01-16 15:32 H.B. 253 1 Agriculture and Food Amendments 2025 GENERAL SESSION STATE OF UTAH Chief Sponsor: Carl R. Albrecht 2 3 LONG TITLE 4 General Description: 5 This bill addresses issues related to the regulation, oversight, or encouragement of 6 agriculture and food. 7 Highlighted Provisions: 8 This bill: 9 ▸ modifies the definition of "qualified veterinarian"; 10 ▸ changes references to the National Council on Weights and Measures; 11 ▸ changes the Utah Fertilizer Act to the Utah Plant Food Act, including modifying 12 definitions and making conforming references; 13 ▸ repeals the Utah Agriculture Certificate of Environmental Stewardship Program; 14 ▸ changes the time frames for annual fees under the Agricultural and Wildlife Damage 15 Prevention Act; 16 ▸ addresses the expiration of livestock brands; 17 ▸ modifies information to be provided to operate a livestock market; 18 ▸ amends the Domesticated Elk Act to address licensing, record retention, health 19 information, and marking of domesticated elk; 20 ▸ clarifies that money in the LeRay McAllister Working Farm and Ranch Fund Program is 21 nonlapsing; 22 ▸ changes the Agriculture Conservation Easement Account to an expendable special 23 revenue fund; 24 ▸ addresses use of money in the Agriculture Resource Development Fund to pay 25 administrative costs; 26 ▸ modifies the earmarking of sales and use taxes related to the Division of Conservation 27 within the Department of Agriculture and Food; 28 ▸ addresses grants under the agricultural water optimization program; and 29 ▸ makes technical and conforming changes. 30 Money Appropriated in this Bill: 31 None H.B. 253 01-16 15:32 32 Other Special Clauses: 33 None 34 Utah Code Sections Affected: 35 AMENDS: 36 3-1-4, as last amended by Laws of Utah 2010, Chapter 324 37 4-2-305, as enacted by Laws of Utah 2017, Chapter 86 and last amended by 38 Coordination Clause, Laws of Utah 2017, Chapter 345 39 4-2-901, as last amended by Laws of Utah 2024, Chapter 91 40 4-9-106, as renumbered and amended by Laws of Utah 2017, Chapter 345 41 4-9-107, as renumbered and amended by Laws of Utah 2017, Chapter 345 42 4-9-108, as renumbered and amended by Laws of Utah 2017, Chapter 345 43 4-9-109, as renumbered and amended by Laws of Utah 2017, Chapter 345 44 4-13-102, as last amended by Laws of Utah 2023, Chapter 528 45 4-13-103, as last amended by Laws of Utah 2020, Chapter 311 46 4-13-104, as last amended by Laws of Utah 2020, Chapter 311 47 4-13-105, as last amended by Laws of Utah 2020, Chapter 311 48 4-13-106, as last amended by Laws of Utah 2020, Chapter 311 49 4-13-108, as last amended by Laws of Utah 2020, Chapter 311 50 4-13-109, as last amended by Laws of Utah 2020, Chapter 311 51 4-13-110, as enacted by Laws of Utah 2020, Chapter 311 52 4-18-102, as last amended by Laws of Utah 2022, Chapter 68 53 4-18-103, as last amended by Laws of Utah 2023, Chapter 144 54 4-18-106, as last amended by Laws of Utah 2023, Chapters 126, 144 55 4-23-107, as renumbered and amended by Laws of Utah 2017, Chapter 345 56 4-24-202, as last amended by Laws of Utah 2022, Chapter 79 57 4-30-105, as last amended by Laws of Utah 2020, Chapter 154 58 4-39-203, as last amended by Laws of Utah 2017, Chapter 345 59 4-39-205, as last amended by Laws of Utah 2018, Chapter 355 60 4-39-206, as last amended by Laws of Utah 2017, Chapter 345 61 4-39-301, as last amended by Laws of Utah 2017, Chapter 345 62 4-39-303, as last amended by Laws of Utah 2024, Chapter 71 63 4-39-304, as last amended by Laws of Utah 2018, Chapter 355 64 4-41a-204, as last amended by Laws of Utah 2023, Chapter 327 65 4-46-302, as last amended by Laws of Utah 2024, Chapter 59 - 2 - 01-16 15:32 H.B. 253 66 4-46-304, as enacted by Laws of Utah 2023, Chapter 528 67 10-11-1, as last amended by Laws of Utah 2022, Chapter 432 68 59-12-103, as last amended by Laws of Utah 2024, Chapters 88, 501 69 63J-1-602.2, as last amended by Laws of Utah 2024, Chapters 241, 285, 425, and 467 70 73-10g-205, as last amended by Laws of Utah 2024, Chapter 233 71 REPEALS: 72 4-13-101, as renumbered and amended by Laws of Utah 2017, Chapter 345 73 4-18-107, as last amended by Laws of Utah 2017, Chapter 345 74 19-5-105.6, as enacted by Laws of Utah 2014, Chapter 383 75 76 Be it enacted by the Legislature of the state of Utah: 77 Section 1. Section 3-1-4 is amended to read: 78 3-1-4 . Purposes. 79 Such association may be organized for the purpose of engaging in any cooperative 80 activity for producers of agricultural products in connection with: 81 (1) producing, assembling, marketing, buying or selling agricultural products, or harvesting, 82 preserving, drying, processing, manufacturing, blending, canning, packing, ginning, 83 grading, storing, warehousing, handling, shipping, or utilizing such products, or 84 manufacturing or marketing the by-products thereof; 85 (2) seed and crop improvement, and soil conservation and rehabilitation; 86 (3) manufacturing, buying or supplying to its members and others, machinery, equipment, 87 feed, [fertilizer] plant food, coal, gasoline and other fuels, oils and other lubricants, 88 seeds, and all other agricultural and household supplies; 89 (4) generating and distributing electrical energy and furnishing telephone service to its 90 members and others; 91 (5) performing or furnishing business or educational services, on a co-operative basis, for or 92 to its members; or 93 (6) financing any of the above enumerated activities. 94 Section 2. Section 4-2-305 is amended to read: 95 4-2-305 . Preemption. 96 (1) Subject to concurrence with relevant federal laws and except as provided in Subsection 97 (4), the department has exclusive jurisdiction over regulation regarding: 98 (a) commercial feed, as described in Chapter 12, Utah Commercial Feed Act; 99 (b) fertilizer, as described in [Chapter 13, Utah Fertilizer Act] Chapter 13, Utah Plant - 3 - H.B. 253 01-16 15:32 100 Food Act; 101 (c) pesticides, as described in Chapter 14, Utah Pesticide Control Act; and 102 (d) seeds, as described in Chapter 16, Utah Seed Act. 103 (2) The regulation of commercial feed, fertilizer, pesticides, and seeds within the state is of 104 statewide concern, except as provided in Subsection (4), and this title occupies the 105 whole field of potential regulation. 106 (3) Except as provided in Subsection (4), a political subdivision of the state is prohibited 107 from regulating commercial feed, fertilizer, pesticides, and seeds, and local ordinances, 108 resolutions, amendments, regulations, or laws that seek to do so are void. 109 (4) Nothing in this section preempts or otherwise limits the authority of a political 110 subdivision to: 111 (a) adopt and enforce zoning regulations, fire codes, building codes, or waste disposal 112 restrictions; or 113 (b) in consultation with the department, enforce, maintain, amend, or otherwise continue 114 to implement a regulation created on or before January 1, 2017, related to the use of 115 pesticides and fertilizers in surface water and groundwater source water protection 116 areas. 117 Section 3. Section 4-2-901 is amended to read: 118 4-2-901 . Definitions. 119 As used in this part: 120 (1) "Animal shelter" means the same as that term is defined in Section 11-46-102. 121 (2) "Education loan" means a loan received for education at a domestic or foreign 122 institution of higher education, including a school or college of veterinary medicine. 123 (3) "Education loan balance" includes charges for paying off the balance of the loan. 124 (4) "Indian country" means the same as that term is defined in 18 U.S.C. Sec. 1151. 125 (5) "Livestock" means the same as that term is defined in Section 4-1-109. 126 (6) "Loan" means a loan that is made directly by, insured by, or guaranteed under a 127 government program of: 128 (a) a state; 129 (b) the United States; or 130 (c) a foreign government. 131 (7) "Maximum payment value" means the lesser of: 132 (a) the sum of a qualified veterinarian's education loan balances; or 133 (b) $20,000. - 4 - 01-16 15:32 H.B. 253 134 (8) "Program" means the Veterinarian Education Loan Repayment Program created in 135 Section 4-2-902. 136 (9) "Qualified veterinarian" means a veterinarian who has practiced, as defined by rule 137 made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as 138 a veterinarian: 139 (a) in an area of the state that is Indian country; 140 (b) in an animal shelter within the state operated by: 141 (i) a county; 142 (ii) a municipality; or 143 (iii) an organization that is exempt from federal income taxation under Section 144 501(c)(3), Internal Revenue Code; 145 (c) in any area of the state as an employee of the department; 146 (d) in any combination of the [places] areas described in Subsections (9)(a) through (c); 147 or 148 (e) with a practice that includes: 149 (i) at least 30% livestock medicine[.] ; or 150 (ii) at least 20% livestock medicine if the veterinarian practices at least 10% in any 151 combination of the areas described in Subsection (9)(a) through (c). 152 (10) "Veterinarian" means an individual licensed under Title 58, Chapter 28, Veterinary 153 Practice Act. 154 Section 4. Section 4-9-106 is amended to read: 155 4-9-106 . Weights and measures -- Specifications, tolerances, and technical data 156 published in National Institute of Standards and Technology Handbook govern. 157 Unless modified by the department, Handbook 44, Specifications, Tolerances, and Other 158 Technical Requirements for Weighing and Measuring Devices, National Institute of Standards 159 and Technology, adopted by the National [Conference] Council on Weights and Measures, 160 including supplements or revisions to Handbook 44, shall determine the specifications, 161 tolerances, and other technical requirements for devices used for: 162 (1) commercial weighing and measuring; 163 (2) law enforcement; 164 (3) data gathering; and 165 (4) other weighing and measuring purposes. 166 Section 5. Section 4-9-107 is amended to read: 167 4-9-107 . Adopting uniform packaging and labeling regulation. - 5 - H.B. 253 01-16 15:32 168 Unless modified by the department, the Uniform Packaging and Labeling Regulation, 169 adopted by the National [Conference] Council on Weights and Measures in Handbook 130, 170 Uniform Laws and Regulations in the Areas of Legal Metrology and Engine Fuel Quality, 171 National Institute of Standards and Technology, shall apply to packaging and labeling in the 172 state. 173 Section 6. Section 4-9-108 is amended to read: 174 4-9-108 . Adopting uniform regulation for the method of sale of commodities. 175 Unless modified by the department, the Uniform Regulation for the Method of Sale of 176 Commodities, adopted by the National [Conference] Council on Weights and Measures, in 177 Handbook 130, Uniform Laws and Regulations in the Areas of Legal Metrology and Engine 178 Fuel Quality, National Institute of Standards and Technology, shall apply to the method of sale 179 of commodities in the state. 180 Section 7. Section 4-9-109 is amended to read: 181 4-9-109 . Adopting uniform regulation for the voluntary registration of 182 servicepersons and service agencies for commercial weighing and measuring devices. 183 Unless modified by the department, the Uniform Regulation for the Voluntary 184 Registration of Servicepersons and Service Agencies for Commercial Weighing and 185 Measuring Devices, adopted by the National [Conference] Council on Weights and Measures 186 in Handbook 130, Uniform Laws and Regulations in the Areas of Legal Metrology and Engine 187 Fuel Quality, National Institute of Standards and Technology, shall apply to the registration of 188 servicepersons and service agencies in the state. 189 Section 8. Section 4-13-102 is amended to read: 190 CHAPTER 13. UTAH PLANT FOOD ACT 191 4-13-102 . Definitions. 192 As used in this chapter: 193 (1) "Adulterated[ fertilizer]" means [a fertilizer or soil amendment that] a plant food that: 194 (a) contains a deleterious or harmful substance in sufficient amount to render it injurious 195 to beneficial plant life, animals, humans, aquatic life, soil, or water when applied in 196 accordance with the directions for use on the label; 197 (b) has a composition that falls below or differs from that which the composition is 198 purported to possess by the composition's labeling; 199 (c) contains unwanted crop or weed seed; or 200 (d) exceeds levels of metals permitted by the United States Environmental Protection 201 Agency. - 6 - 01-16 15:32 H.B. 253 202 (2) "Beneficial [substances or compounds" means a substance or compound other than 203 primary, secondary, and micro plant nutrients that can be demonstrated by scientific 204 research to be beneficial to one or more species of plants when applied exogenously] 205 substance" means a substance or compound, other than a primary nutrient, secondary 206 nutrient, or micro plant nutrient, and excluding a pesticide, that can be demonstrated by 207 scientific research to be beneficial to one or more species of plants, soil, or media. 208 [(3) "Biostimulant" means a product containing naturally-occurring substances and 209 microbes that are used to stimulate plant growth, enhance resistance to plant pests, and 210 reduce abiotic stress.] 211 [(4)] (3) "Blender" means a person engaged in the business of blending or mixing [fertilizer, 212 soil amendments, or both] plant food. 213 [(5)] (4) "Brand" means a term, design, or trade mark used in connection with one or several 214 grades of [fertilizer or soil amendment] plant food. 215 [(6)] (5) "Bulk[ fertilizer]" means [fertilizer delivered to the purchaser either in solid or 216 liquid state in a non-packaged form to which a label cannot be attached] plant food 217 delivered to a purchaser in a non-packaged form. 218 [(7)] (6) "Custom blend" means a [fertilizer] plant food blended according to specification 219 provided to a blender in a soil test nutrient recommendation or to meet the specific 220 consumer request before blending. 221 [(8)] (7) "Deficiency" means the amount of nutrient found by analysis to be less than that 222 guaranteed. 223 [(9)] (8) "Derivation" means the source from which the guaranteed nutrients are derived. 224 [(10)] (9) "Distribute" means to [import, consign, manufacture, produce, compound, mix, 225 blend, or to offer for sale, sell, barter, or supply fertilizer or soil amendments in the state] 226 offer for sale, sell, exchange, or barter plant food. 227 [(11)] (10) "Distributor" means a person who distributes. 228 [(12)] (11) "Fertilizer" means a substance that contains one or more recognized plant 229 nutrients that is used for the substance's plant nutrient content and is designed for use or 230 claimed to have value in promoting plant growth, exclusive of unmanipulated animal 231 and vegetable manures, marl, lime, limestone, wood ashes, gypsum, and other products 232 exempted by rule. 233 [(13)] (12) "Fertilizer material" means a fertilizer that contains: 234 (a) quantities of no more than one of the primary plant nutrients, nitrogen (N), phosphate 235 (P2O5), Potash (K2O); - 7 - H.B. 253 01-16 15:32 236 (b) 85% plant nutrients in the form of a single chemical compound; or 237 (c) plant or animal residues or by-products, or a natural material deposit that is 238 processed so that its primary plant nutrients have not been materially changed, except 239 through purification and concentration. 240 [(14)] (13) "Grade" means the percentage of total nitrogen, available phosphate and soluble 241 potash stated in the same terms, order, and percentages as in the guaranteed analysis. 242 [(15)] (14)(a) "Guaranteed analysis" means the minimum percentage by weight of plant 243 nutrients claimed in the following order and form: 244 Total Nitrogen (N) ____ percent245 Available Phosphate (P2O5) ____ percent 246 Soluble Potash (K2O) ____ percent 247 (b) For unacidulated mineral phosphatic material and basic slag, bone, tankage, and 248 other organic phosphate or degree of fineness may also be guaranteed. 249 (c)(i) Guarantees for plant nutrients other than nitrogen, phosphorus, and potassium 250 may be permitted or required by rule of the department. 