enhanced to any degree; and
3506          (B) if the modification or enhancement described in Subsection (93)(b)(iii)(A) is
3507     designed and developed to the specifications of a specific purchaser.
3508          (c) "Prewritten computer software" does not include a modification or enhancement
3509     described in Subsection (93)(b)(iii) if the charges for the modification or enhancement are:
3510          (i) reasonable; and
3511          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
3512     invoice or other statement of price provided to the purchaser at the time of sale or later, as
3513     demonstrated by:
3514          (A) the books and records the seller keeps at the time of the transaction in the regular
3515     course of business, including books and records the seller keeps at the time of the transaction in
3516     the regular course of business for nontax purposes;
3517          (B) a preponderance of the facts and circumstances at the time of the transaction; and
3518          (C) the understanding of all of the parties to the transaction.
3519          (94) (a) "Private communications service" means a telecommunications service:
3520          (i) that entitles a customer to exclusive or priority use of one or more communications
3521     channels between or among termination points; and
3522          (ii) regardless of the manner in which the one or more communications channels are
3523     connected.
3524          (b) "Private communications service" includes the following provided in connection
3525     with the use of one or more communications channels:
3526          (i) an extension line;
3527          (ii) a station;
3528          (iii) switching capacity; or
3529          (iv) another associated service that is provided in connection with the use of one or
3530     more communications channels as defined in Section 59-12-215.

3531          (95) (a) Except as provided in Subsection (95)(b), "product transferred electronically"
3532     means a product transferred electronically that would be subject to a tax under this chapter if
3533     that product was transferred in a manner other than electronically.
3534          (b) "Product transferred electronically" does not include:
3535          (i) an ancillary service;
3536          (ii) computer software; or
3537          (iii) a telecommunications service.
3538          (96) (a) "Prosthetic device" means a device that is worn on or in the body to:
3539          (i) artificially replace a missing portion of the body;
3540          (ii) prevent or correct a physical deformity or physical malfunction; or
3541          (iii) support a weak or deformed portion of the body.
3542          (b) "Prosthetic device" includes:
3543          (i) parts used in the repairs or renovation of a prosthetic device;
3544          (ii) replacement parts for a prosthetic device;
3545          (iii) a dental prosthesis; or
3546          (iv) a hearing aid.
3547          (c) "Prosthetic device" does not include:
3548          (i) corrective eyeglasses; or
3549          (ii) contact lenses.
3550          (97) (a) "Protective equipment" means an item:
3551          (i) for human wear; and
3552          (ii) that is:
3553          (A) designed as protection:
3554          (I) to the wearer against injury or disease; or
3555          (II) against damage or injury of other persons or property; and
3556          (B) not suitable for general use.
3557          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3558     commission shall make rules:
3559          (i) listing the items that constitute "protective equipment"; and
3560          (ii) that are consistent with the list of items that constitute "protective equipment"
3561     under the agreement.

3562          (98) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
3563     printed matter, other than a photocopy:
3564          (i) regardless of:
3565          (A) characteristics;
3566          (B) copyright;
3567          (C) form;
3568          (D) format;
3569          (E) method of reproduction; or
3570          (F) source; and
3571          (ii) made available in printed or electronic format.
3572          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3573     commission may by rule define the term "photocopy."
3574          (99) (a) "Purchase price" and "sales price" mean the total amount of consideration:
3575          (i) valued in money; and
3576          (ii) for which tangible personal property, a product transferred electronically, or
3577     services are:
3578          (A) sold;
3579          (B) leased; or
3580          (C) rented.
3581          (b) "Purchase price" and "sales price" include:
3582          (i) the seller's cost of the tangible personal property, a product transferred
3583     electronically, or services sold;
3584          (ii) expenses of the seller, including:
3585          (A) the cost of materials used;
3586          (B) a labor cost;
3587          (C) a service cost;
3588          (D) interest;
3589          (E) a loss;
3590          (F) the cost of transportation to the seller; or
3591          (G) a tax imposed on the seller;
3592          (iii) a charge by the seller for any service necessary to complete the sale; or

3593          (iv) consideration a seller receives from a person other than the purchaser if:
3594          (A) (I) the seller actually receives consideration from a person other than the purchaser;
3595     and
3596          (II) the consideration described in Subsection (99)(b)(iv)(A)(I) is directly related to a
3597     price reduction or discount on the sale;
3598          (B) the seller has an obligation to pass the price reduction or discount through to the
3599     purchaser;
3600          (C) the amount of the consideration attributable to the sale is fixed and determinable by
3601     the seller at the time of the sale to the purchaser; and
3602          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
3603     seller to claim a price reduction or discount; and
3604          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
3605     coupon, or other documentation with the understanding that the person other than the seller
3606     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
3607          (II) the purchaser identifies that purchaser to the seller as a member of a group or
3608     organization allowed a price reduction or discount, except that a preferred customer card that is
3609     available to any patron of a seller does not constitute membership in a group or organization
3610     allowed a price reduction or discount; or
3611          (III) the price reduction or discount is identified as a third party price reduction or
3612     discount on the:
3613          (Aa) invoice the purchaser receives; or
3614          (Bb) certificate, coupon, or other documentation the purchaser presents.
3615          (c) "Purchase price" and "sales price" do not include:
3616          (i) a discount:
3617          (A) in a form including:
3618          (I) cash;
3619          (II) term; or
3620          (III) coupon;
3621          (B) that is allowed by a seller;
3622          (C) taken by a purchaser on a sale; and
3623          (D) that is not reimbursed by a third party; or

3624          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
3625     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
3626     sale or later, as demonstrated by the books and records the seller keeps at the time of the
3627     transaction in the regular course of business, including books and records the seller keeps at the
3628     time of the transaction in the regular course of business for nontax purposes, by a
3629     preponderance of the facts and circumstances at the time of the transaction, and by the
3630     understanding of all of the parties to the transaction:
3631          (A) the following from credit extended on the sale of tangible personal property or
3632     services:
3633          (I) a carrying charge;
3634          (II) a financing charge; or
3635          (III) an interest charge;
3636          (B) a delivery charge;
3637          (C) an installation charge;
3638          (D) a manufacturer rebate on a motor vehicle; or
3639          (E) a tax or fee legally imposed directly on the consumer.
3640          (100) "Purchaser" means a person to whom:
3641          (a) a sale of tangible personal property is made;
3642          (b) a product is transferred electronically; or
3643          (c) a service is furnished.
3644          (101) "Qualifying enterprise data center" means an establishment that will:
3645          (a) own and operate a data center facility that will house a group of networked server
3646     computers in one physical location in order to centralize the dissemination, management, and
3647     storage of data and information;
3648          (b) be located in the state;
3649          (c) be a new operation constructed on or after July 1, 2016;
3650          (d) consist of one or more buildings that total 150,000 or more square feet;
3651          (e) be owned or leased by:
3652          (i) the establishment; or
3653          (ii) a person under common ownership, as defined in Section 59-7-101, of the
3654     establishment; and

3655          (f) be located on one or more parcels of land that are owned or leased by:
3656          (i) the establishment; or
3657          (ii) a person under common ownership, as defined in Section 59-7-101, of the
3658     establishment.
3659          (102) "Regularly rented" means:
3660          (a) rented to a guest for value three or more times during a calendar year; or
3661          (b) advertised or held out to the public as a place that is regularly rented to guests for
3662     value.
3663          (103) "Rental" is as defined in Subsection (59).
3664          (104) (a) Except as provided in Subsection (104)(b), "repairs or renovations of tangible
3665     personal property" means:
3666          (i) a repair or renovation of tangible personal property that is not permanently attached
3667     to real property; or
3668          (ii) attaching tangible personal property or a product transferred electronically to other
3669     tangible personal property or detaching tangible personal property or a product transferred
3670     electronically from other tangible personal property if:
3671          (A) the other tangible personal property to which the tangible personal property or
3672     product transferred electronically is attached or from which the tangible personal property or
3673     product transferred electronically is detached is not permanently attached to real property; and
3674          (B) the attachment of tangible personal property or a product transferred electronically
3675     to other tangible personal property or detachment of tangible personal property or a product
3676     transferred electronically from other tangible personal property is made in conjunction with a
3677     repair or replacement of tangible personal property or a product transferred electronically.
3678          (b) "Repairs or renovations of tangible personal property" does not include:
3679          (i) attaching prewritten computer software to other tangible personal property if the
3680     other tangible personal property to which the prewritten computer software is attached is not
3681     permanently attached to real property; or
3682          (ii) detaching prewritten computer software from other tangible personal property if the
3683     other tangible personal property from which the prewritten computer software is detached is
3684     not permanently attached to real property.
3685          (105) "Research and development" means the process of inquiry or experimentation

3686     aimed at the discovery of facts, devices, technologies, or applications and the process of
3687     preparing those devices, technologies, or applications for marketing.
3688          (106) (a) "Residential telecommunications services" means a telecommunications
3689     service or an ancillary service that is provided to an individual for personal use:
3690          (i) at a residential address; or
3691          (ii) at an institution, including a nursing home or a school, if the telecommunications
3692     service or ancillary service is provided to and paid for by the individual residing at the
3693     institution rather than the institution.
3694          (b) For purposes of Subsection (106)(a)(i), a residential address includes an:
3695          (i) apartment; or
3696          (ii) other individual dwelling unit.
3697          (107) "Residential use" means the use in or around a home, apartment building,
3698     sleeping quarters, and similar facilities or accommodations.
3699          (108) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
3700     than:
3701          (a) resale;
3702          (b) sublease; or
3703          (c) subrent.
3704          (109) (a) "Retailer" means any person engaged in a regularly organized business in
3705     tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
3706     who is selling to the user or consumer and not for resale.
3707          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
3708     engaged in the business of selling to users or consumers within the state.
3709          (110) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
3710     otherwise, in any manner, of tangible personal property or any other taxable transaction under
3711     Subsection 59-12-103(1), for consideration.
3712          (b) "Sale" includes:
3713          (i) installment and credit sales;
3714          (ii) any closed transaction constituting a sale;
3715          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
3716     chapter;

3717          (iv) any transaction if the possession of property is transferred but the seller retains the
3718     title as security for the payment of the price; and
3719          (v) any transaction under which right to possession, operation, or use of any article of
3720     tangible personal property is granted under a lease or contract and the transfer of possession
3721     would be taxable if an outright sale were made.
3722          (111) "Sale at retail" is as defined in Subsection (108).
3723          (112) "Sale-leaseback transaction" means a transaction by which title to tangible
3724     personal property or a product transferred electronically that is subject to a tax under this
3725     chapter is transferred:
3726          (a) by a purchaser-lessee;
3727          (b) to a lessor;
3728          (c) for consideration; and
3729          (d) if:
3730          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
3731     of the tangible personal property or product transferred electronically;
3732          (ii) the sale of the tangible personal property or product transferred electronically to the
3733     lessor is intended as a form of financing:
3734          (A) for the tangible personal property or product transferred electronically; and
3735          (B) to the purchaser-lessee; and
3736          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
3737     is required to:
3738          (A) capitalize the tangible personal property or product transferred electronically for
3739     financial reporting purposes; and
3740          (B) account for the lease payments as payments made under a financing arrangement.
3741          (113) "Sales price" is as defined in Subsection (99).
3742          (114) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
3743     amounts charged by a school:
3744          (i) sales that are directly related to the school's educational functions or activities
3745     including:
3746          (A) the sale of:
3747          (I) textbooks;

