1     
PUBLIC EDUCATION CODE REPEALS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Val L. Peterson

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill repeals public education code provisions.
10     Highlighted Provisions:
11          This bill:
12          ▸     repeals the Parent Choice in Education Act;
13          ▸     repeals the Electronic High School Act;
14          ▸     repeals the Compact for Interstate Qualification of Education Personnel;
15          ▸     repeals various outdated public education code provisions; and
16          ▸     makes technical and conforming changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          53B-10-101, as last amended by Laws of Utah 2006, Chapter 88
24          53E-3-502, as renumbered and amended by Laws of Utah 2018, Chapter 1
25          53F-2-516, as renumbered and amended by Laws of Utah 2018, Chapter 2
26          53G-5-405, as renumbered and amended by Laws of Utah 2018, Chapter 3
27          53G-9-802, as renumbered and amended by Laws of Utah 2018, Chapter 3

28          53G-10-503, as renumbered and amended by Laws of Utah 2018, Chapter 3
29          53G-10-508, as renumbered and amended by Laws of Utah 2018, Chapter 3
30          59-12-102, as last amended by Laws of Utah 2017, Chapters 181, 382, and 422
31          63I-2-253, as last amended by Laws of Utah 2017, Chapters 217, 223, 350, 365, 381,
32     386, and 468
33          63N-3-105, as last amended by Laws of Utah 2016, Chapter 34
34     REPEALS:
35          53A-1a-804, as enacted by Laws of Utah 2007, Chapter 30
36          53A-1a-805, as enacted by Laws of Utah 2007, Chapter 30
37          53A-1a-806, as last amended by Laws of Utah 2011, Chapter 342
38          53A-1a-808, as last amended by Laws of Utah 2008, Chapter 382
39          53A-1a-811, as enacted by Laws of Utah 2007, Chapter 30
40          53A-15-1001, as enacted by Laws of Utah 2006, Chapter 227
41          53E-4-408, as renumbered and amended by Laws of Utah 2018, Chapter 1
42          53E-6-103, as renumbered and amended by Laws of Utah 2018, Chapter 1
43          53E-6-1001, as renumbered and amended by Laws of Utah 2018, Chapter 1
44          53E-6-1002, as renumbered and amended by Laws of Utah 2018, Chapter 1
45          53E-6-1003, as renumbered and amended by Laws of Utah 2018, Chapter 1
46          53E-6-1004, as renumbered and amended by Laws of Utah 2018, Chapter 1
47          53E-6-1005, as renumbered and amended by Laws of Utah 2018, Chapter 1
48          53E-6-1006, as renumbered and amended by Laws of Utah 2018, Chapter 1
49          53E-6-1007, as renumbered and amended by Laws of Utah 2018, Chapter 1
50          53E-6-1008, as renumbered and amended by Laws of Utah 2018, Chapter 1
51          53E-6-1009, as renumbered and amended by Laws of Utah 2018, Chapter 1
52          53E-6-1010, as renumbered and amended by Laws of Utah 2018, Chapter 1
53          53E-6-1011, as renumbered and amended by Laws of Utah 2018, Chapter 1
54          53E-10-601, as renumbered and amended by Laws of Utah 2018, Chapter 1
55          53E-10-602, as renumbered and amended by Laws of Utah 2018, Chapter 1
56          53E-10-603, as renumbered and amended by Laws of Utah 2018, Chapter 1
57          53E-10-604, as renumbered and amended by Laws of Utah 2018, Chapter 1
58          53E-10-605, as renumbered and amended by Laws of Utah 2018, Chapter 1

59          53E-10-606, as renumbered and amended by Laws of Utah 2018, Chapter 1
60          53E-10-607, as renumbered and amended by Laws of Utah 2018, Chapter 1
61          53E-10-608, as renumbered and amended by Laws of Utah 2018, Chapter 1
62          53E-10-609, as renumbered and amended by Laws of Utah 2018, Chapter 1
63          53F-2-313, as renumbered and amended by Laws of Utah 2018, Chapter 2
64          53F-2-413, as renumbered and amended by Laws of Utah 2018, Chapter 2
65          53F-2-517, as renumbered and amended by Laws of Utah 2018, Chapter 2
66          53F-2-518, as renumbered and amended by Laws of Utah 2018, Chapter 2
67          53F-4-206, as renumbered and amended by Laws of Utah 2018, Chapter 2
68          53F-4-301.5, as renumbered and amended by Laws of Utah 2018, Chapter 2
69          53F-5-208, as renumbered and amended by Laws of Utah 2018, Chapter 2
70          53F-6-202, as renumbered and amended by Laws of Utah 2018, Chapter 2
71          53G-3-103, as renumbered and amended by Laws of Utah 2018, Chapter 3
72          53G-4-1001.5, as renumbered and amended by Laws of Utah 2018, Chapter 3
73          53G-11-501.5, as renumbered and amended by Laws of Utah 2018, Chapter 3
74          63N-3-110, as renumbered and amended by Laws of Utah 2015, Chapter 283
75     

76     Be it enacted by the Legislature of the state of Utah:
77          Section 1. Section 53B-10-101 is amended to read:
78          53B-10-101. Terrel H. Bell Teaching Incentive Loans program -- Eligible
79     students -- Cancellation of incentive loans -- Repayment by recipient who fails to meet
80     requirements -- Duration of incentive loans.
81          (1) (a) A Terrel H. Bell Teaching Incentive Loans program is established to recruit and
82     train superior candidates for teaching in Utah's public school system as a component of the
83     teacher quality continuum referred to in [Subsections] Subsection 53A-1a-104(7) [and
84     53A-6-102(2)(a)].
85          (b) Under the program, the incentive loans may be used in any of Utah's state-operated
86     institutions of higher education or at a private institution of higher education in Utah that offers
87     a state-approved teacher education program.
88          (2) (a) The State Board of Regents shall award the incentive loans to college students
89     who have been admitted to, or have made application to and are prepared to enter into, a

90     program preparing students for licensure and who declare an intent to complete the prescribed
91     course of instruction and to teach in this state in accordance with the priorities described under
92     Subsection (5)(c).
93          (b) The incentive loan may be canceled at any time by the institution of attendance if:
94          (i) the student fails to make reasonable progress towards completion of licensing
95     requirements; or
96          (ii) it appears to be a reasonable certainty that the student does not intend to teach in
97     Utah.
98          (c) The State Board of Regents may grant leaves of absence to incentive loan holders.
99          (3) The State Board of Regents may require an incentive loan recipient who fails to
100     complete the requirements for licensing without good cause to repay all tuition and fees
101     provided by the loan, together with appropriate interest.
102          (4) (a) The State Board of Regents may require an incentive loan recipient who does
103     not work in the state's public school system or a private school within the state within two years
104     after graduation to repay all tuition and fees provided by the loan, together with appropriate
105     interest, unless waived for good cause.
106          (b) (i) A recipient who does not teach for a term equal to the number of years of the
107     incentive loan within a reasonable period of time after graduation shall repay a graduated
108     portion of the tuition and fees based upon the uncompleted term.
109          (ii) One year of teaching is credit for one year's tuition and fees.
110          (c) All repayments made under this Subsection (4) are for use in the Terrel H. Bell
111     Teaching Incentive Loans program.
112          (5) (a) Each incentive loan is valid for up to four years of full-time equivalent
113     enrollment, or until requirements for licensing or advanced licensing have been met, whichever
114     is less.
115          (b) (i) Incentive loans apply to both tuition and fees in amounts and are subject to
116     conditions approved by the State Board of Regents, based upon criteria developed to insure that
117     all recipients of the loans will pursue an education career within the state.
118          (ii) An incentive loan for tuition and fees at a private institution may not exceed the
119     average scholarship amounts granted for tuition and fees at public institutions of higher
120     education within the state.

121          (c) Incentive loans shall be awarded in accordance with prioritized critical areas of
122     need for teaching expertise within the state, as determined by the State Board of Education's
123     criticality index and school district priorities based upon data provided by the school district,
124     and may include preparing persons as:
125          (i) a special education teacher;
126          (ii) a speech or language pathologist; or
127          (iii) another licensed professional providing services in the public schools to pupils
128     with disabilities.
129          Section 2. Section 53E-3-502 is amended to read:
130          53E-3-502. State Board of Education assistance to districts and schools.
131          In order to assist school districts and individual schools in acquiring and maintaining
132     the characteristics set forth in Section 53E-2-302, the State Board of Education shall:
133          (1) provide the framework for an education system, including core competency
134     standards and their assessment, in which school districts and public schools permit students to
135     advance by demonstrating competency in subject matter and mastery of skills;
136          (2) conduct a statewide public awareness program on competency-based educational
137     systems;
138          (3) compile and publish, for the state as a whole, a set of educational performance
139     indicators describing trends in student performance;
140          (4) promote a public education climate of high expectations and academic excellence;
141          (5) disseminate successful site-based decision-making models to districts and schools
142     and provide teacher professional development opportunities and evaluation programs for
143     site-based plans consistent with [Subsections] Subsection 53E-2-302(7) [and 53E-6-103(2)(a)
144     and (b)];
145          (6) provide a mechanism for widespread dissemination of information about strategic
146     planning for public education, including involvement of business and industry in the education
147     process, in order to ensure the understanding and support of all the individuals and groups
148     concerned with the mission of public education as outlined in Section 53E-2-301;
149          (7) provide for a research and development clearing house at the state level to receive
150     and share with school districts and public schools information on effective and innovative
151     practices and programs in education;

152          (8) help school districts develop and implement guidelines, strategies, and professional
153     development programs for administrators and teachers consistent with [Subsections]
154     Subsection 53E-2-302(7) [and 53E-6-103(2)(a) and (b)] focused on improving interaction with
155     parents and promoting greater parental involvement in the public schools; and
156          (9) in concert with the State Board of Regents and the state's colleges of education
157     review and revise teacher licensing requirements to be consistent with teacher preparation for
158     participation in personalized education programs within the public schools.
159          Section 3. Section 53F-2-516 is amended to read:
160          53F-2-516. Critical Languages Program -- Pilot.
161          (1) (a) As used in this section, "critical languages" means those languages described in
162     the federal National Security Language Initiative, including Chinese, Arabic, Russian, Farsi,
163     Hindi, and Korean.
164          (b) The Legislature recognizes:
165          (i) the importance of students acquiring skills in foreign languages in order for them to
166     successfully compete in a global society; and
167          (ii) the academic, societal, and economic development benefits of the acquisition of
168     critical languages.
169          (2) (a) The State Board of Education, in consultation with the Utah Education and
170     Telehealth Network, shall develop and implement courses of study in the critical languages.
171          (b) A course may be taught:
172          (i) over the state's two-way interactive video conferencing system for video and audio,
173     to students in the state's public education system;
174          [(ii) through the Electronic High School;]
175          [(iii)] (ii) through traditional instruction; or
176          [(iv)] (iii) by visiting guest teachers.
177          (3) (a) The courses authorized in Subsection (2) may use paraprofessionals in the
178     classroom who:
179          (i) are fluent in the critical language being taught; and
180          (ii) can provide reinforcement and tutoring to students on days and at times when they
181     are not receiving instruction under Subsection (2)(b).
182          (b) The State Board of Education, through the state superintendent of public

183     instruction, shall ensure that the paraprofessionals are fluent in the critical languages.
184          (4) The State Board of Education shall make rules on the critical languages courses
185     authorized under this section in accordance with Title 63G, Chapter 3, Utah Administrative
186     Rulemaking Act, to include:
187          (a) notification to school districts on the times and places of the course offerings; and
188          (b) instructional materials for the courses.
189          (5) The State Board of Education shall track and monitor the Critical Languages
190     Program and may expand the program to include more course offerings and other critical
191     languages, subject to student demand for the courses and available resources.
192          (6) (a) Subject to funding for the program, the State Board of Education shall establish
193     a pilot program for school districts and schools to initially participate in the Critical Languages
194     Program that provides:
195          (i) up to $6,000 per language per school, for up to 60 schools, for courses offered in
196     critical languages;
197          (ii) up to $100 per student who completes a critical languages course; and
198          (iii) up to an additional $400 per foreign exchange student who completes a critical
199     languages course.
200          (b) If the available funding is insufficient to provide the amounts described under
201     Subsection (6)(a), the amounts provided shall be reduced pro rata so that the total provided
202     does not exceed the available funding.
203          Section 4. Section 53G-5-405 is amended to read:
204          53G-5-405. Application of statutes and rules to charter schools.
205          (1) A charter school shall operate in accordance with its charter and is subject to this
206     public education code and other state laws applicable to public schools, except as otherwise
207     provided in this chapter and other related provisions.
208          (2) (a) Except as provided in Subsection (2)(b), State Board of Education rules
209     governing the following do not apply to a charter school:
210          (i) school libraries;
211          (ii) required school administrative and supervisory services; and
212          (iii) required expenditures for instructional supplies.
213          (b) A charter school shall comply with rules implementing statutes that prescribe how