251 (ii) The guarantees for such other nutrients shall be expressed in the form of the 252 element. 253 (iii) The sources of such other nutrients, such as oxides, salt, chelates, may be 254 required to be stated on the application for registration and may be included as a 255 parenthetical statement on the label. 256 (iv) Other beneficial substances or compounds, determinable by laboratory methods, 257 also may be guaranteed by permission of the department. 258 (v) Any plant nutrients or other substances or compounds guaranteed are subject to 259 inspection and analysis in accord with the methods and rules prescribed by the 260 department. 261 [(16)] (15) "Investigational allowance" means an allowance for variations inherent in the 262 taking, preparation, and analysis of an official sample of [fertilizer or soil amendment] 263 plant food. 264 [(17)] (16) "Label" means the display of the written, printed, or graphic matter upon the 265 immediate container or statement accompanying [a fertilizer or soil amendment] plant 266 food. 267 [(18)] (17) "Labeling" means the written, printed, or graphic matter upon or accompanying [ 268 fertilizer or soil amendment] plant food, or advertisements, brochures, posters, television - 8 - 01-16 15:32 H.B. 253 269 and radio announcements used in promoting the sale of [fertilizers or soil amendments] 270 plant food. 271 [(19)] (18) "Lot" means a definite quantity identified by a combination of numbers, letters, 272 characters, or amount represented by a weight certificate from which every part is 273 uniform within recognized tolerances from which the distributor can be determined. 274 [(20)] (19) "Micro plant nutrient" means boron, chlorine, [colbalt] cobalt, copper, iron, 275 manganese, molybdenum, nickel, sodium, and zinc. 276 [(21)] (20) "Mixed fertilizer" means a fertilizer containing any combination or mixture of 277 fertilizer materials. 278 [(22) "Nonplant food ingredient" means a substance or compound other than the primary, 279 secondary, or micro nutrients.] 280 [(23)] (21) "Official sample" means a sample of [fertilizer or soil amendment] plant food 281 taken by the department and designated as "official." 282 [(24) "Other ingredients" means the non-soil amending ingredients present in soil 283 amendments.] 284 [(25)] (22) "Percent" or "percentage" means the percentage by weight. 285 [(26)] (23) "Plant amendment" means a substance applied to plants or seeds that is intended 286 to improve growth, yield, product quality, reproduction, flavor, or other favorable 287 characteristics of plants except fertilizer, soil amendments, agricultural liming materials, 288 animal and vegetable manure, pesticides, or plant regulators. 289 (24) "Plant biostimulant" means a substance, microorganism, or mixture of a substance and 290 microorganism, that, when applied to seeds, plants, the rhizosphere, soil, or other growth 291 media, act to support a plant's natural nutrition processes independently of the 292 biostimulant's nutrient content, and thereby improving: 293 (a) nutrient availability; 294 (b) uptake; 295 (c) use efficiency; 296 (d) tolerance to abiotic stress; and 297 (e) consequent growth, development, quality, or yield. 298 (25) "Plant food" means a fertilizer, soil amendment, beneficial substance, plant 299 amendment, plant biostimulant, plant inoculant, soil inoculant, or any combination of 300 these products. 301 (26) "Plant inoculant" means a product consisting of microorganisms to be applied to the 302 plant or soil for the purpose of enhancing the availability or uptake of plant nutrients - 9 - H.B. 253 01-16 15:32 303 through the root system. 304 (27) "Primary nutrient" includes total nitrogen, available phosphate, and soluble potash. 305 (28) "Registrant" means a person who registers a [fertilizer or a soil amendment] plant food 306 under this chapter. 307 (29) "Secondary nutrient" includes calcium, magnesium, and sulfur. 308 [(30) "Slow release fertilizer" means a fertilizer in a form that releases, or converts to a 309 plant-available form, plant nutrients at a slower rate relative to an appropriate reference 310 soluble product.] 311 [(31)] (30) "Soil amending ingredient" means a substance that will improve the physical, 312 chemical, biochemical, biological, or other characteristics of the soil. 313 [(32)] (31) "Soil amendment" means a substance or a mixture of substances that is intended 314 to improve the physical, chemical, biochemical, biological, or other characteristics of the 315 soil, except fertilizers, agricultural liming materials, unmanipulated animal manures, 316 unmanipulated vegetable manures, or pesticides. 317 (32) "Soil inoculant" means a microbial product that is applied to colonize the soil to 318 benefit the soil chemistry, biology, or structure. 319 (33) "Specialty fertilizer" means fertilizer distributed primarily for non-farm use, such as 320 home gardens, lawns, shrubbery, flowers, golf courses, municipal parks, cemeteries, 321 greenhouses, and nurseries. 322 (34) "Ton" means a net weight of 2,000 pounds avoirdupois. 323 Section 9. Section 4-13-103 is amended to read: 324 4-13-103 . Distribution of plant food -- Registration required -- Application -- 325 Fees -- Expiration -- Renewal -- Exemptions specified -- Blenders and mixers. 326 (1)(a) [A brand and grade of fertilizer or soil amendment shall be registered in the name 327 of the person whose name appears upon the label before being distributed in this state] 328 Before a plant food is distributed in this state, a person shall register the brand and 329 grade of the plant food in the name of the person whose name appears upon the label 330 of the plant food. 331 (b) [The] A person shall submit an application for registration[ shall be submitted] to the 332 department on a form prescribed and furnished by the department, and shall [be 333 accompanied by] accompany the application with payment of a fee determined by the 334 department pursuant to Subsection 4-2-103(2) for each brand and grade. 335 (c) Upon approval by the department, the department shall furnish a copy of the 336 registration [shall be furnished ]to the applicant. - 10 - 01-16 15:32 H.B. 253 337 (d)(i) A registration expires at midnight on December 31 of the year in which issued. 338 (ii) A registration is renewable for a period of one year upon the payment of an 339 annual registration renewal fee in an amount equal to the current applicable 340 original registration fee. 341 (iii) A person shall pay the renewal fee [shall be paid ]on or before December 31 of 342 each year. 343 (2) A distributor is not required to register [fertilizer] plant food that has been registered by 344 another person under this chapter if the label does not differ in any respect. 345 (3)(a) A blender is not required to register each grade of [fertilizer or soil amendment] 346 plant food formulated according to specifications provided by a consumer before 347 mixing, but is required to: 348 (i) license the name under which the business of blending or mixing is conducted; 349 (ii) pay an annual blenders license fee determined by the department pursuant to 350 Subsection 4-2-103(2); and 351 (iii) label the [fertilizer or soil amendment] plant food as provided in Section 4-13-104. 352 (b)(i) A blenders license expires at midnight on December 31 of the year in which 353 the license is issued. 354 (ii) A blenders license is renewable for a period of one year upon the payment of an 355 annual license renewal fee in an amount equal to the current applicable original 356 blenders license fee. 357 (iii) A renewal fee shall be paid on or before December 31 of each year. 358 (4)(a) [A] The department shall assess a tonnage fee [shall be assessed ]on fertilizer [and 359 soil amendment ]products sold in the state. 360 (b) The fee shall be determined by the department pursuant to Subsection 4-2-103(2). 361 (c) When more than one person is involved in the distribution of a fertilizer[ or soil 362 amendment], the final person who has the fertilizer [or soil amendment ]registered 363 and distributed to a non-registrant or consumer is responsible for reporting the 364 tonnage and paying the tonnage fee, unless the report and payment is made by a prior 365 distributor of the fertilizer[ or soil amendment]. 366 (d) [The] A person shall submit the tonnage report [shall be submitted ]on a form 367 provided by the department on or before December 31 annually covering shipments 368 made during the preceding 12-month period from November 1 to October 31. 369 (e) Revenue generated by the fee shall be deposited into the General Fund as dedicated 370 credits to be used by the department for education and research about and promotion - 11 - H.B. 253 01-16 15:32 371 of proper [fertilizer and soil amendment] plant food distribution, handling, and use. 372 Section 10. Section 4-13-104 is amended to read: 373 4-13-104 . Labeling requirements for fertilizer and soil amendments specified. 374 (1) A container of fertilizer distributed in this state shall bear a label in clearly legible and 375 conspicuous form setting forth the: 376 (a) brand name and grade; 377 (b) guaranteed analysis, except that: 378 (i) sources of nutrients, when shown on the label, shall be listed below the completed 379 guaranteed analysis in order of predominance; 380 (ii) guarantees of zeros may not be made and may not appear in statement except in 381 nutrient guarantee breakdowns; and 382 (iii) if chemical forms of nitrogen are claimed or required, the form shall be shown, 383 but no implied order of the forms of nitrogen is intended; 384 (c) subject to Subsection (12), derivation statement of guaranteed nutrients[, nonplant 385 food ingredients, and beneficial substances or compounds] if present; 386 (d) directions for use when applicable; 387 (e) caution or warning statement when applicable; 388 (f) name and address of the registrant or the manufacturer, if different from the registrant; 389 (g) net weight or volume; and 390 (h) lot number. 391 (2) A container of specialty fertilizer distributed in this state shall bear a label in clear, 392 legible, and conspicuous form setting forth the information specified in Subsections 393 (1)(a) through (h). 394 (3) A shipment of custom blend fertilizer shall be accompanied by a printed or written 395 statement setting forth the: 396 (a) information specified in Subsections (1)(a) through (c); 397 (b) name and address of the licensed blender; 398 (c) net weight or volume; and 399 (d) lot number. 400 (4) A person who ships fertilizer material shall accompany the shipment of fertilizer 401 material [shall be accompanied by] with a printed or written statement setting forth the: 402 (a) information specified in Subsections (1)(a) through (c); 403 (b) name and address of the registrant if different from the supplier or shipper; 404 (c) net weight or volume; and - 12 - 01-16 15:32 H.B. 253 405 (d) lot number. 406 [(5) The grade is not required on a fertilizer label when no primary nutrients are claimed or 407 are less than one percent.] 408 [(6) Additional nutrient guarantees may not be an extension of the grade statement and 409 shall be a separate line or include terms such as "plus," "with," or "including."] 410 [(7)] (5) A soil amendment or beneficial substance distributed in the state shall bear a label 411 in clearly legible and conspicuous form setting forth[ the]: 412 (a) the brand name; 413 (b) a statement of composition showing the amount of each non-nutritive ingredient, that 414 is the agent in a product primarily responsible for the intended effects using the 415 following format: 416 (i) for a soil amendment: 417 SOIL AMENDING INGREDIENTS418 1. Name of the ingredient % or other acceptable units 419 (ii) for a beneficial substance: 420 CONTAINS BENEFICIAL SUBSTANCE(S)421 1. Name of beneficial substance % or other acceptable units 422 2. Genus and species of microorganism viable CFU/cm3,/mL,/g, or other acceptable units 423 3. Name of the ingredient % or other acceptable units 424 (Substances shall include ingredient source, if applicable. Ex. humic acid from leonardite or saponin from Yucca schidigera) 425 [(b) guaranteed analysis, which includes:] 426 [(i) nonplant food ingredients separated out by soil amending ingredients and other total 427 ingredients, in that order, by percentages; and] 428 [(ii) nonsoil amending ingredients separating out beneficial substances and beneficial 429 compounds, in that order, by percentage or acceptable units;] 430 (c) the purpose of product; 431 (d) the direction for application; 432 (e) the caution or warning statement when applicable; 433 (f) the name and address of the registrant or the manufacturer, if different from the 434 registrant; and - 13 - H.B. 253 01-16 15:32 435 (g) the net weight or volume. 436 (6) In case of a bulk shipment, the information required by Subsection (5) in written or 437 printed form shall accompany delivery and be supplied to the purchaser at time of 438 delivery. 439 (7) The grade is not required on a fertilizer label when no primary nutrients are claimed or 440 are less than 1%. 441 (8) Additional nutrient guarantees may not be an extension of the grade statement and shall 442 be a separate line or include terms such as "plus," "with," or "including." 443 [(8)] (9) The department may require proof of claims made, usefulness, and value of the soil 444 amendments. 445 [(9) For evidence of proof the department may rely on experimental data, evaluations, or 446 advice supplied from such sources as the director of the Agricultural Experiment 447 Station. The experimental design shall be related to state conditions for which the 448 product is intended.] 449 (10) Information or a statement may not appear on a package, label, delivery slip, or 450 advertising matter that is false or misleading to the purchaser as to the use, value, 451 quality, analysis, type, or composition of the [soil amendment] plant food. 452 (11) A [fertilizer] plant food is misbranded if: 453 (a) the [fertilizer's] labeling is false or misleading in any particular; 454 (b) the [fertilizer] plant food is distributed under the name of another [fertilizer] plant food 455 product; 456 (c) the [fertilizer] plant food is not labeled as required; or 457 (d) the [fertilizer] plant food purports to be or is represented as [fertilizer] plant food, or is 458 represented as containing [a plant nutrient fertilizer] an ingredient that does not 459 conform with the definition of identity or any commonly accepted definitions of 460 official fertilizer terms. 461 (12) An abbreviation, brand name, trade mark, or trade name may not appear in a derivation 462 statement. 463 Section 11. Section 4-13-105 is amended to read: 464 4-13-105 . Enforcement -- Inspection and samples authorized -- Methods for 465 sampling and analysis prescribed -- Warrants. 466 (1) The department shall periodically sample, inspect, analyze, and test [fertilizers and soil 467 amendments] plant food distributed within this state to determine [if they comply] 468 whether the plant food complies with this chapter. - 14 - 01-16 15:32 H.B. 253 469 (2)(a) The methods of sampling and analysis shall be those adopted by the AOAC 470 International. 471 (b) In a case not covered by the methods adopted under Subsection (2)(a), or in a case 472 when a method is available in which improved applicability has been demonstrated, 473 the department may adopt appropriate methods from other sources. 474 (3) In determining whether a [fertilizer or soil amendment] plant food is deficient, the 475 department shall be guided solely by the official sample. 476 (4)(a) The department may enter any public or private premises or carriers during 477 regular business hours to have access to [fertilizers or soil amendments] plant food 478 and records relating to the distribution of [fertilizers and soil amendments] plant food 479 subject to this chapter. 