1     
ARTS AND MUSEUMS REVISIONS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Suzanne Harrison

5     
Senate Sponsor: David P. Hinkins

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Department of Heritage and Arts.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     modifies and describes the powers and duties of the Division of Arts and Museums
14     within the Department of Heritage and Arts;
15          ▸     describes the creation, membership, and duties of the Utah Arts Advisory Board and
16     the Utah Museums Advisory Board;
17          ▸     describes the requirements and purposes of the Utah Arts and Museums Endowment
18     Fund, formerly known as the Utah Arts Endowment Fund;
19          ▸     repeals provisions related to the State-Owned Collections Inventory Study Program
20     Act and the Arts and Culture Business Alliance Act; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:
28          9-6-102, as last amended by Laws of Utah 2017, Chapter 48
29          9-6-201, as last amended by Laws of Utah 2017, Chapter 48
30          9-6-202, as last amended by Laws of Utah 2015, Chapter 350
31          9-6-203, as last amended by Laws of Utah 2010, Chapter 378
32          9-6-501, as renumbered and amended by Laws of Utah 1992, Chapter 241
33          9-6-502, as last amended by Laws of Utah 2013, Chapter 400
34          9-6-503, as last amended by Laws of Utah 2011, Chapter 342
35          9-6-504, as last amended by Laws of Utah 2010, Chapter 378
36          9-6-505, as last amended by Laws of Utah 2010, Chapter 324
37          9-6-506, as last amended by Laws of Utah 2011, Chapter 342
38          9-6-507, as last amended by Laws of Utah 2016, Chapter 348
39          9-6-508, as renumbered and amended by Laws of Utah 1992, Chapter 241
40          13-22-6, as last amended by Laws of Utah 2015, Chapter 120
41          59-12-701, as last amended by Laws of Utah 2003, Chapter 296
42          59-12-704, as last amended by Laws of Utah 2016, Chapter 344
43          63C-9-601, as last amended by Laws of Utah 2018, Chapter 65
44     ENACTS:
45          9-1-101, Utah Code Annotated 1953
46          9-6-101, Utah Code Annotated 1953
47     REPEALS AND REENACTS:
48          9-6-301, as last amended by Laws of Utah 2006, Chapter 24
49          9-6-302, as last amended by Laws of Utah 1993, Chapters 4 and 78
50          9-6-303, as renumbered and amended by Laws of Utah 1992, Chapter 241
51          9-6-304, as renumbered and amended by Laws of Utah 1992, Chapter 241
52          9-6-305, as last amended by Laws of Utah 2018, Chapter 65
53          9-6-306, as last amended by Laws of Utah 2018, Chapter 65
54     REPEALS:
55          9-6-204, as last amended by Laws of Utah 2012, Chapter 212
56          9-6-205, as last amended by Laws of Utah 2017, Chapter 48
57          9-6-307, as last amended by Laws of Utah 2006, Chapter 24
58          9-6-602, as renumbered and amended by Laws of Utah 2006, Chapter 24
59          9-6-603, as last amended by Laws of Utah 2017, Chapter 48
60          9-6-604, as last amended by Laws of Utah 2012, Chapter 212
61          9-6-605, as last amended by Laws of Utah 2017, Chapter 48
62          9-6-606, as renumbered and amended by Laws of Utah 2006, Chapter 24
63          9-6-701, as enacted by Laws of Utah 2006, Chapter 229
64          9-6-702, as enacted by Laws of Utah 2006, Chapter 229
65          9-6-703, as enacted by Laws of Utah 2006, Chapter 229
66          9-6-704, as last amended by Laws of Utah 2010, Chapter 286
67          9-6-801, as enacted by Laws of Utah 2015, Chapter 350
68          9-6-802, as enacted by Laws of Utah 2015, Chapter 350
69          9-6-803, as enacted by Laws of Utah 2015, Chapter 350
70          9-6-804, as enacted by Laws of Utah 2015, Chapter 350
71          9-6-805, as enacted by Laws of Utah 2015, Chapter 350
72          9-6-806, as enacted by Laws of Utah 2015, Chapter 350
73     

74     Be it enacted by the Legislature of the state of Utah:
75          Section 1. Section 9-1-101 is enacted to read:
76     
CHAPTER 1. GENERAL POLICIES AND ADMINISTRATION OF THE

77     
DEPARTMENT OF HERITAGE AND ARTS

78          9-1-101. Title.
79          (1) This title is known as "Heritage, Arts, Libraries, and Cultural Development."
80          (2) This chapter is known as "General Policies and Administration of the Department
81     of Heritage and Arts."
82          Section 2. Section 9-6-101 is enacted to read:
83     
CHAPTER 6. ARTS AND MUSEUMS DEVELOPMENT

84          9-6-101. Title.
85          This chapter is known as "Arts and Museums Development."
86          Section 3. Section 9-6-102 is amended to read:
87          9-6-102. Definitions.
88          As used in this chapter:
89          [(1) "Advisory board" means the Museum Services Advisory Board created in Section
90     9-6-604.]
91          (1) "Arts" means the various branches of creative human activity, including visual arts,
92     film, performing arts, sculpture, literature, music, theater, dance, digital arts, video-game arts,
93     and cultural vitality.