214     state appropriations may be spent.
215          (3) The following provisions of this public education code, and rules adopted under
216     those provisions, do not apply to a charter school:
217          (a) Sections 53G-7-1202 and 53G-7-1204, requiring the establishment of a school
218     community council and school improvement plan;
219          (b) Section 53G-4-409, requiring the use of activity disclosure statements;
220          (c) Section 53G-7-606, requiring notification of intent to dispose of textbooks;
221          (d) Section 53G-10-404, requiring annual presentations on adoption; and
222          (e) Sections 53G-7-304 and 53G-7-306 pertaining to fiscal procedures of school
223     districts and local school boards[; and].
224          [(f) Section 53E-4-408, requiring an independent evaluation of instructional materials.]
225          (4) For the purposes of Title 63G, Chapter 6a, Utah Procurement Code, a charter
226     school is considered an educational procurement unit as defined in Section 63G-6a-103.
227          (5) Each charter school shall be subject to:
228          (a) Title 52, Chapter 4, Open and Public Meetings Act; and
229          (b) Title 63G, Chapter 2, Government Records Access and Management Act.
230          (6) A charter school is exempt from Section 51-2a-201.5, requiring accounting reports
231     of certain nonprofit corporations. A charter school is subject to the requirements of Section
232     53G-5-404.
233          (7) (a) The State Charter School Board shall, in concert with the charter schools, study
234     existing state law and administrative rules for the purpose of determining from which laws and
235     rules charter schools should be exempt.
236          (b) (i) The State Charter School Board shall present recommendations for exemption to
237     the State Board of Education for consideration.
238          (ii) The State Board of Education shall consider the recommendations of the State
239     Charter School Board and respond within 60 days.
240          Section 5. Section 53G-9-802 is amended to read:
241          53G-9-802. Dropout prevention and recovery -- Flexible enrollment options --
242     Contracting -- Reporting.
243          (1) (a) Subject to Subsection (1)(b), an LEA shall provide dropout prevention and
244     recovery services to a designated student, including:

245          (i) engaging with or attempting to recover a designated student;
246          (ii) developing a learning plan, in consultation with a designated student, to identify:
247          (A) barriers to regular school attendance and achievement;
248          (B) an attainment goal; and
249          (C) a means for achieving the attainment goal through enrollment in one or more of the
250     programs described in Subsection (2);
251          (iii) monitoring a designated student's progress toward reaching the designated
252     student's attainment goal; and
253          (iv) providing tiered interventions for a designated student who is not making progress
254     toward reaching the student's attainment goal.
255          (b) An LEA shall provide the dropout prevention and recovery services described in
256     Subsection (1)(a):
257          (i) throughout the calendar year; and
258          (ii) except as provided in Subsection (1)(c)(i), for each designated student who
259     becomes a designated student while enrolled in the LEA.
260          (c) (i) A designated student's school district of residence shall provide dropout recovery
261     services if the designated student:
262          (A) was enrolled in a charter school that does not include grade 12; and
263          (B) becomes a designated student in the summer after the student completes academic
264     instruction at the charter school through the maximum grade level the charter school is eligible
265     to serve under the charter school's charter agreement as described in Section 53G-5-303.
266          (ii) In accordance with Subsection (1)(c)(iii), a charter school that does not include
267     grade 12 shall notify each of the charter school's student's district of residence, as determined
268     under Section 53G-6-302, when the student completes academic instruction at the charter
269     school as described in Subsection (1)(c)(i)(B).
270          (iii) The notification described in Subsection (1)(c)(ii) shall include the student's name,
271     contact information, and student identification number.
272          (2) (a) An LEA shall provide flexible enrollment options for a designated student that:
273          (i) are tailored to the designated student's learning plan developed under Subsection
274     (1)(a)(ii); and
275          (ii) include two or more of the following:

276          (A) enrollment in the LEA in a traditional program;
277          (B) enrollment in the LEA in a nontraditional program;
278          (C) enrollment in a program offered by a private provider that has entered into a
279     contract with the LEA to provide educational services; or
280          (D) enrollment in a program offered by another LEA.
281          (b) A designated student may enroll in:
282          (i) a program offered by the LEA under Subsection (2)(a), in accordance with this
283     public education code, rules established by the State Board of Education, and policies
284     established by the LEA; or
285          [(ii) the Electronic High School, in accordance with Title 53E, Chapter 10, Part 6,
286     Electronic High School; or]
287          [(iii)] (ii) the Statewide Online Education Program, in accordance with Title 53F,
288     Chapter 4, Part 5, Statewide Online Education Program.
289          (c) An LEA shall make the LEA's best effort to accommodate a designated student's
290     choice of enrollment under Subsection (2)(b).
291          (3) Beginning with the 2017-18 school year and except as provided in Subsection (4),
292     an LEA shall enter into a contract with a third party to provide the dropout prevention and
293     recovery services described in Subsection (1)(a) for any school year in which the LEA meets
294     the following criteria:
295          (a) the LEA's graduation rate is lower than the statewide graduation rate; and
296          (b) (i) the LEA's graduation rate has not increased by at least 1% on average over the
297     previous three school years; or
298          (ii) during the previous calendar year, at least 10% of the LEA's designated students
299     have not:
300          (A) reached the students' attainment goals; or
301          (B) made a year's worth of progress toward the students' attainment goals.
302          (4) An LEA that is in the LEA's first three years of operation is not subject to the
303     requirement described in Subsection (3).
304          (5) An LEA described in Subsection (3) shall ensure that:
305          (a) a third party with whom the LEA enters into a contract under Subsection (3) has a
306     demonstrated record of effectiveness engaging with and recovering designated students; and

307          (b) a contract with a third party requires the third party to:
308          (i) provide the services described in Subsection (1)(a); and
309          (ii) regularly report progress to the LEA.
310          (6) An LEA shall annually submit a report to the State Board of Education on dropout
311     prevention and recovery services provided under this section, including:
312          (a) the methods the LEA or third party uses to engage with or attempt to recover
313     designated students under Subsection (1)(a)(i);
314          (b) the number of designated students who enroll in a program described in Subsection
315     (2) as a result of the efforts described in Subsection (6)(a);
316          (c) the number of designated students who reach the designated students' attainment
317     goals identified under Subsection (1)(a)(ii)(B); and
318          (d) funding allocated to provide dropout prevention and recovery services.
319          (7) The State Board of Education shall:
320          (a) ensure that an LEA described in Subsection (3) contracts with a third party to
321     provide dropout prevention and recovery services in accordance with Subsections (3) and (5);
322     and
323          (b) on or before October 30, 2017, and each year thereafter, report to the Education
324     Interim Committee on the provisions of this section, including a summary of the reports
325     submitted under Subsection (6).
326          Section 6. Section 53G-10-503 is amended to read:
327          53G-10-503. Driver education funding -- Reimbursement of school districts for
328     driver education class expenses -- Limitations -- Excess funds -- Student fees.
329          (1) (a) Except as provided in Subsection (1)(b), a school district that provides driver
330     education shall fund the program solely through:
331          (i) funds provided from the Automobile Driver Education Tax Account in the Uniform
332     School Fund as created under Section 41-1a-1205; and
333          (ii) student fees collected by each school.
334          (b) In determining the cost of driver education, a school district may exclude:
335          (i) the full-time equivalent cost of a teacher for a driver education class taught during
336     regular school hours; and
337          (ii) classroom space and classroom maintenance.

338          (c) A school district may not use any additional school funds beyond those allowed
339     under Subsection (1)(b) to subsidize driver education.
340          (2) (a) The state superintendent of public instruction shall, prior to September 2nd
341     following the school year during which it was expended, or may at earlier intervals during that
342     school year, reimburse each school district that applied for reimbursement in accordance with
343     this section.
344          (b) A school district that maintains driver education classes that conform to this part
345     and the rules prescribed by the board may apply for reimbursement for the actual cost of
346     providing the behind-the-wheel and observation training incidental to those classes.
347          (3) Under the state board's supervision for driver education, a school district may:
348          (a) employ personnel who are not licensed by the board under Section 53E-6-201; or
349          (b) contract with private parties or agencies licensed under Section 53-3-504 for the
350     behind-the-wheel phase of the driver education program.
351          (4) The reimbursement amount shall be paid out of the Automobile Driver Education
352     Tax Account in the Uniform School Fund and may not exceed:
353          (a) $100 per student who has completed driver education during the school year;
354          (b) $30 per student who has only completed the classroom portion in the school [or
355     through the electronic high school] during the school year; or
356          (c) $70 per student who has only completed the behind-the-wheel and observation
357     portion in the school during the school year.
358          (5) If the amount of money in the account at the end of a school year is less than the
359     total of the reimbursable costs, the state superintendent of public instruction shall allocate the
360     money to each school district in the same proportion that its reimbursable costs bear to the total
361     reimbursable costs of all school districts.
362          (6) If the amount of money in the account at the end of any school year is more than the
363     total of the reimbursement costs provided under Subsection (4), the superintendent may
364     allocate the excess funds to school districts:
365          (a) to reimburse each school district that applies for reimbursement of the cost of a fee
366     waived under Section 53G-7-504 for driver education; and
367          (b) to aid in the procurement of equipment and facilities which reduce the cost of
368     behind-the-wheel instruction.

369          (7) A local school board shall establish the student fee for driver education for the
370     school district. Student fees shall be reasonably associated with the costs of driver education
371     that are not otherwise covered by reimbursements and allocations made under this section.
372          Section 7. Section 53G-10-508 is amended to read:
373          53G-10-508. Programs authorized -- Minimum standards.
374          (1) Local school districts may:
375          (a) allow students to complete the classroom training portion of driver education
376     through [the following programs:] home study;
377          [(i) home study; or]
378          [(ii) the electronic high school;]
379          (b) provide each parent with driver education instructional materials to assist in parent
380     involvement with driver education including behind-the-wheel driving materials;
381          (c) offer driver education outside of school hours in order to reduce the cost of
382     providing driver education;
383          (d) offer driver education through community education programs;
384          (e) offer the classroom portion of driver education in the public schools and allow the
385     student to complete the behind-the-wheel portion with a private provider:
386          (i) licensed under Section 53-3-504; and
387          (ii) not associated with the school or under contract with the school under Subsection
388     53G-10-503(3); or
389          (f) any combination of Subsections (1)(a) through (e).
390          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
391     State Board of Education shall establish minimum standards for the school-related programs
392     under Subsection (1).
393          Section 8. Section 59-12-102 is amended to read:
394          59-12-102. Definitions.
395          As used in this chapter:
396          (1) "800 service" means a telecommunications service that:
397          (a) allows a caller to dial a toll-free number without incurring a charge for the call; and
398          (b) is typically marketed:
399          (i) under the name 800 toll-free calling;

400          (ii) under the name 855 toll-free calling;
401          (iii) under the name 866 toll-free calling;
402          (iv) under the name 877 toll-free calling;
403          (v) under the name 888 toll-free calling; or
404          (vi) under a name similar to Subsections (1)(b)(i) through (v) as designated by the
405     Federal Communications Commission.
406          (2) (a) "900 service" means an inbound toll telecommunications service that:
407          (i) a subscriber purchases;
408          (ii) allows a customer of the subscriber described in Subsection (2)(a)(i) to call in to
409     the subscriber's:
410          (A) prerecorded announcement; or
411          (B) live service; and
412          (iii) is typically marketed:
413          (A) under the name 900 service; or
414          (B) under a name similar to Subsection (2)(a)(iii)(A) as designated by the Federal
415     Communications Commission.
416          (b) "900 service" does not include a charge for:
417          (i) a collection service a seller of a telecommunications service provides to a
418     subscriber; or
419          (ii) the following a subscriber sells to the subscriber's customer:
420          (A) a product; or
421          (B) a service.
422          (3) (a) "Admission or user fees" includes season passes.
423          (b) "Admission or user fees" does not include annual membership dues to private
424     organizations.
425          (4) "Agreement" means the Streamlined Sales and Use Tax Agreement adopted on
426     November 12, 2002, including amendments made to the Streamlined Sales and Use Tax
427     Agreement after November 12, 2002.
428          (5) "Agreement combined tax rate" means the sum of the tax rates:
429          (a) listed under Subsection (6); and
430          (b) that are imposed within a local taxing jurisdiction.

431          (6) "Agreement sales and use tax" means a tax imposed under:
432          (a) Subsection 59-12-103(2)(a)(i)(A);
433          (b) Subsection 59-12-103(2)(b)(i);
434          (c) Subsection 59-12-103(2)(c)(i);
435          (d) Subsection 59-12-103(2)(d)(i)(A)(I);
436          (e) Section 59-12-204;
437          (f) Section 59-12-401;
438          (g) Section 59-12-402;
439          (h) Section 59-12-402.1;
440          (i) Section 59-12-703;
441          (j) Section 59-12-802;
442          (k) Section 59-12-804;
443          (l) Section 59-12-1102;
444          (m) Section 59-12-1302;
445          (n) Section 59-12-1402;
446          (o) Section 59-12-1802;
447          (p) Section 59-12-2003;
448          (q) Section 59-12-2103;
449          (r) Section 59-12-2213;
450          (s) Section 59-12-2214;
451          (t) Section 59-12-2215;
452          (u) Section 59-12-2216;
453          (v) Section 59-12-2217;
454          (w) Section 59-12-2218; or
455          (x) Section 59-12-2219.
456          (7) "Aircraft" means the same as that term is defined in Section 72-10-102.
457          (8) "Aircraft maintenance, repair, and overhaul provider" means a business entity:
458          (a) except for:
459          (i) an airline as defined in Section 59-2-102; or
460          (ii) an affiliated group, as defined in Section 59-7-101, except that "affiliated group"
461     includes a corporation that is qualified to do business but is not otherwise doing business in the