480 (b) If admittance is refused, the department may proceed immediately to obtain an ex 481 parte warrant from the nearest court [of competent] with jurisdiction to allow entry 482 upon the premises for the purpose of making inspections and obtaining samples. 483 (5) The department shall distribute the results of an official sample. 484 (6) The department shall retain an official sample for a minimum of 90 days from the 485 issuance of a report. 486 Section 12. Section 4-13-106 is amended to read: 487 4-13-106 . Distribution of plant food not complying with labeling requirements 488 prohibited -- Penalty assessed -- Court action to vacate or amend finding authorized -- 489 Adulterated plant food. 490 (1) A person may not distribute in this state a [fertilizer, fertilizer material, soil amendment, 491 or specialty fertilizer] plant food if the official sample [thereof] of the plant food 492 establishes that the [fertilizer, fertilizer material, soil amendment, or specialty fertilizer] 493 plant food is deficient in the nutrients or ingredients guaranteed on the label by an 494 amount exceeding the values established by rule. 495 (2) The department shall evaluate and take administrative action the department prescribes 496 for a deficiency beyond the investigational allowances established by the department. 497 (3) A registrant aggrieved by the finding of an official sample deficiency may file a 498 complaint with a court [of competent] with jurisdiction to vacate or amend the finding of 499 the department. 500 (4) A person may not distribute in this state a plant food that is adulterated. 501 Section 13. Section 4-13-108 is amended to read: 502 4-13-108 . Denial, suspension, or revocation authorized -- Grounds -- Stop sale, - 15 - H.B. 253 01-16 15:32 503 use, or removal order authorized -- Court action -- Procedure -- Costs. 504 (1) The department may deny, revoke, or suspend the license for a blender or the 505 registration of a brand of [fertilizer or soil amendment] plant food upon satisfactory 506 evidence that the licensee or registrant has used fraudulent or deceptive practices in 507 licensure, registration, or distribution in this state. 508 (2)(a) The department may issue a "stop sale, use, or removal order" to the owner or 509 person in possession of any designated lot of [fertilizer or soil amendment] plant food 510 that the department finds or has reason to believe is being offered or exposed for sale 511 in violation of this chapter. 512 (b) The order shall be in writing and [fertilizer or soil amendment] plant food subject to 513 the order may not be moved or offered or exposed for sale, except upon the 514 subsequent written release of the department. 515 (c) Before a release is issued, the department may require the owner or person in 516 possession of the "stopped" lot to pay the expense incurred by the department in 517 connection with the withdrawal of the product from the market. 518 (3)(a) The department may seek in a court [of competent] with jurisdiction an order of 519 seizure or condemnation of any [fertilizer] plant food that violates this chapter or, 520 upon proper grounds, to obtain a temporary restraining order or permanent 521 injunction, to prevent violation of this chapter. 522 (b) A bond may not be required of the department in any injunctive proceeding under 523 this section. 524 (4) If condemnation is ordered, the [fertilizer or soil amendment] plant food shall be 525 disposed of as the court directs, except that the court may not order condemnation 526 without giving the claimant of the [fertilizer or soil amendment] plant food an 527 opportunity to apply to the court for permission to relabel, reprocess, or otherwise bring 528 the product into conformance, or to remove the [fertilizer or soil amendment] plant food 529 from the state. 530 (5) If the court orders condemnation of the [fertilizer or soil amendment] plant food, court 531 costs, fees, storage, and other expenses shall be awarded against the claimant of the [ 532 fertilizer or soil amendment] plant food. 533 Section 14. Section 4-13-109 is amended to read: 534 4-13-109 . Sales or exchanges of plant food between manufacturers, importers, or 535 manipulators permitted. 536 This chapter may not be construed to restrict or avoid sales or exchanges of [fertilizers - 16 - 01-16 15:32 H.B. 253 537 or soil amendments] plant food to each other by importers, manufacturers, or manipulators who 538 mix [fertilizer or soil amendment] plant food materials for sale or as preventing the free and 539 unrestricted shipment of [fertilizer or soil amendments] plant food to manufacturers or 540 manipulators who have registered their brands as required by this chapter. 541 Section 15. Section 4-13-110 is amended to read: 542 4-13-110 . Department may make and enforce rules -- Cooperation with state 543 and federal agencies authorized. 544 (1)(a) The department may make rules in accordance with Title 63G, Chapter 3, Utah 545 Administrative Rulemaking Act, and enforce the rules to administer and enforce this 546 chapter. 547 (b) The department shall by rule adopt the official terms, tables, definitions, and 548 statements adopted by the Association of American Plant Food Control officials and 549 published in the official publications of that organization. 550 (2) The department may enter into agreements with other agencies of the state, other states, 551 and agencies of the federal government to administer and enforce this chapter. 552 [(3) The department may use the following terms in rule made in accordance with Title 553 63G, Chapter 3, Utah Administrative Rulemaking Act, to the extent that the department 554 is authorized to make rules by a provision other than this Subsection (3):] 555 [(a) biostimulant;] 556 [(b) bulk fertilizer;] 557 [(c) plant amendment;] 558 [(d) secondary nutrient; and] 559 [(e) slow release fertilizer.] 560 Section 16. Section 4-18-102 is amended to read: 561 4-18-102 . Findings and declarations -- Duties. 562 (1) In addition to the policy provided in Section 4-46-101, the Legislature finds and 563 declares that: 564 (a) the soil and water resources of this state constitute one of the state's basic assets; and 565 (b) the preservation of soil and water resources requires planning and programs to 566 ensure: 567 (i) the development and use of soil and water resources; and 568 (ii) soil and water resources' protection from the adverse effects of wind and water 569 erosion, sediment, and sediment related pollutants. 570 (2) The Legislature finds that local production of food is essential for: - 17 - H.B. 253 01-16 15:32 571 (a) the security of the state's food supply; and 572 (b) the self-sufficiency of the state's citizens. 573 (3) The Legislature finds that sustainable agriculture is critical to: 574 (a) the success of rural communities; 575 (b) the historical culture of the state; 576 (c) maintaining healthy farmland; 577 (d) maintaining high water quality; 578 (e) maintaining abundant wildlife; 579 (f) high-quality recreation for citizens of the state; and 580 (g) helping to stabilize the state economy. 581 (4) The Legislature finds that livestock grazing on public lands is important for the proper 582 management, maintenance, and health of public lands in the state. 583 (5) The Legislature encourages each agricultural producer in the state to operate in a 584 reasonable and responsible manner to maintain the integrity of soil, water, and air. 585 [(6) The department shall administer the Utah Agriculture Certificate of Environmental 586 Stewardship Program, created in Section 4-18-107, to encourage each agricultural 587 producer in this state to operate in a reasonable and responsible manner to maintain the 588 integrity of the state's resources.] 589 [(7)] (6) The Legislature finds that soil health is essential to protecting the state's soil and 590 water resources, bolstering the state's food supply, and sustaining the state's agricultural 591 industry. 592 Section 17. Section 4-18-103 is amended to read: 593 4-18-103 . Definitions. 594 As used in this chapter: 595 (1)(a) "Agricultural discharge" means the release of agriculture water from the property 596 of a farm, ranch, or feedlot that: 597 (i) pollutes a surface body of water, including a stream, lake, pond, marshland, 598 watercourse, waterway, river, ditch, or other water conveyance system; 599 (ii) pollutes ground water; or 600 (iii) constitutes a significant nuisance to urban land. 601 (b) "Agricultural discharge" does not include: 602 (i) runoff from a farm, ranch, or feedlot, or the return flow of water from an irrigated 603 field onto land that is not part of a body of water; or 604 (ii) a release of water from a farm, ranch, or feedlot into a normally dry water - 18 - 01-16 15:32 H.B. 253 605 conveyance leading to an active body of water, if the release does not reach the 606 water of a lake, pond, stream, marshland, river, or other active body of water. 607 (2) "Agricultural operation" means a farm, ranch, or animal feeding operation. 608 (3) "Agriculture water" means: 609 (a) water used by a farm, ranch, or feedlot for the production of food, fiber, or fuel; 610 (b) the return flow of water from irrigated agriculture; or 611 (c) agricultural storm water runoff. 612 (4) "Alternate" means a substitute for a district supervisor if the district supervisor cannot 613 attend a meeting. 614 (5)(a) "Animal feeding operation" means a facility where animals, other than aquatic 615 animals, are stabled or confined and fed or maintained for a total of 45 days or more 616 in any 12-month period. 617 (b) "Animal feeding operation" does not include an operation where animals are in areas 618 such as pastures or rangeland that sustain crops or forage growth during the normal 619 growing season. 620 (6) "Best management practices" means practices, including management policies and the 621 use of technology, used by each sector of agriculture in the production of food and fiber 622 that are commonly accepted practices, or that are at least as effective as commonly 623 accepted practices, and that: 624 (a) protect the environment; 625 (b) protect human health; 626 (c) ensure the humane treatment of animals; and 627 (d) promote the financial viability of agricultural production. 628 [(7) "Certified agricultural operation" means an agricultural operation that is certified 629 under the Utah Agriculture Certificate of Environmental Stewardship Program in 630 accordance with Section 4-18-107.] 631 [(8) "Certified conservation planner" means a planner of a state conservation district, or 632 other qualified planner, that is approved by the commission to certify an agricultural 633 operation under the Utah Agriculture Certificate of Environmental Stewardship 634 Program, created in Section 4-18-107.] 635 [(9)] (7) "Commission" means the Conservation Commission created in Section 4-18-104. 636 [(10)] (8) "Comprehensive nutrient management plan" or "nutrient management plan" 637 means a plan to properly store, handle, and spread manure and other agricultural 638 byproducts to: - 19 - H.B. 253 01-16 15:32 639 (a) protect the environment; and 640 (b) provide nutrients for the production of crops. 641 [(11)] (9) "Coordinated resource management plan" means a plan of action created at a local 642 level with broad participation of land owners, natural resource agencies, and interested 643 stakeholders to protect or enhance the environment, human health, humane treatment of 644 animals, and financial viability in the community. 645 [(12)] (10) "District" or "conservation district" has the same meaning as "conservation 646 district" as defined in Section 17D-3-102. 647 [(13)] (11) "Fodder" means food for livestock. 648 [(14)] (12) "Hydroponic" means a technique for growing plants without soil. 649 [(15)] (13) "Pollution" means a harmful human-made or human-induced alteration to the 650 water of the state, including an alteration to the chemical, physical, biological, or 651 radiological integrity of water that harms the water of the state. 652 [(16)] (14) "State technical standards" means a collection of best management practices that 653 will protect the environment in a reasonable and economical manner for each sector of 654 agriculture as required by this chapter. 655 [(17)] (15) "Sustainable agriculture" means agriculture production and practices that 656 promote: 657 (a) the environmental responsibility of owners and operators of farms, ranches, and 658 feedlots; and 659 (b) the profitability of owners and operators of farms, ranches, and feedlots. 660 Section 18. Section 4-18-106 is amended to read: 661 4-18-106 . Agriculture Resource Development Fund -- Contents -- Use of fund 662 money -- Advisory board. 663 (1) As used in this section: 664 (a) "Disaster" means an extraordinary circumstance, including a flood, drought, or fire, 665 that results in: 666 (i) the president of the United States declaring an emergency or major disaster in the 667 state; 668 (ii) the governor declaring a state of emergency under Title 53, Chapter 2a, Part 2, 669 Disaster Response and Recovery Act; or 670 (iii) the chief executive officer of a local government declaring a local emergency 671 under Title 53, Chapter 2a, Part 2, Disaster Response and Recovery Act. 672 (b) "Fund" means the Agriculture Resource Development Fund created in this section. - 20 - 01-16 15:32 H.B. 253 673 (c) "Local government" means the same as that term is defined in Section 53-2a-602. 674 (2) There is created a revolving loan fund known as the "Agriculture Resource 675 Development Fund." 676 (3) The fund shall consist of: 677 (a) money appropriated to the fund by the Legislature; 678 [(b) sales and use tax receipts transferred to the fund in accordance with Section 679 59-12-103;] 680 [(c)] (b) money received for the repayment of loans made from the fund; 681 [(d)] (c) money from a preferential user to reimburse the commission for loans made 682 from the fund in accordance with Title 73, Chapter 3d, Part 4, Compensation; 683 [(e)] (d) money made available to the state for agriculture resource development or for a 684 temporary water shortage emergency, as defined in Section 73-3d-101, from any 685 source; and 686 [(f)] (e) interest earned on the fund. 687 (4) The commission may make loans from the fund for: 688 (a) a rangeland improvement and management project; 689 (b) a watershed protection or flood prevention project; 690 (c) a soil and water conservation project; 691 (d) a program designed to promote energy efficient farming practices; 692 (e) an improvement program for agriculture product storage or program designed to 693 protect a crop or animal resource; 694 (f) a hydroponic or aquaponic system, including a hydroponic fodder production system; 695 (g) a project or program to improve water quality; 696 (h) a project to address other environmental issues; 697 (i) subject to Subsection (5), a disaster relief program designed to aid the sustainability 698 of agriculture during and immediately following a disaster; or 699 (j) subject to Subsection (6), authorized for temporary water shortage emergencies as 700 provided in Title 73, Chapter 3d, Part 4, Compensation. 701 (5)(a) Loans made through a disaster relief program described in Subsection (4)(i) may 702 not comprise more than 10% of the funds appropriated by the Legislature to the fund. 703 (b) Notwithstanding Subsection (5)(a), the department may use the money appropriated 704 to the fund by the Legislature or another source, without limitation, if the money is 705 appropriated specifically for use in a disaster relief program. 706 (c)(i) Until December 31, 2024, the department is authorized to borrow up to - 21 - H.B. 253 01-16 15:32 707 $3,000,000 of General Fund appropriations from the Agricultural Water 708 Optimization Account created in Section 73-10g-204 to be used in making loans 709 through a disaster relief program described in Subsection (4)(i). 