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     Committee Note:
9          The Economic Development and Workforce Services Interim Committee recommended
10     this bill.
11               Legislative Vote:     10 voting for     0 voting against     7 absent
12     General Description:
13          This bill modifies provisions related to the Department of Heritage and Arts.
14     Highlighted Provisions:
15          This bill:
16          ▸     defines terms;
17          ▸     modifies and describes the powers and duties of the Division of Arts and Museums
18     within the Department of Heritage and Arts;
19          ▸     describes the creation, membership, and duties of the Utah Arts Advisory Board and
20     the Utah Museums Advisory Board;
21          ▸     describes the requirements and purposes of the Utah Arts and Museums Endowment
22     Fund, formerly known as the Utah Arts Endowment Fund;
23          ▸     repeals provisions related to the State-Owned Collections Inventory Study Program
24     Act and the Arts and Culture Business Alliance Act; and
25          ▸     makes technical changes.
26     Money Appropriated in this Bill:
27          None
28     Other Special Clauses:
29          None
30     Utah Code Sections Affected:
31     AMENDS:
32          9-6-102, as last amended by Laws of Utah 2017, Chapter 48
33          9-6-201, as last amended by Laws of Utah 2017, Chapter 48
34          9-6-202, as last amended by Laws of Utah 2015, Chapter 350
35          9-6-203, as last amended by Laws of Utah 2010, Chapter 378
36          9-6-501, as renumbered and amended by Laws of Utah 1992, Chapter 241
37          9-6-502, as last amended by Laws of Utah 2013, Chapter 400
38          9-6-503, as last amended by Laws of Utah 2011, Chapter 342
39          9-6-504, as last amended by Laws of Utah 2010, Chapter 378
40          9-6-505, as last amended by Laws of Utah 2010, Chapter 324
41          9-6-506, as last amended by Laws of Utah 2011, Chapter 342
42          9-6-507, as last amended by Laws of Utah 2016, Chapter 348
43          9-6-508, as renumbered and amended by Laws of Utah 1992, Chapter 241
44          13-22-6, as last amended by Laws of Utah 2015, Chapter 120
45          59-12-701, as last amended by Laws of Utah 2003, Chapter 296
46          59-12-704, as last amended by Laws of Utah 2016, Chapter 344
47          63C-9-601, as last amended by Laws of Utah 2018, Chapter 65
48     ENACTS:
49          9-1-101, Utah Code Annotated 1953
50          9-6-101, Utah Code Annotated 1953
51     REPEALS AND REENACTS:
52          9-6-301, as last amended by Laws of Utah 2006, Chapter 24
53          9-6-302, as last amended by Laws of Utah 1993, Chapters 4 and 78
54          9-6-303, as renumbered and amended by Laws of Utah 1992, Chapter 241
55          9-6-304, as renumbered and amended by Laws of Utah 1992, Chapter 241
56          9-6-305, as last amended by Laws of Utah 2018, Chapter 65
57          9-6-306, as last amended by Laws of Utah 2018, Chapter 65
58     REPEALS:
59          9-6-204, as last amended by Laws of Utah 2012, Chapter 212
60          9-6-205, as last amended by Laws of Utah 2017, Chapter 48
61          9-6-307, as last amended by Laws of Utah 2006, Chapter 24
62          9-6-602, as renumbered and amended by Laws of Utah 2006, Chapter 24
63          9-6-603, as last amended by Laws of Utah 2017, Chapter 48
64          9-6-604, as last amended by Laws of Utah 2012, Chapter 212
65          9-6-605, as last amended by Laws of Utah 2017, Chapter 48
66          9-6-606, as renumbered and amended by Laws of Utah 2006, Chapter 24
67          9-6-701, as enacted by Laws of Utah 2006, Chapter 229
68          9-6-702, as enacted by Laws of Utah 2006, Chapter 229
69          9-6-703, as enacted by Laws of Utah 2006, Chapter 229
70          9-6-704, as last amended by Laws of Utah 2010, Chapter 286
71          9-6-801, as enacted by Laws of Utah 2015, Chapter 350
72          9-6-802, as enacted by Laws of Utah 2015, Chapter 350
73          9-6-803, as enacted by Laws of Utah 2015, Chapter 350
74          9-6-804, as enacted by Laws of Utah 2015, Chapter 350
75          9-6-805, as enacted by Laws of Utah 2015, Chapter 350
76          9-6-806, as enacted by Laws of Utah 2015, Chapter 350
77     

