Representative Scott D. Sandall proposes the following substitute bill:




Chief Sponsor: Scott D. Sandall

Senate Sponsor: Margaret Dayton


8     General Description:
9          This bill modifies provisions related to beef promotion.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates the Utah Beef Council as an independent state agency;
14          ▸     describes the Utah Beef Council's composition, organization, and duties; and
15          ▸     modifies provisions related to setting the beef promotion fee.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          63E-1-102, as last amended by Laws of Utah 2017, Chapters 181, 345, and 363
23     ENACTS:
24          4-21-101, Utah Code Annotated 1953
25          4-21-103, Utah Code Annotated 1953

26          4-21-104, Utah Code Annotated 1953
27          4-21-105, Utah Code Annotated 1953
28          4-21-106, Utah Code Annotated 1953
29          4-21-107, Utah Code Annotated 1953
30          4-21-301, Utah Code Annotated 1953
31          4-21-302, Utah Code Annotated 1953
32          4-21-303, Utah Code Annotated 1953
34          4-21-102, (Renumbered from 4-21-2, as enacted by Laws of Utah 1979, Chapter 2)
35          4-21-201, (Renumbered from 4-21-3, as last amended by Laws of Utah 2011, Chapter
36     383)
37          4-21-202, (Renumbered from 4-21-4, as last amended by Laws of Utah 1986, Second
38     Special Session, Chapter 10)
39          4-21-203, (Renumbered from 4-21-5, as last amended by Laws of Utah 2004, Chapter
40     128)
41     REPEALS:
42          4-21-1, as enacted by Laws of Utah 1979, Chapter 2

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 4-21-101 is enacted to read:

Part 1. Organization

48          4-21-101. Title.
49          This chapter is known as "Beef Promotion."
50          Section 2. Section 4-21-102, which is renumbered from Section 4-21-2 is renumbered
51     and amended to read:
52          [4-21-2].      4-21-102. Definitions.
53          As used in this chapter:
54          (1) "Council" means the Utah Beef Council created in Section 4-21-103.
55          (2) "Department" means the Utah Department of Agriculture and Food created in
56     Section 4-2-102.

57          [(1)] (3) "Marketing agency" means [any transaction in which the seller is represented
58     by] a person who acts as an agent of the seller in the sale of cattle in that [such] the person
59     issues payment to the seller and is entitled to a commission based upon the sale[;].
60          [(2)] (4) "Producer" means [any] a person who owns and raises or owns and feeds
61     cattle[;].
62          [(3)] (5) "Purchaser" means [any] a person who buys cattle[;].
63          [(4)] (6) "Seller" means [any] a person who offers cattle for sale.
64          Section 3. Section 4-21-103 is enacted to read:
65          4-21-103. Utah Beef Council created -- Composition -- Nomination and selection
66     of appointed members -- Terms of appointed members -- Qualifications for nomination.
67          (1) There is created an independent state agency known as the Utah Beef Council.
68          (2) The Utah Beef Council consists of 10 members as follows:
69          (a) the commissioner of the Utah Department of Agriculture and Food, or the
70     commissioner's designee;
71          (b) the president of the Utah Cattlemen's Association;
72          (c) the vice president of the Utah Cattlemen's Association;
73          (d) a member of the Utah Cattlemen's Association board of directors, chosen by the
74     Utah Cattlemen's Association;
75          (e) the appointee from Utah on the national beef checkoff Cattlemen's Beef Promotion
76     and Research Board, appointed by the United States Secretary of Agriculture;
77          (f) the president of the Utah Cattlewomen's Association;
78          (g) a member of the Utah Dairy Commission, chosen by the Utah Dairy Commission;
79     and
80          (h) three at-large producers from the state of Utah, appointed as described in
81     Subsection (4).
82          (3) In addition to the members listed in Subsection (2), the council may appoint
83     nonvoting members.
84          (4) (a) At-large candidates for appointment to the council shall be nominated by a
85     formal written request signed by two or more producers and submitted to the council no later
86     than October 1.
87          (b) A membership committee, consisting of the commissioner or the commissioner's