462     state, of an airline; and
463          (b) that has the workers, expertise, and facilities to perform the following, regardless of
464     whether the business entity performs the following in this state:
465          (i) check, diagnose, overhaul, and repair:
466          (A) an onboard system of a fixed wing turbine powered aircraft; and
467          (B) the parts that comprise an onboard system of a fixed wing turbine powered aircraft;
468          (ii) assemble, change, dismantle, inspect, and test a fixed wing turbine powered aircraft
469     engine;
470          (iii) perform at least the following maintenance on a fixed wing turbine powered
471     aircraft:
472          (A) an inspection;
473          (B) a repair, including a structural repair or modification;
474          (C) changing landing gear; and
475          (D) addressing issues related to an aging fixed wing turbine powered aircraft;
476          (iv) completely remove the existing paint of a fixed wing turbine powered aircraft and
477     completely apply new paint to the fixed wing turbine powered aircraft; and
478          (v) refurbish the interior of a fixed wing turbine powered aircraft in a manner that
479     results in a change in the fixed wing turbine powered aircraft's certification requirements by the
480     authority that certifies the fixed wing turbine powered aircraft.
481          (9) "Alcoholic beverage" means a beverage that:
482          (a) is suitable for human consumption; and
483          (b) contains .5% or more alcohol by volume.
484          (10) "Alternative energy" means:
485          (a) biomass energy;
486          (b) geothermal energy;
487          (c) hydroelectric energy;
488          (d) solar energy;
489          (e) wind energy; or
490          (f) energy that is derived from:
491          (i) coal-to-liquids;
492          (ii) nuclear fuel;

493          (iii) oil-impregnated diatomaceous earth;
494          (iv) oil sands;
495          (v) oil shale;
496          (vi) petroleum coke; or
497          (vii) waste heat from:
498          (A) an industrial facility; or
499          (B) a power station in which an electric generator is driven through a process in which
500     water is heated, turns into steam, and spins a steam turbine.
501          (11) (a) Subject to Subsection (11)(b), "alternative energy electricity production
502     facility" means a facility that:
503          (i) uses alternative energy to produce electricity; and
504          (ii) has a production capacity of two megawatts or greater.
505          (b) A facility is an alternative energy electricity production facility regardless of
506     whether the facility is:
507          (i) connected to an electric grid; or
508          (ii) located on the premises of an electricity consumer.
509          (12) (a) "Ancillary service" means a service associated with, or incidental to, the
510     provision of telecommunications service.
511          (b) "Ancillary service" includes:
512          (i) a conference bridging service;
513          (ii) a detailed communications billing service;
514          (iii) directory assistance;
515          (iv) a vertical service; or
516          (v) a voice mail service.
517          (13) "Area agency on aging" means the same as that term is defined in Section
518     62A-3-101.
519          (14) "Assisted amusement device" means an amusement device, skill device, or ride
520     device that is started and stopped by an individual:
521          (a) who is not the purchaser or renter of the right to use or operate the amusement
522     device, skill device, or ride device; and
523          (b) at the direction of the seller of the right to use the amusement device, skill device,

524     or ride device.
525          (15) "Assisted cleaning or washing of tangible personal property" means cleaning or
526     washing of tangible personal property if the cleaning or washing labor is primarily performed
527     by an individual:
528          (a) who is not the purchaser of the cleaning or washing of the tangible personal
529     property; and
530          (b) at the direction of the seller of the cleaning or washing of the tangible personal
531     property.
532          (16) "Authorized carrier" means:
533          (a) in the case of vehicles operated over public highways, the holder of credentials
534     indicating that the vehicle is or will be operated pursuant to both the International Registration
535     Plan and the International Fuel Tax Agreement;
536          (b) in the case of aircraft, the holder of a Federal Aviation Administration operating
537     certificate or air carrier's operating certificate; or
538          (c) in the case of locomotives, freight cars, railroad work equipment, or other rolling
539     stock, a person who uses locomotives, freight cars, railroad work equipment, or other rolling
540     stock in more than one state.
541          (17) (a) Except as provided in Subsection (17)(b), "biomass energy" means any of the
542     following that is used as the primary source of energy to produce fuel or electricity:
543          (i) material from a plant or tree; or
544          (ii) other organic matter that is available on a renewable basis, including:
545          (A) slash and brush from forests and woodlands;
546          (B) animal waste;
547          (C) waste vegetable oil;
548          (D) methane or synthetic gas produced at a landfill, as a byproduct of the treatment of
549     wastewater residuals, or through the conversion of a waste material through a nonincineration,
550     thermal conversion process;
551          (E) aquatic plants; and
552          (F) agricultural products.
553          (b) "Biomass energy" does not include:
554          (i) black liquor; or

555          (ii) treated woods.
556          (18) (a) "Bundled transaction" means the sale of two or more items of tangible personal
557     property, products, or services if the tangible personal property, products, or services are:
558          (i) distinct and identifiable; and
559          (ii) sold for one nonitemized price.
560          (b) "Bundled transaction" does not include:
561          (i) the sale of tangible personal property if the sales price varies, or is negotiable, on
562     the basis of the selection by the purchaser of the items of tangible personal property included in
563     the transaction;
564          (ii) the sale of real property;
565          (iii) the sale of services to real property;
566          (iv) the retail sale of tangible personal property and a service if:
567          (A) the tangible personal property:
568          (I) is essential to the use of the service; and
569          (II) is provided exclusively in connection with the service; and
570          (B) the service is the true object of the transaction;
571          (v) the retail sale of two services if:
572          (A) one service is provided that is essential to the use or receipt of a second service;
573          (B) the first service is provided exclusively in connection with the second service; and
574          (C) the second service is the true object of the transaction;
575          (vi) a transaction that includes tangible personal property or a product subject to
576     taxation under this chapter and tangible personal property or a product that is not subject to
577     taxation under this chapter if the:
578          (A) seller's purchase price of the tangible personal property or product subject to
579     taxation under this chapter is de minimis; or
580          (B) seller's sales price of the tangible personal property or product subject to taxation
581     under this chapter is de minimis; and
582          (vii) the retail sale of tangible personal property that is not subject to taxation under
583     this chapter and tangible personal property that is subject to taxation under this chapter if:
584          (A) that retail sale includes:
585          (I) food and food ingredients;

586          (II) a drug;
587          (III) durable medical equipment;
588          (IV) mobility enhancing equipment;
589          (V) an over-the-counter drug;
590          (VI) a prosthetic device; or
591          (VII) a medical supply; and
592          (B) subject to Subsection (18)(f):
593          (I) the seller's purchase price of the tangible personal property subject to taxation under
594     this chapter is 50% or less of the seller's total purchase price of that retail sale; or
595          (II) the seller's sales price of the tangible personal property subject to taxation under
596     this chapter is 50% or less of the seller's total sales price of that retail sale.
597          (c) (i) For purposes of Subsection (18)(a)(i), tangible personal property, a product, or a
598     service that is distinct and identifiable does not include:
599          (A) packaging that:
600          (I) accompanies the sale of the tangible personal property, product, or service; and
601          (II) is incidental or immaterial to the sale of the tangible personal property, product, or
602     service;
603          (B) tangible personal property, a product, or a service provided free of charge with the
604     purchase of another item of tangible personal property, a product, or a service; or
605          (C) an item of tangible personal property, a product, or a service included in the
606     definition of "purchase price."
607          (ii) For purposes of Subsection (18)(c)(i)(B), an item of tangible personal property, a
608     product, or a service is provided free of charge with the purchase of another item of tangible
609     personal property, a product, or a service if the sales price of the purchased item of tangible
610     personal property, product, or service does not vary depending on the inclusion of the tangible
611     personal property, product, or service provided free of charge.
612          (d) (i) For purposes of Subsection (18)(a)(ii), property sold for one nonitemized price
613     does not include a price that is separately identified by tangible personal property, product, or
614     service on the following, regardless of whether the following is in paper format or electronic
615     format:
616          (A) a binding sales document; or

617          (B) another supporting sales-related document that is available to a purchaser.
618          (ii) For purposes of Subsection (18)(d)(i), a binding sales document or another
619     supporting sales-related document that is available to a purchaser includes:
620          (A) a bill of sale;
621          (B) a contract;
622          (C) an invoice;
623          (D) a lease agreement;
624          (E) a periodic notice of rates and services;
625          (F) a price list;
626          (G) a rate card;
627          (H) a receipt; or
628          (I) a service agreement.
629          (e) (i) For purposes of Subsection (18)(b)(vi), the sales price of tangible personal
630     property or a product subject to taxation under this chapter is de minimis if:
631          (A) the seller's purchase price of the tangible personal property or product is 10% or
632     less of the seller's total purchase price of the bundled transaction; or
633          (B) the seller's sales price of the tangible personal property or product is 10% or less of
634     the seller's total sales price of the bundled transaction.
635          (ii) For purposes of Subsection (18)(b)(vi), a seller:
636          (A) shall use the seller's purchase price or the seller's sales price to determine if the
637     purchase price or sales price of the tangible personal property or product subject to taxation
638     under this chapter is de minimis; and
639          (B) may not use a combination of the seller's purchase price and the seller's sales price
640     to determine if the purchase price or sales price of the tangible personal property or product
641     subject to taxation under this chapter is de minimis.
642          (iii) For purposes of Subsection (18)(b)(vi), a seller shall use the full term of a service
643     contract to determine if the sales price of tangible personal property or a product is de minimis.
644          (f) For purposes of Subsection (18)(b)(vii)(B), a seller may not use a combination of
645     the seller's purchase price and the seller's sales price to determine if tangible personal property
646     subject to taxation under this chapter is 50% or less of the seller's total purchase price or sales
647     price of that retail sale.

648          (19) "Certified automated system" means software certified by the governing board of
649     the agreement that:
650          (a) calculates the agreement sales and use tax imposed within a local taxing
651     jurisdiction:
652          (i) on a transaction; and
653          (ii) in the states that are members of the agreement;
654          (b) determines the amount of agreement sales and use tax to remit to a state that is a
655     member of the agreement; and
656          (c) maintains a record of the transaction described in Subsection (19)(a)(i).
657          (20) "Certified service provider" means an agent certified:
658          (a) by the governing board of the agreement; and
659          (b) to perform all of a seller's sales and use tax functions for an agreement sales and
660     use tax other than the seller's obligation under Section 59-12-124 to remit a tax on the seller's
661     own purchases.
662          (21) (a) Subject to Subsection (21)(b), "clothing" means all human wearing apparel
663     suitable for general use.
664          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
665     commission shall make rules:
666          (i) listing the items that constitute "clothing"; and
667          (ii) that are consistent with the list of items that constitute "clothing" under the
668     agreement.
669          (22) "Coal-to-liquid" means the process of converting coal into a liquid synthetic fuel.
670          (23) "Commercial use" means the use of gas, electricity, heat, coal, fuel oil, or other
671     fuels that does not constitute industrial use under Subsection (56) or residential use under
672     Subsection (106).
673          (24) (a) "Common carrier" means a person engaged in or transacting the business of
674     transporting passengers, freight, merchandise, or other property for hire within this state.
675          (b) (i) "Common carrier" does not include a person who, at the time the person is
676     traveling to or from that person's place of employment, transports a passenger to or from the
677     passenger's place of employment.
678          (ii) For purposes of Subsection (24)(b)(i), in accordance with Title 63G, Chapter 3,

679     Utah Administrative Rulemaking Act, the commission may make rules defining what
680     constitutes a person's place of employment.
681          (c) "Common carrier" does not include a person that provides transportation network
682     services, as defined in Section 13-51-102.
683          (25) "Component part" includes:
684          (a) poultry, dairy, and other livestock feed, and their components;
685          (b) baling ties and twine used in the baling of hay and straw;
686          (c) fuel used for providing temperature control of orchards and commercial
687     greenhouses doing a majority of their business in wholesale sales, and for providing power for
688     off-highway type farm machinery; and
689          (d) feed, seeds, and seedlings.
690          (26) "Computer" means an electronic device that accepts information:
691          (a) (i) in digital form; or
692          (ii) in a form similar to digital form; and
693          (b) manipulates that information for a result based on a sequence of instructions.
694          (27) "Computer software" means a set of coded instructions designed to cause:
695          (a) a computer to perform a task; or
696          (b) automatic data processing equipment to perform a task.
697          (28) "Computer software maintenance contract" means a contract that obligates a seller
698     of computer software to provide a customer with:
699          (a) future updates or upgrades to computer software;
700          (b) support services with respect to computer software; or
701          (c) a combination of Subsections (28)(a) and (b).
702          (29) (a) "Conference bridging service" means an ancillary service that links two or
703     more participants of an audio conference call or video conference call.
704          (b) "Conference bridging service" may include providing a telephone number as part of
705     the ancillary service described in Subsection (29)(a).
706          (c) "Conference bridging service" does not include a telecommunications service used
707     to reach the ancillary service described in Subsection (29)(a).
708          (30) "Construction materials" means any tangible personal property that will be
709     converted into real property.