94          (2) ["Board"] "Arts board" means the [Board of Directors of the] Utah Arts [Council]
95     Advisory Board created in Section [9-6-204] 9-6-301.
96          [(3) "Council" means the Utah Arts Council created in Section 9-6-301.]
97          (3) "Development" includes:
98          (a) constructing, expanding, or repairing a museum or other facility that houses arts or
99     cultural presentations;
100          (b) providing for public information, preservation, and access to museums, the arts,
101     and the cultural heritage of the state; and
102          (c) supporting the professional development of artists, cultural administrators, and
103     cultural leaders within the state.
104          (4) "Director" means the director of the Division of Arts and Museums.
105          (5) "Division" means the Division of Arts and Museums.
106          (6) "Museum" means an organized and permanent institution that:
107          (a) is owned or controlled by the state, a county, or a municipality, or is a nonprofit
108     organization;
109          (b) has an educational or aesthetic purpose;
110          (c) owns or curates a tangible collection; and
111          (d) exhibits the collection to the public on a regular schedule.
112          [(7) "Office" means the Office of Museum Services created in Section 9-6-602.]
113          (7) "Museums board" means the Utah Museums Advisory Board created in Section
114     9-6-305.
115          Section 4. Section 9-6-201 is amended to read:
116          9-6-201. Division of Arts and Museums -- Creation -- Powers and duties.
117          (1) There is created within the department the Division of Arts and Museums under the
118     administration and general supervision of the executive director or the designee of the
119     executive director.
120          [(2) The division shall be under the policy direction of the board.]
121          [(3) The division shall advance the interests of the arts, in all their phases, within the
122     state, and to that end shall:]
123          [(a) cooperate with and locally sponsor federal agencies and projects directed to similar
124     undertakings;]
125          [(b) develop the influence of arts in education;]
126          [(c) involve the private sector, including businesses, charitable interests, educational
127     interests, manufacturers, agriculturalists, and industrialists in these endeavors;]
128          [(d) utilize broadcasting facilities and the power of the press in disseminating
129     information; and]
130          [(e) foster, promote, encourage, and facilitate, not only a more general and lively study
131     of the arts, but take all necessary and useful means to stimulate a more abundant production of
132     an indigenous art in this state.]
133          [(4) The board shall set policy to guide the division in accomplishing the purposes set
134     forth in Subsection (3).]
135          [(5) Except for arts development projects under Section 9-6-804, the division may not
136     grant funds for the support of any arts project under this section unless the project has been first
137     approved by the board.]
138          (2) The division shall:
139          (a) advance the interests of arts and museums in the state in all stages of development;
140          (b) promote and encourage the development of arts and culture in the state;
141          (c) support the efforts of state and local government and nonprofit arts, museums, and
142     cultural organizations to encourage the development of arts, museums, and culture in the state;
143          (d) provide assistance to museums in the state to improve museums' ability to:
144          (i) care for and manage collections;
145          (ii) develop quality educational resources such as exhibitions, collections, and
146     publications;
147          (iii) provide access to collections for research; and
148          (iv) provide other services as needed;
149          (e) assist arts and museum organizations in the state in cultural development as needed;
150          (f) cooperate with federal agencies and locally sponsor federal projects directed to the
151     development of arts, museums, and culture in the state;
152          (g) develop the influence of arts in education and life-long learning;
153          (h) cooperate with the private sector, including businesses, charitable interests,
154     educational interests, manufacturers, agriculturalists, and industrialists in arts, museums, and
155     cultural endeavors;
156          (i) disseminate information related to arts, museums, and culture by utilizing broadcast
157     media and print media;
158          (j) foster, promote, encourage, and facilitate the study, creation, and appreciation of the
159     arts, museums, and culture in the state;
160          (k) foster, promote, encourage, and facilitate, the study, creation, and appreciation of
161     the works of indigenous artists in the state;
162          (l) advise state and local government agencies and employees regarding arts and
163     museums related issues, including arts and museums capital development projects;
164          (m) provide technical advice and information about sources of technical assistance to
165     arts, museums, and cultural organizations in the state;
166          (n) develop, coordinate, and support programs, workshops, seminars, and similar
167     activities that provide training for staff members of arts, museums, and cultural organizations
168     in the state;
169          (o) undertake research to understand the training needs of the arts, museums, and
170     cultural organizations community and assess how those needs can be met;
171          (p) administer grant programs to assist eligible arts, museums, and cultural
172     organizations in the state; and
173          (q) create strategic partnerships to advance the development of arts, museums, and
174     cultural organizations in the state.
175          Section 5. Section 9-6-202 is amended to read:
176          9-6-202. Division director.
177          (1) The chief administrative officer of the division shall be a director appointed by the
178     executive director in consultation with the [board and the advisory board] arts board and the
179     museums board.
180          (2) The director shall be a person experienced in administration and knowledgeable
181     about the arts and museums.
182          (3) In addition to the division, the director is the chief administrative officer for:
183          (a) [the Board of Directors of] the Utah Arts [Council] Advisory Board created in
184     Section [9-6-204;] 9-6-301; and
185          [(b) the Utah Arts Council created in Section 9-6-301;]
186          [(c) the Office of Museum Services created in Section 9-6-602;]
187          [(d)] (b) the [Museum Services] Utah Museums Advisory Board created in Section
188     [9-6-604; and] 9-6-305.