710 (ii) If the department borrows from the Agricultural Water Optimization Account 711 under Subsection (5)(c)(i), the department shall deposit the repayment of principal 712 and interest on loans made through a disaster relief program, regardless of the 713 source of the funds used to make those loans, into the Agricultural Water 714 Optimization Account, with preference over the repayment of any other source of 715 funds, until the Agricultural Water Optimization Account is repaid in full. 716 (6) The commission may not have at one time an aggregate amount of loans made under 717 Subsection (4)(j) that exceeds $5,000,000. 718 (7) The commission may appoint an advisory board to: 719 (a) oversee the award process for loans, as described in this section; 720 (b) approve loans; and 721 (c) recommend policies and procedures for the fund that are consistent with statute. 722 (8) The department shall obtain an approved annual budget from the commission to use 723 money from the fund to pay for the costs of administering the fund and loans made from 724 the fund. 725 Section 19. Section 4-23-107 is amended to read: 726 4-23-107 . Annual fees on sheep, goats, cattle, and turkeys -- Determination by 727 board -- Collection methods. 728 (1) To assist the department in meeting the annual expense of administering this chapter, the 729 following annual predator control fees are imposed upon animals owned by persons whose 730 interests this chapter is designed to protect:Sheep and goats (except on farm dairy 731 goats or feeder lambs)......................................................................... at least $.70 but not 732 more than $1 per head 733 Cattle (except on farm dairy cattle)......................................................... at least $.15 but not 734 more than $.50 per head 735 Turkeys (breeding stock only)................................................................. at least $.05 but not 736 more than $.10 per head 737 (2) The amount of the fees imposed upon each category of animals specified in this section 738 shall be determined by the board annually on or before [January 1] July 1 of each year. 739 (3)(a) Fee brand inspected cattle are subject to a predator control fee upon change of 740 ownership or slaughter. - 22 - 01-16 15:32 H.B. 253 741 (b) The fee shall be collected by the local brand inspector at the time of the inspection of 742 cattle, or withheld and paid by the market from proceeds derived from the sale of the 743 cattle. 744 (c) Cattle that are fee brand inspected prior to confinement to a feedlot are not subject to 745 any subsequent predator control fee. 746 (4)(a) Fleece of sheared sheep is subject to a predator control fee upon sale of the fleece. 747 (b)(i) The fee shall be withheld and paid by the marketing agency or purchaser of 748 wool from proceeds derived from the sale of the fleece. 749 (ii) The department shall enter into cooperative agreements with in-state and 750 out-of-state wool warehouses and wool processing facilities for the collection of 751 predator control fees on the fleece of sheep that graze on private or public range in 752 the state. 753 (c) The fee shall be based on the number of pounds of wool divided by 10 pounds for 754 white face sheep and five pounds for black face sheep. 755 (5) Predator control fees on turkey breeding stock shall be paid by the turkey cooperative. 756 (6)(a) Livestock owners shall pay a predator control fee on any livestock that uses 757 public or private range in the state [which] that is not otherwise subject to the fee 758 under Subsection (3) or (4). 759 (b) By [January 1] September 1, the commissioner shall mail to each owner of livestock 760 specified in Subsection (6)(a) a reporting form requiring sufficient information on the 761 type and number of livestock grazed in the state and indicating the fee imposed for 762 each category of livestock. 763 (c) [Each] An owner shall file the completed form and the appropriate fee with the 764 commissioner before [April 1] December 31. 765 (d) If any person who receives the reporting form fails to return the completed form and 766 the imposed fee as required, the commissioner is authorized to commence suit 767 through the office of the attorney general, in a court [of competent] with jurisdiction, 768 to collect the imposed fee, the amount of which shall be as determined by the 769 commissioner. 770 (7) [All fees] A fee collected under this section shall be remitted to the department and 771 deposited in the Agricultural and Wildlife Damage Prevention Account. 772 Section 20. Section 4-24-202 is amended to read: 773 4-24-202 . Recordation of brand. 774 (1)[(a) Application for a recorded brand shall be made] A person shall submit an - 23 - H.B. 253 01-16 15:32 775 application for a recorded brand to the department upon forms prescribed and 776 furnished by the department. 777 [(b)] (a) The application shall contain the following information: 778 (i) the name of each applicant; 779 (ii) a single designated address where the department will send a notice of brand 780 renewal; and 781 (iii) a description of the brand that is the subject of the application. 782 [(c)] (b) [An] The department may not approve an application [may not be approved ] 783 without payment of the appropriate recording fee. 784 [(d)] (c) Upon receipt of a proper application, payment of the recording fee, and 785 recordation of the brand in the central Brand Registry of the department, the 786 commissioner shall issue the applicant a certified copy of recording that entitles the 787 applicant to the exclusive use of the brand recorded. 788 (2)(a) A recorded brand filed with the central Brand Registry expires during the 789 calendar year 1980, and during each fifth or tenth year thereafter. The applicant at the 790 time of application shall decide whether the brand filed with the central Brand 791 Registry expires during the fifth or the tenth year. 792 (b)(i) The department shall send notice in writing to the address designated under 793 Subsection (1)(b)(ii) within a reasonable time before the date of expiration of 794 recordation. 795 (ii) The notice required by this Subsection (2)(b) may be provided by email or regular 796 mail at the department's discretion. 797 (iii) The holder of a registered brand has an affirmative duty to inform the department 798 of a change to the contact information provided on the initial application for a 799 recorded brand. 800 (c) Brand renewal is affected by filing an appropriate application with the department 801 together with payment of the renewal fee. 802 (d) A recorded brand, not timely renewed, shall lapse and be removed from the central 803 Brand Registry. 804 Section 21. Section 4-30-105 is amended to read: 805 4-30-105 . License required -- Application -- Fee -- Expiration -- Renewal. 806 (1)(a) [No person may] A person may not operate a livestock market in this state without 807 a license issued by the department. 808 (b) [Application for a license shall be made ] A person shall submit an application for a - 24 - 01-16 15:32 H.B. 253 809 license to the department upon forms prescribed and furnished by the department, 810 and the application shall specify: 811 (i) if the applicant is an individual, the name, address, and [date of birth] age of the 812 applicant; or 813 (ii) if the applicant is a partnership, corporation, or association, the name, address, 814 and [date of birth] age of each person who has a financial interest in the applicant 815 and the amount of each person's interest; 816 (iii) a certified statement of the financial assets and liabilities of the applicant 817 detailing: 818 (A) current assets; 819 (B) current liabilities; 820 (C) long-term assets; and 821 (D) long-term liabilities; 822 (iv) a legal description of the property where the market is proposed to be located, the 823 property's street address, and a description of the facilities proposed to be used in 824 connection with the property; 825 (v) a schedule of the charges or fees the applicant proposes to charge for each service 826 rendered; and 827 (vi) a detailed statement of the trade area proposed to be served by the applicant, the 828 potential benefits which will be derived by the livestock industry, and the specific 829 services the applicant intends to render at the livestock market. 830 (2)(a) Upon receipt of a proper application, payment of a license fee in an amount 831 determined by the department pursuant to Subsection 4-2-103(2), the commissioner, 832 if satisfied that the convenience and necessity of the industry and the public will be 833 served, shall issue a license allowing the applicant to operate the livestock market 834 proposed in the application valid through December 31 of the year in which the 835 license is issued, subject to suspension or revocation for cause. 836 (b) A livestock market license is annually renewable on or before December 31 of each 837 year upon the payment of an annual license renewal fee in an amount determined by 838 the department pursuant to Subsection 4-2-103(2). 839 (3) [No] The department may not issue a livestock market original or renewal license [may 840 be issued ]until the applicant has provided the department with a certified copy of a 841 surety bond filed with the United States Department of Agriculture as required by the 842 Packers and Stockyards Act, 1921, 7 U.S.C. Section 181 et seq. - 25 - H.B. 253 01-16 15:32 843 Section 22. Section 4-39-203 is amended to read: 844 4-39-203 . License required to operate a domesticated elk facility. 845 (1) A person may not operate a domesticated elk facility without first obtaining a license 846 from the department. 847 (2)(a) [Each] An application for a license to operate a domesticated elk facility shall be 848 accompanied by a fee. 849 (b) The fee shall be established by the department in accordance with Section 63J-1-504. 850 (3) [Each] An applicant for a domesticated elk facility license shall submit an application 851 providing all information in the form and manner as required by the department. 852 (4)(a) [No license shall be issued until the department has inspected and approved] The 853 department may not issue a license until the department inspects and approves the 854 facility. 855 (b) The department shall: 856 (i) notify the Division of Wildlife Resources at least 48 hours [prior to] before a 857 scheduled inspection so that a Division of Wildlife Resources representative may 858 be present at the inspection; and 859 (ii) provide the Division of Wildlife Resources with copies of all licensing and 860 inspection reports. 861 (5) Each separate location of the domesticated elk operation shall be licensed separately. 862 (6)(a) If a domesticated elk facility is operated under more than one business name from 863 a single location, the name of each operation shall be listed with the department in 864 the form and manner required by the department. 865 (b) The department shall require that a separate fee be paid for each business name listed. 866 (c) If a domesticated elk facility operates under more than one business name from a 867 single location, each facility shall maintain separate records. 868 (7) [Each person or business entity] A person with an equity interest in the domesticated elk 869 shall be listed on the application for license. 870 (8) [Each] A domesticated elk facility license shall expire on [July 1] June 30 in the year 871 following the year of issuance. 872 (9) [Each] A licensee shall report to the department, in the form and manner required by the 873 department, any change in the information provided in the licensee's application or in the 874 reports previously submitted, within 15 days of each change. 875 (10) [Licenses] A license issued pursuant to this section [are] is not transferable. 876 Section 23. Section 4-39-205 is amended to read: - 26 - 01-16 15:32 H.B. 253 877 4-39-205 . License renewal. 878 (1) To renew a license, the licensee shall submit to the department the following: 879 (a) renewal fee; 880 (b) paperwork showing that the: 881 (i) domesticated elk, on the domesticated elk facility, have been inspected and 882 certified by the department for health[,] and proof of ownership[, and genetic 883 purity certification] for all elk imported into the state; and 884 (ii) facility has been properly maintained, as provided in this chapter, during the 885 immediately preceding 60-day period; and 886 (c) record of each purchase of domesticated elk and transfer of domesticated elk into the 887 facility, which shall include the following information: 888 (i) name[,] and address[, and health approval number] of the source; 889 (ii) date of transaction; and 890 (iii) number and sex. 891 (2)(a) If the renewal fee and paperwork are not received on or before April 30, the 892 department shall charge a late fee[ will be charged]. 893 (b) A license may not be renewed until the renewal fee and any late fee is paid. 894 (3) If the application and fee for renewal are not received on or before [July 1] June 30, the 895 license may not be renewed, and a new license shall be required. 896 Section 24. Section 4-39-206 is amended to read: 897 4-39-206 . Records to be maintained. 898 (1) The following records and information shall be maintained by a domesticated elk 899 facility for the life of the animal plus [two] five years: 900 (a) records of purchase, acquisition, distribution, and production histories of 901 domesticated elk; 902 (b) records documenting antler harvesting, production, and distribution; and 903 (c) health certificates. 904 (2) For purposes of carrying out [the provisions of ]this chapter and rules made under this 905 chapter, at any reasonable time during regular business hours, the department shall have 906 free and unimpeded access to inspect all records required to be kept. 907 (3) The department may make copies of the records referred to in this section. 908 Section 25. Section 4-39-301 is amended to read: 909 4-39-301 . Proof of source. 910 The department shall require[:] - 27 - H.B. 253 01-16 15:32 911 [(1) that each domesticated elk, including gametes, eggs, or sperm, imported into the state:] 912 [(a) test negative for the red deer genetic factor;] 913 [(b) be registered with gold or silver status with the North American Elk Breeders 914 Association; or] 915 [(c) come from a state which has a red deer genetic factor prevention program approved by 916 the department; and] 917 [(2)] proof that the domesticated elk originates from a legal source as provided in Section 918 4-39-302. 919 Section 26. Section 4-39-303 is amended to read: 920 4-39-303 . Importation of domesticated elk -- Enforcement. 921 (1) A person may not import domesticated elk into the state for use in domesticated elk 922 facilities without first obtaining: 923 (a) an entry permit from the state veterinarian's office; and 924 (b) a domesticated elk facility license from the department. 925 (2) The entry permit shall include the following information and certificates: 926 (a) a health certificate with an indication of the current health status; 927 [(b) proof of genetic purity as required in Section 4-39-301;] 928 [(c)] (b) the name and address of the consignor and consignee; 929 [(d)] (c) proof that the elk are: 930 (i) tuberculosis free; or 931 (ii) enrolled in a tuberculosis herd monitoring accreditation program administered by 932 the United State Department of Agriculture or the Canadian Food Inspection 933 Agency; 934 [(e)] (d) the origin of shipment; 935 [(f)] (e) the final destination; 936 [(g)] (f) the total number of animals in the shipment; 937 [(h)] (g) for an elk imported from east of the 100 degree meridian, proof that the elk has 938 been dewormed in accordance with Subsection (3)(a); and 939 [(i)] (h) any other information required by the state veterinarian's office or the department. 940 (3) In addition to the requirements described in Subsections (1) and (2), a person importing 941 a domesticated elk from east of the 100 degree meridian shall: 942 (a) deworm the elk within 60 days before arrival in the state; 943 (b) deworm or harvest the elk no later than 150 days after arrival in the state; 944 (c) for a bull sent to an elk ranch: - 28 - 01-16 15:32 H.B. 253 945 (i) hold the bull for harvest until the bull has completed a slaughter withdrawal 946 period; or 947 (ii) be able to demonstrate that the elk is free from dewormer residue; and 948 (d) make the elk available to the department for monitoring and inspection upon request 949 by the department. 