3748          (II) textbook fees;
3749          (III) laboratory fees;
3750          (IV) laboratory supplies; or
3751          (V) safety equipment;
3752          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
3753     that:
3754          (I) a student is specifically required to wear as a condition of participation in a
3755     school-related event or school-related activity; and
3756          (II) is not readily adaptable to general or continued usage to the extent that it takes the
3757     place of ordinary clothing;
3758          (C) sales of the following if the net or gross revenues generated by the sales are
3759     deposited into a school district fund or school fund dedicated to school meals:
3760          (I) food and food ingredients; or
3761          (II) prepared food; or
3762          (D) transportation charges for official school activities; or
3763          (ii) amounts paid to or amounts charged by a school for admission to a school-related
3764     event or school-related activity.
3765          (b) "Sales relating to schools" does not include:
3766          (i) bookstore sales of items that are not educational materials or supplies;
3767          (ii) except as provided in Subsection (114)(a)(i)(B):
3768          (A) clothing;
3769          (B) clothing accessories or equipment;
3770          (C) protective equipment; or
3771          (D) sports or recreational equipment; or
3772          (iii) amounts paid to or amounts charged by a school for admission to a school-related
3773     event or school-related activity if the amounts paid or charged are passed through to a person:
3774          (A) other than a:
3775          (I) school;
3776          (II) nonprofit organization authorized by a school board or a governing body of a
3777     private school to organize and direct a competitive secondary school activity; or
3778          (III) nonprofit association authorized by a school board or a governing body of a

3779     private school to organize and direct a competitive secondary school activity; and
3780          (B) that is required to collect sales and use taxes under this chapter.
3781          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3782     commission may make rules defining the term "passed through."
3783          (115) For purposes of this section and Section 59-12-104, "school":
3784          (a) means:
3785          (i) an elementary school or a secondary school that:
3786          (A) is a:
3787          (I) public school; or
3788          (II) private school; and
3789          (B) provides instruction for one or more grades kindergarten through 12; or
3790          (ii) a public school district; and
3791          (b) includes the Electronic High School as defined in Section 53A-15-1002.
3792          (116) "Seller" means a person that makes a sale, lease, or rental of:
3793          (a) tangible personal property;
3794          (b) a product transferred electronically; or
3795          (c) a service.
3796          (117) (a) "Semiconductor fabricating, processing, research, or development materials"
3797     means tangible personal property or a product transferred electronically if the tangible personal
3798     property or product transferred electronically is:
3799          (i) used primarily in the process of:
3800          (A) (I) manufacturing a semiconductor;
3801          (II) fabricating a semiconductor; or
3802          (III) research or development of a:
3803          (Aa) semiconductor; or
3804          (Bb) semiconductor manufacturing process; or
3805          (B) maintaining an environment suitable for a semiconductor; or
3806          (ii) consumed primarily in the process of:
3807          (A) (I) manufacturing a semiconductor;
3808          (II) fabricating a semiconductor; or
3809          (III) research or development of a:

3810          (Aa) semiconductor; or
3811          (Bb) semiconductor manufacturing process; or
3812          (B) maintaining an environment suitable for a semiconductor.
3813          (b) "Semiconductor fabricating, processing, research, or development materials"
3814     includes:
3815          (i) parts used in the repairs or renovations of tangible personal property or a product
3816     transferred electronically described in Subsection (117)(a); or
3817          (ii) a chemical, catalyst, or other material used to:
3818          (A) produce or induce in a semiconductor a:
3819          (I) chemical change; or
3820          (II) physical change;
3821          (B) remove impurities from a semiconductor; or
3822          (C) improve the marketable condition of a semiconductor.
3823          (118) "Senior citizen center" means a facility having the primary purpose of providing
3824     services to the aged as defined in Section 62A-3-101.
3825          (119) (a) Subject to Subsections (119)(b) and (c), "short-term lodging consumable"
3826     means tangible personal property that:
3827          (i) a business that provides accommodations and services described in Subsection
3828     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
3829     to a purchaser;
3830          (ii) is intended to be consumed by the purchaser; and
3831          (iii) is:
3832          (A) included in the purchase price of the accommodations and services; and
3833          (B) not separately stated on an invoice, bill of sale, or other similar document provided
3834     to the purchaser.
3835          (b) "Short-term lodging consumable" includes:
3836          (i) a beverage;
3837          (ii) a brush or comb;
3838          (iii) a cosmetic;
3839          (iv) a hair care product;
3840          (v) lotion;

3841          (vi) a magazine;
3842          (vii) makeup;
3843          (viii) a meal;
3844          (ix) mouthwash;
3845          (x) nail polish remover;
3846          (xi) a newspaper;
3847          (xii) a notepad;
3848          (xiii) a pen;
3849          (xiv) a pencil;
3850          (xv) a razor;
3851          (xvi) saline solution;
3852          (xvii) a sewing kit;
3853          (xviii) shaving cream;
3854          (xix) a shoe shine kit;
3855          (xx) a shower cap;
3856          (xxi) a snack item;
3857          (xxii) soap;
3858          (xxiii) toilet paper;
3859          (xxiv) a toothbrush;
3860          (xxv) toothpaste; or
3861          (xxvi) an item similar to Subsections (119)(b)(i) through (xxv) as the commission may
3862     provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3863     Rulemaking Act.
3864          (c) "Short-term lodging consumable" does not include:
3865          (i) tangible personal property that is cleaned or washed to allow the tangible personal
3866     property to be reused; or
3867          (ii) a product transferred electronically.
3868          (120) "Simplified electronic return" means the electronic return:
3869          (a) described in Section 318(C) of the agreement; and
3870          (b) approved by the governing board of the agreement.
3871          (121) "Solar energy" means the sun used as the sole source of energy for producing

3872     electricity.
3873          (122) (a) "Sports or recreational equipment" means an item:
3874          (i) designed for human use; and
3875          (ii) that is:
3876          (A) worn in conjunction with:
3877          (I) an athletic activity; or
3878          (II) a recreational activity; and
3879          (B) not suitable for general use.
3880          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3881     commission shall make rules:
3882          (i) listing the items that constitute "sports or recreational equipment"; and
3883          (ii) that are consistent with the list of items that constitute "sports or recreational
3884     equipment" under the agreement.
3885          (123) "State" means the state of Utah, its departments, and agencies.
3886          (124) "Storage" means any keeping or retention of tangible personal property or any
3887     other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
3888     sale in the regular course of business.
3889          (125) (a) Except as provided in Subsection (125)(d) or (e), "tangible personal property"
3890     means personal property that:
3891          (i) may be:
3892          (A) seen;
3893          (B) weighed;
3894          (C) measured;
3895          (D) felt; or
3896          (E) touched; or
3897          (ii) is in any manner perceptible to the senses.
3898          (b) "Tangible personal property" includes:
3899          (i) electricity;
3900          (ii) water;
3901          (iii) gas;
3902          (iv) steam; or

3903          (v) prewritten computer software, regardless of the manner in which the prewritten
3904     computer software is transferred.
3905          (c) "Tangible personal property" includes the following regardless of whether the item
3906     is attached to real property:
3907          (i) a dishwasher;
3908          (ii) a dryer;
3909          (iii) a freezer;
3910          (iv) a microwave;
3911          (v) a refrigerator;
3912          (vi) a stove;
3913          (vii) a washer; or
3914          (viii) an item similar to Subsections (125)(c)(i) through (vii) as determined by the
3915     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3916     Rulemaking Act.
3917          (d) "Tangible personal property" does not include a product that is transferred
3918     electronically.
3919          (e) "Tangible personal property" does not include the following if attached to real
3920     property, regardless of whether the attachment to real property is only through a line that
3921     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
3922     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
3923     Rulemaking Act:
3924          (i) a hot water heater;
3925          (ii) a water filtration system; or
3926          (iii) a water softener system.
3927          (126) (a) "Telecommunications enabling or facilitating equipment, machinery, or
3928     software" means an item listed in Subsection (126)(b) if that item is purchased or leased
3929     primarily to enable or facilitate one or more of the following to function:
3930          (i) telecommunications switching or routing equipment, machinery, or software; or
3931          (ii) telecommunications transmission equipment, machinery, or software.
3932          (b) The following apply to Subsection (126)(a):
3933          (i) a pole;

3934          (ii) software;
3935          (iii) a supplementary power supply;
3936          (iv) temperature or environmental equipment or machinery;
3937          (v) test equipment;
3938          (vi) a tower; or
3939          (vii) equipment, machinery, or software that functions similarly to an item listed in
3940     Subsections (126)(b)(i) through (vi) as determined by the commission by rule made in
3941     accordance with Subsection (126)(c).
3942          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
3943     commission may by rule define what constitutes equipment, machinery, or software that
3944     functions similarly to an item listed in Subsections (126)(b)(i) through (vi).
3945          (127) "Telecommunications equipment, machinery, or software required for 911
3946     service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
3947     Sec. 20.18.
3948          (128) "Telecommunications maintenance or repair equipment, machinery, or software"
3949     means equipment, machinery, or software purchased or leased primarily to maintain or repair
3950     one or more of the following, regardless of whether the equipment, machinery, or software is
3951     purchased or leased as a spare part or as an upgrade or modification to one or more of the
3952     following:
3953          (a) telecommunications enabling or facilitating equipment, machinery, or software;
3954          (b) telecommunications switching or routing equipment, machinery, or software; or
3955          (c) telecommunications transmission equipment, machinery, or software.
3956          (129) (a) "Telecommunications service" means the electronic conveyance, routing, or
3957     transmission of audio, data, video, voice, or any other information or signal to a point, or
3958     among or between points.
3959          (b) "Telecommunications service" includes:
3960          (i) an electronic conveyance, routing, or transmission with respect to which a computer
3961     processing application is used to act:
3962          (A) on the code, form, or protocol of the content;
3963          (B) for the purpose of electronic conveyance, routing, or transmission; and
3964          (C) regardless of whether the service:

3965          (I) is referred to as voice over Internet protocol service; or
3966          (II) is classified by the Federal Communications Commission as enhanced or value
3967     added;
3968          (ii) an 800 service;
3969          (iii) a 900 service;
3970          (iv) a fixed wireless service;
3971          (v) a mobile wireless service;
3972          (vi) a postpaid calling service;
3973          (vii) a prepaid calling service;
3974          (viii) a prepaid wireless calling service; or
3975          (ix) a private communications service.
3976          (c) "Telecommunications service" does not include:
3977          (i) advertising, including directory advertising;
3978          (ii) an ancillary service;
3979          (iii) a billing and collection service provided to a third party;
3980          (iv) a data processing and information service if:
3981          (A) the data processing and information service allows data to be:
3982          (I) (Aa) acquired;
3983          (Bb) generated;
3984          (Cc) processed;
3985          (Dd) retrieved; or
3986          (Ee) stored; and
3987          (II) delivered by an electronic transmission to a purchaser; and
3988          (B) the purchaser's primary purpose for the underlying transaction is the processed data
3989     or information;
3990          (v) installation or maintenance of the following on a customer's premises:
3991          (A) equipment; or
3992          (B) wiring;
3993          (vi) Internet access service;
3994          (vii) a paging service;
3995          (viii) a product transferred electronically, including:

3996          (A) music;
3997          (B) reading material;
3998          (C) a ring tone;
3999          (D) software; or
4000          (E) video;
4001          (ix) a radio and television audio and video programming service:
4002          (A) regardless of the medium; and
4003          (B) including:
4004          (I) furnishing conveyance, routing, or transmission of a television audio and video
4005     programming service by a programming service provider;
4006          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
4007          (III) audio and video programming services delivered by a commercial mobile radio
4008     service provider as defined in 47 C.F.R. Sec. 20.3;
4009          (x) a value-added nonvoice data service; or
4010          (xi) tangible personal property.
4011          (130) (a) "Telecommunications service provider" means a person that:
4012          (i) owns, controls, operates, or manages a telecommunications service; and
4013          (ii) engages in an activity described in Subsection (130)(a)(i) for the shared use with or
4014     resale to any person of the telecommunications service.
4015          (b) A person described in Subsection (130)(a) is a telecommunications service provider
4016     whether or not the Public Service Commission of Utah regulates:
4017          (i) that person; or
4018          (ii) the telecommunications service that the person owns, controls, operates, or
4019     manages.
4020          (131) (a) "Telecommunications switching or routing equipment, machinery, or
4021     software" means an item listed in Subsection (131)(b) if that item is purchased or leased
4022     primarily for switching or routing:
4023          (i) an ancillary service;
4024          (ii) data communications;
4025          (iii) voice communications; or
4026          (iv) telecommunications service.