189          [(e) the Arts and Culture Business Alliance created in Section 9-6-803.]
190          Section 6. Section 9-6-203 is amended to read:
191          9-6-203. Division powers relating to property.
192          (1) The division may:
193          (a) take by purchase, grant, gift, donation, devise, or bequest, any property, real or
194     personal, for any purpose appropriate to [its objects] the objectives of the division; and
195          (b) convert property received by gift, grant, donation, devise, or bequest [and not
196     suitable for its uses] that is not suitable for the objectives of the division, into other [property
197     so] available property or into money.
198          (2) The property received or converted under Subsection (1) shall be held, invested,
199     and managed and [its] the proceeds used by the division for the purposes and under the
200     conditions prescribed in the grant or donation.
201          (3) If by the terms of any grant, gift, donation, devise, or bequest, conditions are
202     imposed that are impracticable under the law, the grant or donation does not fail but the
203     unlawful or impracticable conditions shall be rejected and the intent of the grantor or donor
204     shall be reasonably carried out as [nearly as may be] determined by the division.
205          (4) A grant, gift, donation, devise, or bequest for the benefit of the division may not be
206     defeated or prejudiced by any misnomer, misdescription, or informality if the intention of the
207     grantor or donor can be shown or ascertained with reasonable certainty as determined by the
208     division.
209          Section 7. Section 9-6-301 is repealed and reenacted to read:
210     
Part 3. Advisory Boards

211          9-6-301. Utah Arts Advisory Board.
212          (1) There is created within the division the Utah Arts Advisory Board.
213          (2) (a) Except as provided in Subsections (2)(b) and (2)(f), the arts board shall consist
214     of 13 members appointed by the governor to four-year terms with the consent of the Senate.
215          (b) The governor shall, at the time of appointment or reappointment, adjust the length
216     of terms to ensure that the terms of arts board members are staggered so that approximately
217     half of the arts board is appointed every two years.
218          (c) The governor shall appoint eight members who are working artists or
219     administrators, one from each of the following areas:
220          (i) visual arts;
221          (ii) architecture or design;
222          (iii) literature;
223          (iv) music;
224          (v) folk, traditional, or native arts;
225          (vi) theater;
226          (vii) dance; and
227          (viii) media arts.
228          (d) The governor shall appoint three members who are knowledgeable in or
229     appreciative of the arts.
230          (e) The governor shall appoint two members who have expertise in technology,
231     marketing, business, or finance.
232          (f) Before January 1, 2026, the governor may appoint up to three additional members
233     who are knowledgeable in or appreciative of the arts:
234          (i) for terms that shall end before January 1, 2026; and
235          (ii) in which case the arts board may consist of up to 16 members until January 1,
236     2026.
237          (3) The governor shall appoint members from the state at large with due consideration
238     for geographical representation.
239          (4) When a vacancy occurs in the membership for any reason, the governor shall
240     appoint a replacement member for the unexpired term within one month from the time of the
241     vacancy.
242          (5) A simple majority of the voting members of the arts board constitutes a quorum for
243     the transaction of business.
244          (6) (a) The arts board members shall elect a chair and a vice chair from among the arts
245     board's members.
246          (b) The chair and the vice chair shall serve a term of two years.
247          (7) The arts board shall meet at least once each year.
248          (8) A member of the arts board may not receive compensation or benefits for the
249     member's service, but may receive per diem and travel expenses in accordance with:
250          (a) Sections 63A-3-106 and 63A-3-107; and
251          (b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
252     63A-3-107.
253          (9) Except as provided in Subsection (8), a member may not receive any gifts, prizes,
254     or awards of money from division funds during the member's term of office.
255          Section 8. Section 9-6-302 is repealed and reenacted to read:
256          9-6-302. Arts board powers and duties.
257          (1) The arts board may:
258          (a) with the concurrence of the director, make rules governing the conduct of the arts
259     board's business in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
260     Act; and
261          (b) receive gifts, bequests, and property.
262          (2) The arts board shall:
263          (a) act in an advisory capacity for the division;
264          (b) appoint an arts collection committee as described in Section 9-6-303 to advise the
265     division and the arts board regarding the works of art acquired and maintained under this part;
266     and
267          (c) with the concurrence of the director, approve the allocation of arts grant money and
268     State of Utah Alice Merrill Horne Art Collection acquisition funding.
269          Section 9. Section 9-6-303 is repealed and reenacted to read:
270          9-6-303. Art collection committee.
271          (1) (a) The arts board with the concurrence of the director shall appoint an arts
272     collection committee composed of any combination of artists, art historians, gallery owners,
273     knowledgeable art collectors, art appraisers, and judges of art.
274          (b) The arts collection committee shall make recommendations to the division and the
275     arts board regarding the works of art acquired and maintained as part of the State of Utah Alice
276     Merrill Horne Art Collection created in Section 9-6-304.
277          (2) (a) Except as provided in Subsection (2)(b), the arts board with the concurrence of
278     the director shall appoint each member of the arts collection committee to a four-year term.
279          (b) The arts board shall, at the time of appointment or reappointment, adjust the length
280     of the initial terms of arts collection committee members to ensure that the terms are staggered
281     so that approximately half of the arts collection committee is appointed every two years.