710          (31) "Delivered electronically" means delivered to a purchaser by means other than
711     tangible storage media.
712          (32) (a) "Delivery charge" means a charge:
713          (i) by a seller of:
714          (A) tangible personal property;
715          (B) a product transferred electronically; or
716          (C) services; and
717          (ii) for preparation and delivery of the tangible personal property, product transferred
718     electronically, or services described in Subsection (32)(a)(i) to a location designated by the
719     purchaser.
720          (b) "Delivery charge" includes a charge for the following:
721          (i) transportation;
722          (ii) shipping;
723          (iii) postage;
724          (iv) handling;
725          (v) crating; or
726          (vi) packing.
727          (33) "Detailed telecommunications billing service" means an ancillary service of
728     separately stating information pertaining to individual calls on a customer's billing statement.
729          (34) "Dietary supplement" means a product, other than tobacco, that:
730          (a) is intended to supplement the diet;
731          (b) contains one or more of the following dietary ingredients:
732          (i) a vitamin;
733          (ii) a mineral;
734          (iii) an herb or other botanical;
735          (iv) an amino acid;
736          (v) a dietary substance for use by humans to supplement the diet by increasing the total
737     dietary intake; or
738          (vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient
739     described in Subsections (34)(b)(i) through (v);
740          (c) (i) except as provided in Subsection (34)(c)(ii), is intended for ingestion in:

741          (A) tablet form;
742          (B) capsule form;
743          (C) powder form;
744          (D) softgel form;
745          (E) gelcap form; or
746          (F) liquid form; or
747          (ii) if the product is not intended for ingestion in a form described in Subsections
748     (34)(c)(i)(A) through (F), is not represented:
749          (A) as conventional food; and
750          (B) for use as a sole item of:
751          (I) a meal; or
752          (II) the diet; and
753          (d) is required to be labeled as a dietary supplement:
754          (i) identifiable by the "Supplemental Facts" box found on the label; and
755          (ii) as required by 21 C.F.R. Sec. 101.36.
756          (35) "Digital audio-visual work" means a series of related images which, when shown
757     in succession, imparts an impression of motion, together with accompanying sounds, if any.
758          (36) (a) "Digital audio work" means a work that results from the fixation of a series of
759     musical, spoken, or other sounds.
760          (b) "Digital audio work" includes a ringtone.
761          (37) "Digital book" means a work that is generally recognized in the ordinary and usual
762     sense as a book.
763          (38) (a) "Direct mail" means printed material delivered or distributed by United States
764     mail or other delivery service:
765          (i) to:
766          (A) a mass audience; or
767          (B) addressees on a mailing list provided:
768          (I) by a purchaser of the mailing list; or
769          (II) at the discretion of the purchaser of the mailing list; and
770          (ii) if the cost of the printed material is not billed directly to the recipients.
771          (b) "Direct mail" includes tangible personal property supplied directly or indirectly by a

772     purchaser to a seller of direct mail for inclusion in a package containing the printed material.
773          (c) "Direct mail" does not include multiple items of printed material delivered to a
774     single address.
775          (39) "Directory assistance" means an ancillary service of providing:
776          (a) address information; or
777          (b) telephone number information.
778          (40) (a) "Disposable home medical equipment or supplies" means medical equipment
779     or supplies that:
780          (i) cannot withstand repeated use; and
781          (ii) are purchased by, for, or on behalf of a person other than:
782          (A) a health care facility as defined in Section 26-21-2;
783          (B) a health care provider as defined in Section 78B-3-403;
784          (C) an office of a health care provider described in Subsection (40)(a)(ii)(B); or
785          (D) a person similar to a person described in Subsections (40)(a)(ii)(A) through (C).
786          (b) "Disposable home medical equipment or supplies" does not include:
787          (i) a drug;
788          (ii) durable medical equipment;
789          (iii) a hearing aid;
790          (iv) a hearing aid accessory;
791          (v) mobility enhancing equipment; or
792          (vi) tangible personal property used to correct impaired vision, including:
793          (A) eyeglasses; or
794          (B) contact lenses.
795          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
796     commission may by rule define what constitutes medical equipment or supplies.
797          (41) "Drilling equipment manufacturer" means a facility:
798          (a) located in the state;
799          (b) with respect to which 51% or more of the manufacturing activities of the facility
800     consist of manufacturing component parts of drilling equipment;
801          (c) that uses pressure of 800,000 or more pounds per square inch as part of the
802     manufacturing process; and

803          (d) that uses a temperature of 2,000 or more degrees Fahrenheit as part of the
804     manufacturing process.
805          (42) (a) "Drug" means a compound, substance, or preparation, or a component of a
806     compound, substance, or preparation that is:
807          (i) recognized in:
808          (A) the official United States Pharmacopoeia;
809          (B) the official Homeopathic Pharmacopoeia of the United States;
810          (C) the official National Formulary; or
811          (D) a supplement to a publication listed in Subsections (42)(a)(i)(A) through (C);
812          (ii) intended for use in the:
813          (A) diagnosis of disease;
814          (B) cure of disease;
815          (C) mitigation of disease;
816          (D) treatment of disease; or
817          (E) prevention of disease; or
818          (iii) intended to affect:
819          (A) the structure of the body; or
820          (B) any function of the body.
821          (b) "Drug" does not include:
822          (i) food and food ingredients;
823          (ii) a dietary supplement;
824          (iii) an alcoholic beverage; or
825          (iv) a prosthetic device.
826          (43) (a) Except as provided in Subsection (43)(c), "durable medical equipment" means
827     equipment that:
828          (i) can withstand repeated use;
829          (ii) is primarily and customarily used to serve a medical purpose;
830          (iii) generally is not useful to a person in the absence of illness or injury; and
831          (iv) is not worn in or on the body.
832          (b) "Durable medical equipment" includes parts used in the repair or replacement of the
833     equipment described in Subsection (43)(a).

834          (c) "Durable medical equipment" does not include mobility enhancing equipment.
835          (44) "Electronic" means:
836          (a) relating to technology; and
837          (b) having:
838          (i) electrical capabilities;
839          (ii) digital capabilities;
840          (iii) magnetic capabilities;
841          (iv) wireless capabilities;
842          (v) optical capabilities;
843          (vi) electromagnetic capabilities; or
844          (vii) capabilities similar to Subsections (44)(b)(i) through (vi).
845          (45) "Electronic financial payment service" means an establishment:
846          (a) within NAICS Code 522320, Financial Transactions Processing, Reserve, and
847     Clearinghouse Activities, of the 2012 North American Industry Classification System of the
848     federal Executive Office of the President, Office of Management and Budget; and
849          (b) that performs electronic financial payment services.
850          (46) "Employee" means the same as that term is defined in Section 59-10-401.
851          (47) "Fixed guideway" means a public transit facility that uses and occupies:
852          (a) rail for the use of public transit; or
853          (b) a separate right-of-way for the use of public transit.
854          (48) "Fixed wing turbine powered aircraft" means an aircraft that:
855          (a) is powered by turbine engines;
856          (b) operates on jet fuel; and
857          (c) has wings that are permanently attached to the fuselage of the aircraft.
858          (49) "Fixed wireless service" means a telecommunications service that provides radio
859     communication between fixed points.
860          (50) (a) "Food and food ingredients" means substances:
861          (i) regardless of whether the substances are in:
862          (A) liquid form;
863          (B) concentrated form;
864          (C) solid form;

865          (D) frozen form;
866          (E) dried form; or
867          (F) dehydrated form; and
868          (ii) that are:
869          (A) sold for:
870          (I) ingestion by humans; or
871          (II) chewing by humans; and
872          (B) consumed for the substance's:
873          (I) taste; or
874          (II) nutritional value.
875          (b) "Food and food ingredients" includes an item described in Subsection (91)(b)(iii).
876          (c) "Food and food ingredients" does not include:
877          (i) an alcoholic beverage;
878          (ii) tobacco; or
879          (iii) prepared food.
880          (51) (a) "Fundraising sales" means sales:
881          (i) (A) made by a school; or
882          (B) made by a school student;
883          (ii) that are for the purpose of raising funds for the school to purchase equipment,
884     materials, or provide transportation; and
885          (iii) that are part of an officially sanctioned school activity.
886          (b) For purposes of Subsection (51)(a)(iii), "officially sanctioned school activity"
887     means a school activity:
888          (i) that is conducted in accordance with a formal policy adopted by the school or school
889     district governing the authorization and supervision of fundraising activities;
890          (ii) that does not directly or indirectly compensate an individual teacher or other
891     educational personnel by direct payment, commissions, or payment in kind; and
892          (iii) the net or gross revenues from which are deposited in a dedicated account
893     controlled by the school or school district.
894          (52) "Geothermal energy" means energy contained in heat that continuously flows
895     outward from the earth that is used as the sole source of energy to produce electricity.

896          (53) "Governing board of the agreement" means the governing board of the agreement
897     that is:
898          (a) authorized to administer the agreement; and
899          (b) established in accordance with the agreement.
900          (54) (a) For purposes of Subsection 59-12-104(41), "governmental entity" means:
901          (i) the executive branch of the state, including all departments, institutions, boards,
902     divisions, bureaus, offices, commissions, and committees;
903          (ii) the judicial branch of the state, including the courts, the Judicial Council, the
904     Office of the Court Administrator, and similar administrative units in the judicial branch;
905          (iii) the legislative branch of the state, including the House of Representatives, the
906     Senate, the Legislative Printing Office, the Office of Legislative Research and General
907     Counsel, the Office of the Legislative Auditor General, and the Office of the Legislative Fiscal
908     Analyst;
909          (iv) the National Guard;
910          (v) an independent entity as defined in Section 63E-1-102; or
911          (vi) a political subdivision as defined in Section 17B-1-102.
912          (b) "Governmental entity" does not include the state systems of public and higher
913     education, including:
914          (i) a school;
915          (ii) the State Board of Education;
916          (iii) the State Board of Regents; or
917          (iv) an institution of higher education described in Section 53B-1-102.
918          (55) "Hydroelectric energy" means water used as the sole source of energy to produce
919     electricity.
920          (56) "Industrial use" means the use of natural gas, electricity, heat, coal, fuel oil, or
921     other fuels:
922          (a) in mining or extraction of minerals;
923          (b) in agricultural operations to produce an agricultural product up to the time of
924     harvest or placing the agricultural product into a storage facility, including:
925          (i) commercial greenhouses;
926          (ii) irrigation pumps;

927          (iii) farm machinery;
928          (iv) implements of husbandry as defined in Section 41-1a-102 that are not registered
929     under Title 41, Chapter 1a, Part 2, Registration; and
930          (v) other farming activities;
931          (c) in manufacturing tangible personal property at an establishment described in SIC
932     Codes 2000 to 3999 of the 1987 Standard Industrial Classification Manual of the federal
933     Executive Office of the President, Office of Management and Budget;
934          (d) by a scrap recycler if:
935          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
936     one or more of the following items into prepared grades of processed materials for use in new
937     products:
938          (A) iron;
939          (B) steel;
940          (C) nonferrous metal;
941          (D) paper;
942          (E) glass;
943          (F) plastic;
944          (G) textile; or
945          (H) rubber; and
946          (ii) the new products under Subsection (56)(d)(i) would otherwise be made with
947     nonrecycled materials; or
948          (e) in producing a form of energy or steam described in Subsection 54-2-1(3)(a) by a
949     cogeneration facility as defined in Section 54-2-1.
950          (57) (a) Except as provided in Subsection (57)(b), "installation charge" means a charge
951     for installing:
952          (i) tangible personal property; or
953          (ii) a product transferred electronically.
954          (b) "Installation charge" does not include a charge for:
955          (i) repairs or renovations of:
956          (A) tangible personal property; or
957          (B) a product transferred electronically; or

958          (ii) attaching tangible personal property or a product transferred electronically:
959          (A) to other tangible personal property; and
960          (B) as part of a manufacturing or fabrication process.
961          (58) "Institution of higher education" means an institution of higher education listed in
962     Section 53B-2-101.
963          (59) (a) "Lease" or "rental" means a transfer of possession or control of tangible
964     personal property or a product transferred electronically for:
965          (i) (A) a fixed term; or
966          (B) an indeterminate term; and
967          (ii) consideration.
968          (b) "Lease" or "rental" includes an agreement covering a motor vehicle and trailer if the
969     amount of consideration may be increased or decreased by reference to the amount realized
970     upon sale or disposition of the property as defined in Section 7701(h)(1), Internal Revenue
971     Code.
972          (c) "Lease" or "rental" does not include:
973          (i) a transfer of possession or control of property under a security agreement or
974     deferred payment plan that requires the transfer of title upon completion of the required
975     payments;
976          (ii) a transfer of possession or control of property under an agreement that requires the
977     transfer of title:
978          (A) upon completion of required payments; and
979          (B) if the payment of an option price does not exceed the greater of:
980          (I) $100; or
981          (II) 1% of the total required payments; or
982          (iii) providing tangible personal property along with an operator for a fixed period of
983     time or an indeterminate period of time if the operator is necessary for equipment to perform as
984     designed.
985          (d) For purposes of Subsection (59)(c)(iii), an operator is necessary for equipment to
986     perform as designed if the operator's duties exceed the:
987          (i) set-up of tangible personal property;
988          (ii) maintenance of tangible personal property; or

989          (iii) inspection of tangible personal property.
990          (60) "Life science establishment" means an establishment in this state that is classified
991     under the following NAICS codes of the 2007 North American Industry Classification System
992     of the federal Executive Office of the President, Office of Management and Budget:
993          (a) NAICS Code 33911, Medical Equipment and Supplies Manufacturing;
994          (b) NAICS Code 334510, Electromedical and Electrotherapeutic Apparatus
995     Manufacturing; or
996          (c) NAICS Code 334517, Irradiation Apparatus Manufacturing.
997          (61) "Life science research and development facility" means a facility owned, leased,
998     or rented by a life science establishment if research and development is performed in 51% or
999     more of the total area of the facility.
1000          (62) "Load and leave" means delivery to a purchaser by use of a tangible storage media
1001     if the tangible storage media is not physically transferred to the purchaser.
1002          (63) "Local taxing jurisdiction" means a:
1003          (a) county that is authorized to impose an agreement sales and use tax;
1004          (b) city that is authorized to impose an agreement sales and use tax; or
1005          (c) town that is authorized to impose an agreement sales and use tax.
1006          (64) "Manufactured home" means the same as that term is defined in Section
1007     15A-1-302.
1008          (65) "Manufacturing facility" means:
1009          (a) an establishment described in SIC Codes 2000 to 3999 of the 1987 Standard
1010     Industrial Classification Manual of the federal Executive Office of the President, Office of
1011     Management and Budget;
1012          (b) a scrap recycler if:
1013          (i) from a fixed location, the scrap recycler utilizes machinery or equipment to process
1014     one or more of the following items into prepared grades of processed materials for use in new
1015     products:
1016          (A) iron;
1017          (B) steel;
1018          (C) nonferrous metal;
1019          (D) paper;