4027          (b) The following apply to Subsection (131)(a):
4028          (i) a bridge;
4029          (ii) a computer;
4030          (iii) a cross connect;
4031          (iv) a modem;
4032          (v) a multiplexer;
4033          (vi) plug in circuitry;
4034          (vii) a router;
4035          (viii) software;
4036          (ix) a switch; or
4037          (x) equipment, machinery, or software that functions similarly to an item listed in
4038     Subsections (131)(b)(i) through (ix) as determined by the commission by rule made in
4039     accordance with Subsection (131)(c).
4040          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4041     commission may by rule define what constitutes equipment, machinery, or software that
4042     functions similarly to an item listed in Subsections (131)(b)(i) through (ix).
4043          (132) (a) "Telecommunications transmission equipment, machinery, or software"
4044     means an item listed in Subsection (132)(b) if that item is purchased or leased primarily for
4045     sending, receiving, or transporting:
4046          (i) an ancillary service;
4047          (ii) data communications;
4048          (iii) voice communications; or
4049          (iv) telecommunications service.
4050          (b) The following apply to Subsection (132)(a):
4051          (i) an amplifier;
4052          (ii) a cable;
4053          (iii) a closure;
4054          (iv) a conduit;
4055          (v) a controller;
4056          (vi) a duplexer;
4057          (vii) a filter;

4058          (viii) an input device;
4059          (ix) an input/output device;
4060          (x) an insulator;
4061          (xi) microwave machinery or equipment;
4062          (xii) an oscillator;
4063          (xiii) an output device;
4064          (xiv) a pedestal;
4065          (xv) a power converter;
4066          (xvi) a power supply;
4067          (xvii) a radio channel;
4068          (xviii) a radio receiver;
4069          (xix) a radio transmitter;
4070          (xx) a repeater;
4071          (xxi) software;
4072          (xxii) a terminal;
4073          (xxiii) a timing unit;
4074          (xxiv) a transformer;
4075          (xxv) a wire; or
4076          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
4077     Subsections (132)(b)(i) through (xxv) as determined by the commission by rule made in
4078     accordance with Subsection (132)(c).
4079          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
4080     commission may by rule define what constitutes equipment, machinery, or software that
4081     functions similarly to an item listed in Subsections (132)(b)(i) through (xxv).
4082          (133) (a) "Textbook for a higher education course" means a textbook or other printed
4083     material that is required for a course:
4084          (i) offered by an institution of higher education; and
4085          (ii) that the purchaser of the textbook or other printed material attends or will attend.
4086          (b) "Textbook for a higher education course" includes a textbook in electronic format.
4087          (134) "Tobacco" means:
4088          (a) a cigarette;

4089          (b) a cigar;
4090          (c) chewing tobacco;
4091          (d) pipe tobacco; or
4092          (e) any other item that contains tobacco.
4093          (135) "Unassisted amusement device" means an amusement device, skill device, or
4094     ride device that is started and stopped by the purchaser or renter of the right to use or operate
4095     the amusement device, skill device, or ride device.
4096          (136) (a) "Use" means the exercise of any right or power over tangible personal
4097     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
4098     incident to the ownership or the leasing of that tangible personal property, product transferred
4099     electronically, or service.
4100          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
4101     property, a product transferred electronically, or a service in the regular course of business and
4102     held for resale.
4103          (137) "Value-added nonvoice data service" means a service:
4104          (a) that otherwise meets the definition of a telecommunications service except that a
4105     computer processing application is used to act primarily for a purpose other than conveyance,
4106     routing, or transmission; and
4107          (b) with respect to which a computer processing application is used to act on data or
4108     information:
4109          (i) code;
4110          (ii) content;
4111          (iii) form; or
4112          (iv) protocol.
4113          (138) (a) Subject to Subsection (138)(b), "vehicle" means the following that are
4114     required to be titled, registered, or titled and registered:
4115          (i) an aircraft as defined in Section 72-10-102;
4116          (ii) a vehicle as defined in Section 41-1a-102;
4117          (iii) an off-highway vehicle as defined in Section 41-22-2; or
4118          (iv) a vessel as defined in Section 41-1a-102.
4119          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:

4120          (i) a vehicle described in Subsection (138)(a); or
4121          (ii) (A) a locomotive;
4122          (B) a freight car;
4123          (C) railroad work equipment; or
4124          (D) other railroad rolling stock.
4125          (139) "Vehicle dealer" means a person engaged in the business of buying, selling, or
4126     exchanging a vehicle as defined in Subsection (138).
4127          (140) (a) "Vertical service" means an ancillary service that:
4128          (i) is offered in connection with one or more telecommunications services; and
4129          (ii) offers an advanced calling feature that allows a customer to:
4130          (A) identify a caller; and
4131          (B) manage multiple calls and call connections.
4132          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
4133     conference bridging service.
4134          (141) (a) "Voice mail service" means an ancillary service that enables a customer to
4135     receive, send, or store a recorded message.
4136          (b) "Voice mail service" does not include a vertical service that a customer is required
4137     to have in order to utilize a voice mail service.
4138          (142) (a) Except as provided in Subsection (142)(b), "waste energy facility" means a
4139     facility that generates electricity:
4140          (i) using as the primary source of energy waste materials that would be placed in a
4141     landfill or refuse pit if it were not used to generate electricity, including:
4142          (A) tires;
4143          (B) waste coal;
4144          (C) oil shale; or
4145          (D) municipal solid waste; and
4146          (ii) in amounts greater than actually required for the operation of the facility.
4147          (b) "Waste energy facility" does not include a facility that incinerates:
4148          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
4149          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
4150          (143) "Watercraft" means a vessel as defined in Section 73-18-2.

4151          (144) "Wind energy" means wind used as the sole source of energy to produce
4152     electricity.
4153          (145) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
4154     location by the United States Postal Service.
4155          Section 58. Section 59-12-702 is amended to read:
4156          59-12-702. Definitions.
4157          As used in this part:
4158          (1) "Administrative unit" means a division of a private nonprofit organization or
4159     institution that:
4160          (a) would, if it were a separate entity, be a botanical organization or cultural
4161     organization; and
4162          (b) consistently maintains books and records separate from those of its parent
4163     organization.
4164          (2) "Aquarium" means a park or building where a collection of water animals and
4165     plants is kept for study, conservation, and public exhibition.
4166          (3) "Aviary" means a park or building where a collection of birds is kept for study,
4167     conservation, and public exhibition.
4168          (4) "Botanical organization" means:
4169          (a) a private nonprofit organization or institution having as its primary purpose the
4170     advancement and preservation of plant science through horticultural display, botanical
4171     research, and community education; or
4172          (b) an administrative unit.
4173          (5) "Cultural facility" means the same as that term is defined in Section 59-12-602.
4174          (6) (a) "Cultural organization":
4175          (i) means:
4176          (A) a private nonprofit organization or institution having as its primary purpose the
4177     advancement and preservation of:
4178          (I) natural history;
4179          (II) art;
4180          (III) music;
4181          (IV) theater;

4182          (V) dance; or
4183          (VI) cultural arts, including literature, a motion picture, or storytelling;
4184          (B) an administrative unit; and
4185          (ii) includes, for purposes of Subsections 59-12-704(1)(d) and (6) only:
4186          (A) a private nonprofit organization or institution having as its primary purpose the
4187     advancement and preservation of history; or
4188          (B) a municipal or county cultural council having as its primary purpose the
4189     advancement and preservation of:
4190          (I) history;
4191          (II) natural history;
4192          (III) art;
4193          (IV) music;
4194          (V) theater; or
4195          (VI) dance.
4196          (b) "Cultural organization" does not include:
4197          (i) an agency of the state;
4198          (ii) except as provided in Subsection (6)(a)(ii)(B), a political subdivision of the state;
4199          (iii) an educational institution whose annual revenues are directly derived more than
4200     50% from state funds; or
4201          (iv) in a county of the first or second class, a radio or television broadcasting network
4202     or station, cable communications system, newspaper, or magazine.
4203          (7) "Institution" means an institution of higher education listed in [Subsections]
4204     Subsection 53B-1-102(1)[(b) through (k)](a).
4205          (8) "Recreational facility" means a publicly owned or operated park, campground,
4206     marina, dock, golf course, playground, athletic field, gymnasium, swimming pool, trail system,
4207     or other facility used for recreational purposes.
4208          (9) "Rural radio station" means a nonprofit radio station based in a county of the third,
4209     fourth, fifth, or sixth class.
4210          (10) In a county of the first class, "zoological facility" means a public, public-private
4211     partnership, or private nonprofit building, exhibit, utility and infrastructure, walkway, pathway,
4212     roadway, office, administration facility, public service facility, educational facility, enclosure,

4213     public viewing area, animal barrier, animal housing, animal care facility, and veterinary and
4214     hospital facility related to the advancement, exhibition, or preservation of a mammal, bird,
4215     reptile, fish, or an amphibian.
4216          (11) (a) (i) Except as provided in Subsection (11)(a)(ii), "zoological organization"
4217     means a public, public-private partnership, or private nonprofit organization having as its
4218     primary purpose the advancement and preservation of zoology.
4219          (ii) In a county of the first class, "zoological organization" means a nonprofit
4220     organization having as its primary purpose the advancement and exhibition of a mammal, bird,
4221     reptile, fish, or an amphibian to an audience of 75,000 or more persons annually.
4222          (b) "Zoological organization" does not include an agency of the state, educational
4223     institution, radio or television broadcasting network or station, cable communications system,
4224     newspaper, or magazine.
4225          (12) "Zoological park" means a park or garden where a collection of wild animals is
4226     kept for study, conservation, and public exhibition.
4227          Section 59. Section 63A-2-402 is amended to read:
4228          63A-2-402. State surplus property program -- Participation by institutions of
4229     higher education.
4230          [The] (1) Except as provided in Subsection (2), the State Board of Regents shall:
4231          [(1)] (a) implement a policy requiring each institution of higher education to submit to
4232     the division a listing of surplus property available for sale outside the institution, at least 15
4233     days prior to the intended sale date;
4234          [(2)] (b) supervise and assist compliance by the institutions of higher education with
4235     the requirement of this part; and
4236          [(3)] (c) encourage institutions of higher education to acquire federal surplus property
4237     from the division to reduce expenditures.
4238          (2) The Utah System of Technical Colleges Board of Trustees shall conduct the
4239     activities described in Subsection (1) for a technical college described in Section 53B-2a-105.
4240          Section 60. Section 63A-9-101 is amended to read:
4241          63A-9-101. Definitions.
4242          (1) (a) "Agency" means each department, commission, board, council, agency,
4243     institution, officer, corporation, fund, division, office, committee, authority, laboratory, library,

4244     unit, bureau, panel, or other administrative unit of the state.
4245          (b) "Agency" includes the State Board of Education[, an applied technology college
4246     within the Utah College of Applied Technology, the board of regents, the institutional councils
4247     of each higher education institution,] and each higher education institution described in Section
4248     53B-1-102.
4249          (c) "Agency" includes the legislative and judicial branches.
4250          (2) "Committee" means the Motor Vehicle Review Committee created by this chapter.
4251          (3) "Director" means the director of the division.
4252          (4) "Division" means the Division of Fleet Operations created by this chapter.
4253          (5) "Executive director" means the executive director of the Department of
4254     Administrative Services.
4255          (6) "Local agency" means:
4256          (a) a county;
4257          (b) a municipality;
4258          (c) a school district;
4259          (d) a local district;
4260          (e) a special service district;
4261          (f) an interlocal entity as defined under Section 11-13-103; or
4262          (g) any other political subdivision of the state, including a local commission, board, or
4263     other governmental entity that is vested with the authority to make decisions regarding the
4264     public's business.
4265          (7) (a) "Motor vehicle" means a self-propelled vehicle capable of carrying passengers.
4266          (b) "Motor vehicle" includes vehicles used for construction and other nontransportation
4267     purposes.
4268          (8) "State vehicle" means each motor vehicle owned, operated, or in the possession of
4269     an agency.
4270          Section 61. Section 63F-2-102 is amended to read:
4271          63F-2-102. Data Security Management Council -- Membership -- Duties.
4272          (1) There is created the Data Security Management Council composed of nine
4273     members as follows:
4274          (a) the chief information officer appointed under Section 63F-1-201, or the chief