282          (3) When a vacancy occurs in the membership of the arts collection committee, the
283     replacement shall be recommended by the remaining members of the art collection committee
284     and then appointed by the arts board with the concurrence of the director for the unexpired
285     term.
286          (4) A member of the arts collection committee may not receive compensation or
287     benefits for the member's service, but may receive per diem and travel expenses in accordance
288     with:
289          (a) Sections 63A-3-106 and 63A-3-107; and
290          (b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
291     63A-3-107.
292          Section 10. Section 9-6-304 is repealed and reenacted to read:
293          9-6-304. State of Utah Alice Merrill Horne Art Collection.
294          (1) There is created the State of Utah Alice Merrill Horne Art Collection.
295          (2) The State of Utah Alice Merrill Horne Art Collection:
296          (a) consists of all works of art acquired under this part; and
297          (b) shall be held as the property of the state and under the control of the division.
298          (3) Works of art in the State of Utah Alice Merrill Horne Art Collection may be loaned
299     for exhibition purposes in accordance with recommendations from the arts board and rules
300     made by the division in accordance with Title 63G, Chapter 3, Utah Administrative
301     Rulemaking Act.
302          (4) The division shall:
303          (a) take reasonable precautions to avoid damage or destruction to works of art in the
304     State of Utah Alice Merrill Horne Art Collection;
305          (b) procure insurance coverage for the works of art in the State of Utah Alice Merrill
306     Horne Art Collection; and
307          (c) ensure that all works of art shipped to and from any exhibition under this section
308     are packed by an expert packer.
309          (5) (a) The division may only deaccession works of art in the State of Utah Alice
310     Merrill Horne Art Collection in accordance with rules made by the division in accordance with
311     Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
312          (b) A work of art in the State of Utah Alice Merrill Horne Art Collection that is to be
313     deaccessioned in accordance with division rule is not state surplus property as that term is
314     defined in Section 63A-2-101.5, and the division is not subject to the surplus property program
315     described in Section 63A-2-401 for that work of art.
316          Section 11. Section 9-6-305 is repealed and reenacted to read:
317          9-6-305. Utah Museums Advisory Board.
318          (1) There is created within the division the Utah Museums Advisory Board.
319          (2) (a) Except as provided in Subsection (2)(b), the museums board shall consist of 11
320     members appointed by the governor to four-year terms.
321          (b) The governor shall, at the time of appointment or reappointment, adjust the length
322     of terms to ensure that the terms of museums board members are staggered so that
323     approximately half of the museums board is appointed every two years.
324          (3) The governor shall ensure that the museums board includes:
325          (a) three members who are qualified, trained, and experienced museum professionals,
326     have a minimum of five years continuous paid work experience at a museum, and are selected
327     from among recommendations proposed by the Utah Museums Association;
328          (b) at least three additional members who are qualified, trained, and experienced
329     museum professionals; and
330          (c) remaining members who have demonstrated an active interest in Utah's museums.
331          (4) The governor shall appoint members from the state at large with due consideration
332     for geographical representation.
333          (5) When a vacancy occurs in the membership for any reason, the governor shall
334     appoint a replacement member for the unexpired term within one month from the time of the
335     vacancy.
336          (6) A member of the museums board may only be reappointed for one additional term
337     unless the governor determines that unusual circumstances warrant an additional term.
338          (7) (a) The museums board members shall elect a chair and a vice chair from among
339     the museums board's members.
340          (b) The chair and the vice chair shall serve a term of two years.
341          (8) A simple majority of the voting members of the museums board constitutes a
342     quorum for the transaction of business.
343          (9) The museums board shall meet at least once each year.
344          (10) A member of the museums board may not receive compensation or benefits for
345     the member's service, but may receive per diem and travel expenses in accordance with:
346          (a) Sections 63A-3-106 and 63A-3-107; and
347          (b) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
348     63A-3-107.
349          (11) Except as provided in Subsection (10), a member may not receive a gift, prize, or
350     award of money from division funds during the member's term of office.
351          Section 12. Section 9-6-306 is repealed and reenacted to read:
352          9-6-306. Museums board power and duties.
353          (1) The museums board may, with the concurrence of the director, make rules in
354     accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing:
355          (a) the museum grants program; and
356          (b) the awarding of grant money to assist Utah's eligible museums.
357          (2) The museums board shall:
358          (a) act in an advisory capacity for the division, including making recommendations
359     regarding the museum grants program and the awarding of grant money; and
360          (b) with the concurrence of the director, approve the awarding of museum grant money
361     to assist Utah's eligible museums.
362          Section 13. Section 9-6-501 is amended to read:
363          9-6-501. Definitions.
364          As used in this part:
365          (1) "Endowment fund" means any [arts] endowment fund created under this chapter by
366     a qualifying organization.
367          (2) "Qualifying organization" means any Utah nonprofit arts or museum organization
368     that qualifies under this chapter to create an endowment fund, receive state money into the
369     endowment fund, match state money deposited into the endowment fund, and expend interest
370     earned on the endowment fund.
371          (3) "State fund" means the Utah Arts and Museums Endowment Fund created [under]
372     in Section 9-6-502.
373          Section 14. Section 9-6-502 is amended to read:
374          9-6-502. Utah Arts and Museums Endowment Fund.