950 (4) The department may stop the importation of a domesticated elk or quarantine a 951 domesticated elk if the department identifies the spread of meningeal worm in the elk or 952 the elk's domesticated herd. 953 (5) A person who imports domesticated elk into the state from an international herd: 954 (a) may only import domesticated elk: 955 (i) that are male; and 956 (ii) to an elk ranch for use in the elk ranch; and 957 (b) shall ensure that the domesticated elk are harvested in the same season in which the 958 domesticated elk enter the state. 959 (6) For the purpose of enforcing Subsection (5), the department may make rules, in 960 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the use 961 of radio frequency identification tags to track male elk imported into the state from an 962 international herd. 963 Section 27. Section 4-39-304 is amended to read: 964 4-39-304 . Marking domesticated elk. 965 [(1) Each] A domesticated elk shall be marked by [either an official USDA tag or by ]an 966 electronic identification tag[, as provided in Subsection (2):] and unique visual tag 967 pursuant to rules made by the department in accordance with Title 63G, Chapter 3, Utah 968 Administrative Rulemaking Act. 969 [(a) within 30 days of a change of ownership; or] 970 [(b) in the case of newborn calves, within 15 days after being weaned, but in any case, no 971 later than January 31.] 972 [(2) If a domesticated elk is identified with an electronic identification tag, it shall be 973 placed in the right ear.] 974 Section 28. Section 4-41a-204 is amended to read: 975 4-41a-204 . Operating plan. 976 (1) A person applying for a cannabis production establishment license or license renewal 977 shall submit to the department for the department's review a proposed operating plan 978 that complies with this section and that includes: - 29 - H.B. 253 01-16 15:32 979 (a) a description of the physical characteristics of the proposed facility or, for a cannabis 980 cultivation facility, no more than two facility locations, including a floor plan and an 981 architectural elevation; 982 (b) a description of the credentials and experience of: 983 (i) each officer, director, and owner of the proposed cannabis production 984 establishment; and 985 (ii) any highly skilled or experienced prospective employee; 986 (c) the cannabis production establishment's employee training standards; 987 (d) a security plan; 988 (e) a description of the cannabis production establishment's inventory control system, 989 including a description of how the inventory control system is compatible with the 990 state electronic verification system described in Section 26B-4-202; 991 (f) storage protocols, both short- and long-term, to ensure that cannabis is stored in a 992 manner that is sanitary and preserves the integrity of the cannabis; 993 (g) for a cannabis cultivation facility, the information described in Subsection (2); 994 (h) for a cannabis processing facility, the information described in Subsection (3); and 995 (i) for an independent cannabis testing laboratory, the information described in 996 Subsection (4). 997 (2)(a) A cannabis cultivation facility shall ensure that the facility's operating plan 998 includes the facility's intended: 999 (i) cannabis cultivation practices, including the facility's intended pesticide use and [ 1000 fertilizer] plant food use; and 1001 (ii) subject to Subsection (2)(b), acreage or square footage under cultivation and 1002 anticipated cannabis yield. 1003 (b) Except as provided in Subsection (2)(c)(i) or (c)(ii), a cannabis cultivation facility 1004 may not: 1005 (i) for a facility that cultivates cannabis only indoors, use more than 100,000 total 1006 square feet of cultivation space; 1007 (ii) for a facility that cultivates cannabis only outdoors, use more than four acres for 1008 cultivation; and 1009 (iii) for a facility that cultivates cannabis through a combination of indoor and 1010 outdoor cultivation, use more combined indoor square footage and outdoor 1011 acreage than allowed under the department's formula described in Subsection 1012 (2)(e). - 30 - 01-16 15:32 H.B. 253 1013 (c)(i) Each licensee may apply to the department for: 1014 (A) a one-time, permanent increase of up to 20% of the limitation on the cannabis 1015 cultivation facility's cultivation space; or 1016 (B) a short-term increase, not to exceed 12 months, of up to 40% of the limitation 1017 on the cannabis cultivation facility's cultivation space. 1018 (ii) After conducting a review equivalent to the review described in Subsection 1019 4-41a-205(2)(a), if the department determines that additional cultivation is 1020 needed, the department may: 1021 (A) grant the one-time, permanent increase described in Subsection (2)(c)(i)(A); or 1022 (B) grant the short-term increase described in Subsection (2)(c)(i)(B). 1023 (d) If a licensee describes an intended acreage or square footage under cultivation under 1024 Subsection (2)(a)(ii) that is less than the limitation described in Subsection (2)(b), the 1025 licensee may not cultivate more than the licensee's identified intended acreage or 1026 square footage under cultivation. 1027 (e) The department shall, in accordance with Title 63G, Chapter 3, Utah Administrative 1028 Rulemaking Act, establish a formula for combined usage of indoor and outdoor 1029 cultivation that: 1030 (i) does not exceed, in estimated cultivation yield, the aggregate limitations described 1031 in Subsection (2)(b)(i) or (ii); and 1032 (ii) allows a cannabis cultivation facility to operate both indoors and outdoors. 1033 (f)(i) The department may authorize a cannabis cultivation facility to operate at no 1034 more than two separate locations. 1035 (ii) If the department authorizes multiple locations under Subsection (2)(f)(i), the two 1036 cannabis cultivation facility locations combined may not exceed the cultivation 1037 limitations described in this Subsection (2). 1038 (3) A cannabis processing facility's operating plan shall include the facility's intended 1039 cannabis processing practices, including the cannabis processing facility's intended: 1040 (a) offered variety of cannabis product; 1041 (b) cannabinoid extraction method; 1042 (c) cannabinoid extraction equipment; 1043 (d) processing equipment; 1044 (e) processing techniques; and 1045 (f) sanitation and manufacturing safety procedures for items for human consumption. 1046 (4) An independent cannabis testing laboratory's operating plan shall include the - 31 - H.B. 253 01-16 15:32 1047 laboratory's intended: 1048 (a) cannabis and cannabis product testing capability; 1049 (b) cannabis and cannabis product testing equipment; and 1050 (c) testing methods, standards, practices, and procedures for testing cannabis and 1051 cannabis products. 1052 (5) Notwithstanding an applicant's proposed operating plan, a cannabis production 1053 establishment is subject to land use regulations, as defined in Sections 10-9a-103 and 1054 17-27a-103, regarding the availability of outdoor cultivation in an industrial zone. 1055 Section 29. Section 4-46-302 is amended to read: 1056 4-46-302 . Program -- Use of money in fund -- Criteria -- Administration. 1057 (1) Subject to Subsection (2), the board shall administer the LeRay McAllister Working 1058 Farm and Ranch Fund Program under which the board may authorize the use of money 1059 in the fund, by grant, to: 1060 (a) a local entity; 1061 (b) the Department of Natural Resources created under Section 79-2-201; 1062 (c) an entity within the department; or 1063 (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3), 1064 Internal Revenue Code. 1065 (2)(a) The money in the fund shall be used for preserving or restoring open land and 1066 agricultural land. 1067 (b) Except as provided in Subsection (2)(c), money from the fund: 1068 (i) may be used to: 1069 (A) establish a conservation easement under Title 57, Chapter 18, Land 1070 Conservation Easement Act; or 1071 (B) fund similar methods to preserve open land or agricultural land; and 1072 (ii) may not be used to purchase a fee interest in real property to preserve open land 1073 or agricultural land. 1074 (c) Money from the fund may be used to purchase a fee interest in real property to 1075 preserve open land or agricultural land if: 1076 (i) the property to be purchased is no more than 20 acres in size; and 1077 (ii) with respect to a parcel purchased in a county in which over 50% of the land area 1078 is publicly owned, real property roughly equivalent in size and located within that 1079 county is contemporaneously transferred to private ownership from the 1080 governmental entity that purchased the fee interest in real property. - 32 - 01-16 15:32 H.B. 253 1081 (d) Eminent domain may not be used or threatened in connection with any purchase 1082 using money from the fund. 1083 (e) A parcel of land larger than 20 acres in size may not be divided to create one or more 1084 parcels that are smaller than 20 acres in order to comply with Subsection (2)(c)(i). 1085 (f) A local entity, department, or organization under Subsection (1) may not receive 1086 money from the fund unless the local entity, department, or organization provides 1087 matching funds equal to or greater than the amount of money received from the fund. 1088 (g) In granting money from the fund, the board may impose conditions on the recipient 1089 as to how the money is to be spent. 1090 (h) The board shall give priority to: 1091 (i) working agricultural land; and 1092 (ii) after giving priority to working agricultural land under Subsection (2)(h)(i), 1093 requests from the Department of Natural Resources for up to 20% of each annual 1094 increase in the amount of money in the fund if the money is used for the 1095 protection of wildlife or watershed. 1096 (i)(i) The board may not make a grant from the fund that exceeds $1,000,000 until 1097 after making a report to the Legislative Management Committee about the grant. 1098 (ii) The Legislative Management Committee may make a recommendation to the 1099 board concerning the intended grant, but the recommendation is not binding on 1100 the board. 1101 (3) In determining the amount and type of financial assistance to provide a local entity, 1102 department, or organization under Subsection (1) and subject to Subsection (2)(i), the 1103 board shall consider: 1104 (a) the nature and amount of open land and agricultural land proposed to be preserved or 1105 restored; 1106 (b) the qualities of the open land and agricultural land proposed to be preserved or 1107 restored; 1108 (c) the cost effectiveness of the project to preserve or restore open land or agricultural 1109 land; 1110 (d) the funds available; 1111 (e) the number of actual and potential applications for financial assistance and the 1112 amount of money sought by those applications; 1113 (f) the open land preservation plan of the local entity where the project is located and the 1114 priority placed on the project by that local entity; - 33 - H.B. 253 01-16 15:32 1115 (g) the effects on housing affordability and diversity; and 1116 (h) whether the project protects against the loss of private property ownership. 1117 (4) If a local entity, department, or organization under Subsection (1) seeks money from the 1118 fund for a project whose purpose is to protect critical watershed, the board shall require 1119 that the needs and quality of that project be verified by the state engineer. 1120 (5) An interest in real property purchased with money from the fund shall be held and 1121 administered by the state or a local entity. 1122 (6)(a) The board may not authorize the use of money under this section for a project 1123 unless the land use authority for the land in which the project is located consents to 1124 the project. 1125 (b) To obtain consent to a project, the person who is seeking money from the fund shall 1126 submit a request for consent to a project with the applicable land use authority. The 1127 land use authority may grant or deny consent. If the land use authority does not take 1128 action within 60 days from the day on which the request for consent is filed with the 1129 land use authority under this Subsection (6), the board shall treat the project as 1130 having the consent of the land use authority. 1131 (c) An action of a land use authority under this Subsection (6) is not a land use decision 1132 subject to: 1133 (i) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act; or 1134 (ii) Title 17, Chapter 27a, County Land Use, Development, and Management Act. 1135 Section 30. Section 4-46-304 is amended to read: 1136 4-46-304 . Agriculture Conservation Easement Account. 1137 (1) There is created [within the General Fund a restricted account] an expendable special 1138 revenue fund known as the Agriculture Conservation Easement Account. 1139 (2) The Agriculture Conservation Easement Account consists of: 1140 (a) conservation easement stewardship fees; 1141 (b) grants from private foundations; 1142 (c) grants from local governments, the state, or the federal government; 1143 (d) grants from the Land Conservation Board created under Section 4-46-201; 1144 (e) donations from landowners for monitoring and enforcing compliance with 1145 conservation easements; 1146 (f) donations from any other person; and 1147 (g) interest on account money. 1148 (3) [Upon appropriation by the Legislature, the] The department shall use money from the - 34 - 01-16 15:32 H.B. 253 1149 account to monitor and enforce compliance with conservation easements held by the 1150 department. 1151 (4) The department may not receive or expend donations from the account to acquire 1152 conservation easements. 1153 Section 31. Section 10-11-1 is amended to read: 1154 10-11-1 . Abatement of weeds, garbage, public nuisances, and hazardous 1155 materials -- Selection of service provider. 1156 (1) As used in this chapter, "hazardous materials" means the same as that term is defined in 1157 Section 19-6-902. 1158 (2) A municipal legislative body may: 1159 (a) designate and regulate the abatement of: 1160 (i) the growth and spread of injurious and noxious weeds; 1161 (ii) garbage and refuse; 1162 (iii) a public nuisance; 1163 (iv) an illegal object or structure; or 1164 (v) for a structure or any real property closed to occupancy or entry by a local health 1165 department, hazardous materials; and 1166 (b) appoint a municipal inspector for the purpose of carrying out and in accordance with 1167 the provisions of this chapter. 1168 (3) A municipal legislative body may not: 1169 (a) prohibit an owner or occupant of real property within the municipality's jurisdiction, 1170 including an owner or occupant who receives a notice in accordance with Section 1171 10-11-2, from selecting a person, as defined in Section 10-1-104, to provide an 1172 abatement service for injurious and noxious weeds, garbage and refuse, a public 1173 nuisance, or an illegal object or structure; or 1174 (b) require that an owner or occupant described in Subsection (3)(a) use the services of 1175 the municipal inspector or any assistance employed by the municipal inspector 1176 described in Section 10-11-3 to provide an abatement service described in Subsection 1177 (3)(a). 1178 (4) A municipality may require that an owner or occupant described in Subsection (3)(a) 1179 use the abatement services, as described in Section 10-11-3, of the municipal inspector, 1180 including the use of a certified decontamination specialist as described in Section 1181 19-6-906, or any assistance employed by the municipal inspector if: 1182 (a) the municipality adopts an ordinance providing a reasonable period of time of at least - 35 - H.B. 253 01-16 15:32 1183 10 days for an owner or occupant to abate the owner's or occupant's property after 1184 receiving a notice described in Section 10-11-2; and 1185 (b) the owner or occupant fails to abate the property within the reasonable period of time 1186 and in accordance with the notice. 