4275     information officer's designee;
4276          (b) one individual appointed by the governor;
4277          (c) one individual appointed by the speaker of the House of Representatives and the
4278     president of the Senate from the Legislative Information Technology Steering Committee; and
4279          (d) the highest ranking information technology official, or the highest ranking
4280     information technology official's designee, from each of:
4281          (i) the Judicial Council;
4282          (ii) the State Board of Regents;
4283          (iii) the State Board of Education;
4284          (iv) the Utah [College of Applied Technology] System of Technical Colleges Board of
4285     Trustees;
4286          (v) the State Tax Commission; and
4287          (vi) the Office of the Attorney General.
4288          (2) The council shall elect a chair of the council by majority vote.
4289          (3) (a) A majority of the members of the council constitutes a quorum.
4290          (b) Action by a majority of a quorum of the council constitutes an action of the council.
4291          (4) The Department of Technology Services shall provide staff to the council.
4292          (5) The council shall meet monthly, or as often as necessary, to:
4293          (a) review existing state government data security policies;
4294          (b) assess ongoing risks to state government information technology;
4295          (c) create a method to notify state and local government entities of new risks;
4296          (d) coordinate data breach simulation exercises with state and local government
4297     entities; and
4298          (e) develop data security best practice recommendations for state government that
4299     include recommendations regarding:
4300          (i) hiring and training a chief information security officer for each government entity;
4301          (ii) continuous risk monitoring;
4302          (iii) password management;
4303          (iv) using the latest technology to identify and respond to vulnerabilities;
4304          (v) protecting data in new and old systems; and
4305          (vi) best procurement practices.

4306          (6) A member who is not a member of the Legislature may not receive compensation
4307     or benefits for the member's service but may receive per diem and travel expenses as provided
4308     in:
4309          (a) Section 63A-3-106;
4310          (b) Section 63A-3-107; and
4311          (c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
4312          Section 62. Section 63G-2-305 is amended to read:
4313          63G-2-305. Protected records.
4314          The following records are protected if properly classified by a governmental entity:
4315          (1) trade secrets as defined in Section 13-24-2 if the person submitting the trade secret
4316     has provided the governmental entity with the information specified in Section 63G-2-309;
4317          (2) commercial information or nonindividual financial information obtained from a
4318     person if:
4319          (a) disclosure of the information could reasonably be expected to result in unfair
4320     competitive injury to the person submitting the information or would impair the ability of the
4321     governmental entity to obtain necessary information in the future;
4322          (b) the person submitting the information has a greater interest in prohibiting access
4323     than the public in obtaining access; and
4324          (c) the person submitting the information has provided the governmental entity with
4325     the information specified in Section 63G-2-309;
4326          (3) commercial or financial information acquired or prepared by a governmental entity
4327     to the extent that disclosure would lead to financial speculations in currencies, securities, or
4328     commodities that will interfere with a planned transaction by the governmental entity or cause
4329     substantial financial injury to the governmental entity or state economy;
4330          (4) records, the disclosure of which could cause commercial injury to, or confer a
4331     competitive advantage upon a potential or actual competitor of, a commercial project entity as
4332     defined in Subsection 11-13-103(4);
4333          (5) test questions and answers to be used in future license, certification, registration,
4334     employment, or academic examinations;
4335          (6) records, the disclosure of which would impair governmental procurement
4336     proceedings or give an unfair advantage to any person proposing to enter into a contract or

4337     agreement with a governmental entity, except, subject to Subsections (1) and (2), that this
4338     Subsection (6) does not restrict the right of a person to have access to, after the contract or
4339     grant has been awarded and signed by all parties, a bid, proposal, application, or other
4340     information submitted to or by a governmental entity in response to:
4341          (a) an invitation for bids;
4342          (b) a request for proposals;
4343          (c) a request for quotes;
4344          (d) a grant; or
4345          (e) other similar document;
4346          (7) information submitted to or by a governmental entity in response to a request for
4347     information, except, subject to Subsections (1) and (2), that this Subsection (7) does not restrict
4348     the right of a person to have access to the information, after:
4349          (a) a contract directly relating to the subject of the request for information has been
4350     awarded and signed by all parties; or
4351          (b) (i) a final determination is made not to enter into a contract that relates to the
4352     subject of the request for information; and
4353          (ii) at least two years have passed after the day on which the request for information is
4354     issued;
4355          (8) records that would identify real property or the appraisal or estimated value of real
4356     or personal property, including intellectual property, under consideration for public acquisition
4357     before any rights to the property are acquired unless:
4358          (a) public interest in obtaining access to the information is greater than or equal to the
4359     governmental entity's need to acquire the property on the best terms possible;
4360          (b) the information has already been disclosed to persons not employed by or under a
4361     duty of confidentiality to the entity;
4362          (c) in the case of records that would identify property, potential sellers of the described
4363     property have already learned of the governmental entity's plans to acquire the property;
4364          (d) in the case of records that would identify the appraisal or estimated value of
4365     property, the potential sellers have already learned of the governmental entity's estimated value
4366     of the property; or
4367          (e) the property under consideration for public acquisition is a single family residence

4368     and the governmental entity seeking to acquire the property has initiated negotiations to acquire
4369     the property as required under Section 78B-6-505;
4370          (9) records prepared in contemplation of sale, exchange, lease, rental, or other
4371     compensated transaction of real or personal property including intellectual property, which, if
4372     disclosed prior to completion of the transaction, would reveal the appraisal or estimated value
4373     of the subject property, unless:
4374          (a) the public interest in access is greater than or equal to the interests in restricting
4375     access, including the governmental entity's interest in maximizing the financial benefit of the
4376     transaction; or
4377          (b) when prepared by or on behalf of a governmental entity, appraisals or estimates of
4378     the value of the subject property have already been disclosed to persons not employed by or
4379     under a duty of confidentiality to the entity;
4380          (10) records created or maintained for civil, criminal, or administrative enforcement
4381     purposes or audit purposes, or for discipline, licensing, certification, or registration purposes, if
4382     release of the records:
4383          (a) reasonably could be expected to interfere with investigations undertaken for
4384     enforcement, discipline, licensing, certification, or registration purposes;
4385          (b) reasonably could be expected to interfere with audits, disciplinary, or enforcement
4386     proceedings;
4387          (c) would create a danger of depriving a person of a right to a fair trial or impartial
4388     hearing;
4389          (d) reasonably could be expected to disclose the identity of a source who is not
4390     generally known outside of government and, in the case of a record compiled in the course of
4391     an investigation, disclose information furnished by a source not generally known outside of
4392     government if disclosure would compromise the source; or
4393          (e) reasonably could be expected to disclose investigative or audit techniques,
4394     procedures, policies, or orders not generally known outside of government if disclosure would
4395     interfere with enforcement or audit efforts;
4396          (11) records the disclosure of which would jeopardize the life or safety of an
4397     individual;
4398          (12) records the disclosure of which would jeopardize the security of governmental

4399     property, governmental programs, or governmental recordkeeping systems from damage, theft,
4400     or other appropriation or use contrary to law or public policy;
4401          (13) records that, if disclosed, would jeopardize the security or safety of a correctional
4402     facility, or records relating to incarceration, treatment, probation, or parole, that would interfere
4403     with the control and supervision of an offender's incarceration, treatment, probation, or parole;
4404          (14) records that, if disclosed, would reveal recommendations made to the Board of
4405     Pardons and Parole by an employee of or contractor for the Department of Corrections, the
4406     Board of Pardons and Parole, or the Department of Human Services that are based on the
4407     employee's or contractor's supervision, diagnosis, or treatment of any person within the board's
4408     jurisdiction;
4409          (15) records and audit workpapers that identify audit, collection, and operational
4410     procedures and methods used by the State Tax Commission, if disclosure would interfere with
4411     audits or collections;
4412          (16) records of a governmental audit agency relating to an ongoing or planned audit
4413     until the final audit is released;
4414          (17) records that are subject to the attorney client privilege;
4415          (18) records prepared for or by an attorney, consultant, surety, indemnitor, insurer,
4416     employee, or agent of a governmental entity for, or in anticipation of, litigation or a judicial,
4417     quasi-judicial, or administrative proceeding;
4418          (19) (a) (i) personal files of a state legislator, including personal correspondence to or
4419     from a member of the Legislature; and
4420          (ii) notwithstanding Subsection (19)(a)(i), correspondence that gives notice of
4421     legislative action or policy may not be classified as protected under this section; and
4422          (b) (i) an internal communication that is part of the deliberative process in connection
4423     with the preparation of legislation between:
4424          (A) members of a legislative body;
4425          (B) a member of a legislative body and a member of the legislative body's staff; or
4426          (C) members of a legislative body's staff; and
4427          (ii) notwithstanding Subsection (19)(b)(i), a communication that gives notice of
4428     legislative action or policy may not be classified as protected under this section;
4429          (20) (a) records in the custody or control of the Office of Legislative Research and

4430     General Counsel, that, if disclosed, would reveal a particular legislator's contemplated
4431     legislation or contemplated course of action before the legislator has elected to support the
4432     legislation or course of action, or made the legislation or course of action public; and
4433          (b) notwithstanding Subsection (20)(a), the form to request legislation submitted to the
4434     Office of Legislative Research and General Counsel is a public document unless a legislator
4435     asks that the records requesting the legislation be maintained as protected records until such
4436     time as the legislator elects to make the legislation or course of action public;
4437          (21) research requests from legislators to the Office of Legislative Research and
4438     General Counsel or the Office of the Legislative Fiscal Analyst and research findings prepared
4439     in response to these requests;
4440          (22) drafts, unless otherwise classified as public;
4441          (23) records concerning a governmental entity's strategy about:
4442          (a) collective bargaining; or
4443          (b) imminent or pending litigation;
4444          (24) records of investigations of loss occurrences and analyses of loss occurrences that
4445     may be covered by the Risk Management Fund, the Employers' Reinsurance Fund, the
4446     Uninsured Employers' Fund, or similar divisions in other governmental entities;
4447          (25) records, other than personnel evaluations, that contain a personal recommendation
4448     concerning an individual if disclosure would constitute a clearly unwarranted invasion of
4449     personal privacy, or disclosure is not in the public interest;
4450          (26) records that reveal the location of historic, prehistoric, paleontological, or
4451     biological resources that if known would jeopardize the security of those resources or of
4452     valuable historic, scientific, educational, or cultural information;
4453          (27) records of independent state agencies if the disclosure of the records would
4454     conflict with the fiduciary obligations of the agency;
4455          (28) records of an institution within the state system of higher education defined in
4456     Section 53B-1-102 regarding tenure evaluations, appointments, applications for admissions,
4457     retention decisions, and promotions, which could be properly discussed in a meeting closed in
4458     accordance with Title 52, Chapter 4, Open and Public Meetings Act, provided that records of
4459     the final decisions about tenure, appointments, retention, promotions, or those students
4460     admitted, may not be classified as protected under this section;