375          (1) There is created an expendable special revenue fund known as the "Utah Arts and
376     Museums Endowment Fund."
377          (2) The state fund shall be administered by the [board] division in accordance with
378     applicable law.
379          (3) Any administrative costs incurred by the [board] division shall be reviewed by the
380     appropriate appropriations committee of the Legislature.
381          (4) The state fund shall contain all money appropriated to [it] the state fund by the
382     Legislature, all federal funds received for purposes of this part, plus interest and other income
383     earned on [them] money in the state fund.
384          (5) [The purpose of the state fund is to provide money] The division shall distribute
385     money in the state fund to qualifying arts and museum organizations to [enable them to create]
386     assist those organizations in creating their own arts endowment funds [and to the board to
387     administer the state fund].
388          (6) The division may use money in the state fund for expenses related to administering
389     the state fund.
390          Section 15. Section 9-6-503 is amended to read:
391          9-6-503. Arts and museums endowment funds.
392          (1) Any Utah nonprofit arts or museum organization that meets the requirements
393     described in this part may create an endowment fund into which there may be deposited money
394     from the state fund.
395          (2) The principal of each endowment fund described in this section may not be
396     expended by the qualifying organization and shall be held in perpetuity solely by the qualifying
397     organization [or by the council on behalf of the qualifying organization. Only interest].
398          (3) Interest income earned on the amount in each endowment fund described in this
399     section may be expended by the qualifying organization.
400          (4) The principal of each endowment fund described in this section shall be invested in
401     accordance with Title 51, Chapter 7, State Money Management Act.
402          [(2)] (5) If a qualifying organization that creates an endowment fund as described in
403     this section receives:
404          (a) $50,000 or more from the state fund, the money shall be administered by the
405     qualifying organization's professional management in accordance with generally accepted
406     accounting principles [by the qualifying organization's professional management. Amounts];
407     or
408          (b) less than $50,000 from the state fund, the money shall be placed in a state trust and
409     agency fund [invested by the state treasurer, who] under the direction of the state treasurer, and
410     the state treasurer shall allocate interest income to the qualifying organization.
411          [(3)] (6) If an endowment fund is [invested by] under the direction of the state
412     treasurer, the state treasurer [the costs for this administration shall be deducted from the
413     interest income before allocations of interest income may be made] shall deduct administrative
414     costs related to the endowment fund before allocating any interest income to the qualifying
415     organization.
416          Section 16. Section 9-6-504 is amended to read:
417          9-6-504. Duties of the division.
418          The [board] division, in accordance with the provisions of this part, shall:
419          (1) allocate money from the state fund to the endowment fund created by a qualifying
420     organization under Section 9-6-503;
421          (2) determine the eligibility of each qualifying organization to receive money from the
422     state fund [into the endowment fund of the qualifying organization and be the final arbiter of
423     eligibility];
424          (3) determine the matching amount each qualifying organization shall raise in order to
425     qualify to receive money from the state fund;
426          (4) establish a date by which each qualifying organization shall provide its matching
427     funds;
428          (5) verify that matching funds have been provided by each qualifying organization by
429     the date determined in Subsection (4); and
430          (6) (a) in accordance with the provisions of this part and Title 63G, Chapter 3, Utah
431     Administrative Rulemaking Act, the division may establish criteria by rule [not otherwise
432     prescribed in this chapter] for determining the eligibility of qualifying organizations to receive
433     money from the state fund[.]; and
434          (b) in making rules under this Subsection (6), the division may consider the
435     recommendations of the arts board and the museums board.
436          Section 17. Section 9-6-505 is amended to read:
437          9-6-505. Eligibility requirements of qualifying arts organizations -- Allocation
438     limitations -- Matching requirements.
439          (1) Any qualifying organization may apply to receive money from the state fund to be
440     deposited in an endowment fund [it] the organization has created under [Subsection] Section
441     9-6-503[(1)]:
442          (a) if [it] the qualifying organization has received a grant from the [board] division
443     during one of the three years immediately before making application for state fund money
444     under this Subsection (1); or
445          (b) upon [approval by the board if it] recommendation of the arts board or the
446     museums board if the qualifying organization has not received a grant from the board within
447     the past three years.
448          (2) (a) The maximum amount that may be allocated to each qualifying organization
449     from the state fund shall be determined by the [board] division by calculating the average cash
450     income of the qualifying organization during the past three fiscal years as contained in the
451     qualifying organization's final reports on file with the [board] division.
452          (b) The [board] division shall notify each qualifying organization of the maximum
453     amount of money from the state fund for which [it] the qualifying organization qualifies.
454          [(b)] (c) The minimum amount that may be allocated to each qualifying organization
455     from the state fund is $2,500.
456          [(c)] (d) If the maximum amount for which the organization qualifies under the
457     calculation described in Subsection (2)(a) is less than $2,500, the organization may still apply
458     for $2,500.
459          (3) (a) After the [board] division determines that a qualifying organization is eligible to
460     receive money from the state fund and before any money is allocated to the qualifying
461     organization from the state fund, the qualifying organization shall match the amount qualified
462     for [by] with money raised and designated exclusively for that purpose.
463          (b) State money, in-kind contributions, and preexisting endowment gifts may not be
464     used to match money from the state fund.