1020          (E) glass;
1021          (F) plastic;
1022          (G) textile; or
1023          (H) rubber; and
1024          (ii) the new products under Subsection (65)(b)(i) would otherwise be made with
1025     nonrecycled materials; or
1026          (c) a cogeneration facility as defined in Section 54-2-1 if the cogeneration facility is
1027     placed in service on or after May 1, 2006.
1028          (66) "Member of the immediate family of the producer" means a person who is related
1029     to a producer described in Subsection 59-12-104(20)(a) as a:
1030          (a) child or stepchild, regardless of whether the child or stepchild is:
1031          (i) an adopted child or adopted stepchild; or
1032          (ii) a foster child or foster stepchild;
1033          (b) grandchild or stepgrandchild;
1034          (c) grandparent or stepgrandparent;
1035          (d) nephew or stepnephew;
1036          (e) niece or stepniece;
1037          (f) parent or stepparent;
1038          (g) sibling or stepsibling;
1039          (h) spouse;
1040          (i) person who is the spouse of a person described in Subsections (66)(a) through (g);
1041     or
1042          (j) person similar to a person described in Subsections (66)(a) through (i) as
1043     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1044     Administrative Rulemaking Act.
1045          (67) "Mobile home" means the same as that term is defined in Section 15A-1-302.
1046          (68) "Mobile telecommunications service" is as defined in the Mobile
1047     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1048          (69) (a) "Mobile wireless service" means a telecommunications service, regardless of
1049     the technology used, if:
1050          (i) the origination point of the conveyance, routing, or transmission is not fixed;

1051          (ii) the termination point of the conveyance, routing, or transmission is not fixed; or
1052          (iii) the origination point described in Subsection (69)(a)(i) and the termination point
1053     described in Subsection (69)(a)(ii) are not fixed.
1054          (b) "Mobile wireless service" includes a telecommunications service that is provided
1055     by a commercial mobile radio service provider.
1056          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1057     commission may by rule define "commercial mobile radio service provider."
1058          (70) (a) Except as provided in Subsection (70)(c), "mobility enhancing equipment"
1059     means equipment that is:
1060          (i) primarily and customarily used to provide or increase the ability to move from one
1061     place to another;
1062          (ii) appropriate for use in a:
1063          (A) home; or
1064          (B) motor vehicle; and
1065          (iii) not generally used by persons with normal mobility.
1066          (b) "Mobility enhancing equipment" includes parts used in the repair or replacement of
1067     the equipment described in Subsection (70)(a).
1068          (c) "Mobility enhancing equipment" does not include:
1069          (i) a motor vehicle;
1070          (ii) equipment on a motor vehicle if that equipment is normally provided by the motor
1071     vehicle manufacturer;
1072          (iii) durable medical equipment; or
1073          (iv) a prosthetic device.
1074          (71) "Model 1 seller" means a seller registered under the agreement that has selected a
1075     certified service provider as the seller's agent to perform all of the seller's sales and use tax
1076     functions for agreement sales and use taxes other than the seller's obligation under Section
1077     59-12-124 to remit a tax on the seller's own purchases.
1078          (72) "Model 2 seller" means a seller registered under the agreement that:
1079          (a) except as provided in Subsection (72)(b), has selected a certified automated system
1080     to perform the seller's sales tax functions for agreement sales and use taxes; and
1081          (b) retains responsibility for remitting all of the sales tax:

1082          (i) collected by the seller; and
1083          (ii) to the appropriate local taxing jurisdiction.
1084          (73) (a) Subject to Subsection (73)(b), "model 3 seller" means a seller registered under
1085     the agreement that has:
1086          (i) sales in at least five states that are members of the agreement;
1087          (ii) total annual sales revenues of at least $500,000,000;
1088          (iii) a proprietary system that calculates the amount of tax:
1089          (A) for an agreement sales and use tax; and
1090          (B) due to each local taxing jurisdiction; and
1091          (iv) entered into a performance agreement with the governing board of the agreement.
1092          (b) For purposes of Subsection (73)(a), "model 3 seller" includes an affiliated group of
1093     sellers using the same proprietary system.
1094          (74) "Model 4 seller" means a seller that is registered under the agreement and is not a
1095     model 1 seller, model 2 seller, or model 3 seller.
1096          (75) "Modular home" means a modular unit as defined in Section 15A-1-302.
1097          (76) "Motor vehicle" means the same as that term is defined in Section 41-1a-102.
1098          (77) "Oil sands" means impregnated bituminous sands that:
1099          (a) contain a heavy, thick form of petroleum that is released when heated, mixed with
1100     other hydrocarbons, or otherwise treated;
1101          (b) yield mixtures of liquid hydrocarbon; and
1102          (c) require further processing other than mechanical blending before becoming finished
1103     petroleum products.
1104          (78) "Oil shale" means a group of fine black to dark brown shales containing kerogen
1105     material that yields petroleum upon heating and distillation.
1106          (79) "Optional computer software maintenance contract" means a computer software
1107     maintenance contract that a customer is not obligated to purchase as a condition to the retail
1108     sale of computer software.
1109          (80) (a) "Other fuels" means products that burn independently to produce heat or
1110     energy.
1111          (b) "Other fuels" includes oxygen when it is used in the manufacturing of tangible
1112     personal property.

1113          (81) (a) "Paging service" means a telecommunications service that provides
1114     transmission of a coded radio signal for the purpose of activating a specific pager.
1115          (b) For purposes of Subsection (81)(a), the transmission of a coded radio signal
1116     includes a transmission by message or sound.
1117          (82) "Pawnbroker" means the same as that term is defined in Section 13-32a-102.
1118          (83) "Pawn transaction" means the same as that term is defined in Section 13-32a-102.
1119          (84) (a) "Permanently attached to real property" means that for tangible personal
1120     property attached to real property:
1121          (i) the attachment of the tangible personal property to the real property:
1122          (A) is essential to the use of the tangible personal property; and
1123          (B) suggests that the tangible personal property will remain attached to the real
1124     property in the same place over the useful life of the tangible personal property; or
1125          (ii) if the tangible personal property is detached from the real property, the detachment
1126     would:
1127          (A) cause substantial damage to the tangible personal property; or
1128          (B) require substantial alteration or repair of the real property to which the tangible
1129     personal property is attached.
1130          (b) "Permanently attached to real property" includes:
1131          (i) the attachment of an accessory to the tangible personal property if the accessory is:
1132          (A) essential to the operation of the tangible personal property; and
1133          (B) attached only to facilitate the operation of the tangible personal property;
1134          (ii) a temporary detachment of tangible personal property from real property for a
1135     repair or renovation if the repair or renovation is performed where the tangible personal
1136     property and real property are located; or
1137          (iii) property attached to oil, gas, or water pipelines, except for the property listed in
1138     Subsection (84)(c)(iii) or (iv).
1139          (c) "Permanently attached to real property" does not include:
1140          (i) the attachment of portable or movable tangible personal property to real property if
1141     that portable or movable tangible personal property is attached to real property only for:
1142          (A) convenience;
1143          (B) stability; or

1144          (C) for an obvious temporary purpose;
1145          (ii) the detachment of tangible personal property from real property except for the
1146     detachment described in Subsection (84)(b)(ii);
1147          (iii) an attachment of the following tangible personal property to real property if the
1148     attachment to real property is only through a line that supplies water, electricity, gas,
1149     telecommunications, cable, or supplies a similar item as determined by the commission by rule
1150     made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:
1151          (A) a computer;
1152          (B) a telephone;
1153          (C) a television; or
1154          (D) tangible personal property similar to Subsections (84)(c)(iii)(A) through (C) as
1155     determined by the commission by rule made in accordance with Title 63G, Chapter 3, Utah
1156     Administrative Rulemaking Act; or
1157          (iv) an item listed in Subsection (125)(c).
1158          (85) "Person" includes any individual, firm, partnership, joint venture, association,
1159     corporation, estate, trust, business trust, receiver, syndicate, this state, any county, city,
1160     municipality, district, or other local governmental entity of the state, or any group or
1161     combination acting as a unit.
1162          (86) "Place of primary use":
1163          (a) for telecommunications service other than mobile telecommunications service,
1164     means the street address representative of where the customer's use of the telecommunications
1165     service primarily occurs, which shall be:
1166          (i) the residential street address of the customer; or
1167          (ii) the primary business street address of the customer; or
1168          (b) for mobile telecommunications service, is as defined in the Mobile
1169     Telecommunications Sourcing Act, 4 U.S.C. Sec. 124.
1170          (87) (a) "Postpaid calling service" means a telecommunications service a person
1171     obtains by making a payment on a call-by-call basis:
1172          (i) through the use of a:
1173          (A) bank card;
1174          (B) credit card;

1175          (C) debit card; or
1176          (D) travel card; or
1177          (ii) by a charge made to a telephone number that is not associated with the origination
1178     or termination of the telecommunications service.
1179          (b) "Postpaid calling service" includes a service, except for a prepaid wireless calling
1180     service, that would be a prepaid wireless calling service if the service were exclusively a
1181     telecommunications service.
1182          (88) "Postproduction" means an activity related to the finishing or duplication of a
1183     medium described in Subsection 59-12-104(54)(a).
1184          (89) "Prepaid calling service" means a telecommunications service:
1185          (a) that allows a purchaser access to telecommunications service that is exclusively
1186     telecommunications service;
1187          (b) that:
1188          (i) is paid for in advance; and
1189          (ii) enables the origination of a call using an:
1190          (A) access number; or
1191          (B) authorization code;
1192          (c) that is dialed:
1193          (i) manually; or
1194          (ii) electronically; and
1195          (d) sold in predetermined units or dollars that decline:
1196          (i) by a known amount; and
1197          (ii) with use.
1198          (90) "Prepaid wireless calling service" means a telecommunications service:
1199          (a) that provides the right to utilize:
1200          (i) mobile wireless service; and
1201          (ii) other service that is not a telecommunications service, including:
1202          (A) the download of a product transferred electronically;
1203          (B) a content service; or
1204          (C) an ancillary service;
1205          (b) that:

1206          (i) is paid for in advance; and
1207          (ii) enables the origination of a call using an:
1208          (A) access number; or
1209          (B) authorization code;
1210          (c) that is dialed:
1211          (i) manually; or
1212          (ii) electronically; and
1213          (d) sold in predetermined units or dollars that decline:
1214          (i) by a known amount; and
1215          (ii) with use.
1216          (91) (a) "Prepared food" means:
1217          (i) food:
1218          (A) sold in a heated state; or
1219          (B) heated by a seller;
1220          (ii) two or more food ingredients mixed or combined by the seller for sale as a single
1221     item; or
1222          (iii) except as provided in Subsection (91)(c), food sold with an eating utensil provided
1223     by the seller, including a:
1224          (A) plate;
1225          (B) knife;
1226          (C) fork;
1227          (D) spoon;
1228          (E) glass;
1229          (F) cup;
1230          (G) napkin; or
1231          (H) straw.
1232          (b) "Prepared food" does not include:
1233          (i) food that a seller only:
1234          (A) cuts;
1235          (B) repackages; or
1236          (C) pasteurizes; or

1237          (ii) (A) the following:
1238          (I) raw egg;
1239          (II) raw fish;
1240          (III) raw meat;
1241          (IV) raw poultry; or
1242          (V) a food containing an item described in Subsections (91)(b)(ii)(A)(I) through (IV);
1243     and
1244          (B) if the Food and Drug Administration recommends in Chapter 3, Part 401.11 of the
1245     Food and Drug Administration's Food Code that a consumer cook the items described in
1246     Subsection (91)(b)(ii)(A) to prevent food borne illness; or
1247          (iii) the following if sold without eating utensils provided by the seller:
1248          (A) food and food ingredients sold by a seller if the seller's proper primary
1249     classification under the 2002 North American Industry Classification System of the federal
1250     Executive Office of the President, Office of Management and Budget, is manufacturing in
1251     Sector 311, Food Manufacturing, except for Subsector 3118, Bakeries and Tortilla
1252     Manufacturing;
1253          (B) food and food ingredients sold in an unheated state:
1254          (I) by weight or volume; and
1255          (II) as a single item; or
1256          (C) a bakery item, including:
1257          (I) a bagel;
1258          (II) a bar;
1259          (III) a biscuit;
1260          (IV) bread;
1261          (V) a bun;
1262          (VI) a cake;
1263          (VII) a cookie;
1264          (VIII) a croissant;
1265          (IX) a danish;
1266          (X) a donut;
1267          (XI) a muffin;

1268          (XII) a pastry;
1269          (XIII) a pie;
1270          (XIV) a roll;
1271          (XV) a tart;
1272          (XVI) a torte; or
1273          (XVII) a tortilla.
1274          (c) An eating utensil provided by the seller does not include the following used to
1275     transport the food:
1276          (i) a container; or
1277          (ii) packaging.
1278          (92) "Prescription" means an order, formula, or recipe that is issued:
1279          (a) (i) orally;
1280          (ii) in writing;
1281          (iii) electronically; or
1282          (iv) by any other manner of transmission; and
1283          (b) by a licensed practitioner authorized by the laws of a state.
1284          (93) (a) Except as provided in Subsection (93)(b)(ii) or (iii), "prewritten computer
1285     software" means computer software that is not designed and developed:
1286          (i) by the author or other creator of the computer software; and
1287          (ii) to the specifications of a specific purchaser.
1288          (b) "Prewritten computer software" includes:
1289          (i) a prewritten upgrade to computer software if the prewritten upgrade to the computer
1290     software is not designed and developed:
1291          (A) by the author or other creator of the computer software; and
1292          (B) to the specifications of a specific purchaser;
1293          (ii) computer software designed and developed by the author or other creator of the
1294     computer software to the specifications of a specific purchaser if the computer software is sold
1295     to a person other than the purchaser; or
1296          (iii) except as provided in Subsection (93)(c), prewritten computer software or a
1297     prewritten portion of prewritten computer software:
1298          (A) that is modified or enhanced to any degree; and