4461          (29) records of the governor's office, including budget recommendations, legislative
4462     proposals, and policy statements, that if disclosed would reveal the governor's contemplated
4463     policies or contemplated courses of action before the governor has implemented or rejected
4464     those policies or courses of action or made them public;
4465          (30) records of the Office of the Legislative Fiscal Analyst relating to budget analysis,
4466     revenue estimates, and fiscal notes of proposed legislation before issuance of the final
4467     recommendations in these areas;
4468          (31) records provided by the United States or by a government entity outside the state
4469     that are given to the governmental entity with a requirement that they be managed as protected
4470     records if the providing entity certifies that the record would not be subject to public disclosure
4471     if retained by it;
4472          (32) transcripts, minutes, or reports of the closed portion of a meeting of a public body
4473     except as provided in Section 52-4-206;
4474          (33) records that would reveal the contents of settlement negotiations but not including
4475     final settlements or empirical data to the extent that they are not otherwise exempt from
4476     disclosure;
4477          (34) memoranda prepared by staff and used in the decision-making process by an
4478     administrative law judge, a member of the Board of Pardons and Parole, or a member of any
4479     other body charged by law with performing a quasi-judicial function;
4480          (35) records that would reveal negotiations regarding assistance or incentives offered
4481     by or requested from a governmental entity for the purpose of encouraging a person to expand
4482     or locate a business in Utah, but only if disclosure would result in actual economic harm to the
4483     person or place the governmental entity at a competitive disadvantage, but this section may not
4484     be used to restrict access to a record evidencing a final contract;
4485          (36) materials to which access must be limited for purposes of securing or maintaining
4486     the governmental entity's proprietary protection of intellectual property rights including patents,
4487     copyrights, and trade secrets;
4488          (37) the name of a donor or a prospective donor to a governmental entity, including an
4489     institution within the state system of higher education defined in Section 53B-1-102, and other
4490     information concerning the donation that could reasonably be expected to reveal the identity of
4491     the donor, provided that:

4492          (a) the donor requests anonymity in writing;
4493          (b) any terms, conditions, restrictions, or privileges relating to the donation may not be
4494     classified protected by the governmental entity under this Subsection (37); and
4495          (c) except for an institution within the state system of higher education defined in
4496     Section 53B-1-102, the governmental unit to which the donation is made is primarily engaged
4497     in educational, charitable, or artistic endeavors, and has no regulatory or legislative authority
4498     over the donor, a member of the donor's immediate family, or any entity owned or controlled
4499     by the donor or the donor's immediate family;
4500          (38) accident reports, except as provided in Sections 41-6a-404, 41-12a-202, and
4501     73-18-13;
4502          (39) a notification of workers' compensation insurance coverage described in Section
4503     34A-2-205;
4504          (40) (a) the following records of an institution within the state system of higher
4505     education defined in Section 53B-1-102, which have been developed, discovered, disclosed to,
4506     or received by or on behalf of faculty, staff, employees, or students of the institution:
4507          (i) unpublished lecture notes;
4508          (ii) unpublished notes, data, and information:
4509          (A) relating to research; and
4510          (B) of:
4511          (I) the institution within the state system of higher education defined in Section
4512     53B-1-102; or
4513          (II) a sponsor of sponsored research;
4514          (iii) unpublished manuscripts;
4515          (iv) creative works in process;
4516          (v) scholarly correspondence; and
4517          (vi) confidential information contained in research proposals;
4518          (b) Subsection (40)(a) may not be construed to prohibit disclosure of public
4519     information required pursuant to Subsection 53B-16-302(2)(a) or (b); and
4520          (c) Subsection (40)(a) may not be construed to affect the ownership of a record;
4521          (41) (a) records in the custody or control of the Office of Legislative Auditor General
4522     that would reveal the name of a particular legislator who requests a legislative audit prior to the

4523     date that audit is completed and made public; and
4524          (b) notwithstanding Subsection (41)(a), a request for a legislative audit submitted to the
4525     Office of the Legislative Auditor General is a public document unless the legislator asks that
4526     the records in the custody or control of the Office of Legislative Auditor General that would
4527     reveal the name of a particular legislator who requests a legislative audit be maintained as
4528     protected records until the audit is completed and made public;
4529          (42) records that provide detail as to the location of an explosive, including a map or
4530     other document that indicates the location of:
4531          (a) a production facility; or
4532          (b) a magazine;
4533          (43) information:
4534          (a) contained in the statewide database of the Division of Aging and Adult Services
4535     created by Section 62A-3-311.1; or
4536          (b) received or maintained in relation to the Identity Theft Reporting Information
4537     System (IRIS) established under Section 67-5-22;
4538          (44) information contained in the Management Information System and Licensing
4539     Information System described in Title 62A, Chapter 4a, Child and Family Services;
4540          (45) information regarding National Guard operations or activities in support of the
4541     National Guard's federal mission;
4542          (46) records provided by any pawn or secondhand business to a law enforcement
4543     agency or to the central database in compliance with Title 13, Chapter 32a, Pawnshop and
4544     Secondhand Merchandise Transaction Information Act;
4545          (47) information regarding food security, risk, and vulnerability assessments performed
4546     by the Department of Agriculture and Food;
4547          (48) except to the extent that the record is exempt from this chapter pursuant to Section
4548     63G-2-106, records related to an emergency plan or program, a copy of which is provided to or
4549     prepared or maintained by the Division of Emergency Management, and the disclosure of
4550     which would jeopardize:
4551          (a) the safety of the general public; or
4552          (b) the security of:
4553          (i) governmental property;

4554          (ii) governmental programs; or
4555          (iii) the property of a private person who provides the Division of Emergency
4556     Management information;
4557          (49) records of the Department of Agriculture and Food that provides for the
4558     identification, tracing, or control of livestock diseases, including any program established under
4559     Title 4, Chapter 24, Utah Livestock Brand and Anti-Theft Act, or Title 4, Chapter 31, Control
4560     of Animal Disease;
4561          (50) as provided in Section 26-39-501:
4562          (a) information or records held by the Department of Health related to a complaint
4563     regarding a child care program or residential child care which the department is unable to
4564     substantiate; and
4565          (b) information or records related to a complaint received by the Department of Health
4566     from an anonymous complainant regarding a child care program or residential child care;
4567          (51) unless otherwise classified as public under Section 63G-2-301 and except as
4568     provided under Section 41-1a-116, an individual's home address, home telephone number, or
4569     personal mobile phone number, if:
4570          (a) the individual is required to provide the information in order to comply with a law,
4571     ordinance, rule, or order of a government entity; and
4572          (b) the subject of the record has a reasonable expectation that this information will be
4573     kept confidential due to:
4574          (i) the nature of the law, ordinance, rule, or order; and
4575          (ii) the individual complying with the law, ordinance, rule, or order;
4576          (52) the name, home address, work addresses, and telephone numbers of an individual
4577     that is engaged in, or that provides goods or services for, medical or scientific research that is:
4578          (a) conducted within the state system of higher education, as defined in Section
4579     53B-1-102; and
4580          (b) conducted using animals;
4581          (53) an initial proposal under Title 63N, Chapter 13, Part 2, Government Procurement
4582     Private Proposal Program, to the extent not made public by rules made under that chapter;
4583          (54) in accordance with Section 78A-12-203, any record of the Judicial Performance
4584     Evaluation Commission concerning an individual commissioner's vote on whether or not to

4585     recommend that the voters retain a judge;
4586          (55) information collected and a report prepared by the Judicial Performance
4587     Evaluation Commission concerning a judge, unless Section 20A-7-702 or Title 78A, Chapter
4588     12, Judicial Performance Evaluation Commission Act, requires disclosure of, or makes public,
4589     the information or report;
4590          (56) records contained in the Management Information System created in Section
4591     62A-4a-1003;
4592          (57) records provided or received by the Public Lands Policy Coordinating Office in
4593     furtherance of any contract or other agreement made in accordance with Section 63J-4-603;
4594          (58) information requested by and provided to the 911 Division under Section
4595     63H-7a-302;
4596          (59) in accordance with Section 73-10-33:
4597          (a) a management plan for a water conveyance facility in the possession of the Division
4598     of Water Resources or the Board of Water Resources; or
4599          (b) an outline of an emergency response plan in possession of the state or a county or
4600     municipality;
4601          (60) the following records in the custody or control of the Office of Inspector General
4602     of Medicaid Services, created in Section 63A-13-201:
4603          (a) records that would disclose information relating to allegations of personal
4604     misconduct, gross mismanagement, or illegal activity of a person if the information or
4605     allegation cannot be corroborated by the Office of Inspector General of Medicaid Services
4606     through other documents or evidence, and the records relating to the allegation are not relied
4607     upon by the Office of Inspector General of Medicaid Services in preparing a final investigation
4608     report or final audit report;
4609          (b) records and audit workpapers to the extent they would disclose the identity of a
4610     person who, during the course of an investigation or audit, communicated the existence of any
4611     Medicaid fraud, waste, or abuse, or a violation or suspected violation of a law, rule, or
4612     regulation adopted under the laws of this state, a political subdivision of the state, or any
4613     recognized entity of the United States, if the information was disclosed on the condition that
4614     the identity of the person be protected;
4615          (c) before the time that an investigation or audit is completed and the final

4616     investigation or final audit report is released, records or drafts circulated to a person who is not
4617     an employee or head of a governmental entity for the person's response or information;
4618          (d) records that would disclose an outline or part of any investigation, audit survey
4619     plan, or audit program; or
4620          (e) requests for an investigation or audit, if disclosure would risk circumvention of an
4621     investigation or audit;
4622          (61) records that reveal methods used by the Office of Inspector General of Medicaid
4623     Services, the fraud unit, or the Department of Health, to discover Medicaid fraud, waste, or
4624     abuse;
4625          (62) information provided to the Department of Health or the Division of Occupational
4626     and Professional Licensing under Subsection 58-68-304(3) or (4);
4627          (63) a record described in Section 63G-12-210;
4628          (64) captured plate data that is obtained through an automatic license plate reader
4629     system used by a governmental entity as authorized in Section 41-6a-2003; [and]
4630          (65) any record in the custody of the Utah Office for Victims of Crime relating to a
4631     victim, including:
4632          (a) a victim's application or request for benefits;
4633          (b) a victim's receipt or denial of benefits; and
4634          (c) any administrative notes or records made or created for the purpose of, or used to,
4635     evaluate or communicate a victim's eligibility for or denial of benefits from the Crime Victim
4636     Reparations Fund[.]; and
4637          (66) a record pertaining to the search process for a president of an institution of higher
4638     education described in Section 53B-2-102, except for application materials for a publicly
4639     announced finalist.
4640          Section 63. Section 63G-6a-103 is amended to read:
4641          63G-6a-103. Definitions.
4642          As used in this chapter:
4643          (1) "Administrative law judge" means the same as that term is defined in Section
4644     67-19e-102.
4645          (2) "Administrative law judge service" means service provided by an administrative
4646     law judge.