78     Be it enacted by the Legislature of the state of Utah:
79          Section 1. Section 9-1-101 is enacted to read:
80     
CHAPTER 1. GENERAL POLICIES AND ADMINISTRATION OF THE

81     
DEPARTMENT OF HERITAGE AND ARTS

82          9-1-101. Title.
83          (1) This title is known as "Heritage, Arts, Libraries, and Cultural Development."
84          (2) This chapter is known as "General Policies and Administration of the Department
85     of Heritage and Arts."
86          Section 2. Section 9-6-101 is enacted to read:
87     
CHAPTER 6. ARTS AND MUSEUMS DEVELOPMENT

88          9-6-101. Title.
89          This chapter is known as "Arts and Museums Development."
90          Section 3. Section 9-6-102 is amended to read:
91          9-6-102. Definitions.
92          As used in this chapter:
93          [(1) "Advisory board" means the Museum Services Advisory Board created in Section
94     9-6-604.]
95          (1) "Arts" means the various branches of creative human activity, including visual arts,
96     film, performing arts, sculpture, literature, music, theater, dance, digital arts, video-game arts,
97     and cultural vitality.
98          (2) ["Board"] "Arts board" means the [Board of Directors of the] Utah Arts [Council]
99     Advisory Board created in Section [9-6-204] 9-6-301.
100          [(3) "Council" means the Utah Arts Council created in Section 9-6-301.]
101          (3) "Development" includes:
102          (a) constructing, expanding, or repairing a museum or other facility that houses arts or
103     cultural presentations;
104          (b) providing for public information, preservation, and access to museums, the arts,
105     and the cultural heritage of the state; and
106          (c) supporting the professional development of artists, cultural administrators, and
107     cultural leaders within the state.
108          (4) "Director" means the director of the Division of Arts and Museums.
109          (5) "Division" means the Division of Arts and Museums.
110          (6) "Museum" means an organized and permanent institution that:
111          (a) is owned or controlled by the state, a county, or a municipality, or is a nonprofit
112     organization;
113          (b) has an educational or aesthetic purpose;
114          (c) owns or curates a tangible collection; and
115          (d) exhibits the collection to the public on a regular schedule.
116          [(7) "Office" means the Office of Museum Services created in Section 9-6-602.]
117          (7) "Museums board" means the Utah Museums Advisory Board created in Section
118     9-6-305.
119          Section 4. Section 9-6-201 is amended to read:
120          9-6-201. Division of Arts and Museums -- Creation -- Powers and duties.
121          (1) There is created within the department the Division of Arts and Museums under the
122     administration and general supervision of the executive director or the designee of the
123     executive director.
124          [(2) The division shall be under the policy direction of the board.]
125          [(3) The division shall advance the interests of the arts, in all their phases, within the
126     state, and to that end shall:]
127          [(a) cooperate with and locally sponsor federal agencies and projects directed to similar
128     undertakings;]
129          [(b) develop the influence of arts in education;]
130          [(c) involve the private sector, including businesses, charitable interests, educational
131     interests, manufacturers, agriculturalists, and industrialists in these endeavors;]
132          [(d) utilize broadcasting facilities and the power of the press in disseminating
133     information; and]
134          [(e) foster, promote, encourage, and facilitate, not only a more general and lively study
135     of the arts, but take all necessary and useful means to stimulate a more abundant production of
136     an indigenous art in this state.]
137          [(4) The board shall set policy to guide the division in accomplishing the purposes set
138     forth in Subsection (3).]
139          [(5) Except for arts development projects under Section 9-6-804, the division may not
140     grant funds for the support of any arts project under this section unless the project has been first
141     approved by the board.]
142          (2) The division shall:
143          (a) advance the interests of arts and museums in the state in all stages of development;
144          (b) promote and encourage the development of arts and culture in the state;
145          (c) support the efforts of state and local government and nonprofit arts, museums, and
146     cultural organizations to encourage the development of arts, museums, and culture in the state;
147          (d) provide assistance to museums in the state to improve museums' ability to:
148          (i) care for and manage collections;
149          (ii) develop quality educational resources such as exhibitions, collections, and