1299          (B) if the modification or enhancement described in Subsection (93)(b)(iii)(A) is
1300     designed and developed to the specifications of a specific purchaser.
1301          (c) "Prewritten computer software" does not include a modification or enhancement
1302     described in Subsection (93)(b)(iii) if the charges for the modification or enhancement are:
1303          (i) reasonable; and
1304          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), separately stated on the
1305     invoice or other statement of price provided to the purchaser at the time of sale or later, as
1306     demonstrated by:
1307          (A) the books and records the seller keeps at the time of the transaction in the regular
1308     course of business, including books and records the seller keeps at the time of the transaction in
1309     the regular course of business for nontax purposes;
1310          (B) a preponderance of the facts and circumstances at the time of the transaction; and
1311          (C) the understanding of all of the parties to the transaction.
1312          (94) (a) "Private communications service" means a telecommunications service:
1313          (i) that entitles a customer to exclusive or priority use of one or more communications
1314     channels between or among termination points; and
1315          (ii) regardless of the manner in which the one or more communications channels are
1316     connected.
1317          (b) "Private communications service" includes the following provided in connection
1318     with the use of one or more communications channels:
1319          (i) an extension line;
1320          (ii) a station;
1321          (iii) switching capacity; or
1322          (iv) another associated service that is provided in connection with the use of one or
1323     more communications channels as defined in Section 59-12-215.
1324          (95) (a) Except as provided in Subsection (95)(b), "product transferred electronically"
1325     means a product transferred electronically that would be subject to a tax under this chapter if
1326     that product was transferred in a manner other than electronically.
1327          (b) "Product transferred electronically" does not include:
1328          (i) an ancillary service;
1329          (ii) computer software; or

1330          (iii) a telecommunications service.
1331          (96) (a) "Prosthetic device" means a device that is worn on or in the body to:
1332          (i) artificially replace a missing portion of the body;
1333          (ii) prevent or correct a physical deformity or physical malfunction; or
1334          (iii) support a weak or deformed portion of the body.
1335          (b) "Prosthetic device" includes:
1336          (i) parts used in the repairs or renovation of a prosthetic device;
1337          (ii) replacement parts for a prosthetic device;
1338          (iii) a dental prosthesis; or
1339          (iv) a hearing aid.
1340          (c) "Prosthetic device" does not include:
1341          (i) corrective eyeglasses; or
1342          (ii) contact lenses.
1343          (97) (a) "Protective equipment" means an item:
1344          (i) for human wear; and
1345          (ii) that is:
1346          (A) designed as protection:
1347          (I) to the wearer against injury or disease; or
1348          (II) against damage or injury of other persons or property; and
1349          (B) not suitable for general use.
1350          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1351     commission shall make rules:
1352          (i) listing the items that constitute "protective equipment"; and
1353          (ii) that are consistent with the list of items that constitute "protective equipment"
1354     under the agreement.
1355          (98) (a) For purposes of Subsection 59-12-104(41), "publication" means any written or
1356     printed matter, other than a photocopy:
1357          (i) regardless of:
1358          (A) characteristics;
1359          (B) copyright;
1360          (C) form;

1361          (D) format;
1362          (E) method of reproduction; or
1363          (F) source; and
1364          (ii) made available in printed or electronic format.
1365          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1366     commission may by rule define the term "photocopy."
1367          (99) (a) "Purchase price" and "sales price" mean the total amount of consideration:
1368          (i) valued in money; and
1369          (ii) for which tangible personal property, a product transferred electronically, or
1370     services are:
1371          (A) sold;
1372          (B) leased; or
1373          (C) rented.
1374          (b) "Purchase price" and "sales price" include:
1375          (i) the seller's cost of the tangible personal property, a product transferred
1376     electronically, or services sold;
1377          (ii) expenses of the seller, including:
1378          (A) the cost of materials used;
1379          (B) a labor cost;
1380          (C) a service cost;
1381          (D) interest;
1382          (E) a loss;
1383          (F) the cost of transportation to the seller; or
1384          (G) a tax imposed on the seller;
1385          (iii) a charge by the seller for any service necessary to complete the sale; or
1386          (iv) consideration a seller receives from a person other than the purchaser if:
1387          (A) (I) the seller actually receives consideration from a person other than the purchaser;
1388     and
1389          (II) the consideration described in Subsection (99)(b)(iv)(A)(I) is directly related to a
1390     price reduction or discount on the sale;
1391          (B) the seller has an obligation to pass the price reduction or discount through to the

1392     purchaser;
1393          (C) the amount of the consideration attributable to the sale is fixed and determinable by
1394     the seller at the time of the sale to the purchaser; and
1395          (D) (I) (Aa) the purchaser presents a certificate, coupon, or other documentation to the
1396     seller to claim a price reduction or discount; and
1397          (Bb) a person other than the seller authorizes, distributes, or grants the certificate,
1398     coupon, or other documentation with the understanding that the person other than the seller
1399     will reimburse any seller to whom the certificate, coupon, or other documentation is presented;
1400          (II) the purchaser identifies that purchaser to the seller as a member of a group or
1401     organization allowed a price reduction or discount, except that a preferred customer card that is
1402     available to any patron of a seller does not constitute membership in a group or organization
1403     allowed a price reduction or discount; or
1404          (III) the price reduction or discount is identified as a third party price reduction or
1405     discount on the:
1406          (Aa) invoice the purchaser receives; or
1407          (Bb) certificate, coupon, or other documentation the purchaser presents.
1408          (c) "Purchase price" and "sales price" do not include:
1409          (i) a discount:
1410          (A) in a form including:
1411          (I) cash;
1412          (II) term; or
1413          (III) coupon;
1414          (B) that is allowed by a seller;
1415          (C) taken by a purchaser on a sale; and
1416          (D) that is not reimbursed by a third party; or
1417          (ii) subject to Subsections 59-12-103(2)(e)(ii) and (2)(f)(i), the following if separately
1418     stated on an invoice, bill of sale, or similar document provided to the purchaser at the time of
1419     sale or later, as demonstrated by the books and records the seller keeps at the time of the
1420     transaction in the regular course of business, including books and records the seller keeps at the
1421     time of the transaction in the regular course of business for nontax purposes, by a
1422     preponderance of the facts and circumstances at the time of the transaction, and by the

1423     understanding of all of the parties to the transaction:
1424          (A) the following from credit extended on the sale of tangible personal property or
1425     services:
1426          (I) a carrying charge;
1427          (II) a financing charge; or
1428          (III) an interest charge;
1429          (B) a delivery charge;
1430          (C) an installation charge;
1431          (D) a manufacturer rebate on a motor vehicle; or
1432          (E) a tax or fee legally imposed directly on the consumer.
1433          (100) "Purchaser" means a person to whom:
1434          (a) a sale of tangible personal property is made;
1435          (b) a product is transferred electronically; or
1436          (c) a service is furnished.
1437          (101) "Qualifying enterprise data center" means an establishment that will:
1438          (a) own and operate a data center facility that will house a group of networked server
1439     computers in one physical location in order to centralize the dissemination, management, and
1440     storage of data and information;
1441          (b) be located in the state;
1442          (c) be a new operation constructed on or after July 1, 2016;
1443          (d) consist of one or more buildings that total 150,000 or more square feet;
1444          (e) be owned or leased by:
1445          (i) the establishment; or
1446          (ii) a person under common ownership, as defined in Section 59-7-101, of the
1447     establishment; and
1448          (f) be located on one or more parcels of land that are owned or leased by:
1449          (i) the establishment; or
1450          (ii) a person under common ownership, as defined in Section 59-7-101, of the
1451     establishment.
1452          (102) "Regularly rented" means:
1453          (a) rented to a guest for value three or more times during a calendar year; or

1454          (b) advertised or held out to the public as a place that is regularly rented to guests for
1455     value.
1456          (103) "Rental" means the same as that term is defined in Subsection (59).
1457          (104) (a) Except as provided in Subsection (104)(b), "repairs or renovations of tangible
1458     personal property" means:
1459          (i) a repair or renovation of tangible personal property that is not permanently attached
1460     to real property; or
1461          (ii) attaching tangible personal property or a product transferred electronically to other
1462     tangible personal property or detaching tangible personal property or a product transferred
1463     electronically from other tangible personal property if:
1464          (A) the other tangible personal property to which the tangible personal property or
1465     product transferred electronically is attached or from which the tangible personal property or
1466     product transferred electronically is detached is not permanently attached to real property; and
1467          (B) the attachment of tangible personal property or a product transferred electronically
1468     to other tangible personal property or detachment of tangible personal property or a product
1469     transferred electronically from other tangible personal property is made in conjunction with a
1470     repair or replacement of tangible personal property or a product transferred electronically.
1471          (b) "Repairs or renovations of tangible personal property" does not include:
1472          (i) attaching prewritten computer software to other tangible personal property if the
1473     other tangible personal property to which the prewritten computer software is attached is not
1474     permanently attached to real property; or
1475          (ii) detaching prewritten computer software from other tangible personal property if the
1476     other tangible personal property from which the prewritten computer software is detached is
1477     not permanently attached to real property.
1478          (105) "Research and development" means the process of inquiry or experimentation
1479     aimed at the discovery of facts, devices, technologies, or applications and the process of
1480     preparing those devices, technologies, or applications for marketing.
1481          (106) (a) "Residential telecommunications services" means a telecommunications
1482     service or an ancillary service that is provided to an individual for personal use:
1483          (i) at a residential address; or
1484          (ii) at an institution, including a nursing home or a school, if the telecommunications

1485     service or ancillary service is provided to and paid for by the individual residing at the
1486     institution rather than the institution.
1487          (b) For purposes of Subsection (106)(a)(i), a residential address includes an:
1488          (i) apartment; or
1489          (ii) other individual dwelling unit.
1490          (107) "Residential use" means the use in or around a home, apartment building,
1491     sleeping quarters, and similar facilities or accommodations.
1492          (108) (a) "Retailer" means any person engaged in a regularly organized business in
1493     tangible personal property or any other taxable transaction under Subsection 59-12-103(1), and
1494     who is selling to the user or consumer and not for resale.
1495          (b) "Retailer" includes commission merchants, auctioneers, and any person regularly
1496     engaged in the business of selling to users or consumers within the state.
1497          (109) "Retail sale" or "sale at retail" means a sale, lease, or rental for a purpose other
1498     than:
1499          (a) resale;
1500          (b) sublease; or
1501          (c) subrent.
1502          (110) (a) "Sale" means any transfer of title, exchange, or barter, conditional or
1503     otherwise, in any manner, of tangible personal property or any other taxable transaction under
1504     Subsection 59-12-103(1), for consideration.
1505          (b) "Sale" includes:
1506          (i) installment and credit sales;
1507          (ii) any closed transaction constituting a sale;
1508          (iii) any sale of electrical energy, gas, services, or entertainment taxable under this
1509     chapter;
1510          (iv) any transaction if the possession of property is transferred but the seller retains the
1511     title as security for the payment of the price; and
1512          (v) any transaction under which right to possession, operation, or use of any article of
1513     tangible personal property is granted under a lease or contract and the transfer of possession
1514     would be taxable if an outright sale were made.
1515          (111) "Sale at retail" means the same as that term is defined in Subsection (109).