4647          (3) "Applicable rulemaking authority" means:
4648          (a) for a legislative procurement unit, the Legislative Management Committee;
4649          (b) for a judicial procurement unit, the Judicial Council;
4650          (c) (i) only to the extent of the procurement authority expressly granted to the
4651     procurement unit by statute:
4652          (A) for the building board or the Division of Facilities Construction and Management,
4653     created in Section 63A-5-201, the building board;
4654          (B) for the Office of the Attorney General, the attorney general; and
4655          (C) for the Department of Transportation created in Section 72-1-201, the executive
4656     director of the Department of Transportation; and
4657          (ii) for each other executive branch procurement unit, the board;
4658          (d) for a local government procurement unit:
4659          (i) the legislative body of the local government procurement unit; or
4660          (ii) an individual or body designated by the legislative body of the local government
4661     procurement unit;
4662          (e) for a school district or a public school, the board, except to the extent of a school
4663     district's own nonadministrative rules that do not conflict with the provisions of this chapter;
4664          (f) for a state institution of higher education described in:
4665          (i) Subsections 53B-1-102(1)(a) and (c), the State Board of Regents; or
4666          (ii) Subsection 53B-1-102(1)(b), the Utah System of Technical Colleges Board of
4667     Trustees;
4668          (g) for a public transit district, the chief executive of the public transit district;
4669          (h) for a local district other than a public transit district or for a special service district:
4670          (i) before January 1, 2015, the board of trustees of the local district or the governing
4671     body of the special service district; or
4672          (ii) on or after January 1, 2015, the board, except to the extent that the board of trustees
4673     of the local district or the governing body of the special service district makes its own rules:
4674          (A) with respect to a subject addressed by board rules; or
4675          (B) that are in addition to board rules; or
4676          (i) for any other procurement unit, the board.
4677          (4) "Approved vendor" means a vendor who has been approved through the approved

4678     vendor list process.
4679          (5) "Approved vendor list" means a list of approved vendors established under Section
4680     63G-6a-507.
4681          (6) "Approved vendor list process" means the procurement process described in
4682     Section 63G-6a-507.
4683          (7) "Bidder" means a person who submits a bid or price quote in response to an
4684     invitation for bids.
4685          (8) "Bidding process" means the procurement process described in Part 6, Bidding.
4686          (9) "Board" means the Utah State Procurement Policy Board, created in Section
4687     63G-6a-202.
4688          (10) "Building board" means the State Building Board, created in Section 63A-5-101.
4689          (11) "Change directive" means a written order signed by the procurement officer that
4690     directs the contractor to suspend work or make changes, as authorized by contract, without the
4691     consent of the contractor.
4692          (12) "Change order" means a written alteration in specifications, delivery point, rate of
4693     delivery, period of performance, price, quantity, or other provisions of a contract, upon mutual
4694     agreement of the parties to the contract.
4695          (13) "Chief procurement officer" means the chief procurement officer appointed under
4696     Subsection 63G-6a-302(1).
4697          (14) "Conducting procurement unit" means a procurement unit that conducts all
4698     aspects of a procurement:
4699          (a) except:
4700          (i) reviewing a solicitation to verify that it is in proper form; and
4701          (ii) causing the publication of a notice of a solicitation; and
4702          (b) including:
4703          (i) preparing any solicitation document;
4704          (ii) appointing an evaluation committee;
4705          (iii) conducting the evaluation process, except as provided in Subsection
4706     63G-6a-707(6)(b) relating to scores calculated for costs of proposals;
4707          (iv) selecting and recommending the person to be awarded a contract;
4708          (v) negotiating the terms and conditions of a contract, subject to the issuing

4709     procurement unit's approval; and
4710          (vi) contract administration.
4711          (15) "Conservation district" means the same as that term is defined in Section
4712     17D-3-102.
4713          (16) "Construction":
4714          (a) means services, including work, and supplies for a project for the construction,
4715     renovation, alteration, improvement, or repair of a public facility on real property; and
4716          (b) does not include services and supplies for the routine, day-to-day operation, repair,
4717     or maintenance of an existing public facility.
4718          (17) "Construction manager/general contractor":
4719          (a) means a contractor who enters into a contract:
4720          (i) for the management of a construction project; and
4721          (ii) that allows the contractor to subcontract for additional labor and materials that are
4722     not included in the contractor's cost proposal submitted at the time of the procurement of the
4723     contractor's services; and
4724          (b) does not include a contractor whose only subcontract work not included in the
4725     contractor's cost proposal submitted as part of the procurement of the contractor's services is to
4726     meet subcontracted portions of change orders approved within the scope of the project.
4727          (18) "Contract" means an agreement for a procurement.
4728          (19) "Contract administration" means all functions, duties, and responsibilities
4729     associated with managing, overseeing, and carrying out a contract between a procurement unit
4730     and a contractor, including:
4731          (a) implementing the contract;
4732          (b) ensuring compliance with the contract terms and conditions by the conducting
4733     procurement unit and the contractor;
4734          (c) executing change orders;
4735          (d) processing contract amendments;
4736          (e) resolving, to the extent practicable, contract disputes;
4737          (f) curing contract errors and deficiencies;
4738          (g) terminating a contract;
4739          (h) measuring or evaluating completed work and contractor performance;

4740          (i) computing payments under the contract; and
4741          (j) closing out a contract.
4742          (20) "Contractor" means a person who is awarded a contract with a procurement unit.
4743          (21) "Cooperative procurement" means procurement conducted by, or on behalf of:
4744          (a) more than one procurement unit; or
4745          (b) a procurement unit and a cooperative purchasing organization.
4746          (22) "Cooperative purchasing organization" means an organization, association, or
4747     alliance of purchasers established to combine purchasing power in order to obtain the best
4748     value for the purchasers by engaging in procurements in accordance with Section 63G-6a-2105.
4749          (23) "Cost-plus-a-percentage-of-cost contract" means a contract under which the
4750     contractor is paid a percentage of the total actual expenses or costs in addition to the
4751     contractor's actual expenses or costs.
4752          (24) "Cost-reimbursement contract" means a contract under which a contractor is
4753     reimbursed for costs which are allowed and allocated in accordance with the contract terms and
4754     the provisions of this chapter, and a fee, if any.
4755          (25) "Days" means calendar days, unless expressly provided otherwise.
4756          (26) "Definite quantity contract" means a fixed price contract that provides for a
4757     specified amount of supplies over a specified period, with deliveries scheduled according to a
4758     specified schedule.
4759          (27) "Design-build" means the procurement of design professional services and
4760     construction by the use of a single contract.
4761          (28) "Design professional" means:
4762          (a) an individual licensed as an architect under Title 58, Chapter 3a, Architects
4763     Licensing Act; or
4764          (b) an individual licensed as a professional engineer or professional land surveyor
4765     under Title 58, Chapter 22, Professional Engineers and Professional Land Surveyors Licensing
4766     Act.
4767          (29) "Design professional procurement process" means the procurement process
4768     described in Part 15, Design Professional Services.
4769          (30) "Design professional services" means:
4770          (a) professional services within the scope of the practice of architecture as defined in

4771     Section 58-3a-102;
4772          (b) professional engineering as defined in Section 58-22-102; or
4773          (c) master planning and programming services.
4774          (31) "Director" means the director of the division.
4775          (32) "Division" means the Division of Purchasing and General Services, created in
4776     Section 63A-2-101.
4777          (33) "Educational procurement unit" means:
4778          (a) a school district;
4779          (b) a public school, including a local school board [and] or a charter school;
4780          (c) the Utah Schools for the Deaf and Blind;
4781          (d) the Utah Education and Telehealth Network; or
4782          (e) an institution of higher education of the state described in Section 53B-1-102.
4783          (34) "Established catalogue price" means the price included in a catalogue, price list,
4784     schedule, or other form that:
4785          (a) is regularly maintained by a manufacturer or contractor;
4786          (b) is published or otherwise available for inspection by customers; and
4787          (c) states prices at which sales are currently or were last made to a significant number
4788     of any category of buyers or buyers constituting the general buying public for the supplies or
4789     services involved.
4790          (35) "Executive branch procurement unit" means a department, division, office,
4791     bureau, agency, or other organization within the state executive branch.
4792          (36) "Fixed price contract" means a contract that provides a price, for each
4793     procurement item obtained under the contract, that is not subject to adjustment except to the
4794     extent that:
4795          (a) the contract provides, under circumstances specified in the contract, for an
4796     adjustment in price that is not based on cost to the contractor; or
4797          (b) an adjustment is required by law.
4798          (37) "Fixed price contract with price adjustment" means a fixed price contract that
4799     provides for an upward or downward revision of price, precisely described in the contract, that:
4800          (a) is based on the consumer price index or another commercially acceptable index,
4801     source, or formula; and

4802          (b) is not based on a percentage of the cost to the contractor.
4803          (38) "Grant" means an expenditure of public funds or other assistance, or an agreement
4804     to expend public funds or other assistance, for a public purpose authorized by law, without
4805     acquiring a procurement item in exchange.
4806          (39) "Head of a procurement unit" means:
4807          (a) for a legislative procurement unit, any person designated by rule made by the
4808     applicable rulemaking authority;
4809          (b) for an executive branch procurement unit:
4810          (i) the director of the division; or
4811          (ii) any other person designated by the board, by rule;
4812          (c) for a judicial procurement unit:
4813          (i) the Judicial Council; or
4814          (ii) any other person designated by the Judicial Council, by rule;
4815          (d) for a local government procurement unit:
4816          (i) the legislative body of the local government procurement unit; or
4817          (ii) any other person designated by the local government procurement unit;
4818          (e) for a local district other than a public transit district, the board of trustees of the
4819     local district or a designee of the board of trustees;
4820          (f) for a special service district, the governing body of the special service district or a
4821     designee of the governing body;
4822          (g) for a local building authority, the board of directors of the local building authority or
4823     a designee of the board of directors;
4824          (h) for a conservation district, the board of supervisors of the conservation district or a
4825     designee of the board of supervisors;
4826          (i) for a public corporation, the board of directors of the public corporation or a
4827     designee of the board of directors;
4828          (j) for a school district or any school or entity within a school district, the board of the
4829     school district, or the board's designee;
4830          (k) for a charter school, the individual or body with executive authority over the charter
4831     school, or the individual's or body's designee;
4832          (l) for an institution of higher education [of the state] described in Section 53B-2-101,

4833     the president of the institution of higher education, or the president's designee; or
4834          (m) for a public transit district, the board of trustees or a designee of the board of
4835     trustees.
4836          (40) "Immaterial error":
4837          (a) means an irregularity or abnormality that is:
4838          (i) a matter of form that does not affect substance; or
4839          (ii) an inconsequential variation from a requirement of a solicitation that has no, little,
4840     or a trivial effect on the procurement process and that is not prejudicial to other vendors; and
4841          (b) includes:
4842          (i) a missing signature, missing acknowledgment of an addendum, or missing copy of a
4843     professional license, bond, or insurance certificate;
4844          (ii) a typographical error;
4845          (iii) an error resulting from an inaccuracy or omission in the solicitation; and
4846          (iv) any other error that the chief procurement officer or the head of a procurement unit
4847     with independent procurement authority reasonably considers to be immaterial.
4848          (41) "Indefinite quantity contract" means a fixed price contract that:
4849          (a) is for an indefinite amount of procurement items to be supplied as ordered by a
4850     procurement unit; and
4851          (b) (i) does not require a minimum purchase amount; or
4852          (ii) provides a maximum purchase limit.
4853          (42) "Independent procurement authority" means authority granted to a procurement
4854     unit under Subsection 63G-6a-106(4)(a).
4855          (43) "Invitation for bids":
4856          (a) means a document used to solicit:
4857          (i) bids to provide a procurement item to a procurement unit; or
4858          (ii) quotes for a price of a procurement item to be provided to a procurement unit; and
4859          (b) includes all documents attached to or incorporated by reference in a document
4860     described in Subsection (43)(a).
4861          (44) "Issuing procurement unit" means a procurement unit that:
4862          (a) reviews a solicitation to verify that it is in proper form;
4863          (b) causes the notice of a solicitation to be published; and

4864          (c) negotiates and approves the terms and conditions of a contract.
4865          (45) "Judicial procurement unit" means:
4866          (a) the Utah Supreme Court;
4867          (b) the Utah Court of Appeals;
4868          (c) the Judicial Council;
4869          (d) a state judicial district; or
4870          (e) an office, committee, subcommittee, or other organization within the state judicial
4871     branch.
4872          (46) "Labor hour contract" is a contract under which:
4873          (a) the supplies and materials are not provided by, or through, the contractor; and
4874          (b) the contractor is paid a fixed rate that includes the cost of labor, overhead, and
4875     profit for a specified number of labor hours or days.
4876          (47) "Legislative procurement unit" means:
4877          (a) the Legislature;
4878          (b) the Senate;
4879          (c) the House of Representatives;
4880          (d) a staff office of the Legislature, the Senate, or the House of Representatives; or
4881          (e) an office, committee, subcommittee, commission, or other organization within the
4882     state legislative branch.
4883          (48) "Local building authority" means the same as that term is defined in Section
4884     17D-2-102.
4885          (49) "Local district" means the same as that term is defined in Section 17B-1-102.
4886          (50) "Local government procurement unit" means:
4887          (a) a county or municipality, and each office or agency of the county or municipality,
4888     unless the county or municipality adopts its own procurement code by ordinance;
4889          (b) a county or municipality that has adopted this entire chapter by ordinance, and each
4890     office or agency of that county or municipality; or
4891          (c) a county or municipality that has adopted a portion of this chapter by ordinance, to
4892     the extent that a term in the ordinance is used in the adopted portion of this chapter, and each
4893     office or agency of that county or municipality.
4894          (51) "Multiple award contracts" means the award of a contract for an indefinite