465          (4) [Endowment match money] The amount of match money described in Subsection
466     (3) that a qualifying organization is required to provide shall be based on a sliding scale as
467     follows:
468          (a) any amount requested not exceeding $100,000 shall be matched one-to-one;
469          (b) any additional amount requested that makes the aggregate amount requested exceed
470     $100,000 but not exceed $500,000 shall be matched two-to-one; and
471          (c) any additional amount requested that makes the aggregate amount requested exceed
472     $500,000 shall be matched three-to-one.
473          (5) (a) Qualifying organizations shall raise the matching amount within three years
474     after applying for money from the state fund by a date determined by the [board] division.
475          (b) Money from the state fund shall be released to the qualifying organization only
476     upon verification by the board that the matching money has been received on or before the date
477     determined under Subsection (5)(a).
478          (c) Verification of matching funds shall be made by a certified public accountant.
479          [(c)] (d) Money from the state fund shall be released to qualifying organizations with
480     professional endowment management in increments not less than $20,000 as audited
481     confirmation of matching funds is received by the [board] division.
482          [(d)] (e) Money from the state fund shall be granted to each qualifying organization on
483     the basis of the matching funds [it] a qualifying organization has raised by the date determined
484     under Subsection (5)(a).
485          Section 18. Section 9-6-506 is amended to read:
486          9-6-506. Unallocated money.
487          Money in the state fund that is unallocated shall be reallocated by the [board] division
488     on a proportionate basis to qualifying organizations that raise 100% of their required match by
489     the date determined under Subsection 9-6-505(5)(a).
490          Section 19. Section 9-6-507 is amended to read:
491          9-6-507. Spending restrictions -- Return of endowment.
492          (1) [A qualifying organization, once it has received its endowment money from the
493     state fund, may] If a qualifying organization has received endowment money from the state
494     fund, the qualifying organization may not expend any of that money or the required matching
495     money in [its] the qualifying organization's endowment fund, but may expend only the interest
496     income earned on the money in [its] the endowment fund.
497          (2) If the [board] division determines that a qualifying organization has expended any
498     amount of the endowment money received from the state fund or any amount of the required
499     matching money[, the qualifying organization shall]:
500          (a) the qualifying organization shall return the amount [it] of money the qualifying
501     organization received from the state fund[. The board]; and
502          (b) the division shall reallocate any such returned money to qualifying organizations in
503     the manner as provided in Section 9-6-506.
504          Section 20. Section 9-6-508 is amended to read:
505          9-6-508. Federal match.
506          The creation of the state fund and the use of [its] state fund money to enable qualifying
507     organizations to create [their own] endowment funds may be construed as a state match for any
508     arts funding [from] provided by the federal government [that may be provided].
509          Section 21. Section 13-22-6 is amended to read:
510          13-22-6. Application for registration.
511          (1) An applicant for registration or renewal of registration as a charitable organization
512     shall:
513          (a) pay an application fee as determined under Section 63J-1-504; and
514          (b) submit an application on a form approved by the division which shall include:
515          (i) the organization's name, address, telephone number, facsimile number, if any, and
516     the names and addresses of any organizations or persons controlled by, controlling, or affiliated
517     with the applicant;
518          (ii) the specific legal nature of the organization, that is, whether the organization is an
519     individual, joint venture, partnership, limited liability company, corporation, association, or
520     other entity;
521          (iii) the names and residence addresses of the officers and directors of the organization;
522          (iv) the name and address of the registered agent for service of process and a consent to
523     service of process;
524          (v) the purpose of the solicitation and use of the contributions to be solicited;
525          (vi) the method by which the solicitation will be conducted and the projected length of
526     time the solicitation is to be conducted;
527          (vii) the anticipated expenses of the solicitation, including all commissions, costs of
528     collection, salaries, and any other items;
529          (viii) a statement of what percentage of the contributions collected as a result of the
530     solicitation are projected to remain available for application to the charitable purposes declared
531     in the application, including a satisfactory statement of the factual basis for the projected
532     percentage;
533          (ix) a statement of total contributions collected or received by the organization within
534     the calendar year immediately preceding the date of the application, including a description of
535     the expenditures made from or the use made of the contributions;
536          (x) a copy of any written agreements with any professional fund raiser involved with
537     the solicitation;
538          (xi) disclosure of any injunction, judgment, or administrative order or conviction of
539     any crime involving moral turpitude with respect to any officer, director, manager, operator, or
540     principal of the organization;
541          (xii) a copy of all agreements to which the applicant is, or proposes to be, a party
542     regarding the use of proceeds for the solicitation or fundraising;
543          (xiii) a statement of whether the charitable organization, or the charitable
544     organization's parent foundation, will be using the services of a professional fund raiser or of a
545     professional fund raising counsel or consultant;
546          (xiv) if either the charitable organization or the charitable organization's parent
547     foundation will be using the services of a professional fund raiser or a professional fund raising
548     counsel or consultant:
549          (A) a copy of all agreements related to the services; and
550          (B) an acknowledgment that fund raising in the state will not commence until both the
551     charitable organization, its parent foundation, if any, and the professional fund raiser or
552     professional fund raising counsel or consultant are registered and in compliance with this
553     chapter;
554          (xv) any documents required under Section 13-22-15; and
555          (xvi) any additional information the division may require by rule.