1516          (112) "Sale-leaseback transaction" means a transaction by which title to tangible
1517     personal property or a product transferred electronically that is subject to a tax under this
1518     chapter is transferred:
1519          (a) by a purchaser-lessee;
1520          (b) to a lessor;
1521          (c) for consideration; and
1522          (d) if:
1523          (i) the purchaser-lessee paid sales and use tax on the purchaser-lessee's initial purchase
1524     of the tangible personal property or product transferred electronically;
1525          (ii) the sale of the tangible personal property or product transferred electronically to the
1526     lessor is intended as a form of financing:
1527          (A) for the tangible personal property or product transferred electronically; and
1528          (B) to the purchaser-lessee; and
1529          (iii) in accordance with generally accepted accounting principles, the purchaser-lessee
1530     is required to:
1531          (A) capitalize the tangible personal property or product transferred electronically for
1532     financial reporting purposes; and
1533          (B) account for the lease payments as payments made under a financing arrangement.
1534          (113) "Sales price" means the same as that term is defined in Subsection (99).
1535          (114) (a) "Sales relating to schools" means the following sales by, amounts paid to, or
1536     amounts charged by a school:
1537          (i) sales that are directly related to the school's educational functions or activities
1538     including:
1539          (A) the sale of:
1540          (I) textbooks;
1541          (II) textbook fees;
1542          (III) laboratory fees;
1543          (IV) laboratory supplies; or
1544          (V) safety equipment;
1545          (B) the sale of a uniform, protective equipment, or sports or recreational equipment
1546     that:

1547          (I) a student is specifically required to wear as a condition of participation in a
1548     school-related event or school-related activity; and
1549          (II) is not readily adaptable to general or continued usage to the extent that it takes the
1550     place of ordinary clothing;
1551          (C) sales of the following if the net or gross revenues generated by the sales are
1552     deposited into a school district fund or school fund dedicated to school meals:
1553          (I) food and food ingredients; or
1554          (II) prepared food; or
1555          (D) transportation charges for official school activities; or
1556          (ii) amounts paid to or amounts charged by a school for admission to a school-related
1557     event or school-related activity.
1558          (b) "Sales relating to schools" does not include:
1559          (i) bookstore sales of items that are not educational materials or supplies;
1560          (ii) except as provided in Subsection (114)(a)(i)(B):
1561          (A) clothing;
1562          (B) clothing accessories or equipment;
1563          (C) protective equipment; or
1564          (D) sports or recreational equipment; or
1565          (iii) amounts paid to or amounts charged by a school for admission to a school-related
1566     event or school-related activity if the amounts paid or charged are passed through to a person:
1567          (A) other than a:
1568          (I) school;
1569          (II) nonprofit organization authorized by a school board or a governing body of a
1570     private school to organize and direct a competitive secondary school activity; or
1571          (III) nonprofit association authorized by a school board or a governing body of a
1572     private school to organize and direct a competitive secondary school activity; and
1573          (B) that is required to collect sales and use taxes under this chapter.
1574          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1575     commission may make rules defining the term "passed through."
1576          (115) For purposes of this section and Section 59-12-104, "school" means:
1577          [(a) means:]

1578          [(i)] (a) an elementary school or a secondary school that:
1579          [(A)] (i) is a:
1580          [(I)] (A) public school; or
1581          [(II)] (B) private school; and
1582          [(B)] (ii) provides instruction for one or more grades kindergarten through 12; or
1583          [(ii)] (b) a public school district[; and].
1584          [(b) includes the Electronic High School as defined in Section 53A-15-1002.]
1585          (116) "Seller" means a person that makes a sale, lease, or rental of:
1586          (a) tangible personal property;
1587          (b) a product transferred electronically; or
1588          (c) a service.
1589          (117) (a) "Semiconductor fabricating, processing, research, or development materials"
1590     means tangible personal property or a product transferred electronically if the tangible personal
1591     property or product transferred electronically is:
1592          (i) used primarily in the process of:
1593          (A) (I) manufacturing a semiconductor;
1594          (II) fabricating a semiconductor; or
1595          (III) research or development of a:
1596          (Aa) semiconductor; or
1597          (Bb) semiconductor manufacturing process; or
1598          (B) maintaining an environment suitable for a semiconductor; or
1599          (ii) consumed primarily in the process of:
1600          (A) (I) manufacturing a semiconductor;
1601          (II) fabricating a semiconductor; or
1602          (III) research or development of a:
1603          (Aa) semiconductor; or
1604          (Bb) semiconductor manufacturing process; or
1605          (B) maintaining an environment suitable for a semiconductor.
1606          (b) "Semiconductor fabricating, processing, research, or development materials"
1607     includes:
1608          (i) parts used in the repairs or renovations of tangible personal property or a product

1609     transferred electronically described in Subsection (117)(a); or
1610          (ii) a chemical, catalyst, or other material used to:
1611          (A) produce or induce in a semiconductor a:
1612          (I) chemical change; or
1613          (II) physical change;
1614          (B) remove impurities from a semiconductor; or
1615          (C) improve the marketable condition of a semiconductor.
1616          (118) "Senior citizen center" means a facility having the primary purpose of providing
1617     services to the aged as defined in Section 62A-3-101.
1618          (119) (a) Subject to Subsections (119)(b) and (c), "short-term lodging consumable"
1619     means tangible personal property that:
1620          (i) a business that provides accommodations and services described in Subsection
1621     59-12-103(1)(i) purchases as part of a transaction to provide the accommodations and services
1622     to a purchaser;
1623          (ii) is intended to be consumed by the purchaser; and
1624          (iii) is:
1625          (A) included in the purchase price of the accommodations and services; and
1626          (B) not separately stated on an invoice, bill of sale, or other similar document provided
1627     to the purchaser.
1628          (b) "Short-term lodging consumable" includes:
1629          (i) a beverage;
1630          (ii) a brush or comb;
1631          (iii) a cosmetic;
1632          (iv) a hair care product;
1633          (v) lotion;
1634          (vi) a magazine;
1635          (vii) makeup;
1636          (viii) a meal;
1637          (ix) mouthwash;
1638          (x) nail polish remover;
1639          (xi) a newspaper;

1640          (xii) a notepad;
1641          (xiii) a pen;
1642          (xiv) a pencil;
1643          (xv) a razor;
1644          (xvi) saline solution;
1645          (xvii) a sewing kit;
1646          (xviii) shaving cream;
1647          (xix) a shoe shine kit;
1648          (xx) a shower cap;
1649          (xxi) a snack item;
1650          (xxii) soap;
1651          (xxiii) toilet paper;
1652          (xxiv) a toothbrush;
1653          (xxv) toothpaste; or
1654          (xxvi) an item similar to Subsections (119)(b)(i) through (xxv) as the commission may
1655     provide by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1656     Rulemaking Act.
1657          (c) "Short-term lodging consumable" does not include:
1658          (i) tangible personal property that is cleaned or washed to allow the tangible personal
1659     property to be reused; or
1660          (ii) a product transferred electronically.
1661          (120) "Simplified electronic return" means the electronic return:
1662          (a) described in Section 318(C) of the agreement; and
1663          (b) approved by the governing board of the agreement.
1664          (121) "Solar energy" means the sun used as the sole source of energy for producing
1665     electricity.
1666          (122) (a) "Sports or recreational equipment" means an item:
1667          (i) designed for human use; and
1668          (ii) that is:
1669          (A) worn in conjunction with:
1670          (I) an athletic activity; or

1671          (II) a recreational activity; and
1672          (B) not suitable for general use.
1673          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1674     commission shall make rules:
1675          (i) listing the items that constitute "sports or recreational equipment"; and
1676          (ii) that are consistent with the list of items that constitute "sports or recreational
1677     equipment" under the agreement.
1678          (123) "State" means the state of Utah, its departments, and agencies.
1679          (124) "Storage" means any keeping or retention of tangible personal property or any
1680     other taxable transaction under Subsection 59-12-103(1), in this state for any purpose except
1681     sale in the regular course of business.
1682          (125) (a) Except as provided in Subsection (125)(d) or (e), "tangible personal property"
1683     means personal property that:
1684          (i) may be:
1685          (A) seen;
1686          (B) weighed;
1687          (C) measured;
1688          (D) felt; or
1689          (E) touched; or
1690          (ii) is in any manner perceptible to the senses.
1691          (b) "Tangible personal property" includes:
1692          (i) electricity;
1693          (ii) water;
1694          (iii) gas;
1695          (iv) steam; or
1696          (v) prewritten computer software, regardless of the manner in which the prewritten
1697     computer software is transferred.
1698          (c) "Tangible personal property" includes the following regardless of whether the item
1699     is attached to real property:
1700          (i) a dishwasher;
1701          (ii) a dryer;

1702          (iii) a freezer;
1703          (iv) a microwave;
1704          (v) a refrigerator;
1705          (vi) a stove;
1706          (vii) a washer; or
1707          (viii) an item similar to Subsections (125)(c)(i) through (vii) as determined by the
1708     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1709     Rulemaking Act.
1710          (d) "Tangible personal property" does not include a product that is transferred
1711     electronically.
1712          (e) "Tangible personal property" does not include the following if attached to real
1713     property, regardless of whether the attachment to real property is only through a line that
1714     supplies water, electricity, gas, telephone, cable, or supplies a similar item as determined by the
1715     commission by rule made in accordance with Title 63G, Chapter 3, Utah Administrative
1716     Rulemaking Act:
1717          (i) a hot water heater;
1718          (ii) a water filtration system; or
1719          (iii) a water softener system.
1720          (126) (a) "Telecommunications enabling or facilitating equipment, machinery, or
1721     software" means an item listed in Subsection (126)(b) if that item is purchased or leased
1722     primarily to enable or facilitate one or more of the following to function:
1723          (i) telecommunications switching or routing equipment, machinery, or software; or
1724          (ii) telecommunications transmission equipment, machinery, or software.
1725          (b) The following apply to Subsection (126)(a):
1726          (i) a pole;
1727          (ii) software;
1728          (iii) a supplementary power supply;
1729          (iv) temperature or environmental equipment or machinery;
1730          (v) test equipment;
1731          (vi) a tower; or
1732          (vii) equipment, machinery, or software that functions similarly to an item listed in

1733     Subsections (126)(b)(i) through (vi) as determined by the commission by rule made in
1734     accordance with Subsection (126)(c).
1735          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1736     commission may by rule define what constitutes equipment, machinery, or software that
1737     functions similarly to an item listed in Subsections (126)(b)(i) through (vi).
1738          (127) "Telecommunications equipment, machinery, or software required for 911
1739     service" means equipment, machinery, or software that is required to comply with 47 C.F.R.
1740     Sec. 20.18.
1741          (128) "Telecommunications maintenance or repair equipment, machinery, or software"
1742     means equipment, machinery, or software purchased or leased primarily to maintain or repair
1743     one or more of the following, regardless of whether the equipment, machinery, or software is
1744     purchased or leased as a spare part or as an upgrade or modification to one or more of the
1745     following:
1746          (a) telecommunications enabling or facilitating equipment, machinery, or software;
1747          (b) telecommunications switching or routing equipment, machinery, or software; or
1748          (c) telecommunications transmission equipment, machinery, or software.
1749          (129) (a) "Telecommunications service" means the electronic conveyance, routing, or
1750     transmission of audio, data, video, voice, or any other information or signal to a point, or
1751     among or between points.
1752          (b) "Telecommunications service" includes:
1753          (i) an electronic conveyance, routing, or transmission with respect to which a computer
1754     processing application is used to act:
1755          (A) on the code, form, or protocol of the content;
1756          (B) for the purpose of electronic conveyance, routing, or transmission; and
1757          (C) regardless of whether the service:
1758          (I) is referred to as voice over Internet protocol service; or
1759          (II) is classified by the Federal Communications Commission as enhanced or value
1760     added;
1761          (ii) an 800 service;
1762          (iii) a 900 service;
1763          (iv) a fixed wireless service;

1764          (v) a mobile wireless service;
1765          (vi) a postpaid calling service;
1766          (vii) a prepaid calling service;
1767          (viii) a prepaid wireless calling service; or
1768          (ix) a private communications service.
1769          (c) "Telecommunications service" does not include:
1770          (i) advertising, including directory advertising;
1771          (ii) an ancillary service;
1772          (iii) a billing and collection service provided to a third party;
1773          (iv) a data processing and information service if:
1774          (A) the data processing and information service allows data to be:
1775          (I) (Aa) acquired;
1776          (Bb) generated;
1777          (Cc) processed;
1778          (Dd) retrieved; or
1779          (Ee) stored; and
1780          (II) delivered by an electronic transmission to a purchaser; and
1781          (B) the purchaser's primary purpose for the underlying transaction is the processed data
1782     or information;
1783          (v) installation or maintenance of the following on a customer's premises:
1784          (A) equipment; or
1785          (B) wiring;
1786          (vi) Internet access service;
1787          (vii) a paging service;
1788          (viii) a product transferred electronically, including:
1789          (A) music;
1790          (B) reading material;
1791          (C) a ring tone;
1792          (D) software; or
1793          (E) video;
1794          (ix) a radio and television audio and video programming service:

1795          (A) regardless of the medium; and
1796          (B) including:
1797          (I) furnishing conveyance, routing, or transmission of a television audio and video
1798     programming service by a programming service provider;
1799          (II) cable service as defined in 47 U.S.C. Sec. 522(6); or
1800          (III) audio and video programming services delivered by a commercial mobile radio
1801     service provider as defined in 47 C.F.R. Sec. 20.3;
1802          (x) a value-added nonvoice data service; or
1803          (xi) tangible personal property.
1804          (130) (a) "Telecommunications service provider" means a person that:
1805          (i) owns, controls, operates, or manages a telecommunications service; and
1806          (ii) engages in an activity described in Subsection (130)(a)(i) for the shared use with or
1807     resale to any person of the telecommunications service.
1808          (b) A person described in Subsection (130)(a) is a telecommunications service provider
1809     whether or not the Public Service Commission of Utah regulates:
1810          (i) that person; or
1811          (ii) the telecommunications service that the person owns, controls, operates, or
1812     manages.
1813          (131) (a) "Telecommunications switching or routing equipment, machinery, or
1814     software" means an item listed in Subsection (131)(b) if that item is purchased or leased
1815     primarily for switching or routing:
1816          (i) an ancillary service;
1817          (ii) data communications;
1818          (iii) voice communications; or
1819          (iv) telecommunications service.
1820          (b) The following apply to Subsection (131)(a):
1821          (i) a bridge;
1822          (ii) a computer;
1823          (iii) a cross connect;
1824          (iv) a modem;
1825          (v) a multiplexer;

1826          (vi) plug in circuitry;
1827          (vii) a router;
1828          (viii) software;
1829          (ix) a switch; or
1830          (x) equipment, machinery, or software that functions similarly to an item listed in
1831     Subsections (131)(b)(i) through (ix) as determined by the commission by rule made in
1832     accordance with Subsection (131)(c).
1833          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1834     commission may by rule define what constitutes equipment, machinery, or software that
1835     functions similarly to an item listed in Subsections (131)(b)(i) through (ix).
1836          (132) (a) "Telecommunications transmission equipment, machinery, or software"
1837     means an item listed in Subsection (132)(b) if that item is purchased or leased primarily for
1838     sending, receiving, or transporting:
1839          (i) an ancillary service;
1840          (ii) data communications;
1841          (iii) voice communications; or
1842          (iv) telecommunications service.
1843          (b) The following apply to Subsection (132)(a):
1844          (i) an amplifier;
1845          (ii) a cable;
1846          (iii) a closure;
1847          (iv) a conduit;
1848          (v) a controller;
1849          (vi) a duplexer;
1850          (vii) a filter;
1851          (viii) an input device;
1852          (ix) an input/output device;
1853          (x) an insulator;
1854          (xi) microwave machinery or equipment;
1855          (xii) an oscillator;
1856          (xiii) an output device;