88     designee, the council member representing the Utah Dairy Commission, and the president of
89     the Utah Cattlemen's Association shall:
90          (i) select candidates for appointment to the council from the nominees submitted by
91     producers; and
92          (ii) present the candidates to the governor for review and appointment on or before
93     December 1.
94          (5) (a) The governor shall appoint the at-large members to three-year terms beginning
95     on January 1 of the year following appointment to the council.
96          (b) Notwithstanding the requirements of Subsection (5)(a), the governor shall, at the
97     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
98     at-large members are staggered so that one at-large member is appointed each year.
99          (6) Each at-large member shall be:
100          (a) a citizen of the United States;
101          (b) 18 years of age or older;
102          (c) an active producer; and
103          (d) a resident of Utah.
104          Section 4. Section 4-21-104 is enacted to read:
105          4-21-104. Council -- Organization -- Quorum to transact business -- Removal for
106     cause -- Vacancies -- Ineligibility to serve -- Compensation.
107          (1) (a) The council members shall elect a chair, vice chair, and secretary annually from
108     the voting members of the council.
109          (b) At least two of the members elected pursuant to Subsection (1)(a) shall be members
110     listed in Subsection 4-21-103(2)(a), (e), or (h).
111          (2) (a) A majority of voting members shall constitute a quorum.
112          (b) A majority vote of the quorum is necessary for the council to act.
113          (3) The council shall meet:
114          (a) at the time and place designated by the chair; and
115          (b) no less than once every three months.
116          (4) The commissioner, or the commissioner's designee, may, in consultation with the
117     other members of the membership committee, remove a member for cause.
118          (5) Vacancies that occur on the council for any reason shall be filled by appointment

119     for the unexpired term of the vacated member.
120          (6) If an at-large member ceases to act as a producer during the member's term, the
121     member shall resign from the council within 30 days after ceasing production.
122          (7) Subject to Subsection (8), a member may not receive compensation or benefits for
123     the member's service, but may receive per diem and travel expenses in accordance with:
124          (a) Section 63A-3-106;
125          (b) Section 63A-3-107; and
126          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
127     63A-3-107.
128          (8) A nonvoting member may not receive compensation or benefits for the member's
129     service and may not receive per diem or travel expenses.
130          Section 5. Section 4-21-105 is enacted to read:
131          4-21-105. Council powers, duties, and functions -- Reporting requirements.
132          (1) The council has the following powers, duties, and functions:
133          (a) hire and fix the salary of an administrator and staff, who may not be members of the
134     council, to administer the policies adopted and perform the duties assigned by the council;
135          (b) promote the beef industry of the state;
136          (c) encourage local, national, and international use of Utah beef, through advertising or
137     otherwise;
138          (d) investigate and participate in studies of problems unique to Utah producers;
139          (e) take actions consistent with this chapter to promote, protect, and stabilize the state's
140     beef industry;
141          (f) enter into contracts and incur indebtedness in furtherance of the council's business
142     activities;
143          (g) cooperate with local, state, or national organizations engaged in activities similar to
144     those of the council;
145          (h) accept grants, donations, or gifts for use consistent with this chapter; and
146          (i) do other things necessary for the efficient and effective management and operation
147     of the council's business.
148          (2) The council shall:
149          (a) submit the council's proposed budget and an end-of-year audited financial statement

150     to the department and the Office of the State Auditor within 180 days of the end of each fiscal
151     year;
152          (b) provide the department, on an annual basis, with a detailed outline of the council's
153     plans for future publications and messaging; and
154          (c) report, by October 1 of each year, to the Retirement and Independent Entities
155     Interim Committee on the operations and activities of the council.
156          Section 6. Section 4-21-106 is enacted to read:
157          4-21-106. Exemption from certain operational requirements.
158          (1) The council is exempt from:
159          (a) Title 51, Chapter 5, Funds Consolidation Act;
160          (b) Title 51, Chapter 7, State Money Management Act;
161          (c) Title 63A, Utah Administrative Services Code, except as provided in Subsection
162     (2)(c);
163          (d) Title 63J, Chapter 1, Budgetary Procedures Act; and
164          (e) Title 67, Chapter 19, Utah State Personnel Management Act.
165          (2) The council is subject to:
166          (a) Title 51, Public Funds and Accounts, except as provided in Subsections
167     4-21-106(1)(a) and (b);
168          (b) Title 52, Chapter 4, Open and Public Meetings Act;
169          (c) Title 63A, Chapter 3, Part 4, Utah Public Finance Website;
170          (d) Title 63G, Chapter 2, Government Records Access and Management Act;
171          (e) other Utah Code provisions not specifically exempted under Subsection
172     4-21-106(1); and
173          (f) audit by the state auditor pursuant to Title 67, Chapter 3, Auditor, and by the
174     legislative auditor pursuant to Section 36-12-15.
175          Section 7. Section 4-21-107 is enacted to read:
176          4-21-107. Council may require surety bond -- Payment of premium.
177          (1) The council may require the administrator or a council employee to post a surety
178     bond conditioned for the faithful performance of the council's official duties.
179          (2) The amount and type of bond shall be fixed by the council and each bond premium
180     shall be paid by the council.