1187 (5) A municipality may require that an owner or occupant use the abatement services of a 1188 certified decontamination specialist to abate hazardous materials. 1189 (6) Nothing in this chapter may be construed: 1190 (a) as authorizing a municipality to regulate items that are within the exclusive 1191 jurisdiction of the Department of Agriculture and Food as provided in Section 4-2-305, 1192 including commercial feed, [fertilizer] plant food, pesticides, and seeds; or 1193 (b) as limiting or abrogating the authority of a local health department under Section 1194 19-6-905. 1195 Section 32. Section 59-12-103 is amended to read: 1196 59-12-103 . Sales and use tax base -- Rates -- Effective dates -- Use of sales and 1197 use tax revenue. 1198 (1) A tax is imposed on the purchaser as provided in this part on the purchase price or sales 1199 price for amounts paid or charged for the following transactions: 1200 (a) retail sales of tangible personal property made within the state; 1201 (b) amounts paid for: 1202 (i) telecommunications service, other than mobile telecommunications service, that 1203 originates and terminates within the boundaries of this state; 1204 (ii) mobile telecommunications service that originates and terminates within the 1205 boundaries of one state only to the extent permitted by the Mobile 1206 Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or 1207 (iii) an ancillary service associated with a: 1208 (A) telecommunications service described in Subsection (1)(b)(i); or 1209 (B) mobile telecommunications service described in Subsection (1)(b)(ii); 1210 (c) sales of the following for commercial use: 1211 (i) gas; 1212 (ii) electricity; 1213 (iii) heat; 1214 (iv) coal; 1215 (v) fuel oil; or 1216 (vi) other fuels; - 36 - 01-16 15:32 H.B. 253 1217 (d) sales of the following for residential use: 1218 (i) gas; 1219 (ii) electricity; 1220 (iii) heat; 1221 (iv) coal; 1222 (v) fuel oil; or 1223 (vi) other fuels; 1224 (e) sales of prepared food; 1225 (f) except as provided in Section 59-12-104, amounts paid or charged as admission or 1226 user fees for theaters, movies, operas, museums, planetariums, shows of any type or 1227 nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, 1228 menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling 1229 matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling 1230 lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts, 1231 ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides, 1232 river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or 1233 any other amusement, entertainment, recreation, exhibition, cultural, or athletic 1234 activity; 1235 (g) amounts paid or charged for services for repairs or renovations of tangible personal 1236 property, unless Section 59-12-104 provides for an exemption from sales and use tax 1237 for: 1238 (i) the tangible personal property; and 1239 (ii) parts used in the repairs or renovations of the tangible personal property described 1240 in Subsection (1)(g)(i), regardless of whether: 1241 (A) any parts are actually used in the repairs or renovations of that tangible 1242 personal property; or 1243 (B) the particular parts used in the repairs or renovations of that tangible personal 1244 property are exempt from a tax under this chapter; 1245 (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for assisted 1246 cleaning or washing of tangible personal property; 1247 (i) amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer 1248 court accommodations and services; 1249 (j) amounts paid or charged for laundry or dry cleaning services; 1250 (k) amounts paid or charged for leases or rentals of tangible personal property if within - 37 - H.B. 253 01-16 15:32 1251 this state the tangible personal property is: 1252 (i) stored; 1253 (ii) used; or 1254 (iii) otherwise consumed; 1255 (l) amounts paid or charged for tangible personal property if within this state the tangible 1256 personal property is: 1257 (i) stored; 1258 (ii) used; or 1259 (iii) consumed; 1260 (m) amounts paid or charged for a sale: 1261 (i)(A) of a product transferred electronically; or 1262 (B) of a repair or renovation of a product transferred electronically; and 1263 (ii) regardless of whether the sale provides: 1264 (A) a right of permanent use of the product; or 1265 (B) a right to use the product that is less than a permanent use, including a right: 1266 (I) for a definite or specified length of time; and 1267 (II) that terminates upon the occurrence of a condition; and 1268 (n) sales of leased tangible personal property from the lessor to the lessee made in the 1269 state. 1270 (2)(a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax 1271 are imposed on a transaction described in Subsection (1) equal to the sum of: 1272 (i) a state tax imposed on the transaction at a tax rate equal to the sum of: 1273 (A) 4.70% plus the rate specified in Subsection (11)(a); and 1274 (B)(I) the tax rate the state imposes in accordance with Part 18, Additional 1275 State Sales and Use Tax Act, if the location of the transaction as determined 1276 under Sections 59-12-211 through 59-12-215 is in a county in which the 1277 state imposes the tax under Part 18, Additional State Sales and Use Tax Act; 1278 and 1279 (II) the tax rate the state imposes in accordance with Part 20, Supplemental 1280 State Sales and Use Tax Act, if the location of the transaction as determined 1281 under Sections 59-12-211 through 59-12-215 is in a city, town, or the 1282 unincorporated area of a county in which the state imposes the tax under 1283 Part 20, Supplemental State Sales and Use Tax Act; and 1284 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the - 38 - 01-16 15:32 H.B. 253 1285 transaction under this chapter other than this part. 1286 (b) Except as provided in Subsection (2)(f) or (g) and subject to Subsection (2)(l), a state 1287 tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal 1288 to the sum of: 1289 (i) a state tax imposed on the transaction at a tax rate of 2%; and 1290 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the 1291 transaction under this chapter other than this part. 1292 (c) Except as provided in Subsection (2)(f) or (g), a state tax and a local tax are imposed 1293 on amounts paid or charged for food and food ingredients equal to the sum of: 1294 (i) a state tax imposed on the amounts paid or charged for food and food ingredients 1295 at a tax rate of 1.75%; and 1296 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the 1297 amounts paid or charged for food and food ingredients under this chapter other 1298 than this part. 1299 (d) Except as provided in Subsection (2)(f) or (g), a state tax is imposed on amounts paid 1300 or charged for fuel to a common carrier that is a railroad for use in a locomotive 1301 engine at a rate of 4.85%. 1302 (e)(i)(A) If a shared vehicle owner certifies to the commission, on a form 1303 prescribed by the commission, that the shared vehicle is an individual-owned 1304 shared vehicle, a tax imposed under Subsection (2)(a)(i)(A) does not apply to 1305 car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle 1306 owner. 1307 (B) A shared vehicle owner's certification described in Subsection (2)(e)(i)(A) is 1308 required once during the time that the shared vehicle owner owns the shared 1309 vehicle. 1310 (C) The commission shall verify that a shared vehicle is an individual-owned 1311 shared vehicle by verifying that the applicable Utah taxes imposed under this 1312 chapter were paid on the purchase of the shared vehicle. 1313 (D) The exception under Subsection (2)(e)(i)(A) applies to a certified 1314 individual-owned shared vehicle shared through a car-sharing program even if 1315 non-certified shared vehicles are also available to be shared through the same 1316 car-sharing program. 1317 (ii) A tax imposed under Subsection (2)(a)(i)(B) or (2)(a)(ii) applies to car sharing. 1318 (iii)(A) A car-sharing program may rely in good faith on a shared vehicle owner's - 39 - H.B. 253 01-16 15:32 1319 representation that the shared vehicle is an individual-owned shared vehicle 1320 certified with the commission as described in Subsection (2)(e)(i). 1321 (B) If a car-sharing program relies in good faith on a shared vehicle owner's 1322 representation that the shared vehicle is an individual-owned shared vehicle 1323 certified with the commission as described in Subsection (2)(e)(i), the 1324 car-sharing program is not liable for any tax, penalty, fee, or other sanction 1325 imposed on the shared vehicle owner. 1326 (iv) If all shared vehicles shared through a car-sharing program are certified as 1327 described in Subsection (2)(e)(i)(A) for a tax period, the car-sharing program has 1328 no obligation to collect and remit the tax under Subsection (2)(a)(i)(A) for that tax 1329 period. 1330 (v) A car-sharing program is not required to list or otherwise identify an 1331 individual-owned shared vehicle on a return or an attachment to a return. 1332 (vi) A car-sharing program shall: 1333 (A) retain tax information for each car-sharing program transaction; and 1334 (B) provide the information described in Subsection (2)(e)(vi)(A) to the 1335 commission at the commission's request. 1336 (f)(i) For a bundled transaction that is attributable to food and food ingredients and 1337 tangible personal property other than food and food ingredients, a state tax and a 1338 local tax is imposed on the entire bundled transaction equal to the sum of: 1339 (A) a state tax imposed on the entire bundled transaction equal to the sum of: 1340 (I) the tax rate described in Subsection (2)(a)(i)(A); and 1341 (II)(Aa) the tax rate the state imposes in accordance with Part 18, 1342 Additional State Sales and Use Tax Act, if the location of the transaction 1343 as determined under Sections 59-12-211 through 59-12-215 is in a 1344 county in which the state imposes the tax under Part 18, Additional State 1345 Sales and Use Tax Act; and 1346 (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental 1347 State Sales and Use Tax Act, if the location of the transaction as 1348 determined under Sections 59-12-211 through 59-12-215 is in a city, 1349 town, or the unincorporated area of a county in which the state imposes 1350 the tax under Part 20, Supplemental State Sales and Use Tax Act; and 1351 (B) a local tax imposed on the entire bundled transaction at the sum of the tax 1352 rates described in Subsection (2)(a)(ii). - 40 - 01-16 15:32 H.B. 253 1353 (ii) If an optional computer software maintenance contract is a bundled transaction 1354 that consists of taxable and nontaxable products that are not separately itemized 1355 on an invoice or similar billing document, the purchase of the optional computer 1356 software maintenance contract is 40% taxable under this chapter and 60% 1357 nontaxable under this chapter. 1358 (iii) Subject to Subsection (2)(f)(iv), for a bundled transaction other than a bundled 1359 transaction described in Subsection (2)(f)(i) or (ii): 1360 (A) if the sales price of the bundled transaction is attributable to tangible personal 1361 property, a product, or a service that is subject to taxation under this chapter 1362 and tangible personal property, a product, or service that is not subject to 1363 taxation under this chapter, the entire bundled transaction is subject to taxation 1364 under this chapter unless: 1365 (I) the seller is able to identify by reasonable and verifiable standards the 1366 tangible personal property, product, or service that is not subject to taxation 1367 under this chapter from the books and records the seller keeps in the seller's 1368 regular course of business; or 1369 (II) state or federal law provides otherwise; or 1370 (B) if the sales price of a bundled transaction is attributable to two or more items 1371 of tangible personal property, products, or services that are subject to taxation 1372 under this chapter at different rates, the entire bundled transaction is subject to 1373 taxation under this chapter at the higher tax rate unless: 1374 (I) the seller is able to identify by reasonable and verifiable standards the 1375 tangible personal property, product, or service that is subject to taxation 1376 under this chapter at the lower tax rate from the books and records the seller 1377 keeps in the seller's regular course of business; or 1378 (II) state or federal law provides otherwise. 1379 (iv) For purposes of Subsection (2)(f)(iii), books and records that a seller keeps in the 1380 seller's regular course of business includes books and records the seller keeps in 1381 the regular course of business for nontax purposes. 1382 (g)(i) Except as otherwise provided in this chapter and subject to Subsections 1383 (2)(g)(ii) and (iii), if a transaction consists of the sale, lease, or rental of tangible 1384 personal property, a product, or a service that is subject to taxation under this 1385 chapter, and the sale, lease, or rental of tangible personal property, other property, 1386 a product, or a service that is not subject to taxation under this chapter, the entire - 41 - H.B. 253 01-16 15:32 1387 transaction is subject to taxation under this chapter unless the seller, at the time of 1388 the transaction: 1389 (A) separately states the portion of the transaction that is not subject to taxation 1390 under this chapter on an invoice, bill of sale, or similar document provided to 1391 the purchaser; or 1392 (B) is able to identify by reasonable and verifiable standards, from the books and 1393 records the seller keeps in the seller's regular course of business, the portion of 1394 the transaction that is not subject to taxation under this chapter. 1395 (ii) A purchaser and a seller may correct the taxability of a transaction if: 1396 (A) after the transaction occurs, the purchaser and the seller discover that the 1397 portion of the transaction that is not subject to taxation under this chapter was 1398 not separately stated on an invoice, bill of sale, or similar document provided 1399 to the purchaser because of an error or ignorance of the law; and 1400 (B) the seller is able to identify by reasonable and verifiable standards, from the 1401 books and records the seller keeps in the seller's regular course of business, the 1402 portion of the transaction that is not subject to taxation under this chapter. 1403 (iii) For purposes of Subsections (2)(g)(i) and (ii), books and records that a seller 1404 keeps in the seller's regular course of business includes books and records the 1405 seller keeps in the regular course of business for nontax purposes. 1406 (h)(i) If the sales price of a transaction is attributable to two or more items of 1407 tangible personal property, products, or services that are subject to taxation under 1408 this chapter at different rates, the entire purchase is subject to taxation under this 1409 chapter at the higher tax rate unless the seller, at the time of the transaction: 1410 (A) separately states the items subject to taxation under this chapter at each of the 1411 different rates on an invoice, bill of sale, or similar document provided to the 1412 purchaser; or 1413 (B) is able to identify by reasonable and verifiable standards the tangible personal 1414 property, product, or service that is subject to taxation under this chapter at the 1415 lower tax rate from the books and records the seller keeps in the seller's regular 1416 course of business. 1417 (ii) For purposes of Subsection (2)(h)(i), books and records that a seller keeps in the 1418 seller's regular course of business includes books and records the seller keeps in 1419 the regular course of business for nontax purposes. 1420 (i) Subject to Subsections (2)(j) and (k), a tax rate repeal or tax rate change for a tax rate - 42 - 01-16 15:32 H.B. 253 1421 imposed under the following shall take effect on the first day of a calendar quarter: 1422 (i) Subsection (2)(a)(i)(A); 1423 (ii) Subsection (2)(b)(i); 1424 (iii) Subsection (2)(c)(i); or 1425 (iv) Subsection (2)(f)(i)(A)(I). 