4895     quantity of a procurement item to more than one bidder or offeror.
4896          (52) "Multiyear contract" means a contract that extends beyond a one-year period,
4897     including a contract that permits renewal of the contract, without competition, beyond the first
4898     year of the contract.
4899          (53) "Municipality" means a city, town, or metro township.
4900          (54) "Nonadopting local government procurement unit" means:
4901          (a) a county or municipality that has not adopted Part 16, Protests, Part 17,
4902     Procurement Appeals Board, Part 18, Appeals to Court and Court Proceedings, and Part 19,
4903     General Provisions Related to Protest or Appeal; and
4904          (b) each office or agency of a county or municipality described in Subsection (54)(a).
4905          (55) "Offeror" means a person who submits a proposal in response to a request for
4906     proposals.
4907          (56) "Person" means the same as that term is defined in Section 68-3-12.5, excluding a
4908     political subdivision and a government office, department, division, bureau, or other body of
4909     government.
4910          (57) "Preferred bidder" means a bidder that is entitled to receive a reciprocal preference
4911     under the requirements of this chapter.
4912          (58) "Procure" means to acquire a procurement item through a procurement.
4913          (59) "Procurement":
4914          (a) means a procurement unit's acquisition of a procurement item through an
4915     expenditure of public funds, or an agreement to expend public funds;
4916          (b) includes all functions that pertain to the acquisition of a procurement item,
4917     including:
4918          (i) preparing and issuing a solicitation; and
4919          (ii) (A) conducting a standard procurement process; or
4920          (B) conducting a procurement process that is an exception to a standard procurement
4921     process under Part 8, Exceptions to Procurement Requirements; and
4922          (c) does not include a grant.
4923          (60) "Procurement item" means a supply, a service, or construction.
4924          (61) "Procurement officer" means:
4925          (a) for a procurement unit with independent procurement authority:

4926          (i) the head of the procurement unit;
4927          (ii) a designee of the head of the procurement unit; or
4928          (iii) a person designated by rule made by the applicable rulemaking authority; or
4929          (b) for the division or a procurement unit without independent procurement authority,
4930     the chief procurement officer.
4931          (62) "Procurement unit":
4932          (a) means:
4933          (i) a legislative procurement unit;
4934          (ii) an executive branch procurement unit;
4935          (iii) a judicial procurement unit;
4936          (iv) an educational procurement unit;
4937          (v) a local government procurement unit;
4938          (vi) a local district;
4939          (vii) a special service district;
4940          (viii) a local building authority;
4941          (ix) a conservation district;
4942          (x) a public corporation; or
4943          (xi) a public transit district; and
4944          (b) does not include a political subdivision created under Title 11, Chapter 13,
4945     Interlocal Cooperation Act.
4946          (63) "Professional service" means labor, effort, or work that requires an elevated
4947     degree of specialized knowledge and discretion, including labor, effort, or work in the field of:
4948          (a) accounting;
4949          (b) architecture;
4950          (c) construction design and management;
4951          (d) engineering;
4952          (e) financial services;
4953          (f) information technology;
4954          (g) the law;
4955          (h) medicine;
4956          (i) psychiatry; or

4957          (j) underwriting.
4958          (64) "Protest officer" means:
4959          (a) for the division or a procurement unit with independent procurement authority:
4960          (i) the head of the procurement unit;
4961          (ii) a designee of the head of the procurement unit; or
4962          (iii) a person designated by rule made by the applicable rulemaking authority; or
4963          (b) for a procurement unit without independent procurement authority, the chief
4964     procurement officer or the chief procurement officer's designee.
4965          (65) "Public corporation" means the same as that term is defined in Section 63E-1-102.
4966          (66) "Public entity" means any government entity of the state or political subdivision of
4967     the state, including:
4968          (a) a procurement unit;
4969          (b) a municipality or county, regardless of whether the municipality or county has
4970     adopted this chapter or any part of this chapter; and
4971          (c) any other government entity located in the state that expends public funds.
4972          (67) "Public facility" means a building, structure, infrastructure, improvement, or other
4973     facility of a public entity.
4974          (68) "Public funds" means money, regardless of its source, including from the federal
4975     government, that is owned or held by a procurement unit.
4976          (69) "Public transit district" means a public transit district organized under Title 17B,
4977     Chapter 2a, Part 8, Public Transit District Act.
4978          (70) "Qualified vendor" means a vendor who:
4979          (a) is responsible; and
4980          (b) submits a responsive statement of qualifications under Section 63G-6a-410 that
4981     meets the minimum mandatory requirements, evaluation criteria, and any applicable score
4982     thresholds set forth in the request for statement of qualifications.
4983          (71) "Real property" means land and any building, fixture, improvement, appurtenance,
4984     structure, or other development that is permanently affixed to land.
4985          (72) "Request for information" means a nonbinding process through which a
4986     procurement unit requests information relating to a procurement item.
4987          (73) "Request for proposals" means a document used to solicit proposals to provide a

4988     procurement item to a procurement unit, including all other documents that are attached to that
4989     document or incorporated in that document by reference.
4990          (74) "Request for proposals process" means the procurement process described in Part
4991     7, Request for Proposals.
4992          (75) "Request for statement of qualifications" means a document used to solicit
4993     information about the qualifications of a person interested in responding to a potential
4994     procurement, including all other documents attached to that document or incorporated in that
4995     document by reference.
4996          (76) "Requirements contract" means a contract:
4997          (a) under which a contractor agrees to provide a procurement unit's entire requirements
4998     for certain procurement items at prices specified in the contract during the contract period; and
4999          (b) that:
5000          (i) does not require a minimum purchase amount; or
5001          (ii) provides a maximum purchase limit.
5002          (77) "Responsible" means being capable, in all respects, of:
5003          (a) meeting all the requirements of a solicitation; and
5004          (b) fully performing all the requirements of the contract resulting from the solicitation,
5005     including being financially solvent with sufficient financial resources to perform the contract.
5006          (78) "Responsive" means conforming in all material respects to the requirements of a
5007     solicitation.
5008          (79) "Sealed" means manually or electronically secured to prevent disclosure.
5009          (80) "Service":
5010          (a) means labor, effort, or work to produce a result that is beneficial to a procurement
5011     unit;
5012          (b) includes a professional service; and
5013          (c) does not include labor, effort, or work provided under an employment agreement or
5014     a collective bargaining agreement.
5015          (81) "Small purchase process" means the procurement process described in Section
5016     63G-6a-506.
5017          (82) "Sole source contract" means a contract resulting from a sole source procurement.
5018          (83) "Sole source procurement" means a procurement without competition pursuant to

5019     a determination under Subsection 63G-6a-802(1)(a) that there is only one source for the
5020     procurement item.
5021          (84) "Solicitation" means an invitation for bids, request for proposals, request for
5022     statement of qualifications, or request for information.
5023          (85) "Solicitation response" means:
5024          (a) a bid submitted in response to an invitation for bids;
5025          (b) a proposal submitted in response to a request for proposals; or
5026          (c) a statement of qualifications submitted in response to a request for statement of
5027     qualifications.
5028          (86) "Special service district" means the same as that term is defined in Section
5029     17D-1-102.
5030          (87) "Specification" means any description of the physical or functional characteristics
5031     or of the nature of a procurement item included in an invitation for bids or a request for
5032     proposals, or otherwise specified or agreed to by a procurement unit, including a description of:
5033          (a) a requirement for inspecting or testing a procurement item; or
5034          (b) preparing a procurement item for delivery.
5035          (88) "Standard procurement process" means:
5036          (a) the bidding process;
5037          (b) the request for proposals process;
5038          (c) the approved vendor list process;
5039          (d) the small purchase process; or
5040          (e) the design professional procurement process.
5041          (89) "State cooperative contract" means a contract awarded by the division for and in
5042     behalf of all public entities.
5043          (90) "Statement of qualifications" means a written statement submitted to a
5044     procurement unit in response to a request for statement of qualifications.
5045          (91) "Subcontractor":
5046          (a) means a person under contract with a contractor or another subcontractor to provide
5047     services or labor for design or construction;
5048          (b) includes a trade contractor or specialty contractor; and
5049          (c) does not include a supplier who provides only materials, equipment, or supplies to a

5050     contractor or subcontractor.
5051          (92) "Supply" means a good, material, technology, piece of equipment, or any other
5052     item of personal property.
5053          (93) "Tie bid" means that the lowest responsive bids of responsible bidders are
5054     identical in price.
5055          (94) "Time and materials contract" means a contract under which the contractor is paid:
5056          (a) the actual cost of direct labor at specified hourly rates;
5057          (b) the actual cost of materials and equipment usage; and
5058          (c) an additional amount, expressly described in the contract, to cover overhead and
5059     profit, that is not based on a percentage of the cost to the contractor.
5060          (95) "Transitional costs":
5061          (a) means the costs of changing:
5062          (i) from an existing provider of a procurement item to another provider of that
5063     procurement item; or
5064          (ii) from an existing type of procurement item to another type;
5065          (b) includes:
5066          (i) training costs;
5067          (ii) conversion costs;
5068          (iii) compatibility costs;
5069          (iv) costs associated with system downtime;
5070          (v) disruption of service costs;
5071          (vi) staff time necessary to implement the change;
5072          (vii) installation costs; and
5073          (viii) ancillary software, hardware, equipment, or construction costs; and
5074          (c) does not include:
5075          (i) the costs of preparing for or engaging in a procurement process; or
5076          (ii) contract negotiation or drafting costs.
5077          (96) "Trial use contract" means a contract for a procurement item that the procurement
5078     unit acquires for a trial use or testing to determine whether the procurement item will benefit
5079     the procurement unit.
5080          (97) "Vendor":

5081          (a) means a person who is seeking to enter into a contract with a procurement unit to
5082     provide a procurement item; and
5083          (b) includes:
5084          (i) a bidder;
5085          (ii) an offeror;
5086          (iii) an approved vendor; and
5087          (iv) a design professional.
5088          Section 64. Section 63J-3-103 is amended to read:
5089          63J-3-103. Definitions.
5090          As used in this chapter:
5091          (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
5092     from unrestricted General Fund and Education Fund sources.
5093          (b) "Appropriations" includes appropriations that are contingent upon available
5094     surpluses in the General Fund and Education Fund.
5095          (c) "Appropriations" does not mean:
5096          (i) public education expenditures;
5097          (ii) Utah Education and Telehealth Network expenditures in support of public
5098     education;
5099          (iii) Utah [College of Applied Technology] System of Technical Colleges expenditures
5100     in support of public education;
5101          (iv) State Tax Commission expenditures related to collection of income taxes in
5102     support of public education;
5103          (v) debt service expenditures;
5104          (vi) emergency expenditures;
5105          (vii) expenditures from all other fund or subfund sources;
5106          (viii) transfers or appropriations from the Education Fund to the Uniform School Fund;
5107          (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
5108     Account established in Section 63J-1-312;
5109          (x) transfers into, or appropriations made to, the Education Budget Reserve Account
5110     established in Section 63J-1-313;
5111          (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the

5112     Wildland Fire Suppression Fund created in Section 65A-8-204 or the State Disaster Recovery
5113     Restricted Account created in Section 53-2a-603;
5114          (xii) money appropriated to fund the total one-time project costs for the construction of
5115     capital developments as defined in Section 63A-5-104;
5116          (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
5117     created by Section 72-2-118;
5118          (xiv) transfers or deposits into or appropriations made to the Transportation Investment
5119     Fund of 2005 created by Section 72-2-124;
5120          (xv) transfers or deposits into or appropriations made to:
5121          (A) the Department of Transportation from any source; or
5122          (B) any transportation-related account or fund from any source; or
5123          (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
5124     Fire, and State Lands to provide money for wildland fire control expenses incurred during the
5125     current or previous fire years.
5126          (2) "Base year real per capita appropriations" means the result obtained for the state by
5127     dividing the fiscal year 1985 actual appropriations of the state less debt money by:
5128          (a) the state's July 1, 1983 population; and
5129          (b) the fiscal year 1983 inflation index divided by 100.
5130          (3) "Calendar year" means the time period beginning on January 1 of any given year
5131     and ending on December 31 of the same year.
5132          (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
5133     expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
5134     Chapter 4.
5135          (5) "Fiscal year" means the time period beginning on July 1 of any given year and
5136     ending on June 30 of the subsequent year.
5137          (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
5138     capital and operations appropriations from General Fund and non-Uniform School Fund
5139     income tax revenue sources, less debt money.
5140          (7) "Inflation index" means the change in the general price level of goods and services
5141     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
5142     Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.