181          Section 8. Section 4-21-201, which is renumbered from Section 4-21-3 is renumbered
182     and amended to read:
Part 2. Revenue

184          [4-21-3].      4-21-201. Beef promotion fee -- Deposit of revenue.
185          (1) (a) The department shall collect a fee established as required by Subsection (2) on
186     all fee brand inspected cattle upon change of ownership or slaughter in an amount not more
187     than $1 or less than 25 cents.
188          (b) The fee is collected by the local brand inspector at the time of inspection of cattle,
189     or deducted and collected by the marketing agency or the purchaser.
190          (c) All revenue collected under this section shall be paid to the department, which shall
191     deposit the revenue in [an agency] a fund that is hereby created and is known as the "Beef
192     Promotion Fund."
193          [(2) Before a fee assessed under Subsection (1) becomes effective, the department shall
194     give notice of the proposed fee to all known beef and dairy cattle producers in the state, invite
195     all beef and dairy cattle producers to register to vote in a referendum, conduct a hearing on the
196     proposed fee change, and conduct a referendum where at least 50% of the registered producers
197     cast a vote with a majority of those voting casting an affirmative vote on the proposed fee
198     level.]
199          [(3)] (2) Any fee currently assessed by the department continues in effect until
200     modified by the department under [Subsections (1) and (2)] Subsection (1).
201          [(4)] (3) The fee assessed under this section is in addition to the amount of any
202     assessment required to be paid pursuant to the Beef Promotion and Research Act of 1985, 7
203     U.S.C. Sec. 2901 et seq.
204          Section 9. Section 4-21-202, which is renumbered from Section 4-21-4 is renumbered
205     and amended to read:
206          [4-21-4].      4-21-202. Refund of fees allowed -- Claim for refund to be filed with
207     department -- Payment of refunds.
208          (1) A person who objects to payment of the assessed fee may file a claim with the
209     department within 60 days after the fee is collected. [No]
210          (2) A claim for refund[, however,] is not allowed if it is filed more than 60 days after
211     the date the fee is collected.

212          (3) Each claim for a refund shall be certified by the department to the state treasurer for
213     payment from the beef promotion account, subject to [any] applicable provisions of the Beef
214     Promotion and Research Act of 1985, 7 U.S.C. Sec. 2901 et seq.
215          Section 10. Section 4-21-203, which is renumbered from Section 4-21-5 is renumbered
216     and amended to read:
217          [4-21-5].      4-21-203. Revenue from fees to be used to promote beef industry --
218     Payment of revenue monthly to Utah Beef Council -- Deduction of costs of administration
219     and processing funds -- Annual audit of books, records, and accounts -- Financial
220     statement of audit published.
221          (1) (a) All revenue derived from the collection of fees authorized by this chapter shall
222     be paid to the council and used to promote the beef industry of the state [and the revenue shall
223     be paid to:].
224          [(i) the Utah Beef Council, a Utah nonprofit corporation organized to promote Utah
225     beef; or]
226          [(ii) an agency, acceptable to the department, with the concurrence of the Utah
227     Cattlemen's Association.]
228          (b) The revenue shall be paid monthly, as requested by the council [or appointed
229     agency], and the actual costs of administration for processing the funds shall be deducted
230     before disbursing the funds.
231          (2) (a) The books, records, and accounts of the [Utah Beef Council or appointed
232     agency] council shall be audited at least once annually by a licensed accountant approved by
233     the Office of the State Auditor.
234          (b) The results of the audit shall be submitted to the commissioner, and a financial
235     statement of the audit and a general statement of operations and promotional and advertising
236     activities shall be published by the council [or appointed agency] in a major livestock
237     publication having general circulation in Utah.
238          (3) Upon receipt of the funds, the council may deposit revenue from the collection of
239     fees in one or more accounts in one or more banks approved by the state as depositories.
240          (4) The books, records, and accounts of the council's activities are public records.
241          Section 11. Section 4-21-301 is enacted to read:
Part 3. Liability and Enforcement