150     publications;
151          (iii) provide access to collections for research; and
152          (iv) provide other services as needed;
153          (e) assist arts and museum organizations in the state in cultural development as needed;
154          (f) cooperate with federal agencies and locally sponsor federal projects directed to the
155     development of arts, museums, and culture in the state;
156          (g) develop the influence of arts in education and life-long learning;
157          (h) cooperate with the private sector, including businesses, charitable interests,
158     educational interests, manufacturers, agriculturalists, and industrialists in arts, museums, and
159     cultural endeavors;
160          (i) disseminate information related to arts, museums, and culture by utilizing broadcast
161     media and print media;
162          (j) foster, promote, encourage, and facilitate the study, creation, and appreciation of the
163     arts, museums, and culture in the state;
164          (k) foster, promote, encourage, and facilitate, the study, creation, and appreciation of
165     the works of indigenous artists in the state;
166          (l) advise state and local government agencies and employees regarding arts and
167     museums related issues, including arts and museums capital development projects;
168          (m) provide technical advice and information about sources of technical assistance to
169     arts, museums, and cultural organizations in the state;
170          (n) develop, coordinate, and support programs, workshops, seminars, and similar
171     activities that provide training for staff members of arts, museums, and cultural organizations
172     in the state;
173          (o) undertake research to understand the training needs of the arts, museums, and
174     cultural organizations community and assess how those needs can be met;
175          (p) administer grant programs to assist eligible arts, museums, and cultural
176     organizations in the state; and
177          (q) create strategic partnerships to advance the development of arts, museums, and
178     cultural organizations in the state.
179          Section 5. Section 9-6-202 is amended to read:
180          9-6-202. Division director.
181          (1) The chief administrative officer of the division shall be a director appointed by the
182     executive director in consultation with the [board and the advisory board] arts board and the
183     museums board.
184          (2) The director shall be a person experienced in administration and knowledgeable
185     about the arts and museums.
186          (3) In addition to the division, the director is the chief administrative officer for:
187          (a) [the Board of Directors of] the Utah Arts [Council] Advisory Board created in
188     Section [9-6-204;] 9-6-301; and
189          [(b) the Utah Arts Council created in Section 9-6-301;]
190          [(c) the Office of Museum Services created in Section 9-6-602;]
191          [(d)] (b) the [Museum Services] Utah Museums Advisory Board created in Section
192     [9-6-604; and] 9-6-305.
193          [(e) the Arts and Culture Business Alliance created in Section 9-6-803.]
194          Section 6. Section 9-6-203 is amended to read:
195          9-6-203. Division powers relating to property.
196          (1) The division may:
197          (a) take by purchase, grant, gift, donation, devise, or bequest, any property, real or
198     personal, for any purpose appropriate to [its objects] the objectives of the division; and
199          (b) convert property received by gift, grant, donation, devise, or bequest [and not
200     suitable for its uses] that is not suitable for the objectives of the division, into other [property
201     so] available property or into money.
202          (2) The property received or converted under Subsection (1) shall be held, invested,
203     and managed and [its] the proceeds used by the division for the purposes and under the
204     conditions prescribed in the grant or donation.
205          (3) If by the terms of any grant, gift, donation, devise, or bequest, conditions are
206     imposed that are impracticable under the law, the grant or donation does not fail but the
207     unlawful or impracticable conditions shall be rejected and the intent of the grantor or donor
208     shall be reasonably carried out as [nearly as may be] determined by the division.
209          (4) A grant, gift, donation, devise, or bequest for the benefit of the division may not be
210     defeated or prejudiced by any misnomer, misdescription, or informality if the intention of the
211     grantor or donor can be shown or ascertained with reasonable certainty as determined by the
212     division.
213          Section 7. Section 9-6-301 is repealed and reenacted to read:
214     
Part 3. Advisory Boards

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