1426 (j)(i) A tax rate increase takes effect on the first day of the first billing period that 1427 begins on or after the effective date of the tax rate increase if the billing period for 1428 the transaction begins before the effective date of a tax rate increase imposed 1429 under: 1430 (A) Subsection (2)(a)(i)(A); 1431 (B) Subsection (2)(b)(i); 1432 (C) Subsection (2)(c)(i); or 1433 (D) Subsection (2)(f)(i)(A)(I). 1434 (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing 1435 statement for the billing period is rendered on or after the effective date of the 1436 repeal of the tax or the tax rate decrease imposed under: 1437 (A) Subsection (2)(a)(i)(A); 1438 (B) Subsection (2)(b)(i); 1439 (C) Subsection (2)(c)(i); or 1440 (D) Subsection (2)(f)(i)(A)(I). 1441 (k)(i) For a tax rate described in Subsection (2)(k)(ii), if a tax due on a catalogue sale 1442 is computed on the basis of sales and use tax rates published in the catalogue, a 1443 tax rate repeal or change in a tax rate takes effect: 1444 (A) on the first day of a calendar quarter; and 1445 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate 1446 change. 1447 (ii) Subsection (2)(k)(i) applies to the tax rates described in the following: 1448 (A) Subsection (2)(a)(i)(A); 1449 (B) Subsection (2)(b)(i); 1450 (C) Subsection (2)(c)(i); or 1451 (D) Subsection (2)(f)(i)(A)(I). 1452 (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, 1453 the commission may by rule define the term "catalogue sale." 1454 (l)(i) For a location described in Subsection (2)(l)(ii), the commission shall - 43 - H.B. 253 01-16 15:32 1455 determine the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or 1456 other fuel based on the predominant use of the gas, electricity, heat, coal, fuel oil, 1457 or other fuel at the location. 1458 (ii) Subsection (2)(l)(i) applies to a location where gas, electricity, heat, coal, fuel oil, 1459 or other fuel is furnished through a single meter for two or more of the following 1460 uses: 1461 (A) a commercial use; 1462 (B) an industrial use; or 1463 (C) a residential use. 1464 (3)(a) The following state taxes shall be deposited into the General Fund: 1465 (i) the tax imposed by Subsection (2)(a)(i)(A); 1466 (ii) the tax imposed by Subsection (2)(b)(i); 1467 (iii) the tax imposed by Subsection (2)(c)(i); and 1468 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). 1469 (b) The following local taxes shall be distributed to a county, city, or town as provided 1470 in this chapter: 1471 (i) the tax imposed by Subsection (2)(a)(ii); 1472 (ii) the tax imposed by Subsection (2)(b)(ii); 1473 (iii) the tax imposed by Subsection (2)(c)(ii); and 1474 (iv) the tax imposed by Subsection (2)(f)(i)(B). 1475 (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General Fund. 1476 (4)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 1477 2003, the lesser of the following amounts shall be expended as provided in 1478 Subsections (4)(b) through (g): 1479 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated: 1480 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and 1481 (B) for the fiscal year; or 1482 (ii) $17,500,000. 1483 (b)(i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount 1484 described in Subsection (4)(a) shall be transferred each year as designated sales 1485 and use tax revenue to the Division of Wildlife Resources to: 1486 (A) implement the measures described in Subsections 23A-3-214(3)(a) through 1487 (d) to protect sensitive plant and animal species; or 1488 (B) award grants, up to the amount authorized by the Legislature in an - 44 - 01-16 15:32 H.B. 253 1489 appropriations act, to political subdivisions of the state to implement the 1490 measures described in Subsections 23A-3-214(3)(a) through (d) to protect 1491 sensitive plant and animal species. 1492 (ii) Money transferred to the Division of Wildlife Resources under Subsection 1493 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or 1494 any other person to list or attempt to have listed a species as threatened or 1495 endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et 1496 seq. 1497 (iii) At the end of each fiscal year: 1498 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to 1499 the Water Resources Conservation and Development Fund created in Section 1500 73-10-24; 1501 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the 1502 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and 1503 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the 1504 Drinking Water Loan Program Subaccount created in Section 73-10c-5. 1505 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in 1506 Subsection (4)(a) shall be [deposited each year in the Agriculture Resource 1507 Development Fund created in Section 4-18-106] transferred each year as designated 1508 sales and use tax revenue to the Division of Conservation created in Section 4-46-401 1509 to implement water related programs. 1510 (d)(i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount 1511 described in Subsection (4)(a) shall be transferred each year as designated sales 1512 and use tax revenue to the Division of Water Rights to cover the costs incurred in 1513 hiring legal and technical staff for the adjudication of water rights. 1514 (ii) At the end of each fiscal year: 1515 (A) 50% of any unexpended designated sales and use tax revenue shall lapse to 1516 the Water Resources Conservation and Development Fund created in Section 1517 73-10-24; 1518 (B) 25% of any unexpended designated sales and use tax revenue shall lapse to the 1519 Utah Wastewater Loan Program Subaccount created in Section 73-10c-5; and 1520 (C) 25% of any unexpended designated sales and use tax revenue shall lapse to the 1521 Drinking Water Loan Program Subaccount created in Section 73-10c-5. 1522 (e)(i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount - 45 - H.B. 253 01-16 15:32 1523 described in Subsection (4)(a) shall be deposited into the Water Resources 1524 Conservation and Development Fund created in Section 73-10-24 for use by the 1525 Division of Water Resources. 1526 (ii) In addition to the uses allowed of the Water Resources Conservation and 1527 Development Fund under Section 73-10-24, the Water Resources Conservation 1528 and Development Fund may also be used to: 1529 (A) conduct hydrologic and geotechnical investigations by the Division of Water 1530 Resources in a cooperative effort with other state, federal, or local entities, for 1531 the purpose of quantifying surface and ground water resources and describing 1532 the hydrologic systems of an area in sufficient detail so as to enable local and 1533 state resource managers to plan for and accommodate growth in water use 1534 without jeopardizing the resource; 1535 (B) fund state required dam safety improvements; and 1536 (C) protect the state's interest in interstate water compact allocations, including the 1537 hiring of technical and legal staff. 1538 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in 1539 Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program 1540 Subaccount created in Section 73-10c-5 for use by the Water Quality Board to fund 1541 wastewater projects. 1542 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described 1543 in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program 1544 Subaccount created in Section 73-10c-5 for use by the Division of Drinking Water to: 1545 (i) provide for the installation and repair of collection, treatment, storage, and 1546 distribution facilities for any public water system, as defined in Section 19-4-102; 1547 (ii) develop underground sources of water, including springs and wells; and 1548 (iii) develop surface water sources. 1549 (5)(a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1, 1550 2006, the difference between the following amounts shall be expended as provided in 1551 this Subsection (5), if that difference is greater than $1: 1552 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for 1553 the fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); 1554 and 1555 (ii) $17,500,000. 1556 (b)(i) The first $500,000 of the difference described in Subsection (5)(a) shall be: - 46 - 01-16 15:32 H.B. 253 1557 (A) transferred each fiscal year to the Department of Natural Resources as 1558 designated sales and use tax revenue; and 1559 (B) expended by the Department of Natural Resources for watershed rehabilitation 1560 or restoration. 1561 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use 1562 tax revenue described in Subsection (5)(b)(i) shall lapse to the Water Resources 1563 Conservation and Development Fund created in Section 73-10-24. 1564 (c)(i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the 1565 remaining difference described in Subsection (5)(a) shall be: 1566 (A) transferred each fiscal year to the Division of Water Resources as designated 1567 sales and use tax revenue; and 1568 (B) expended by the Division of Water Resources for cloud-seeding projects 1569 authorized by Title 73, Chapter 15, Modification of Weather. 1570 (ii) At the end of each fiscal year, 100% of any unexpended designated sales and use 1571 tax revenue described in Subsection (5)(c)(i) shall lapse to the Water Resources 1572 Conservation and Development Fund created in Section 73-10-24. 1573 (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the 1574 remaining difference described in Subsection (5)(a) shall be deposited into the Water 1575 Resources Conservation and Development Fund created in Section 73-10-24 for use 1576 by the Division of Water Resources for: 1577 (i) preconstruction costs: 1578 (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, 1579 Chapter 26, Bear River Development Act; and 1580 (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project 1581 authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; 1582 (ii) the cost of employing a civil engineer to oversee any project authorized by Title 1583 73, Chapter 26, Bear River Development Act; 1584 (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline 1585 project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development 1586 Act; and 1587 (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and 1588 Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) 1589 through (iii). 1590 (e) After making the transfers required by Subsections (5)(b) and (c), 15% of the - 47 - H.B. 253 01-16 15:32 1591 remaining difference described in Subsection (5)(a) shall be deposited each year into 1592 the Water Rights Restricted Account created by Section 73-2-1.6. 1593 (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), each 1594 fiscal year, the commission shall deposit into the Water Infrastructure Restricted 1595 Account created in Section 73-10g-103 the amount of revenue generated by a 1/16% tax 1596 rate on the transactions described in Subsection (1) for the fiscal year. 1597 (7)(a) Notwithstanding Subsection (3)(a) and subject to Subsections (7)(b), (c), and (d), 1598 for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into 1599 the Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of 1600 the taxes listed under Subsection (3)(a) equal to 17% of the revenue collected from 1601 the following sales and use taxes: 1602 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; 1603 (ii) the tax imposed by Subsection (2)(b)(i); 1604 (iii) the tax imposed by Subsection (2)(c)(i); and 1605 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). 1606 (b)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall 1607 annually reduce the deposit under Subsection (7)(a) into the Transportation 1608 Investment Fund of 2005 by an amount equal to .44% of the revenue collected 1609 from the following sales and use taxes: 1610 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; 1611 (B) the tax imposed by Subsection (2)(b)(i); 1612 (C) the tax imposed by Subsection (2)(c)(i); and 1613 (D) the tax imposed by Subsection (2)(f)(i)(A)(I). 1614 (ii) The commission shall annually deposit the amount described in Subsection 1615 (7)(b)(i) into the Cottonwood Canyons Transportation Investment Fund created in 1616 Section 72-2-124. 1617 (c)(i) Subject to Subsection (7)(c)(ii), for a fiscal year beginning on or after July 1, 1618 2023, the commission shall annually reduce the deposit into the Transportation 1619 Investment Fund of 2005 under Subsections (7)(a) and (7)(b) by an amount that is 1620 equal to 5% of: 1621 (A) the amount of revenue generated in the current fiscal year by the portion of 1622 taxes listed under Subsection (3)(a) that equals 20.68% of the revenue 1623 collected from taxes described in Subsections (7)(a)(i) through (iv); 1624 (B) the amount of revenue generated in the current fiscal year by registration fees - 48 - 01-16 15:32 H.B. 253 1625 designated under Section 41-1a-1201 to be deposited into the Transportation 1626 Investment Fund of 2005; and 1627 (C) revenue transferred by the Division of Finance to the Transportation 1628 Investment Fund of 2005 in accordance with Section 72-2-106 in the current 1629 fiscal year. 1630 (ii) The amount described in Subsection (7)(c)(i) may not exceed $45,000,000 in a 1631 given fiscal year. 1632 (iii) The commission shall annually deposit the amount described in Subsection 1633 (7)(c)(i) into the Active Transportation Investment Fund created in Subsection 1634 72-2-124(11). 1635 (d)(i) For a fiscal year beginning on or after July 1, 2024, the commission shall 1636 annually reduce the deposit into the Transportation Investment Fund of 2005 1637 under this Subsection (7) by an amount that is equal to 1% of the revenue 1638 collected from the following sales and use taxes: 1639 (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; 1640 (B) the tax imposed by Subsection (2)(b)(i); 1641 (C) the tax imposed by Subsection (2)(c)(i); and 1642 (D) the tax imposed by Subsection (2)(f)(i)(A)(I). 1643 (ii) The commission shall annually deposit the amount described in Subsection 1644 (7)(d)(i) into the Commuter Rail Subaccount created in Section 72-2-124. 1645 (8)(a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under 1646 Subsection (7), and subject to Subsections (8)(b)[ and (d)(ii)], for a fiscal year 1647 beginning on or after July 1, 2018, the commission shall annually deposit into the 1648 Transportation Investment Fund of 2005 created by Section 72-2-124 a portion of the 1649 taxes listed under Subsection (3)(a) in an amount equal to 3.68% of the revenue 1650 collected from the following taxes: 1651 (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; 1652 (ii) the tax imposed by Subsection (2)(b)(i); 1653 (iii) the tax imposed by Subsection (2)(c)(i); and 1654 (iv) the tax imposed by Subsection (2)(f)(i)(A)(I). 1655 (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually 1656 reduce the deposit into the Transportation Investment Fund of 2005 under Subsection 1657 (8)(a) by an amount that is equal to 35% of the amount of revenue generated in the 1658 current fiscal year by the portion of the tax imposed on motor and special fuel that is - 49 - H.B. 253 01-16 15:32 1659 sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon. 1660 (c) The commission shall annually deposit the amount described in Subsection (8)(b) 1661 into the Transit Transportation Investment Fund created in Section 72-2-124. 1662 (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 1663 2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies 1664 Fund created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009. 1665 (10) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the fiscal 1666 year during which the commission receives notice under Section 63N-2-510 that 1667 construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the 1668 commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the 1669 revenue generated by the taxes listed under Subsection (3)(a) into the Hotel Impact 1670 Mitigation Fund, created in Section 63N-2-512. 1671 (11)(a) The rate specified in this subsection is 0.15%. 