243          4-21-301. State disclaimer of liability.
244          The state is not liable for the acts or omissions of the council, council officers, agents,
245     or employees.
246          Section 12. Section 4-21-302 is enacted to read:
247          4-21-302. Council not eligible for coverage under Risk Management Fund.
248          The council is not eligible to receive coverage under the Risk Management Fund
249     created by Section 63A-4-201.
250          Section 13. Section 4-21-303 is enacted to read:
251          4-21-303. Representation by the attorney general.
252          (1) The attorney general is not the legal advisor for the council and has no obligation to
253     defend the council or the council's members in an action or proceeding brought against the
254     council.
255          (2) The attorney general may choose, at its sole discretion, to represent the council or
256     its members if requested to do so and pursuant to reimbursement by contract.
257          Section 14. Section 63E-1-102 is amended to read:
258          63E-1-102. Definitions -- List of independent entities.
259          As used in this title:
260          (1) "Authorizing statute" means the statute creating an entity as an independent entity.
261          (2) "Committee" means the Retirement and Independent Entities Committee created by
262     Section 63E-1-201.
263          (3) "Independent corporation" means a corporation incorporated in accordance with
264     Chapter 2, Independent Corporations Act.
265          (4) (a) "Independent entity" means an entity having a public purpose relating to the
266     state or its citizens that is individually created by the state or is given by the state the right to
267     exist and conduct its affairs as an:
268          (i) independent state agency; or
269          (ii) independent corporation.
270          (b) "Independent entity" includes the:
271          (i) Utah Beef Council, created by Section 4-21-103;
272          [(i)] (ii) Utah Dairy Commission created by Section 4-22-103;
273          [(ii)] (iii) Heber Valley Historic Railroad Authority created by Section 63H-4-102;

274          [(iii)] (iv) Utah State Railroad Museum Authority created by Section 63H-5-102;
275          [(iv)] (v) Utah Housing Corporation created by Section 63H-8-201;
276          [(v)] (vi) Utah State Fair Corporation created by Section 63H-6-103;
277          [(vi)] (vii) Utah State Retirement Office created by Section 49-11-201;
278          [(vii)] (viii) School and Institutional Trust Lands Administration created by Section
279     53C-1-201;
280          [(viii)] (ix) School and Institutional Trust Fund Office created by Section 53D-1-201;
281          [(ix)] (x) Utah Communications Authority created by Section 63H-7a-201;
282          [(x)] (xi) Utah Energy Infrastructure Authority created by Section 63H-2-201;
283          [(xi)] (xii) Utah Capital Investment Corporation created by Section 63N-6-301; and
284          [(xii)] (xiii) Military Installation Development Authority created by Section
285     63H-1-201.
286          (c) Notwithstanding this Subsection (4), "independent entity" does not include:
287          (i) the Public Service Commission of Utah created by Section 54-1-1;
288          (ii) an institution within the state system of higher education;
289          (iii) a city, county, or town;
290          (iv) a local school district;
291          (v) a local district under Title 17B, Limited Purpose Local Government Entities - Local
292     Districts; or
293          (vi) a special service district under Title 17D, Chapter 1, Special Service District Act.
294          (5) "Independent state agency" means an entity that is created by the state, but is
295     independent of the governor's direct supervisory control.
296          (6) "Money held in trust" means money maintained for the benefit of:
297          (a) one or more private individuals, including public employees;
298          (b) one or more public or private entities; or
299          (c) the owners of a quasi-public corporation.
300          (7) "Public corporation" means an artificial person, public in ownership, individually
301     created by the state as a body politic and corporate for the administration of a public purpose
302     relating to the state or its citizens.
303          (8) "Quasi-public corporation" means an artificial person, private in ownership,
304     individually created as a corporation by the state, which has accepted from the state the grant of

305     a franchise or contract involving the performance of a public purpose relating to the state or its
306     citizens.
307          Section 15. Repealer.
308          This bill repeals:
309          Section 4-21-1, Purpose declaration.
310          Section 16. Effective date.
311          This bill takes effect on July 1, 2018.