5143          (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
5144     be, or could have been, spent in any given year under the limitations of this chapter.
5145          (b) "Maximum allowable appropriations limit" does not mean actual appropriations
5146     spent or actual expenditures.
5147          (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
5148     fiscal years previous to the fiscal year for which the maximum allowable inflation and
5149     population appropriations limit is being computed under this chapter.
5150          (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
5151     years previous to the fiscal year for which the maximum allowable inflation and population
5152     appropriations limit is being computed under this chapter.
5153          (11) "Population" means the number of residents of the state as of July 1 of each year
5154     as calculated by the Governor's Office of Management and Budget according to the procedures
5155     and requirements of Section 63J-3-202.
5156          (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
5157     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
5158     of the General Fund and from non-Uniform School Fund income tax revenues, except as
5159     specifically exempted by this chapter.
5160          (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
5161     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
5162     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
5163          Section 65. Section 63N-12-203 is amended to read:
5164          63N-12-203. STEM Action Center Board creation -- Membership.
5165          (1) There is created the STEM Action Center Board within the office, composed of the
5166     following members:
5167          (a) six private sector members who represent business, appointed by the governor;
5168          (b) the state superintendent of public instruction or the state superintendent of public
5169     instruction's designee;
5170          (c) the commissioner of higher education or the commissioner of higher education's
5171     designee;
5172          (d) one member appointed by the governor;
5173          (e) a member of the State Board of Education, chosen by the chair of the State Board of

5174     Education;
5175          (f) the executive director of the office or the executive director's designee;
5176          (g) the Utah [College of Applied Technology] System of Technical Colleges
5177     commissioner of technical education or the Utah [College of Applied Technology] System of
5178     Technical Colleges commissioner of technical education's designee;
5179          (h) the executive director of the Department of Workforce Services or the executive
5180     director of the Department of Workforce Services' designee; and
5181          (i) one member who has a degree in engineering and experience working in a
5182     government military installation, appointed by the governor.
5183          (2) (a) The private sector members appointed by the governor in Subsection (1)(a) shall
5184     represent a business or trade association whose primary focus is science, technology, or
5185     engineering.
5186          (b) Except as required by Subsection (2)(c), members appointed by the governor shall
5187     be appointed to four-year terms.
5188          (c) The length of terms of the members shall be staggered so that approximately half of
5189     the committee is appointed every two years.
5190          (d) The members may not serve more than two full consecutive terms except where the
5191     governor determines that an additional term is in the best interest of the state.
5192          (e) When a vacancy occurs in the membership for any reason, the replacement shall be
5193     appointed for the unexpired term.
5194          (3) Attendance of a simple majority of the members constitutes a quorum for the
5195     transaction of official committee business.
5196          (4) Formal action by the committee requires a majority vote of a quorum.
5197          (5) A member may not receive compensation or benefits for the member's service, but
5198     may receive per diem and travel expenses in accordance with:
5199          (a) Section 63A-3-106;
5200          (b) Section 63A-3-107; and
5201          (c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
5202          (6) The governor shall select the chair of the board to serve a two-year term.
5203          (7) The executive director of the office or the executive director's designee shall serve
5204     as the vice chair of the board.

5205          Section 66. Section 63N-12-212 is amended to read:
5206          63N-12-212. High school STEM education initiative.
5207          (1) Subject to legislative appropriations, after consulting with State Board of Education
5208     staff, the STEM Action Center shall award grants to school districts and charter schools to fund
5209     STEM related certification for high school students.
5210          (2) (a) A school district or charter school may apply for a grant from the STEM Action
5211     Center, through a competitive process, to fund the school district's or charter school's STEM
5212     related certification training program.
5213          (b) A school district's or charter school's STEM related certification training program
5214     shall:
5215          (i) prepare high school students to be job ready for available STEM related positions of
5216     employment; and
5217          (ii) when a student completes the program, result in the student gaining an
5218     industry-recognized employer STEM related certification.
5219          (3) A school district or charter school may partner with one or more of the following to
5220     provide a STEM related certification program:
5221          [(a) an applied technology college within the Utah College of Applied Technology;]
5222          (a) a technical college described in Section 53B-2a-105;
5223          (b) Salt Lake Community College;
5224          (c) Snow College;
5225          (d) Utah State University Eastern; or
5226          (e) a private sector employer.
5227          Section 67. Section 63N-12-213 is amended to read:
5228          63N-12-213. Computer science initiative for public schools.
5229          (1) As used in this section:
5230          (a) "Computational thinking" means the set of problem-solving skills and techniques
5231     that software engineers use to write programs that underlie computer applications, including
5232     decomposition, pattern recognition, pattern generalization, and algorithm design.
5233          (b) "Computer coding" means the process of writing script for a computer program or
5234     mobile device.
5235          (c) "Educator" means the same as that term is defined in Section 53A-6-103.

5236          (d) "Endorsement" means a stipulation, authorized by the State Board of Education and
5237     appended to a license, that specifies the areas of practice to which the license applies.
5238          (e) (i) "Institution of higher education" means the same as that term is defined in
5239     Section 53B-3-102.
5240          (ii) "Institution of higher education" includes [the Utah College of Applied
5241     Technology] a technical college described in Section 53B-2a-105.
5242          (f) "Employer" means a private employer, public employer, industry association, union,
5243     or the military.
5244          (g) "License" means the same as that term is defined in Section 53A-6-103.
5245          (2) Subject to legislative appropriations, on behalf of the board, the staff of the board
5246     and the staff of the State Board of Education shall collaborate to develop and implement a
5247     computer science initiative for public schools by:
5248          (a) creating an online repository that:
5249          (i) is available for school districts and charter schools to use as a resource; and
5250          (ii) includes high quality computer science instructional resources that are designed to
5251     teach students in all grade levels:
5252          (A) computational thinking skills; and
5253          (B) computer coding skills;
5254          (b) providing for professional development on teaching computer science by:
5255          (i) including resources for educators related to teaching computational thinking and
5256     computer coding in the STEM education high quality professional development application
5257     described in Section 63N-12-210; and
5258          (ii) providing statewide or regional professional development institutes; and
5259          (c) awarding grants to a school district or charter school, on a competitive basis, that
5260     may be used to provide incentives for an educator to earn a computer science endorsement.
5261          (3) A school district or charter school may enter into an agreement with one or more of
5262     the following entities to jointly apply for a grant under Subsection (2)(c):
5263          (a) a school district;
5264          (b) a charter school;
5265          (c) an employer;
5266          (d) an institution of higher education; or

5267          (e) a non-profit organization.
5268          (4) To apply for a grant described in Subsection (2)(c), a school district or charter
5269     school shall submit a plan to the State Board of Education for the use of the grant, including a
5270     statement of purpose that describes the methods the school district or charter school proposes
5271     to use to incentivize an educator to earn a computer science endorsement.
5272          (5) The board and the State Board of Education shall encourage schools to
5273     independently pursue computer science and coding initiatives, subject to local school board or
5274     charter school governing board approval, based on the unique needs of the school's students.
5275          (6) The board shall include information on the status of the computer science initiative
5276     in the annual report described in Section 63N-12-208.
5277          Section 68. Section 67-1-12 is amended to read:
5278          67-1-12. Displaced defense workers.
5279          (1) The governor, through the Department of Workforce Services, may use funds
5280     specifically appropriated by the Legislature to benefit, in a manner prescribed by Subsection
5281     (2):
5282          (a) Department of Defense employees within the state who lose their employment
5283     because of reductions in defense spending by the federal government;
5284          (b) persons dismissed by a defense-related industry employer because of reductions in
5285     federal government defense contracts received by the employer; and
5286          (c) defense-related businesses in the state that have been severely and adversely
5287     impacted because of reductions in defense spending.
5288          (2) Funds appropriated under this section before fiscal year 1999-2000 but not
5289     expended shall remain with the agency that possesses the funds and shall be used in a manner
5290     consistent with this section. Any amount appropriated under this section in fiscal year
5291     1999-2000 or thereafter may be used to:
5292          (a) provide matching or enhancement funds for grants, loans, or other assistance
5293     received by the state from the United States Department of Labor, Department of Defense, or
5294     other federal agency to assist in retraining, community assistance, or technology transfer
5295     activities;
5296          (b) fund or match available private or public funds from the state or local level to be
5297     used for retraining, community assistance, technology transfer, or educational projects

5298     coordinated by state or federal agencies;
5299          (c) provide for retraining, upgraded services, and programs at [applied technology]
5300     technical colleges, public schools, higher education institutions, or any other appropriate public
5301     or private entity that are designed to teach specific job skills requested by a private employer in
5302     the state or required for occupations that are in demand in the state;
5303          (d) aid public or private entities that provide assistance in locating new employment;
5304          (e) inform the public of assistance programs available for persons who have lost their
5305     employment;
5306          (f) increase funding for assistance and retraining programs;
5307          (g) provide assistance for small start-up companies owned or operated by persons who
5308     have lost their employment;
5309          (h) enhance the implementation of dual-use technologies programs, community
5310     adjustment assistance programs, or other relevant programs under Pub. L. No. 102-484; and
5311          (i) coordinate local and national resources to protect and enhance current Utah defense
5312     installations and related operations and to facilitate conversion or enhancement efforts by:
5313          (i) creating and operating state information clearinghouse operations that monitor
5314     relevant activities on the federal, state, and local level;
5315          (ii) identifying, seeking, and matching funds from federal and other public agencies
5316     and private donors;
5317          (iii) identifying and coordinating needs in different geographic areas;
5318          (iv) coordinating training and retraining centers;
5319          (v) coordinating technology transfer efforts between public entities, private entities,
5320     and institutions of higher education;
5321          (vi) facilitating the development of local and national awareness and support for Utah
5322     defense installations;
5323          (vii) studying the creation of strategic alliances, tax incentives, and relocation and
5324     consolidation assistance; and
5325          (viii) exploring feasible alternative uses for the physical and human resources at
5326     defense installations and in related industries should reductions in mission occur.
5327          (3) The governor, through the Department of Workforce Services, may coordinate and
5328     administer the expenditure of money under this section and collaborate with applied technology

5329     centers, public institutions of higher learning, or other appropriate public or private entities to
5330     provide retraining and other services described in Subsection (2).
5331          Section 69. Effective date.
5332          This bill takes effect on July 1, 2017, except that the amendments to Section 53B-1-104
5333     take effect on May 9, 2017.
5334          Section 70. Repealer.
5335          This bill repeals:
5336          Section 53B-6-101, Additional responsibilities of the board -- Studies and
5337     evaluations -- Master plan for higher education -- Productivity -- Institutional student
5338     assessment -- Biennial accountability report to the Legislature.
5339          Section 53B-6-102, Standardized systems prescribed by the board.
5340          Section 53B-6-103, Cooperation with nonmember institutions within the state.
5341          Section 53B-16-106, Board to establish electronics engineering program at Weber
5342     State University.






Legislative Review Note
Office of Legislative Research and General Counsel