1672 (b) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning 1673 on or after July 1, 2019, annually transfer the amount of revenue collected from the 1674 rate described in Subsection (11)(a) on the transactions that are subject to the sales 1675 and use tax under Subsection (2)(a)(i)(A) into the Medicaid ACA Fund created in 1676 Section 26B-1-315. 1677 (12) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year 1678 2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated 1679 credit solely for use of the Search and Rescue Financial Assistance Program created in, 1680 and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act. 1681 (13)(a) For each fiscal year beginning with fiscal year 2020-21, the commission shall 1682 annually transfer $1,813,400 of the revenue deposited into the Transportation 1683 Investment Fund of 2005 under Subsections (7) and (8) to the General Fund. 1684 (b) If the total revenue deposited into the Transportation Investment Fund of 2005 under 1685 Subsections (7) and (8) is less than $1,813,400 for a fiscal year, the commission shall 1686 transfer the total revenue deposited into the Transportation Investment Fund of 2005 1687 under Subsections (7) and (8) during the fiscal year to the General Fund. 1688 (14) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610, beginning 1689 the first day of the calendar quarter one year after the sales and use tax boundary for a 1690 housing and transit reinvestment zone is established, the commission, at least annually, 1691 shall transfer an amount equal to 15% of the sales and use tax increment within an 1692 established sales and use tax boundary, as defined in Section 63N-3-602, into the Transit - 50 - 01-16 15:32 H.B. 253 1693 Transportation Investment Fund created in Section 72-2-124. 1694 (15) Notwithstanding Subsection (3)(a), the commission shall, for a fiscal year beginning 1695 on or after July 1, 2022, transfer into the Outdoor Adventure Infrastructure Restricted 1696 Account, created in Section 51-9-902, a portion of the taxes listed under Subsection 1697 (3)(a) equal to 1% of the revenue collected from the following sales and use taxes: 1698 (a) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate; 1699 (b) the tax imposed by Subsection (2)(b)(i); 1700 (c) the tax imposed by Subsection (2)(c)(i); and 1701 (d) the tax imposed by Subsection (2)(f)(i)(A)(I). 1702 (16) Notwithstanding Subsection (3)(a), beginning October 1, 2024 the commission shall 1703 transfer to the Utah Fairpark Area Investment and Restoration District, created in 1704 Section 11-70-201, the revenue from the sales and use tax imposed by Subsection 1705 (2)(a)(i)(A) at a 4.7% rate, on transactions occurring within the district sales tax area, as 1706 defined in Section 11-70-101. 1707 (17)(a) As used in this Subsection (17): 1708 (i) "Additional land" means point of the mountain state land described in Subsection 1709 11-59-102(6)(b) that the point of the mountain authority acquires after the point of 1710 the mountain authority provides the commission a map under Subsection (17)(c). 1711 (ii) "Point of the mountain authority" means the Point of the Mountain State Land 1712 Authority, created in Section 11-59-201. 1713 (iii) "Point of the mountain state land" means the same as that term is defined in 1714 Section 11-59-102. 1715 (b) Notwithstanding Subsection (3)(a), the commission shall distribute to the point of the 1716 mountain authority 50% of the revenue from the sales and use tax imposed by 1717 Subsection (2)(a)(i)(A) at a 4.7% rate, on transactions occurring on the point of the 1718 mountain state land. 1719 (c) The distribution under Subsection (17)(b) shall begin the next calendar quarter that 1720 begins at least 90 days after the point of the mountain authority provides the 1721 commission a map that: 1722 (i) accurately describes the point of the mountain state land; and 1723 (ii) the point of the mountain authority certifies as accurate. 1724 (d) A distribution under Subsection (17)(b) with respect to additional land shall begin 1725 the next calendar quarter that begins at least 90 days after the point of the mountain 1726 authority provides the commission a map of point of the mountain state land that: - 51 - H.B. 253 01-16 15:32 1727 (i) accurately describes the point of the mountain state land, including the additional 1728 land; and 1729 (ii) the point of the mountain authority certifies as accurate. 1730 (e)(i) Upon the payment in full of bonds secured by the sales and use tax revenue 1731 distributed to the point of the mountain authority under Subsection (17)(b), the 1732 point of the mountain authority shall immediately notify the commission in 1733 writing that the bonds are paid in full. 1734 (ii) The commission shall discontinue distributions of sales and use tax revenue under 1735 Subsection (17)(b) at the beginning of the calendar quarter that begins at least 90 1736 days after the date that the commission receives the written notice under 1737 Subsection (17)(e)(i). 1738 Section 33. Section 63J-1-602.2 is amended to read: 1739 63J-1-602.2 . List of nonlapsing appropriations to programs. 1740 Appropriations made to the following programs are nonlapsing: 1741 (1) The Legislature and the Legislature's committees. 1742 (2) The State Board of Education, including all appropriations to agencies, line items, and 1743 programs under the jurisdiction of the State Board of Education, in accordance with 1744 Section 53F-9-103. 1745 (3) The Rangeland Improvement Act created in Section 4-20-101. 1746 (4) The Percent-for-Art Program created in Section 9-6-404. 1747 (5) The LeRay McAllister Working Farm and Ranch Fund Program created in [Section 1748 4-46-301] Title 4, Chapter 46, Part 3, LeRay McAllister Working Farm and Ranch Fund 1749 Program. 1750 (6) The Utah Lake Authority created in Section 11-65-201. 1751 (7) Dedicated credits accrued to the Utah Marriage Commission as provided under 1752 Subsection 17-16-21(2)(d)(ii). 1753 (8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205. 1754 (9) Sanctions collected as dedicated credits from Medicaid providers under Subsection 1755 26B-3-108(7). 1756 (10) The primary care grant program created in Section 26B-4-310. 1757 (11) The Opiate Overdose Outreach Pilot Program created in Section 26B-4-512. 1758 (12) The Utah Health Care Workforce Financial Assistance Program created in Section 1759 26B-4-702. 1760 (13) The Rural Physician Loan Repayment Program created in Section 26B-4-703. - 52 - 01-16 15:32 H.B. 253 1761 (14) The Utah Medical Education Council for the: 1762 (a) administration of the Utah Medical Education Program created in Section 26B-4-707; 1763 (b) provision of medical residency grants described in Section 26B-4-711; and 1764 (c) provision of the forensic psychiatric fellowship grant described in Section 26B-4-712. 1765 (15) The Division of Services for People with Disabilities, as provided in Section 26B-6-402. 1766 (16) The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program 1767 created in Section 26B-7-122. 1768 (17) Funds that the Department of Alcoholic Beverage Services retains in accordance with 1769 Subsection 32B-2-301(8)(a) or (b). 1770 (18) The General Assistance program administered by the Department of Workforce 1771 Services, as provided in Section 35A-3-401. 1772 (19) The Utah National Guard, created in Title 39A, National Guard and Militia Act. 1773 (20) The Search and Rescue Financial Assistance Program, as provided in Section 1774 53-2a-1102. 1775 (21) The Emergency Medical Services Grant Program in Section 53-2d-207. 1776 (22) The Motorcycle Rider Education Program, as provided in Section 53-3-905. 1777 (23) The Utah Board of Higher Education for teacher preparation programs, as provided in 1778 Section 53B-6-104. 1779 (24) Innovation grants under Section 53G-10-608, except as provided in Subsection 1780 53G-10-608(6). 1781 (25) The Division of Fleet Operations for the purpose of upgrading underground storage 1782 tanks under Section 63A-9-401. 1783 (26) The Division of Technology Services for technology innovation as provided under 1784 Section 63A-16-903. 1785 (27) The State Capitol Preservation Board created by Section 63O-2-201. 1786 (28) The Office of Administrative Rules for publishing, as provided in Section 63G-3-402. 1787 (29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14, Colorado 1788 River Authority of Utah Act. 1789 (30) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as 1790 provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act. 1791 (31) The Governor's Office of Economic Opportunity's Rural Employment Expansion 1792 Program, as described in Title 63N, Chapter 4, Part 4, Rural Employment Expansion 1793 Program. 1794 (32) County correctional facility contracting program for state inmates as described in - 53 - H.B. 253 01-16 15:32 1795 Section 64-13e-103. 1796 (33) County correctional facility reimbursement program for state probationary inmates and 1797 state parole inmates as described in Section 64-13e-104. 1798 (34) Programs for the Jordan River Recreation Area as described in Section 65A-2-8. 1799 (35) The Division of Human Resource Management user training program, as provided in 1800 Section 63A-17-106. 1801 (36) A public safety answering point's emergency telecommunications service fund, as 1802 provided in Section 69-2-301. 1803 (37) The Traffic Noise Abatement Program created in Section 72-6-112. 1804 (38) The money appropriated from the Navajo Water Rights Negotiation Account to the 1805 Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a 1806 settlement of federal reserved water right claims. 1807 (39) The Judicial Council for compensation for special prosecutors, as provided in Section 1808 77-10a-19. 1809 (40) A state rehabilitative employment program, as provided in Section 78A-6-210. 1810 (41) The Utah Geological Survey, as provided in Section 79-3-401. 1811 (42) The Bonneville Shoreline Trail Program created under Section 79-5-503. 1812 (43) Adoption document access as provided in Sections 78B-6-141, 78B-6-144, and 1813 78B-6-144.5. 1814 (44) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense 1815 Commission. 1816 (45) The program established by the Division of Facilities Construction and Management 1817 under Section 63A-5b-703 under which state agencies receive an appropriation and pay 1818 lease payments for the use and occupancy of buildings owned by the Division of 1819 Facilities Construction and Management. 1820 (46) The State Tax Commission for reimbursing counties for deferrals in accordance with 1821 Section 59-2-1802.5. 1822 (47) The Veterinarian Education Loan Repayment Program created in Section 4-2-902. 1823 Section 34. Section 73-10g-205 is amended to read: 1824 73-10g-205 . Agricultural Water Optimization Committee. 1825 (1) There is created in the department a committee known as the "Agricultural Water 1826 Optimization Committee" that consists of: 1827 (a) the commissioner of the department, or the commissioner's designee; 1828 (b) the director of the division, or the director's designee; - 54 - 01-16 15:32 H.B. 253 1829 (c) the director of the Division of Water Rights, or the director's designee; 1830 (d) the dean of the College of Agriculture and Applied Science from Utah State 1831 University, or the dean's designee; 1832 (e) one individual representing local conservation districts created by Title 17D, Chapter 1833 3, Conservation District Act, appointed by the executive director of the Department 1834 of Natural Resources; 1835 (f) one individual representing water conservancy districts, appointed by the executive 1836 director of the Department of Natural Resources; and 1837 (g) three Utah residents representing the interests of the agriculture industry appointed 1838 by the executive director of the Department of Natural Resources. 1839 (2)(a) An individual appointed under Subsection (1) shall serve for a term of four years. 1840 (b) Notwithstanding the requirements of Subsection (2)(a), the executive director of the 1841 Department of Natural Resources shall, at the time of appointment or reappointment, 1842 adjust the length of terms to ensure that the terms of appointed members are 1843 staggered so that approximately half of the appointed members are appointed every 1844 two years. 1845 (3)(a) The presence of five members constitutes a quorum. 1846 (b) The vote of five members constitutes the transaction of business by the committee. 1847 (c) The committee shall select one of the committee's members to be chair. The 1848 committee may select a member to be vice chair to act in place of the chair: 1849 (i) during the absence or disability of the chair; or 1850 (ii) as requested by the chair. 1851 (d) The committee shall convene at the times and places prescribed by the chair. 1852 (4) A member may not receive compensation or benefits for the member's service, but may 1853 receive per diem and travel expenses in accordance with: 1854 (a) Section 63A-3-106; 1855 (b) Section 63A-3-107; and 1856 (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and 1857 63A-3-107. 1858 (5) The department shall provide administrative support to the committee. 1859 (6) The committee shall make rules, in accordance with Title 63G, Chapter 3, Utah 1860 Administrative Rulemaking Act, establishing: 1861 (a) eligibility requirements for a grant issued under Section 73-10g-206, except that the 1862 eligibility requirements shall: - 55 - H.B. 253 01-16 15:32 1863 (i) require at least a match for grant money of 50% of the total costs, except that for a 1864 grant application filed on or after January 1, 2024, the eligibility requirements 1865 shall require at least a match of 25% of the total costs for: 1866 (A) a subsurface drip [or automated surge ]irrigation project; 1867 (B) an automated surge irrigation project; or 1868 (C) a measurement, telemetry, or reporting project; 1869 (ii) consider the statewide need to distribute grant money; 1870 (iii) require a grant recipient to construct or install and maintain one or more 1871 measuring devices as necessary to comply with Section 73-5-4 and rules adopted 1872 by the Division of Water Rights regarding installation, use, and maintenance of 1873 devices to measure water use and to demonstrate water use in accordance with a 1874 project funded by a grant; and 1875 (iv) require a grant recipient to report water diversion and use measurements to the 1876 state engineer pursuant to Section 73-5-4 and rules made by the state engineer, in 1877 accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for 1878 water measurement and reporting; 1879 (b) the process for applying for a grant issued under Section 73-10g-206; and 1880 (c) preliminary screening criteria to be used by the department under Subsection 1881 73-10g-206(2)(d). 1882 (7) The committee shall, in coordination with the division: 1883 (a) as of July 1, 2023, assume oversight of all remaining research and contracts of the 1884 previous Agricultural Water Optimization Task Force activities; 1885 (b) post research to address and account for farm economics at the enterprise and 1886 community level that affects agricultural water optimization and encourage market 1887 behavior that financially rewards agricultural water optimization practices; 1888 (c) oversee research to identify obstacles to and constraints upon optimization of 1889 agricultural water use, and to recommend management tools, technologies, and other 1890 opportunities to optimize agricultural water use as measured at the basin level; and 1891 (d) facilitate benefits for farmers who optimize water use and protect water quality. 1892 (8) The committee shall comply with Section 73-10g-206 related to grants issued under this 1893 part. 1894 Section 35. Repealer. 1895 This bill repeals: 1896 Section 4-13-101, Title. - 56 - 01-16 15:32 H.B. 253 1897 Section 4-18-107, Utah Agriculture Certificate of Environmental Stewardship Program. 1898 Section 19-5-105.6, Agriculture Certificate of Environmental Stewardship. 1899 Section 36. Effective Date. 1900 This bill takes effect on May 7, 2025. - 57 -