1857          (xiv) a pedestal;
1858          (xv) a power converter;
1859          (xvi) a power supply;
1860          (xvii) a radio channel;
1861          (xviii) a radio receiver;
1862          (xix) a radio transmitter;
1863          (xx) a repeater;
1864          (xxi) software;
1865          (xxii) a terminal;
1866          (xxiii) a timing unit;
1867          (xxiv) a transformer;
1868          (xxv) a wire; or
1869          (xxvi) equipment, machinery, or software that functions similarly to an item listed in
1870     Subsections (132)(b)(i) through (xxv) as determined by the commission by rule made in
1871     accordance with Subsection (132)(c).
1872          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1873     commission may by rule define what constitutes equipment, machinery, or software that
1874     functions similarly to an item listed in Subsections (132)(b)(i) through (xxv).
1875          (133) (a) "Textbook for a higher education course" means a textbook or other printed
1876     material that is required for a course:
1877          (i) offered by an institution of higher education; and
1878          (ii) that the purchaser of the textbook or other printed material attends or will attend.
1879          (b) "Textbook for a higher education course" includes a textbook in electronic format.
1880          (134) "Tobacco" means:
1881          (a) a cigarette;
1882          (b) a cigar;
1883          (c) chewing tobacco;
1884          (d) pipe tobacco; or
1885          (e) any other item that contains tobacco.
1886          (135) "Unassisted amusement device" means an amusement device, skill device, or
1887     ride device that is started and stopped by the purchaser or renter of the right to use or operate

1888     the amusement device, skill device, or ride device.
1889          (136) (a) "Use" means the exercise of any right or power over tangible personal
1890     property, a product transferred electronically, or a service under Subsection 59-12-103(1),
1891     incident to the ownership or the leasing of that tangible personal property, product transferred
1892     electronically, or service.
1893          (b) "Use" does not include the sale, display, demonstration, or trial of tangible personal
1894     property, a product transferred electronically, or a service in the regular course of business and
1895     held for resale.
1896          (137) "Value-added nonvoice data service" means a service:
1897          (a) that otherwise meets the definition of a telecommunications service except that a
1898     computer processing application is used to act primarily for a purpose other than conveyance,
1899     routing, or transmission; and
1900          (b) with respect to which a computer processing application is used to act on data or
1901     information:
1902          (i) code;
1903          (ii) content;
1904          (iii) form; or
1905          (iv) protocol.
1906          (138) (a) Subject to Subsection (138)(b), "vehicle" means the following that are
1907     required to be titled, registered, or titled and registered:
1908          (i) an aircraft as defined in Section 72-10-102;
1909          (ii) a vehicle as defined in Section 41-1a-102;
1910          (iii) an off-highway vehicle as defined in Section 41-22-2; or
1911          (iv) a vessel as defined in Section 41-1a-102.
1912          (b) For purposes of Subsection 59-12-104(33) only, "vehicle" includes:
1913          (i) a vehicle described in Subsection (138)(a); or
1914          (ii) (A) a locomotive;
1915          (B) a freight car;
1916          (C) railroad work equipment; or
1917          (D) other railroad rolling stock.
1918          (139) "Vehicle dealer" means a person engaged in the business of buying, selling, or

1919     exchanging a vehicle as defined in Subsection (138).
1920          (140) (a) "Vertical service" means an ancillary service that:
1921          (i) is offered in connection with one or more telecommunications services; and
1922          (ii) offers an advanced calling feature that allows a customer to:
1923          (A) identify a caller; and
1924          (B) manage multiple calls and call connections.
1925          (b) "Vertical service" includes an ancillary service that allows a customer to manage a
1926     conference bridging service.
1927          (141) (a) "Voice mail service" means an ancillary service that enables a customer to
1928     receive, send, or store a recorded message.
1929          (b) "Voice mail service" does not include a vertical service that a customer is required
1930     to have in order to utilize a voice mail service.
1931          (142) (a) Except as provided in Subsection (142)(b), "waste energy facility" means a
1932     facility that generates electricity:
1933          (i) using as the primary source of energy waste materials that would be placed in a
1934     landfill or refuse pit if it were not used to generate electricity, including:
1935          (A) tires;
1936          (B) waste coal;
1937          (C) oil shale; or
1938          (D) municipal solid waste; and
1939          (ii) in amounts greater than actually required for the operation of the facility.
1940          (b) "Waste energy facility" does not include a facility that incinerates:
1941          (i) hospital waste as defined in 40 C.F.R. 60.51c; or
1942          (ii) medical/infectious waste as defined in 40 C.F.R. 60.51c.
1943          (143) "Watercraft" means a vessel as defined in Section 73-18-2.
1944          (144) "Wind energy" means wind used as the sole source of energy to produce
1945     electricity.
1946          (145) "ZIP Code" means a Zoning Improvement Plan Code assigned to a geographic
1947     location by the United States Postal Service.
1948          Section 9. Section 63I-2-253 is amended to read:
1949          63I-2-253. Repeal dates -- Titles 53, 53A, and 53B.

1950          [(1) Section 53A-1-403.5 is repealed July 1, 2017.]
1951          [(2) Section 53A-1-411 is repealed July 1, 2017.]
1952          [(3) Section 53A-1-415 is repealed July 1, 2019.]
1953          [(4) Section 53A-1-709 is repealed July 1, 2020.]
1954          [(5) Subsection 53A-1-1207(3)(b)(ii)(B) is repealed July 1, 2020.]
1955          [(6) Section 53A-1-1208 is repealed July 1, 2020.]
1956          [(7) Subsection 53A-1a-513(4) is repealed July 1, 2017.]
1957          [(8) Title 53A, Chapter 8a, Part 8, Peer Assistance and Review Pilot Program, is
1958     repealed July 1, 2017.]
1959          [(9) Section 53A-24-601 is repealed January 1, 2018.]
1960          [(10)] (1) Section 53A-24-602 is repealed July 1, 2018.
1961          [(11)] (2) (a) Subsections 53B-2a-103(2) and (4) are repealed July 1, 2019.
1962          (b) When repealing Subsections 53B-2a-103(2) and (4), the Office of Legislative
1963     Research and General Counsel shall, in addition to its authority under Subsection 36-12-12(3),
1964     make necessary changes to subsection numbering and cross references.
1965          [(12) Subsections 53B-7-101(2)(b)(iii)(A) and (3) are repealed January 1, 2018.]
1966          [(13)] (3) Subsection 53B-7-705(6)(b)(ii)(B) is repealed July 1, 2021.
1967          [(14)] (4) Subsection 53B-7-707(4)(b) is repealed July 1, 2021.
1968          [(15)] (5) (a) The following sections are repealed on July 1, 2023:
1969          (i) Section 53B-8-202;
1970          (ii) Section 53B-8-203;
1971          (iii) Section 53B-8-204; and
1972          (iv) Section 53B-8-205.
1973          (b) (i) Subsection 53B-8-201(2) is repealed on July 1, 2023.
1974          (ii) When repealing Subsection 53B-8-201(2), the Office of Legislative Research and
1975     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
1976     necessary changes to subsection numbering and cross references.
1977          [(16)] (6) Title 53B, Chapter 18, Part 14, Uintah Basin Air Quality Research Project, is
1978     repealed July 1, 2023.
1979          (7) Subsection 53E-5-306(3)(b)(ii)(B) is repealed July 1, 2020.
1980          (8) Section 53E-5-307 is repealed July 1, 2020.

1981          (9) Section 53F-4-204 is repealed July 1, 2019.
1982          Section 10. Section 63N-3-105 is amended to read:
1983          63N-3-105. Qualification for assistance.
1984          (1) Except as provided in Section 63N-3-108, 63N-3-109, or 63N-3-109.5, [or
1985     63N-3-110,] the administrator shall determine which industries, companies, and individuals
1986     qualify to receive money from the Industrial Assistance Account. Except as provided by
1987     Subsection (2), to qualify for financial assistance from the restricted account, an applicant
1988     shall:
1989          (a) demonstrate to the satisfaction of the administrator that the applicant will expend
1990     funds in Utah with employees, vendors, subcontractors, or other businesses in an amount
1991     proportional with money provided from the restricted account at a minimum ratio of 2 to 1 per
1992     year or other more stringent requirements as established from time to time by the board for a
1993     minimum period of five years beginning with the date the loan or grant was approved;
1994          (b) demonstrate to the satisfaction of the administrator the applicant's ability to sustain
1995     economic activity in the state sufficient to repay, by means of cash or appropriate credits, the
1996     loan provided by the restricted account; and
1997          (c) satisfy other criteria the administrator considers appropriate.
1998          (2) (a) The administrator may exempt an applicant from the requirements of Subsection
1999     (1)(a) or (b) if:
2000          (i) the financial assistance is provided to an applicant for the purpose of locating all or
2001     any portion of its operations to an economically disadvantaged rural area;
2002          (ii) the applicant is part of a targeted industry;
2003          (iii) the applicant is a quasi-public corporation organized under Title 16, Chapter 6a,
2004     Utah Revised Nonprofit Corporation Act, or Title 63E, Chapter 2, Independent Corporations
2005     Act, and its operations, as demonstrated to the satisfaction of the administrator, will provide
2006     significant economic stimulus to the growth of commerce and industry in the state; or
2007          (iv) the applicant is an entity offering an economic opportunity under Section
2008     63N-3-109.
2009          (b) The administrator may not exempt the applicant from the requirement under
2010     Subsection 63N-3-106(2)(b) that the loan be structured so that the repayment or return to the
2011     state equals at least the amount of the assistance together with an annual interest charge.

2012          (3) The administrator shall:
2013          (a) for applicants not described in Subsection (2)(a):
2014          (i) make findings as to whether or not each applicant has satisfied each of the
2015     conditions set forth in Subsection (1); and
2016          (ii) monitor the continued compliance by each applicant with each of the conditions set
2017     forth in Subsection (1) for five years;
2018          (b) for applicants described in Subsection (2)(a), make findings as to whether the
2019     economic activities of each applicant has resulted in the creation of new jobs on a per capita
2020     basis in the economically disadvantaged rural area or targeted industry in which the applicant is
2021     located;
2022          (c) monitor the compliance by each applicant with the provisions of any contract or
2023     agreement entered into between the applicant and the state as provided in Section 63N-3-107;
2024     and
2025          (d) make funding decisions based upon appropriate findings and compliance.
2026          Section 11. Repealer.
2027          This bill repeals:
2028          Section 53A-1a-804, Scholarship program created -- Qualifications -- Application.
2029          Section 53A-1a-805, Eligible private schools.
2030          Section 53A-1a-806, Scholarship payments.
2031          Section 53A-1a-808, Board to make rules.
2032          Section 53A-1a-811, Review by legislative auditor general.
2033          Section 53A-15-1001, Title.
2034          Section 53E-4-408, Instructional materials alignment with core standards for Utah
2035     public schools.
2036          Section 53E-6-103, Legislative findings on teacher quality -- Declaration of
2037     education as a profession.
2038          Section 53E-6-1001, Enactment of compact.
2039          Section 53E-6-1002, Purpose and intent of compact -- Findings.
2040          Section 53E-6-1003, Definitions.
2041          Section 53E-6-1004, Contracts for acceptance of educational personnel.
2042          Section 53E-6-1005, Effect of compact on other state laws and regulations.

2043          Section 53E-6-1006, Agreement by party states.
2044          Section 53E-6-1007, Evaluation of compact.
2045          Section 53E-6-1008, Scope of compact.
2046          Section 53E-6-1009, Effective date -- Withdrawal from compact -- Continuing
2047     obligations.
2048          Section 53E-6-1010, Construction of compact.
2049          Section 53E-6-1011, Superintendent of public instruction as designated state
2050     official.
2051          Section 53E-10-601, Definitions.
2052          Section 53E-10-602, Electronic High School created -- Purpose.
2053          Section 53E-10-603, Courses and credit.
2054          Section 53E-10-604, Student eligibility for enrollment.
2055          Section 53E-10-605, Services to students with disabilities.
2056          Section 53E-10-606, Payment for an Electronic High School course.
2057          Section 53E-10-607, Electronic High School diploma.
2058          Section 53E-10-608, Review by legislative auditor general.
2059          Section 53E-10-609, State contribution for the Electronic High School.
2060          Section 53F-2-313, Weighted pupil units for career and technical education
2061     set-aside programs.
2062          Section 53F-2-413, Alternative programs.
2063          Section 53F-2-517, Quality Teaching Block Grant Program -- State contributions.
2064          Section 53F-2-518, Appropriation for retirement and social security.
2065          Section 53F-4-206, Computer program for students with autism and other special
2066     needs.
2067          Section 53F-4-301.5, Findings and purpose.
2068          Section 53F-5-208, Reading Performance Improvement Scholarship Program.
2069          Section 53F-6-202, Smart School Technology Program.
2070          Section 53G-3-103, Legislative findings.
2071          Section 53G-4-1001.5, Purpose of part.
2072          Section 53G-11-501.5, Legislative findings.
2073          Section 63N-3-110, Selection of educational technology provider to implement

2074     whole-school one-to-one mobile device technology deployment plan for schools.






Legislative Review Note
Office of Legislative Research and General Counsel