556          (2) If any information contained in the application for registration becomes incorrect or
557     incomplete, the applicant or registrant shall, within 30 days after the information becomes
558     incorrect or incomplete, correct the application or file the complete information required by the
559     division.
560          (3) In addition to the registration fee, an organization failing to file a registration
561     application or renewal by the due date or filing an incomplete registration application or
562     renewal shall pay an additional fee of $25 for each month or part of a month after the date on
563     which the registration application or renewal were due to be filed.
564          [(4) Notwithstanding Subsection (1)(a), the registration fee for a certified local
565     museum under Section 9-6-603 is $25 less than the registration fee established under
566     Subsection (1).]
567          Section 22. Section 59-12-701 is amended to read:
568          59-12-701. Purpose statement.
569          The Utah Legislature finds and declares that:
570          (1) Recreational and zoological facilities and the botanical, cultural, and zoological
571     organizations of the state of Utah enhance the quality of life of Utah's citizens, as well as the
572     continuing growth of Utah's tourist, convention, and recreational industries.
573          (2) Utah was the first state in this nation to create and financially support a state arts
574     agency[, now the Utah Arts Council, which is] and remains committed to the nurturing and
575     growth of cultural pursuits.
576          (3) Utah has provided, and intends to continue, the financial support of recreational and
577     zoological facilities and the botanical, cultural, and zoological organizations of this state.
578          (4) The state's support of its recreational and zoological facilities and its botanical,
579     cultural, and zoological organizations has not been sufficient to assure the continuing existence
580     and growth of these facilities and organizations, and the Legislature believes that local
581     government may wish to play a greater role in the support of these organizations.
582          (5) Without jeopardizing the state's ongoing support of its recreational and zoological
583     facilities and its botanical, cultural, and zoological organizations, the Legislature intends to
584     permit the counties of the state of Utah to enhance public financial support of Utah's publicly
585     owned or operated recreational and zoological facilities, and botanical, cultural, and zoological
586     organizations owned or operated by institutions or private nonprofit organizations, through the
587     imposition of a county sales and use tax.
588          (6) In a county of the first class, it is necessary and appropriate to allocate a tax
589     imposed under this part in a manner that provides adequate predictable support to a fixed
590     number of botanical and cultural organizations and that gives the county legislative body
591     discretion to allocate the tax revenues to other botanical and cultural organizations.
592          Section 23. Section 59-12-704 is amended to read:
593          59-12-704. Distribution of revenues -- Advisory board creation -- Determining
594     operating expenses -- Administrative charge.
595          (1) Except as provided in Subsections (3)(b) and (5), and subject to the requirements of
596     this section, any revenues collected by a county of the first class under this part shall be
597     distributed annually by the county legislative body to support cultural facilities, recreational
598     facilities, and zoological facilities and botanical organizations, cultural organizations, and
599     zoological organizations within that first class county as follows:
600          (a) 30% of the revenue collected by the county under this section shall be distributed
601     by the county legislative body to support cultural facilities and recreational facilities located
602     within the county;
603          (b) (i) subject to Subsection (1)(b)(ii) and except as provided in Subsection (1)(b)(iii),
604     16% of the revenue collected by the county under this section shall be distributed by the county
605     legislative body to support no more than three zoological facilities and zoological organizations
606     located within the county, having average annual operating expenses of $1,500,000 or more as
607     determined under Subsection (3), with:
608          (A) 63.5% of that revenue being distributed to support a zoological organization
609     having as its primary purpose the operation of a zoological park, or a zoological facility that is
610     part of or integrated with a zoological park;
611          (B) 28.25% of that revenue being distributed to support a zoological organization
612     having as its primary purpose the operation of an aquarium, or a zoological facility that is part
613     of or integrated with an aquarium; and
614          (C) 8.25% of that revenue being distributed to support a zoological organization having
615     as its primary purpose the operation of an aviary, or a zoological facility that is part of or
616     integrated with an aviary;
617          (ii) if more than one zoological organization or zoological facility qualifies to receive
618     the money described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall
619     distribute the money described in the subsection for which more than one zoological
620     organization or zoological facility qualifies to whichever zoological organization or zoological
621     facility the county legislative body determines is most appropriate, except that a zoological
622     organization or zoological facility may not receive money under more than one subsection
623     under Subsection (1)(b)(i); and
624          (iii) if no zoological organization or zoological facility qualifies to receive money
625     described in Subsection (1)(b)(i)(A), (B), or (C), the county legislative body shall distribute the
626     money described in the subsection for which no zoological organization or zoological facility
627     qualifies among the zoological organizations or zoological facilities qualifying for and
628     receiving money under the other subsections in proportion to the zoological organizations' or
629     zoological facilities' average annual operating expenses as determined under Subsection (3);
630          (c) (i) 45% of the revenue collected by the county under this section shall be distributed
631     to no more than 22 botanical organizations and cultural organizations with average annual
632     operating expenses of more than $250,000 as determined under Subsection (3);
633          (ii) subject to Subsection (1)(c)(iii), the county legislative body shall distribute the
634     money described in Subsection (1)(c)(i) among the botanical organizations and cultural
635     organizations in proportion to their average annual operating expenses as determined under
636     Subsection (3); and
637          (iii) the amount distributed to any botanical organization or cultural organization
638     described in Subsection (1)(c)(i) may not exceed 35% of the botanical organization's or cultural
639     organization's operating budget; and
640          (d) (i) 9% of the revenue collected by the county under this section shall be distributed
641     to botanical organizations and cultural organizations that do not receive revenue under
642     Subsection (1)(c)(i); and
643          (ii) the county legislative body shall determine how the money shall be distributed
644     among the botanical organizations and cultural organizations described in Subsection (1)(d)(i).
645          (2) (a) The county legislative body of each county shall create an advisory board to
646     advise the county legislative body on disbursement of funds to botanical organizations and
647     cultural organizations under Subsection (1)(c)(i).
648          (b) (i) The advisory board under Subsection (2)(a) shall consist of seven members
649     appointed by the county legislative body.
650          (ii) In a county of the first class, two of the seven members of the advisory board under
651     Subsection (2)(a) shall be appointed [from the Utah Arts Council] by the Division of Arts and
652     Museums created in Section 9-6-201.
653          (3) (a) Except as provided in Subsection (3)(b), to be eligible to receive money
654     collected by the county under this part, a botanical organization, cultural organization,
655     zoological organization, and zoological facility located within a county of the first class shall,
656     every year:
657          (i) calculate its average annual operating expenses based upon audited operating
658     expenses for three preceding fiscal years; and
659          (ii) submit to the appropriate county legislative body:
660          (A) a verified audit of annual operating expenses for each of those three preceding
661     fiscal years; and
662          (B) the average annual operating expenses as calculated under Subsection (3)(a)(i).
663          (b) The county legislative body may waive the operating expenses reporting
664     requirements under Subsection (3)(a) for organizations described in Subsection (1)(d)(i).
665          (4) When calculating average annual operating expenses as described in Subsection
666     (3), each botanical organization, cultural organization, and zoological organization shall use the
667     same three-year fiscal period as determined by the county legislative body.
668          (5) (a) By July 1 of each year, the county legislative body of a first class county may
669     index the threshold amount in Subsections (1)(c) and (d).
670          (b) Any change under Subsection (5)(a) shall be rounded off to the nearest $100.
671          (6) (a) In a county except for a county of the first class, the county legislative body
672     shall by ordinance provide for the distribution of the entire amount of the revenues generated
673     by the tax imposed by this section:
674          (i) as provided in this Subsection (6); and
675          (ii) as stated in the opinion question described in Subsection 59-12-703(1).
676          (b) Pursuant to an interlocal agreement established in accordance with Title 11,
677     Chapter 13, Interlocal Cooperation Act, a county described in Subsection (6)(a) may distribute
678     to a city, town, or political subdivision within the county revenues generated by a tax under this
679     part.
680          (c) The revenues distributed under Subsection (6)(a) or (b) shall be used for one or
681     more organizations or facilities defined in Section 59-12-702 regardless of whether the
682     revenues are distributed:
683          (i) directly by the county described in Subsection (6)(a) to be used for an organization
684     or facility defined in Section 59-12-702; or
685          (ii) in accordance with an interlocal agreement described in Subsection (6)(b).
686          (7) A county legislative body may retain up to 1.5% of the proceeds from a tax under
687     this part for the cost of administering this part.
688          (8) The commission shall retain and deposit an administrative charge in accordance
689     with Section 59-1-306 from the revenues the commission collects from a tax under this part.
690          Section 24. Section 63C-9-601 is amended to read:
691          63C-9-601. Responsibility for items.
692          Furniture, furnishings, fixtures, works of art, and decorative objects for which the board
693     has responsibility under this chapter are not subject to the custody or control of the State
694     Library Board, the State Library Division, the Division of Archives and Records Service, the
695     Division of State History, [the Office of Museum Services, the Utah Arts Council,] the
696     Division of Arts and Museums, the arts collection committee of the State of Utah Alice Merrill
697     Horne Art Collection [Committee], or any other state agency.
698          Section 25. Repealer.
699          This bill repeals:
700          Section 9-6-204, Utah Arts Council Board of Directors.
701          Section 9-6-205, Board powers and duties.
702          Section 9-6-307, Application of funds received by council.
703          Section 9-6-602, Office of Museum Services created -- Purpose.
704          Section 9-6-603, Duties of office.
705          Section 9-6-604, Museum Services Advisory Board -- Membership.
706          Section 9-6-605, Advisory board -- Duties.
707          Section 9-6-606, Office limitations.
708          Section 9-6-701, Title.
709          Section 9-6-702, Definitions.
710          Section 9-6-703, State-Owned Art Collections Inventory Study Program -- Division
711     duties -- Funding for the study program.
712          Section 9-6-704, State-Owned Art Collections Inventory Program Committee --
713     Membership -- Chair -- Expenses -- Duties.
714          Section 9-6-801, Title.
715          Section 9-6-802, Definitions.
716          Section 9-6-803, Arts and Culture Business Alliance -- Creation -- Members --
717     Vacancies.
718          Section 9-6-804, Alliance duties.
719          Section 9-6-805, Staff support -- Rulemaking.
720          Section 9-6-806, Arts and Culture Business Alliance Account -- Funding.